NFC Reader ICs Market

NFC Reader ICs Market Snapshot (2022 to 2032)

The global NFC reader ICs market size reached around USD 18 Billion in 2021 and is likely to touch a valuation of USD 50 Billion by 2032. Further, with rising demand for NFC reader ICs from diverse industries such as BFSI healthcare, and media & entertainment, the overall NFC reader IC sales are slated to rise at an impressive CAGR of 14.5% during the forecast period between 2022 and 2032.

Report Attribute	Details
NFC reader ICs Market Size (2021)	USD 18 Billion
NFC reader ICs Market Estimated Growth Rate (2022 to 2032)	14.5%
NFC Reader ICs Market Size (2032)	USD 50 Billion

Over the years, rising adoption of near field communication or NFC technology due to high preference for payment applications (contactless applications) over card transactions has brought NFC reader ICs market into the spotlight.

NFC reader ICs are active components in NFC transactions and can read & write tags and cards, enable communication from device to device, and interact with NFC phones. In fact, they have become crucial components for the effective functioning of NFC technology.

NFC reader ICs have the ability to setup and sustain communications with a tag or an NFC controller in all NFC modes. These ICs control the signal sent out by the reader to the tag.

Growing adoption of NFC technology for enabling simpler exchange of digital content, transactions, and connection with different electronic devices is proving a major impetus to the growth of NFC reader ICs market and the trend is likely to continue during the forecast period.

Which Factors Spurring the Growth in NFC Reader ICs Market?

Rising preference for contactless communications or transactions, and growing adoption of NFC technology across various industries such as automotive, BSFI, retail, and healthcare are some of the major factors driving the growth in NFC reader ICs market.

Similarly, rising trends of mobile commerce and increasing adoption of wearable technology are expected to further boost the NFC reader ICs market growth during the forecast period.

NFC reader ICs have become indispensable components of NFC technology that enable communication between two electronic devices. They are being increasingly used in smartphones, laptops, and several other electronic systems and play a crucial role in sending and receiving data during contactless transactions.

With rapidly growing preference for contactless transactions due to changing consumer preference and increasing penetration of digitalization, demand for NFC reader ICs is expected to surge at a stupendous pace during the forecast period.

Today, a large portion of the world population use NFC technology in their smartphones to make online payments. Thus, rise in the number of smartphones will eventually expand the NFC reader ICs market size in future.

Furthermore, technological advancement in NFC reader ICs is expected to create lucrative opportunities for the manufacturers during the assessment period. Leading NFC reader ICs manufacturers are continuously striving to improve the efficiency of NFC reader ICs to facilitate data transfer.

Which are the Factors Inhibiting the Growth of NFC Reader ICs Industry?

Despite positive growth trajectory, there are various factors that are limiting the growth of NFC reader ICs market. Some of these factors include availability of NFC alternatives, fluctuation in raw material prices, and low penetration of smartphones in lower economies.

Advancement in technology has paved the way for the development of alternatives like UPI systems and mobile wallets, which offer better security as well as a lower cost as compared to the NFC technology. Rising popularity of these alternatives is likely to negatively impact the growth of NFC reader ICs market during the forecast period.

What is the Growth Projection for Western Europe NFC Reader ICs Market?

According to Future Market Insights, Western Europe remains the most dominant market for NFC reader ICs and is likely to retain its dominant position during the forecast period. Growth in Europe NFC reader ICs market is driven by an increase in the number smartphone users that use NFC technology, large base of NFC reader ICs manufacturers, and growing preference towards contactless transactions.

Similarly, rapid penetration of digitalization across industries like automotive and healthcare is expected to push the sales of NFC reader ICs during the forecast period.

Many automotive manufacturers based in countries such as the UK, Germany, and France are using NFC reader ICs in digital car keys. Thus, increasing sales of vehicles and rising applications of NFC reader ICs will eventually create opportunities for the manufacturers of NFC reader ICs in the region. Together, North America and Western Europe are expected to account for over 50% share of the global NFC reader ICs market through 2032.

What Makes North America a Lucrative Market for NFC Reader ICs?

Over the years North America has emerged as an attractive market for NFC reader ICs and is expected to grow at a significant pace during the forecast period, owing to the blooming semiconductor industry, rising penetration of smartphones, and strong presence of leading NFC reader ICs manufacturers.

Market Competition

Some of the key manufacturers of NFC reader ICs include STMicroelectronics, NXP Semiconductors, Texas Instruments Incorporated, Broadcom Inc., Qualcomm Inc., Marvell Technology Group Ltd., Mstar Semiconductor Inc., AMS AG, Sony Corp., and MediaTek Inc., among others.

Among these, STMicroelectronics and NXP Semiconductors together hold a significant share of the global NFC reader ICs market. These leading companies offer a complete portfolio of NFC reader ICs for a wide variety of NFC-enabled solutions. They are constantly introducing novel products to cater to the rising end user demands. For instance, in May 2020, STMicroelectronics launched the next-generation NFC reader IC (ST25R3920) for digital car keys.

Report Scope

Report Attribute	Details
Growth Rate	CAGR of 14.5% from 2022 to 2032
Projected Market Size (2028)	USD 50 Billion
Base Year for Estimation	2021
Historical Data	2015 to 2020
Forecast Period	2022 to 2032
Quantitative Units	Revenue in USD Million and CAGR from 2022 to 2032
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis
Segments Covered	NFC Functionality, Host Interface, Application, End User, Region
Regions Covered	North America; Latin America; Western Europe; Eastern Europe; APEJ; Japan; Middle East and Africa
Key Countries Profiled	USA, Canada, Brazil, Argentina, Germany, UK, France, Spain, Italy, Nordics, BENELUX, Australia & New Zealand, China, India, ASEAN, GCC, South Africa
Key Companies Profiled	STMicroelectronics; NXP Semiconductors; Texas Instruments Incorporated; Broadcom Inc.; Qualcomm Inc.; Marvell Technology Group Ltd.; Mstar Semiconductor Inc.; AMS AG; Sony Corp.; MediaTek Inc.,
Customization	Available Upon Request

Key Segments Profiled in the NFC Reader ICs Industry Survey

By NFC Functionality:

• Full NFC
• ISO/IEC 15693
• ISO/IEC 14443 Type A
• ISO/IEC 14443 Type A+B

By Host Interface:

• I2C and SPI
• SPI
• UART, I2C and SPI
• USB and UART

By Application:

• Access
• Consumer
• Metering
• Payment
• Gaming

By End User:

• BFSI
• Media & Entertainment
• Hospitality
• Healthcare
• Others

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• APEJ
• Japan
• Middle East and Africa

Frequently Asked Questions

At what rate will the global NFC reader ICs market grow?

FMI projects the global NFC reader ICs market to grow at around 14.5% CAGR during the assessment period.

Which is the most dominant NFC reader ICs market?

Western Europe remains the most prominent market for NFC reader ICs.

What is the projected valuation for NFC reader ICs market by 2032?

The global NFC reader ICs market is likely to touch a valuation of around USD 50 Billion in 2032.

Who are the leading players in NFC reader ICs market?

Some of the leading NFC reader ICs manufacturers are NXP Semiconductors, STMicroelectronics and Texas Instruments Incorporated.