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Add to CartNear Field Communication (NFC) Chips Market
By Product Type;
Passive NFC Chips and Active NFC ChipsBy Types;
NFC Tags and NFC ControllersBy Frequency;
Low-Frequency NFC Chips and High-Frequency NFC ChipsBy Outlook ;
Banking & Financial Institutions and Media & EntertainmentBy Applications;
Smartphones and TabletsBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)NFC Chips Market Overview
NFC Chips Market (USD Million)
NFC Chips Market was valued at USD 2,308.81 million in the year 2024. The size of this market is expected to increase to USD 6,047.14 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 14.7%.
Near Field Communication (NFC) Chips Market
*Market size in USD million
CAGR 14.7 %
| Study Period | 2025 - 2031 |
|---|---|
| Base Year | 2024 |
| CAGR (%) | 14.7 % |
| Market Size (2024) | USD 2,308.81 Million |
| Market Size (2031) | USD 6,047.14 Million |
| Market Concentration | Low |
| Report Pages | 357 |
Major Players
- Broadcom Corp.
- Inside Secure SA
- MediaTek Inc.
- NXP Semiconductors N. V.
- Qualcomm Inc.
- Renesas Electronics Corp.
- Sony Corp.
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Near Field Communication (NFC) Chips Market
Fragmented - Highly competitive market without dominant players
The NFC Chips Market is expanding significantly, driven by the growing demand for touchless digital experiences. Over 72% of smartphone users now utilize NFC-based payment methods, highlighting a strong preference for secure and convenient transactions. This rising usage is pushing device manufacturers to adopt NFC technology more broadly.
Widespread Integration in Smart Devices
Close to 63% of new smartphones are integrated with NFC capabilities, showcasing the trend toward smarter, interconnected devices. The integration is not limited to phones—wearables, IoT devices, and tablets are also contributing to the rising number of deployments, enhancing connectivity in everyday gadgets.
Security as a Core Enabler
In response to increasing cybersecurity needs, about 58% of enterprises now rely on NFC chip-based solutions for secure access, device pairing, and data exchange. The chips support encrypted communication and two-way authentication, offering robust protection for sensitive data and digital identity.
Emergence of Smart Applications
Advanced applications like smart posters, connected loyalty cards, and access badges now account for nearly 54% of NFC chip usage. These emerging use cases are redefining consumer interaction models, creating opportunities for personalized and seamless digital engagements.
NFC Chips Market Recent Developments
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In May 2023, Nidec Instruments Corporation, a group company of Nidec Corporation, announced that it had launched an industry-first card reader integrated with NFC*1.
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In March 2023, Identiv announced the expansion of its partnership with STMicroelectronics to offer new NFC inlays for all end users.
NFC Chips Market Segment Analysis
In this report, the NFC Chips Market has been segmented by Product Type, Types, Frequency, Outlook, Applications, and Geography.
NFC Chips Market, Segmentation by Product Type
The NFC Chips Market has been segmented by Product Type into Passive NFC Chips and Active NFC Chips.
Passive NFC Chips
Passive NFC chips are powered by external devices and do not have an internal power source. These are commonly integrated into retail tags, ID cards, and access passes due to their low cost and energy efficiency. Their use is widespread in low-power, high-volume applications. The segment continues to gain traction in smart packaging and logistics.
Active NFC Chips
Active NFC chips contain their own power source, allowing them to initiate communication. They are preferred in mobile phones, POS terminals, and IoT devices for higher data exchange and extended communication range. Active chips support advanced security protocols and are ideal for interactive user experiences and dynamic NFC environments.
NFC Chips Market, Segmentation by Types
The NFC Chips Market has been segmented by Types into NFC Tags and NFC Controllers.
NFC Tags
NFC tags are small, unpowered chips used for identification, tracking, and information sharing. They are embedded in posters, cards, and product labels to trigger digital actions when tapped by an NFC-enabled device. This segment is expanding rapidly across retail and marketing industries where touch-based engagement is desired.
