Global NFC Systems Market 2017-2021
About NFC Systems
NFC systems bring two devices in close proximity to enable peer-to-peer communication. End-users use this technology to transfer information from their devices to other NFC devices, such as smartphones and NFC tags. The system directly transfers data between phones or phones and POS devices. Many mobile phone operators are looking for ways to further develop this technology.
Technavio’s analysts forecast the global NFC systems market to grow at a CAGR of 13.43% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global NFC systems market for 2017-2021. To calculate the market size, the report considers the revenue generated from the sales of NFC systems to various industries.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global NFC Systems Market 2017-2021
Technavio recognizes the following companies as the key players in the global NFC systems market: Broadcom, INSIDE SECURE, MediaTek, NXP Semiconductors, Renesas Electronics, and Sony.
Other Prominent Vendors in the market are: Qualcomm, Smartrac, STMicroelectronics, and SanDisk.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is emergence of HCE. The emergence of host card emulation (HCE) is one of the latest trends in the market. HCE wearable devices and smartphones perform card emulation on NFC-enabled devices without depending on a secure element. If NFC system vendors reshape the value chain and the business model and introduce the use of HCE, the market will likely grow. Built-in security features, such as an iris scanner and fingerprint reader, are additional safety features for HCE.”
According to the report, one of the major drivers for this market is increasing awareness about NFC technology among merchants. The increasing awareness about NFC technology among merchants has resulted in the growing adoption of NFC systems, which is driving the growth of the global NFC systems market. NFC systems help merchants obtain operating cost benefits, such as reduced cash processing, and more effective consumer engagement. Apart from providing easy and quick transactions, merchants can employ NFC systems for loyalty programs, marketing, and providing information about products customers are likely to purchase. These benefits of NFC systems will likely lead to their high adoption among merchants, thus increasing the growth prospects of the market.
Further, the report states that one of the major factors hindering the growth of this market is growing demand for upgraded NFC POS terminals. In the last five to eight years, retailers have focused on cutting costs and enhancing operational efficiency. Retailers that are established in unprofitable locations tend to discontinue operations and sell their assets, which include NFC POS terminals. To cut costs and reduce the overall cost of ownership, other retailers operating in the same market or location, buy these NFC POS terminals. Buying used or refurbished devices reduces initial investments as these devices have a lifespan of three to four years. Several retailers upgrade their POS terminals by integrating them with NFC chips. The growing demand for used or upgraded NFC POS terminals is likely to reduce the profitability of vendors in the global NFC POS terminals market.
Broadcom, INSIDE SECURE, MediaTek, NXP Semiconductors, Renesas Electronics, Sony, Qualcomm, Smartrac, STMicroelectronics, and SanDisk.