NFC Chips as a Solution: Market Players Open for R&D Investments

1
NFC Chips as a Solution Market Players Open for
RD Investments From information transfer to
contactless payments to security, NFC chips have
emerged as an ideal authentication and data
protection solution. The near field
communication chips market has witnessed
significant expansion over the years, owing to
innovative applications of NFC technology across
industries.
Considering the rising application of NFC chips,
numerous companies are embedding them in
consumer electronics, especially smartphones.
For instance, Google Nexus and HTC mobile
include NFC chips that ensure data security with
the help of encryption. Additionally, the
COVID-19 outbreak led to a surge in smartphone
penetration, resulting in high volume sales of
around 2.2 billion NFC-enabled smartphones in
2020. Estimates indicate that NFC tags are
estimated to prove beneficial in various
applications, including TV, Wi-Fi router, and
fridge, given the rising trend of contactless
operations. Triton Market Research estimates
that the global near field communication
(NFC) chips market will advance with a CAGR
of 12.99, reaping revenue worth 7.47
billion by 2028. Market Expansion by
Application Application plays a major role in
influencing buyers behavioral patterns. Over the
years, the use of NFC chips has evolved, ranging
from contactless payments to advanced logistics
to consumer engagement. In this regard,
the end-users, especially automotive,
consumer electronics, and retail sectors, compare
various chips as per their application range and
cost. This has led companies to invest
heavily in RD to expand their footings.
For instance, Broadcom Corporation launched an
NFC chip into the automotive product line to
effectively
connect mobile devices to vehicle infotainment
systems.
2

• Major application areas that widen the scope of
  the NFC chips market
• Smartphones capture a significant share in
  the near field communication chips market.
  Technological advancements and RD
  activities in NFC chip-enabled devices have
  contributed to the smartphone segment growth. The
  NFC chips are used to ensure secure and
  short-distance communication. As a result,
  several prominent players are expanding
  their product line with NFC chips. For
  instance, NXP Semiconductors launched a
  single-die chipset that features NFC
  technology for smartphones as well as IoT
  devices, tablets, and laptops.
• Another company, Thinfilm Electronics ASA, raised
  over 110 million to boost NFC technology in
  consumer electronics, such as smartphones
  and other devices. This indicates the
  consumer electronics sector to secure a
  major share in the vertical segment.
• Near field communication chips have emerged as a
  vital addition to medical devices and equipment,
  owing to their ability to swiftly and efficiently
  transfer health data. The market scope has
  grown with NFC chips embedded in weight
  scales, blood pressure monitors, and glucose
  meters. Moreover, the NFC tags implementation as
  electronic health records to store patients
  medical history, prescriptions, and real-
  time data has created a profitable market for NFC
  chips in the medical vertical.
• The Automated Assemble Corporation, for
  instance, launched technologically- advanced
  NFC tags to store crucial patient data,
  helping medical staff to update treatment
  records regularly while creating automated time
  stamps for patients.
• While near field technology has secured a higher
  share in the consumer electronics and medical
  segment, its adoption in logistics and aviation
  is expected to widen the markets scope over the
  forecast period. In this regard, NFC tags and
  RFID chips are integrated into goods to
  prevent thefts during transportation,
  identification, and tracking. The smart
  ticketing application has also driven NFC chips
  adoption rate for seamless transportation. For
  example, Go North East invested
  approximately 2.28 million to influence NFC
  chips adoption for contactless ticketing
  services.
• Regional Market Analysis Growth Position
• China and India are estimated to emerge as the
  fastest evolving countries in the Asia-Pacific
  near field communication chips market.
  This robust growth is on account of
  rising government programs for digital
  transactions. As per the World Economic
  Forum, the Chinese government launched the
  Green Finance Project to promote cashless
  technologies like NFC technology. The Indian
  government, on the other hand, introduced PSUs
  that offer a 0.75 discount on fuel sale prices
  over digital payments. Such incentives have
  increased the NFC chips adoption rate in these
  nations in the wake of the contactless payment
  trend.
• To further promote cashless transactions in the
  retail segment, public sector banks offer POS
  terminals to attract small merchants to
  the digital payment ecosystem. As a
  result, approximately 6.5 lakh machines have been
  issued to traders recently, contributing heavily
  to

the Indian NFC chips markets growth.
3
Within North America, the conjoint efforts
of private organizations to promote cashless
transactions, in addition to soaring
smartphone sales, have created a beneficial
market for NFC chips manufacturers. Moreover,
the penetration of NFC-enabled mobile
payment applications such as Amazon, Visa
Paywave, and Paypal has propelled the near
field communication chips markets progression
across the US and Canada. Our estimates indicate
that the North American near field
communication chips market to witness a CAGR
of 13.18 during the forecast period
2022-2028. Future Projections NFC chips have
emerged as a new archetype in the wireless
communication technology segment, providing
versatility in terms of security and data
transfer. This has increased RD activities
across various start-ups aiming to expand
footings in the market. These investments are
expected to widen NFC technologys scope for
real-time reservation tracking and banking
updates. As per OBRC estimates, around 100
start-ups have established operations in the
field of near field communication, with many
expanding research capabilities. Hence, observing
a high number of start-ups indicates that
the global NFC chips market will enlarge
over the forecast period. Frequently Ask
Questions Q 1) What are the uses of NFC
chips? A From information transfer to
contactless payments to security, NFC chips have
emerged as an ideal solution for
authentication and data protection. NFC
chips are widely used in contactless payment
systems, allowing mobile and card payments. Q 2)
Which companies manufacture NFC chips? A
Samsung Semiconductor Inc, Broadcom
Corporation, Marvell Technology Group Ltd, EM
Microelectronic Marin SA, Inside Secure SA,
Mediatek Inc, Murata Manufacturing Co Ltd, NXP
Semiconductors NV, MStar Semiconductor
Inc, Stmicroelectronics NV, Qualcomm Inc,
Renesas Electronics Corporation, Sony
Corporation, Texas Instruments Inc, and Toshiba
Corporation are leading companies manufacturing
NFC chips.