NEAR-FIELD COMMUNICATION TO REVOLUTIONIZE METHODS

For many, near filed communication (NFC) has become synonymous with smartphones and the security this technology provides in making monetary transactions and transferring data. This incredibly innovative technology is all set to transform the way we function in the coming years. According to analysts, near field communication technology is likely to revolutionize the healthcare segment, tighten financial security, and make a sea change in the telecommunication segment. To put it simply, near field communication allows communication over a short distance two between devices supporting this technology. This short range and high frequency technology allows its users to make safe contactless transactions for various purposes. As modern lives are becoming increasing dependent on electronic transactions, the need for NFC technology is only growing. This has primarily led to growth of near field communication market in areas such as internet banking, shopping, and data transfer amongst smartphones.

The concept of near field communication is based on the RFID technology and has replaced other wireless technologies such as Bluetooth, Wi-Fi, and radio protocols. The biggest reason for growth of near field communication market is the security this technology provides to its users. The market has also witnessed expansion in the recent years as near field communication is being used in various walks of life.

Near Field Communication Market Composition

The near field communication market has been segmented into NFC tags, NFC secure elements, NFC controller ICs (chips) and NFC readers. The NFC secure elements are inclusive of embedded secure elements (SE), NFC subscriber identity module/universal integrated circuit card (SIM/UICC cards), and NFC micro SD cards. In the coming years, the market for NFC products such as NFC tags and NFC readers is expected to shoot up as banker and consumers alike are expected make use of contactless payments as opposed present systems of making payments. The demand for NFC controller ICs and NFC secure elements is also expected to rise exponentially in the forecasted period as well. In the coming years, NFC-enabled devices are expected to replace authentication cards, payment cards and access cards to a large extent.

Forces Governing Near Field Communication Market

Each product division in the near field communication market is driven with a unique reason. The reason for NFC tags market to pick up pace is its ability to store of small amounts of data and simplifies day-to-day tasks ensuring customer satisfaction. In case of NFC readers market, the factor giving a momentum is the ability of the device to read NFC-enabled devices with just a tap. The NFC secure elements segment is essentially being driven by their unique capability of assuring security and authentication of access. These products are also gaining popularity in applications such as booking ticketing, booking, healthcare, games and toys. The various NFC technologies are also finding their way in areas such as eGovernance, customer loyalty program, and logistics and supply chain.

Future of Near Field Communication Market

In the coming years, North America is likely to be the biggest region to exploit the benefits of NFC technology due to high adoption of smartphones and the pre-established infrastructure to allow contactless payments. Asia Pacific too is expected to be the fastest region due to quick adoption of NFC technology in countries such as Japan, South Korea, and China.

The global shipment for near field communication devices was valued at 264.5 million units in 2013. However, as the world demands new mobile phone and tablets, manufacturers are expecting to see a rise in the NFC market across the globe. The near field market will also see developments due to humungous amounts of research being carried out and the strong commitment shown by industry players to create a safer environment.

In years to come, the global NFC market will be molded by key players such as Broadcom, Inc., DeviceFidelity Inc., Toshiba Corporation, Gemalto N.V., Visa, Inc., STMicroelectronics N.V., NXP Semiconductors, Samsung Electronics Co. Ltd., Identive Group, Inc., On Track Innovations (OTI) Ltd. and Infineon Technologies. The financial strategies of these companies and their research and development plans will decide the shape near field communication market will take in the near future.

Source: http://www.foxforlive.com/near-field-communication-to-revolutionize-methods/