NFC-enabled Handsets Market Size, Share, Growth, and Industry Analysis, By Type (Feature Phones, Smartphones), By Applications (Mobile Payment, ID Authentication, Transit Fare Collection, Other), and by Regional Forecast to 2033

NFC-enabled Handsets Market OVERVIEW

The Global NFC-enabled Handsets Market Size expanded rapidly in 2023 and is projected to grow substantially by 2029, exhibiting a prodigious CAGR during the forecast period.

Handsets that include NFC are usually branded as smartphones and allow NFC transactions when they come close to the reader. Two devices can send and receive information using this technology when they are close together, usually no more than a few centimeters apart. You can set up an NFC connection just by tapping or bringing two devices close to each other, and this process doesn’t use much power. For this reason, NFC is suitable for simple, safe exchanges that don’t depend on linking devices or the internet.

Sales of NFC-enabled smartphones are rising strongly, mainly because more people prefer using contactless payment and mobile shopping. The use of mobile phones and tablets within NFC technology has allowed this segment to gain the biggest share of the NFC payment devices market space. Apple, Samsung, and Xiaomi are leading the market and regularly add new NFC features to their devices, allowing even budget users to benefit. Analysts expect further expansion, so the market could achieve billions in valuation in a few years.

Around the world, NFC-enabled phones are used for several different purposes. Such solutions as Apple Pay, Google Pay, and Samsung Pay, along with tapping phones at the terminal, have become the main force behind contactless payments. In addition to making payments, NFC is now used by public transport, allowing you to get on quickly. These applications are used for digital business cards, operating home devices such as appliances, transferring data from one person to another, access controls, and authenticating products. Bluetooth has grown in importance for smartphones since it is easy to use, supports advanced security features, and offers years of development.

GLOBAL CRISES IMPACTING THE NFC-ENABLED HANDSETS MARKET

COVID-19 IMPACT 

The NFC-enabled Handsets Market Industry Had a Negative Effect Due to Factory Closure During the COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

NFC-enabled Handsets saw a boost due to the COVID-19 pandemic, as people in countries around the world began using NFC for payments much more frequently. Because everyone wanted to stay healthy, people looked for ways to avoid touching cash, payment terminals, and common surfaces. That’s why more people started using contactless payment methods, mainly through NFC smartphones. Having seen increased demand and suggestions from governments, merchants quickly adopted tap-to-pay technology for payments. As consumers acted differently and greater NFC infrastructure was available, NFC-equipped handsets became widely used, and NFC was accepted by large populations.

LATEST TREND

Integration with Wearable Technology to Drive Market Growth

Bringing NFC technology into more than just smartphones is becoming a popular trend in the wearable market. Today, smartwatches and fitness trackers support contactless payments, open doors, and let users share their information easily. Tapping their wrist at the payment point or on a train gate is now a possibility for users, so they don’t have to get out their wallet or phone. Being able to use QR codes on the go is a big bonus, whether during a workout or to get something quickly. NFC is currently being tested in wearables to improve both healthcare and health by simplifying data transfer and allowing personal experiences. Now that wearable tech includes smart rings and shoes, NFC can contribute even more to making wearables easier to use and more functional.

NFC-enabled Handsets Market SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Feature Phones, Smartphones.

Feature Phones: Even though they are used less, NFC-based feature phones continue to meet the needs of people interested in quick communication and selected use of contactless features, without the extra steps offered by smartphones.

Smartphones: Due to their dominance in the market, NFC-enabled phones are the main platform for all kinds of contactless apps, mainly because of their fast processors, large size, and long list of apps.

BY Applications
Based on the Applications, the global market can be categorized into Mobile Payment, ID Authentication, Transit Fare Collection, Other.

Mobile Payment: Because of its lead in the NFC-enabled phone sector, users can easily and safely complete transactions when they tap their devices at the right point-of-sale terminals.

ID Authentication: More and more, NFC technology is being used on handsets to help verify identity and ensure secure and efficient access control and digital verification procedures.

Transit Fare Collection: With NFC in use, payments for public transport can be completed by just tapping the phone on machines at the bus and train stops.

Other: Among the various emerging uses for this category are sharing information peer-to-peer, linking smart home technology, electronic tickets for events and new ways to handle marketing campaigns.

MARKET DYNAMICS
Market Dynamics include Driving and Restraining Factors, Opportunities, and Challenges, stating the Market Conditions.

DRIVING FACTORS

Accelerated Adoption of Contactless Payments to Boost the Market

Accelerated Adoption of Contactless Payments is a major factor in the NFC-enabled Handsets Market. COVID-19 hygiene issues have caused consumers to switch from handing over cash or cards to paying by mobile wallet or simply tapping their devices. Since people were interested in safer and speedier ways to pay, the fact that NFC-enabled devices such as smartphones and wearables were both convenient and safe became very attractive. As a result of more people wanting NFC, both inexpensive phones and merchant terminals across the world are now supporting contactless payments. Because more and more people want to pay with a wave and more stores can accept this, NFC-enabled phones are gaining momentum in the market.

Proliferation of NFC-enabled Smartphones and Diversification of Applications to Expand the Market

The strong growth of the NFC-enabled Handsets Market comes from two reasons working together: the rise of NFC-enabled mobile devices and a growing mix of NFC uses beyond just payments. As 94% of smartphones nowadays feature NFC, using the technology is not limited to a small group; it’s convenient for billions of phone owners. Because NFC is so common, it allows for many new and differing uses. More and more, NFC is being chosen in contactless payments, for fares on transit, security for IDs and home and business entry, pairing with things like smart speakers and headphones, running interactive marketing, and identifying smart products. All the new possibilities being added to NFC are boosting its popularity and usefulness in smartphones, which are now using it for much more than payments, and have made it hard to replace.