NFC Controllers
NFC controllers are embedded systems enabling full-duplex communication and secure transactions. Integrated into smartphones, wearables, and payment devices, these chips facilitate complex data exchange. Their adoption is surging in fintech and mobility sectors, where secure, quick transactions are paramount.
NFC Chips Market, Segmentation by Frequency
The NFC Chips Market has been segmented by Frequency into Low-Frequency NFC Chips and High-Frequency NFC Chips.
Low-Frequency NFC Chips
Low-frequency NFC chips operate below 135 kHz and are mostly used in applications needing short-range, low-speed data transmission. Common use cases include access cards and animal identification systems. Though limited in data capacity, they remain relevant for basic authentication and simple data exchange.
High-Frequency NFC Chips
High-frequency NFC chips, operating at 13.56 MHz, dominate the market for their versatility and high-speed transmission. These chips are found in contactless payment systems, smartphones, and transit cards. Offering secure, fast, and reliable communication, they are the backbone of modern NFC solutions.
NFC Chips Market, Segmentation by Outlook
The NFC Chips Market has been segmented by Outlook into Banking & Financial Institutions and Media & Entertainment.
Banking & Financial Institutions
NFC technology is transforming financial transactions by enabling contactless payments and secure authentication. Banks and fintech firms are integrating NFC into cards and mobile apps for better convenience and fraud prevention. This segment remains dominant due to rising demand for digital and frictionless payments.
Media & Entertainment
In media and entertainment, NFC chips are being used for interactive posters, smart tickets, and immersive campaigns. Brands leverage NFC to engage audiences through real-time content access. The segment is growing with increasing focus on consumer personalization and digital interaction.
NFC Chips Market, Segmentation by Applications
The NFC Chips Market has been segmented by Applications into Smartphones and Tablets.
Smartphones
Smartphones are the largest consumers of NFC chips, used for payments, data sharing, and app launching. The integration of NFC boosts user convenience and security. As digital wallets and contactless services become standard, this segment continues to drive market growth and innovation.
Tablets
Tablets utilize NFC chips for business transactions, file transfers, and device pairing. Though adoption is slower than smartphones, tablets with NFC are becoming popular in healthcare, education, and field services. Enhanced functionality and security are helping tablets capture niche use cases.
NFC Chips Market, Segmentation by Geography
In this report, the NFC Chips Market has been segmented by Geography into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
Regions and Countries Analyzed in this Report
NFC Chips Market Share (%), by Geographical Region
North America
North America holds over 32% of the market share, fueled by early adoption of mobile payments and secure banking solutions. The U.S. leads with NFC integration in POS systems and government IDs. High consumer awareness and strong tech infrastructure drive regional dominance.
Europe
Europe captures around 25% of the NFC chips market, led by countries like Germany, France, and the UK. Widespread use in transportation, ticketing, and hospitality boosts demand. The region benefits from strict data protection policies and robust financial technologies.
Asia Pacific
Asia Pacific commands nearly 28% share with strong growth in China, Japan, and South Korea. Increasing use in smartphones, payment platforms, and retail automation contributes to this rise. Government initiatives supporting digital economies accelerate the adoption curve.
Middle East & Africa
With a share of about 9%, the Middle East & Africa is emerging as a high-potential market. NFC chips are being adopted in urban mobility, smart cities, and healthcare sectors. The region is gradually shifting towards contactless systems as digital awareness improves.
Latin America
Latin America accounts for close to 6% of the market, driven by NFC use in banking and retail loyalty programs. Countries like Brazil and Mexico are leading NFC deployment. Infrastructure limitations persist, but increasing smartphone penetration is fostering growth.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global NFC Chips Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunities Analysis
Drivers
- Mobile Payment Adoption
- IoT Connectivity Demand
- Contactless Solutions Expansion
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Enhanced Security Features: Enhanced security features in NFC chips are crucial for ensuring the integrity and confidentiality of data exchanged via near field communication. As NFC technology becomes more pervasive in applications like mobile payments, access control, and data sharing, the implementation of advanced security measures is essential to mitigate risks such as unauthorized access and data interception.
