NFC chip shipments may surpass 1.2 billion units by 2015

Market research firm In-Stat released a report on Monday that suggests NFC chip shipments will grow dramatically during the next several years as an increasing number of mobile devices adopt near-field communications (NFC) technology. In-Stat said NFC chip shipments will surpass 1.2 billion units by 2015, the same year the technology is expected to reach a 30% global penetration. “As the costs of NFC chips decline, and NFC radios are combined with other chip functions, the cost to integrate NFC into handsets will be outweighed by the benefits,” In-Stat research director Allen Nogee said. “The growth of combo chips will also allow NFC radios to piggyback on technology that already has significant penetration in the market. For example, Bluetooth radios, which currently have 100% market penetration, can be integrated with NFC radios, making the choice to include NFC easy for OEMs.” Read on for more.

The adoption of NFC for mobile payments has been slow to catch on in the United States. Sprint currently offers the only handset capable of making mobile purchases with Google Wallet, the Nexus S 4G, but Verizon, AT&T and T-Mobile are hoping the ISIS initiative will help drive adoption in the near future. In-Stat said the NFC market is moving away from mobile payments and towards marketing uses, however, where retailers might be able to embed the technology into posters and other advertisements.

There are plenty of other uses for NFC, too. Google recently introduced a new “Android Beam” feature of Android 4.0 Ice Cream Sandwich that will allow users to share content, such as games, pictures or other media, by tapping one phone to another. In-Stat’s press release follows below.

NFC Chip Shipments to Surpass 1.2 Billion by 2015, Says In-Stat

SCOTTSDALE, Ariz., October 24, 2011—As the number of mobile payment users grows to over 375 million in 2015, the demand for devices with near field communications (NFC), the underlying communications technology behind many mobile payment solutions, grows as well.  New research from In-Stat (www.in-stat.com) forecasts that adoption of this technology will push global annual shipments of NFC chips to over 1.2 billion by 2015.

NFC is a set of technologies that supports communications between two devices in close proximity to each other. An NFC link is very quick to set up, enabling small amounts of data to be exchanged over short distances.  This capability is unique compared to other wireless technologies, it and makes NFC an ideal solution where quick exchange of small amounts of data is paramount to quality user experiences such as mobile payments.

“As the costs of NFC chips decline, and NFC radios are combined with other chip functions, the cost to integrate NFC into handsets will be outweighed by the benefits,” says Allen Nogee, Research Director. “The growth of combo chips will also allow NFC radios to piggyback on technology that already has significant penetration in the market. For example, Bluetooth radios, which currently have 100% market penetration, can be integrated with NFC radios, making the choice to include NFC easy for OEMs.”

Recent research findings include:

  • Today, the focus of the NFC market is shifting from payment applications that can be enabled by NFC, to marketing applications. With this focus shift, we expect retailers to begin pilot programs in the latter part of 2011 and into 2012 that incorporate smart posters into their signage and outdoor advertising strategies.
  • NFC will reach 30% global penetration by 2015
  • Global annual shipments of NFC chips will grow at a CAGR of 129% over the forecast period.
  • New In-Stat research,NFC Chips and Tags: Worldwide Market Analysis and Forecast (#IN1105140SI) provides insights into the market for NFC devices and components. It compares and contrasts NFC with other complementary and competitive technologies and looks at market drivers, including mobile payments, and market barriers.

New In-Stat research, NFC Chips and Tags: Worldwide Market Analysis and Forecast (#IN1105140SI) provides insights into the market for NFC devices and components. It compares and contrasts NFC with other complementary and competitive technologies and looks at market drivers, including mobile payments, and market barriers.

Forecasts include:

  • NFC chip and tag shipments
  • Mobile handsets shipping with NFC chips
  • NFC chip shipments for readers
  • NFC-enabled infrastructure
  • NFC tag shipments for smart posters and marketing
  • Regional analysis includes Asia Pacific, Europe, and Americas
  • Vendor profiles include Broadcom, Inside Secure, NXP Semiconductors, Renesas Electronics, Samsung Semiconductor, and STMicroelectronics
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