RESTRAINING FACTOR

Lack of Universal Standardization and Interoperability Issues Impede Market Growth

Despite how fast NFC technology has spread, its market potential is limited because there isn’t an overall standard for everyone to follow, and interoperability issues still exist. NFC standards usually exist, but there are situations where their implementation varies among device makers, different operating systems, and regions. Since the technology is not yet standardized, this fragmentation may mean one NFC device might pay for things without issue in one place, while it fails in another or doesn’t work with some IoT gadgets. Because of these unpredictable issues, adoption of NFC for different uses may not move forward as smoothly as hoped and could block the easy “tap-and-go” future we expect. For industry systems to truly work well together, those involved, such as hardware and software creators, service companies, and regulators, must keep collaborating to create the best experience for everyone, anywhere.

OPPORTUNITY

Integration with IoT and Smart Infrastructure for the Product in the Market

Handsets with NFC are increasingly valuable because of their expanding link with IoT and smart infrastructure. As connected devices become more common everywhere, NFC makes it especially simple and clear for users to get started, combine devices, and use them in different ways. If you just tap your phone on a new smart thermostat, it configures itself, and tapping a public smart display can show you real-time information on nearby transport or targeted advertising. Smart cities use NFC to make access to services such as parking and waste management more convenient. In addition, using NFC on digital product passports in the supply chain makes it easier for both businesses and consumers to detect when a product is genuine, simply by tapping it with their phones. So, NFC systems make it possible for NFC-enabled devices to control and get information from today’s growing number of smart things, creating a variety of new uses beyond payments.

CHALLENGE

Perceived Security Risks and Lack of Awareness Could Be a Potential Challenge for Consumers

Adopting NFC-enabled phones is delayed for many since some users are concerned about security, and only a few know about the technology. They may feel apprehension about using NFC because they fear that someone can get through the system’s security and steal their data, intercept payment transfers, or practice “digital pickpocketing.” Often, people feel this way because they don’t understand all the details about NFC security. As a result, some individuals might not use NFC for major applications, and some may avoid it altogether. Those involved need to keep telling the public about NFC’s security, answering any questions openly, and highlighting reliable information to show they can trust it.

NFC-enabled Handsets Market REGIONAL INSIGHTS

NORTH AMERICA

This region holds a significant share of the NFC-enabled Handsets Market, driven by early and widespread adoption of contactless payment systems and a robust existing infrastructure. Consumers in North America have readily embraced mobile payment solutions like Apple Pay and Google Pay, contributing to a high penetration of NFC-enabled smartphones. The United States NFC-enabled Handsets Market also benefits from a technologically adept consumer base and ongoing efforts by financial institutions and retailers to enhance the contactless payment experience, positioning it for continued strong growth.

EUROPE

Europe has also shown strong adoption of NFC-enabled Handsets, particularly for contactless payments and public transportation. Many European countries have well-established contactless payment infrastructures and a high comfort level among consumers with tap-and-go transactions. Regulatory frameworks that promote digital payments further contribute to market expansion. The region continues to see growth as more diverse NFC applications emerge and as consumers increasingly rely on their smartphones for various daily interactions.

ASIA

The Asia Pacific region is a dominant and rapidly growing market for NFC-enabled Handsets, projected to hold the greatest revenue share globally. This growth is fueled by the immense smartphone penetration in countries like China and India, coupled with strong government initiatives promoting cashless economies and the widespread use of digital wallets. The region is also a hub for consumer electronics manufacturing, leading to extensive NFC integration in a wide array of devices. The increasing demand for advanced manufacturing hubs and the growing awareness of NFC benefits further accelerate adoption across diverse applications.

KEY INDUSTRY PLAYERS
Key Industry Players Shaping the Market Through Innovation and Market Expansion

Through the innovation of strategies and market development, the market players in the field of enterprise are shaping the NFC-enabled Handsets Market. Certain of these can be seen as advancements in designs, types of materials, and controls, besides the use of smarter technologies for the enhancement of functionality and operational flexibility. Managers are aware of their responsibility to spend money on the development of new products and processes and expanding the scope of manufacturing. This market expansion also assists in diversifying the market growth prospects and attaining higher market demand for the product in numerous industries.

List Of Market Players Profiled 

Apple (U.S)

Acer (Taiwan)

BlackBerry (Canada)

HTC (Taiwan)

Lenovo (China)

LG (South Korea)

Microsoft (U.S)

Motorola (U.S)

Samsung (South Korea)

Sony (Japan)

ZTE (China)

Oppo Electronics (China)

Xiaomi (China)

Alcatel (France)

Brunswick (U.S)

Citrix (U.S)

Fujitsu (Japan)

Huawei (China)

Gionee (China)

Lumigon (Denmark)

OnePlus (China)

KEY INDUSTRY DEVELOPMENTS

2022: A major advancement in NFC-enabled Handsets has been continually improving the size and power consumption of NFC chips. There is an ongoing process within the industry to design NFC solutions that are both smaller and use less power. That means NFC technology becomes available to more devices, and in particular, smartwatches and smart rings that need to preserve their battery life and be as compact as possible. As NFC chips are made more efficient, less battery power is consumed, so the handset’s battery life can be increased, and more options appear for battery-sensitive equipment.

REPORT COVERAGE       

The study comprises a complete SWOT analysis and provides insights into future developments within the market. It surveys various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

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