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.
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