Consumer Preference for Contactless Payments & Automated Ticketing Supported by Speed & Convenience Benefits Drives Demand for NFC Enabled Phones

Rapidly rising penetration of mobile phones, increasing integration of NFC technology in consumer electronic devices, and rising prominence of NFC technology for applications such as contactless payments and automated ticketing are poised to drive global sales of Near Field Communication (NFC) Enabled Phones to reach 2.7 billion units by 2024.

A standards-based wireless communication system that evolved from RFID technology, Near Field Communications (NFC) uses a reader/writer/tag for establishing simple and safe short range communications between enabled electronic devices. NFC has evolved as one of the most intuitive technologies enabling seamless interactions between wireless networking platforms. The technology’s ability to facilitate secure and fast contactless transactions, gain access to digital content through a tap or a wave at contactless card readers, and facilitating easy connectivity to electronic devices are contributing to the increasing popularity of NFC technology among consumers and businesses alike. The numerous functionalities of the technology are leading to its growing integration in a range of devices including smartphones. For service industries, NFC-enabled mobile devices play a vital role in reducing queuing time, enhancing convenience of payments, and gaining insights into customers’ purchasing habits, thus enabling them to deliver better service.

A key factor driving the usage of NFC in mobile devices is easy device pairing for hassle free sharing of information and for performing tasks such as mobile payments, automated ticketing, e-commerce services, and peer-to-peer data transfers. Another factor driving NFC adoption is its ability to enable mobile phones to be transformed into access control devices replacing identity documents such as Smart ID cards for building access control. Introduction of new Internet enabled mobile phones, emergence of high-speed mobile Internet, introduction of new applications and services based on NFC, and robust demand from developing markets such as China and India will continue to add impetus to NFC integration in mobile devices.

Rapid proliferation of smartphones with high memory capacity and Wi-Fi capabilities is driving increased consumption and storage of digital content, sharing of which with other devices is driving need for NFC. When integrated into smartphones, NFC enables pairing of devices and initiates Bluetooth connectivity between two devices in a simple step, thus allowing users to easily exchange stored content between their devices. Growing need to enhance social media interactions on mobile phones is also increasingly driving NFC integration in mobile phones. Growing integration of NFC technology in consumer electronic devices, such as DVD players, refrigerators, televisions and cameras as well as automated vacuum cleaners, is also driving the adoption of NFC-enabled handsets for establishing connection with these devices. The increasing availability of NFC-related apps specifically in Apple’s App Store and Android’s Google Play store is also leading to high demand for NFC-enabled phones.

As stated by the new market research report on Near Field Communication Enabled Handsets, Asia-Pacific represents the largest regional market, worldwide. With the largest share in terms of sales of mobile phones and the number of mobile phone subscribers, Asia-Pacific is regarded one of the most lucrative markets for NFC-enabled handsets. Growth in the Asia-Pacific market for NFC phones is also driven by increasing government support for digital payments and transactions and the rising popularity of contactless payments. The presence of a number of leading smartphone makers and the expansive retail industry are factors fueling growth in the region’s NFC-enabled smartphones market. The huge mobile phone manufacturing sector in China, Korea and other countries also makes Asia-Pacific a strong regional market for NFC controller chips and security elements. Latin America is forecast to register the fastest CAGR of 24.2% over the analysis period. Huge population, encouraging economic growth, rising disposable incomes, rising ownership of advanced mobile devices, growing mobile Internet subscriptions, and subsequent rise in demand for a range of services, such as payments, and ticketing, among others over mobile phones, presents Latin America as a high potential market for NFC handsets.

Major players in the market include Blackberry Limited, HTC Corporation, Huawei Technologies Co. Ltd., Lenovo, LG Electronics, Nokia Corporation, Samsung Electronics Co. Ltd., Sony Mobile Communications Inc., ZTE Corporation, Broadcom Corp., Infineon Technologies AG, NXP Semiconductors NV, and STMicroelectronics NV, among others.

The research report titled “Near Field Communication Enabled Handsets - Market Analysis, Trends, and Forecasts” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China, South Korea and Rest of Asia-Pacific), Middle East & Africa and Latin America.

For enquiries e-mail us at rsd@strategyr.com or info411@strategyr.com.

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