MarketsandMarkets has released a new report predicting that the NFC applications market will surpass $10 billion by 2016 at a compound annual growth rate of 38% from 2011 to 2016.
Mobile payment will continue to be the major driving factor in the NFC market up to 2016, during which time it will “cannibalize” the smart card payment market, according to the report. In the meantime, today’s NFC payments market must overcome security issues and a lack of standardization before achieving widespread adoption.
According to the report, the NFC products market is “highly fragmented,” with each segment reflecting different trends. For example, the NFC chip market is currently almost monopolistic, with NXP Semiconductors holding more than 80% of the market share. On the other hand, the NFC tags market is highly scattered market with number of players and flat competition.
Both NFC based SIM/UICC cards and micro SD cards are not expected to reach their full potential as integrated NFC mobile devices will render them obsolete.
Other major NFC applications addressed in the report include access control, ticketing, data sharing, and advertising.
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