Analysts Predict NFC Market Size will Reach Almost $50 Billion By 2024
Despite false dawns over the last decade, it seems like the age of NFC is finally upon us now Apple have thrown their weight behind the technology. Over the last 18 months, research firms have been attempting to forecast the potential market value of NFC.
Accuray Research LLP in their January 2017 report said:
"The Global Near Field Communication (NFC) Market is poised to grow at a CAGR of around 17.9% over the next decade to reach approximately $49.5 billion by 2025. Some of the prominent trends that the market is witnessing include increasing the need for connectivity between different devices and rising adoption of smart appliances..."
Grand View Research landed on a similar figure in their October 2016 report:
"The global near field communication (NFC) market is expected to reach USD 47.43 billion by 2024, according to a new report by Grand View Research, Inc. The industry is poised for an unprecedented growth over the forecast period owing to the increasing penetration of smartphones in the developing economy. Increasing adoption of mobile payment services has led to the intensive utilization of POS with the launch of e-wallet and Apple Watch. Banking entities, payment gateways, and payment processors are expected to expand the capabilities for accommodating the newly enhanced technology. The emergence of the mobile wallet services has allowed users to pay for services through mobile devices or through cashless payment modes, which have further enhanced near field communication market growth"
Growth is being led by increased demand for NFC based payment solutions, retail and anti-counterfeit technology and the roll-out of wearables combined with the significant reduction in the cost of NFC modules.
Mobile wallets, such as Android Pay, Apple Pay, and Samsung Pay coupled with the increased awareness of mobile payment platforms is also playing a huge role. Around (52%) of people now say they know which types of mobile payment services are available to them today. People generally like the idea of a cashless society and so are open to using technologies such as NFC to facilitate payments.
Ultimately customers lean towards simplicity and convenience, so technologies that facility frictionless transactions and interactions will ultimately win out.