The global near field communication chip market is expected to grow with the CAGR of approximately 30 % during the forecast period 2016-2023. The high growth rate is attributed to rise in NFC based transaction according to central bank of Kenya, M-pesa a mobile payment in conjunction with mobile phone operator safaricom have launched one tap payment solutions powered by NFC chip and in 2015, 911 million transactions were made through M-pesa. Surge in the number of smartphones, increasing use of NFC chip in consumer electronics, medical equipment drives the global NFC chip market. The factors restraining the growth of NFC Chip market are data security concerns related to NFC, complex production process of NFC chip. Whereas, the high investment in R&D of NFC chip would act as an opportunity in the forecast period

Near field communication chip market can be segmented on the basis of application, storage capacity and end user. The application segment is further segmented into television, smartphone, car, medical equipment and others. Smartphone segment has the largest share in the application segment of the NFC chip market owing to high demand of smartphones across the globe. On the basis of storage capacity, the NFC chip market can be further sub-segmented into 64 Bytes, 168 bytes, 540 Bytes and Others. The end user segment is further segmented into consumer electronics, automotive, retail market, aviation, medical and others.

Geographically, North America dominates the near field communication chip market owing to high penetration of smartphones in the region, according to pew research, 77% adults in the US owned a smartphone in 2016, also high disposable income in the region also acts as a key driver for growth of NFC chip market, presence of big market companies such as Tesla Motors (US), General Motors (US) and high disposable income of US and Canada. According to OECD, the disposable income per capita of US and Canada in 2015 was $46,509 and $ 31,086 respectively enabling a huge customer base in the North America.

The growth in global near field communication chip market is also influenced by the presence of major players such Qualcomm (US), Mediatek (US), Broadcom (US), Marvell Technology Group Ltd (Bermuda), Sony Corp (Japan), Ams Ag (Austria), Mstar Semiconductors (Taiwan), St Microelectronic(Switzerland), Texas Instruments Inc(US), Nxp Semiconductors(Netherlands) etc. Product launches, Mergers & acquisitions etc. are some crucial strategies adopted by the major players to gain competitive advantage. In 2015, St semiconductors and Ams Ag partnered in order to develop wearable NFC devices for faster payments.