Near Field Communication Market Size

Near Field Communication Market Analysis

The near field communication market is expected to register a CAGR of 17% during the period of 2020-2025. The near field communication (NFC) market is expected to increase due to the number of smartphones that are increasing gradually year by year and rising growth of the home healthcare and remote patient monitoring equipment. Moreover, increasing acceptance of contactless payments and authentication is further driving the market growth.

• With very little knowledge about the underlying technology, the end-users of NFC can use the technology. The communication initiates automatically by simply bringing two devices or a device and a tag, respectively, physically together. Therefore, NFC is well suited for mobile payment and ticketing scenarios.
• The Peer-to-Peer mode offered by NFC can not only be used for seamless money transfer between persons, but also for exchanging other forms of data. The Android OS provides a feature called Android Beam. Android developers can implement this option to transfer videos, pictures, websites, or other data by simply holding two appropriate phones together.
• Moreover, one of NFC's significant advantages is that the technology is compatible with existing RFID infrastructure, contactless smart cards, and RFID tags. Also, there is no more strict distinction between reader and transponder in the NFC technology in contrast to conventional RFID systems.
• The near field communication can be extremely beneficial in the modern era of technology. The mobile industry will contribute USD 4.8 trillion to world GDP in 2023, according to GSMA. As per Ericsson, this growth will be spurred, in part, by seven billion smartphone subscriptions by 2022 with NFC as a key enabler because it provides consumers the necessary ease of use and convenience, making it a useful, universal technology.
• NFC-assisted mobile health monitoring, which applies to the prevailing mobile communication methods and cloud, to provide feedback decision support, has been considered a revolutionary approach to improving the quality of healthcare service while lowering healthcare costs. Mobile handset manufacturing companies are increasingly integrating NFC hardware in their phones, by which it is gaining traction in the field of medical devices and electronic health records.
• However, due to COVID-19, digital payments surged and has become a necessity. Payment companies saw a new record of new sign-ups and increased volumes on online channels as the pandemic disrupted traditional payment methods. These instances are likely to fuel market growth.