Modern NFC chips incorporate robust encryption protocols and authentication mechanisms to safeguard sensitive information during transactions and communications. These security features help prevent fraudulent activities and ensure that only authorized devices can initiate and complete NFC transactions securely. Moreover, ongoing advancements in security standards and protocols continue to enhance the resilience of NFC-enabled systems against evolving cyber threats and vulnerabilities.
Restraints
- Interoperability Challenges
- Data Privacy Concerns
- Regulatory Compliance Burden
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Limited NFC Infrastructure: Limited NFC infrastructure poses a significant challenge to the widespread adoption and deployment of NFC technology across various sectors. NFC infrastructure refers to the network of NFC-enabled devices, readers, and terminals required to support seamless communication and transactions. The availability and accessibility of NFC infrastructure vary across regions and industries, impacting the scalability and usability of NFC-enabled applications such as mobile payments, access control, and interactive marketing.
One of the primary obstacles of limited NFC infrastructure is the cost and complexity associated with deploying NFC-enabled devices and terminals. For businesses and organizations, especially in smaller markets or developing regions, investing in NFC infrastructure may be prohibitively expensive or technologically challenging. As a result, the expansion of NFC-enabled services and solutions is often constrained, hindering potential growth opportunities and market penetration.
Opportunities
- Smart Packaging Applications
- Healthcare Monitoring Devices
- Transport Ticketing Systems
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IoT and Smart City Growth: The growth of IoT (Internet of Things) and smart cities represents a transformative shift towards interconnected urban environments leveraging advanced technologies to enhance efficiency, sustainability, and quality of life. IoT encompasses a network of interconnected devices embedded with sensors and software that collect and exchange data, enabling real-time monitoring, analysis, and control of various systems within smart cities.
In smart cities, IoT technology facilitates seamless integration and management of critical infrastructure such as transportation networks, energy grids, water systems, and public services. By deploying sensors and IoT-enabled devices, cities can optimize resource utilization, reduce operational costs, and improve service delivery. For instance, smart traffic management systems use IoT sensors to monitor traffic flow in real-time, optimize signal timings, and alleviate congestion, thereby enhancing mobility and reducing environmental impact.
Competitive Landscape Analysis
Key players in Global NFC Chips Market include
- Broadcom Corp.
- Inside Secure SA
- MediaTek Inc.
- NXP Semiconductors N. V.
- Qualcomm Inc.
- Renesas Electronics Corp.
- Sony Corp.
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Product Type
- Market Snapshot, By Types
- Market Snapshot, By Frequency
- Market Snapshot, By Outlook
- Market Snapshot, By Applications
- Market Snapshot, By Region
- NFC Chips Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Mobile Payment Adoption
- IoT Connectivity Demand
- Contactless Solutions Expansion
- Enhanced Security Features
- Restraints
- Interoperability Challenges
- Data Privacy Concerns
- Regulatory Compliance Burden
- Limited NFC Infrastructure
- Opportunities
- Smart Packaging Applications
- Healthcare Monitoring Devices
- Transport Ticketing Systems
- IoT and Smart City Growth
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
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NFC Chips Market, By Product Type, 2021 - 2031 (USD Million)
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Passive NFC Chips
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Active NFC Chips
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- NFC Chips Market, By Types, 2021 - 2031 (USD Million)
- NFC Tags
- NFC Controllers
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NFC Chips Market, By Frequency, 2021 - 2031 (USD Million)
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Low-Frequency NFC Chips
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High-Frequency NFC Chips
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- NFC Chips Market, By Outlook, 2021 - 2031 (USD Million)
- Banking & Financial Institutions
- Media & Entertainment
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NFC Chips Market, By Applications, 2021 - 2031 (USD Million)
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Smartphones
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Tablets
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- NFC Chips Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
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- Competitive Landscape
- Company Profiles
- Broadcom Corp.
- Inside Secure SA
- MediaTek Inc.
- NXP Semiconductors N. V.
- Qualcomm Inc.
- Renesas Electronics Corp.
- Sony Corp.
- Company Profiles
- Analyst Views
- Future Outlook of the Market