MarketsandMarkets has published a new report predicting that the NFC market will reach over $10 billion by 2016 at a compound annual growth rate (CAGR) of 38% from 2011 to 2016.
The NFC market, as defined by M&M’s report, includes NFC products, e.g. tags, chips, micro SD cards, integrated SIMs, readers and middleware, as well as NFC applications including mobile payments, ticketing, booking, data sharing, access control, infotainment and advertisement.
M&M pegs mobile payments as the major factor that will drive the NFC market over the next five years, “cannibalizing” the smart card payments market in the process.
However, there are other areas of the market that will face bigger obstacles, according to the report. M&M calls the NFC products market “highly fragmented,” with each segment reflecting different trends. For example, the NFC chip market is nearly monopolized by NXP Semiconductors, which holds more than 80% of the market share.
Ownership of the NFC tags market, on the other hand, is a highly diffuse, shared by a number of players with tight competition. Both NFC based SIM/UICC cards and micro SD cards are expected to dwindle into obscurity due to competition from integrated NFC mobile devices.
Read more about “Near Field Communication (NFC) Market – Global Forecast & Analysis (2011 – 2016)” here.