NFC Chip Market Research Report and Outlook by 2028

The NFC chip industry is projected to grow significantly, reaching a value of US$ 17,827.0 million by 2028, up from US$ 8,714.4 million in 2021, with an anticipated compound annual growth rate (CAGR) of 6.7% during the period from 2021 to 2028.

This market is categorized into several regions, including North America, Europe, Asia Pacific (APAC), the Middle East and Africa, and South and Central America. NFC chips facilitate data sharing between devices such as smartphones and laptops that are equipped with NFC technology. They are integral to contactless payment systems, including credit cards and smart e-ticketing solutions, which utilize NFC devices to enable mobile transactions, often referred to as NFC/CTLS (contactless) or CTLS NFC devices.

Key sectors utilizing NFC technology include automotive, air travel, public transport, retail, and healthcare. To maintain a competitive advantage in the current landscape, stakeholders in the NFC chip market are actively seeking partnerships with other industry players. The rise of special interest groups (SIGs) has further accelerated the development of innovative, future-proof solutions leveraging NFC technology. Additionally, the increasing demand for NFC chips in payment systems is propelling the global NFC chip market forward. The global market for near-field communication (NFC) tags is expanding, driven by the growing adoption of smartphones, the rising popularity of wearable devices, and a shift towards enhancing consumer experiences. However, challenges such as limited operational range and security issues have hindered market growth. Conversely, advancements in NFC technology are expected to open up new opportunities for expansion.

The NFC chip market is divided based on type, storage capacity, end-user, and geographical location. In terms of type, the market is classified into active and passive NFC chips. Regarding storage capacity, it includes segments of 64 bytes, 168 bytes, 180 bytes, and 540 bytes. The end-user segmentation encompasses consumer electronics, automotive, retail, healthcare, and other sectors.

NFC technology was first introduced to smartphones in September 2011 and has since become widely integrated into various mobile devices, including those running on Android and iOS platforms. An NFC-enabled smartphone utilizes an NFC controller chip connected to an NFC antenna. The United States represents one of the largest markets for smartphones, with penetration rates rising from approximately 81.6% in 2020 to 82.2% in 2021. In addition to smartphones, consumer electronics such as televisions, speakers, refrigerators, cameras, and washing machines are increasingly incorporating NFC chips to facilitate contactless data transfer. In 2021, retail sales of consumer electronics in the US reached around US$ 440 billion. In Mexico, smartphone penetration increased from about 54.4% in 2020 to 57.4% in 2021. Canada is recognized for its high connectivity in mobile communications, boasting around 33 million mobile subscribers in 2019. Furthermore, NFC chips are extensively utilized at security checkpoints in various airports. Notable US airports, including John F. Kennedy International Airport, Orlando International Airport, LaGuardia Airport, and Newark Liberty International Airport, are among the ten airports in the US undergoing significant expansions. Consequently, the increasing adoption of smartphones, the growing demand for smart consumer electronics, and heightened investments in the aviation sector are driving the need for NFC chips in North America.

Key players in the global NFC chip market include AMS AG, Broadcom Inc., Identiv, Inc., Toshiba Corporation, Intel Corporation, NXP Semiconductors, Samsung Electronics Co., Ltd., Qualcomm Technologies, Inc., STMicroelectronics, and Texas Instruments Incorporated.