NFC Chip Shipments to Surpass 1.2 Billion by 2015

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Scottsdale, AZ - 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.

Recent 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

This research is part of In-Stat’s Mobile Technologies service, which provides analysis of the market for technologies, IP and semiconductors that enable next-generation mobile devices, including processors, graphics, modems, GPS, displays, memory, storage, operating systems, software, and human interfaces.

Related In-Stat research:

Bluetooth 2011: Rapid Growth for Established Interface

Wireless LAN (Wi-Fi) by Device, Q4’11 Forecast

Getting Smart on Worldwide Smart Meter Communication Technology

For more information, contact:

Allen Nogee, Principal Analyst
Phone: 480-609-4538
Email:anogee@in-stat.com

Rick Vogelei, Marketing Manager
Phone: 480-483-4476
Email:rvogelei@in-stat.com

About In-Stat

In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology vendors, equipment manufacturers, service providers and media companies worldwide rely on In-Stat to support critical business, product and technology decisions.

News Source : NFC Chip Shipments to Surpass 1.2 Billion by 2015