NFC Chips as a Solution: Market Players Open for R&D Investments From information transfer to contactless payments to security, NFC chips have emerged as an ideal authentication and data protection solution. The near field communication chips market has witnessed significant expansion over the years, owing to innovative applications of NFC technology across industries.
Considering the rising application of NFC chips, numerous companies are embedding them in consumer electronics, especially smartphones. For instance, Google Nexus and HTC mobile include NFC chips that ensure data security with the help of encryption. Additionally, the COVID-19 outbreak led to a surge in smartphone penetration, resulting in high volume sales of around 2.2 billion NFC-enabled smartphones in 2020. Estimates indicate that NFC tags are estimated to prove beneficial in various applications, including TV, Wi-Fi router, and fridge, given the rising trend of contactless operations. Triton Market Research estimates that the global near field communication (NFC) chips market will advance with a CAGR of 12.99%, reaping revenue worth $7.47 billion by 2028.
Market Expansion by Application Application plays a major role in influencing buyers’ behavioral patterns. Over the years, the use of NFC chips has evolved, ranging from contactless payments to advanced logistics to consumer engagement. In this regard, the end-users, especially automotive, consumer electronics, and retail sectors, compare various chips as per their application range and cost. This has led companies to invest heavily in R&D to expand their footings. For instance, Broadcom Corporation launched an NFC chip into the automotive product line to effectively connect mobile devices to vehicle infotainment systems.