The NFC POS terminal market in Asia Pacific is expected to grow from US$ 1,042.8 million in 2019 to US$ 4,240.0 million by 2027; it is estimated to grow at a CAGR of 19.5% from 2020 to 2027. Increase in preference for NFC-compatible smartphones for payment among global population is bolstering the growth of the market. While Near Field Communication or NFC, was jointly developed by Philips and Sony in the mid-2000s, the technology has evolved for various uses over the years. Smartphone penetration is at an all-time high, with 3.4 billion active smartphones in the world today. There are 2 billion devices that can be NFC-enabled, mostly tablets. One of the key factors contributing to the Asia Pacific NFC POS terminal market growth is the increase in penetration of NFC-based mobile handsets. Increasing use of NFC-enabled smartphones is likely to improve the use of NFC POS terminals in the transportation, retail, and healthcare industries for payments and digital exchange. Use of NFC payment infrastructure and popularity of NFC as a preferred payment mode for customers are fueling the growth of the market.
APAC is likely to account for the highest CAGR during the forecast period. The rising adoption of advanced technologies in retail, entertainment, and healthcare industries in countries such as China, India, Japan, South Korea is driving the adoption rate of NFC POS. Companies are highly investing in mPOS to streamline their payment operations. The presence of fast-growing economics, rise in technology adoption, and increase in penetration of NFC-enabled phones are among the prime factors expected to drive the NFC POS market. Because of a massive number of cases in China, the APAC region is greatly affected by the COVID-19 outbreak. The country is the most important manufacturer and industrial producer because it trades more manufacturing products than any other country in the world; it is also a world leader in many types of goods. According to the Organization for Economic Co-operation and Development (OECD), the pandemic has also affected other major economies such as South Korea, India, Australia and Japan, and the market is experiencing downward inflation. The presence of several small and medium retailers across the region has created a huge demand for NFC POS terminals across the region. However, the sudden lockdown, owing to the COVID-19 pandemic, has negatively impacted the retail sector, especially hypermarkets, supermarkets, and specialty stores. The severe impact of COVID-19 on the region has also shifted the consumer buying behavior from offline mode to online mode. For instance, India has recorded an increase in e-commerce by 53% during the period. Thus, the shift from offline stores to online buying by the population across the region is expected to negatively impact the NFC POS terminal market across the region over the forecast period.
The NFC POS terminal market is seeing a rise in penetration of NFC POS terminals for ticketing transactions in the transportation field. Customer tendency to use NFC-enabled smart cards in automated fare collections is likely to fuel the growth of the Asia Pacific NFC POS terminal market. In order to achieve short-range communication between electronic devices, the NFC technology offers high compatibility among platforms for easier and simpler transaction processes.
NFC technology offers a high degree of customer satisfaction and experience compared to its alternatives, as it is swift, which is influencing the demand for NFC POS systems. Value-added POS terminal services?such as loyalty cards and discounts?would ensure a smooth experience for consumers, thereby driving the NFC POS terminal market. The availability and integration of NFC technology into smartphones and POS terminals would help to achieve access control and ticketing benefits. The best ticketing fare can be determined by modernized POS terminals based on travel duration, discounts, and previous journeys, resulting in many advantages for consumers and transport authorities, which is further driving the demand for NFC POS terminal. The increment in adoption of NFC POS solutions in the retail sector is among the other factors expected to positively influence their demand.
Based on product type, the fixed segment led the NFC POS terminal market in 2019. Fixed type is the traditional POS system deployed on counters or reception areas. It is complex in nature and it requires continuous power supply. Moreover, the maintenance cost is high. Fixed type allows the companies to have the benefits of robust management solutions such as strong inventory management and business functionality, a cash drawer, and the capability to handle the loyalty programs and gift cards. In the past, fixed type has been the most recognized and accepted way to process cash payments, checks, and debit/credit cards. Fixed type is still a preferred product within brick-and-mortar stores, and it is a wide-ranging business management solution for merchants desiring a product with strong features. This, in turn, is ultimately driving the NFC POS terminal market.
The overall Asia Pacific NFC POS terminal market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining overview and forecast for the Asia Pacific NFC POS terminal market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who typically take part in such a process include industry experts, such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the Asia Pacific NFC POS terminal market. Castles Technology; VeriFone, Inc; Fiserv, Inc; NFC POS Terminal Company (MICC) Ltd.; Thermocoax Group; Thermon; and SZZT Electronics Shenzhen are among key players operating in the Asia Pacific NFC POS terminal market.
The large presence of small and medium retailers across the region has created a huge demand for NFC POS terminals across the region. However, the sudden lockdown owing to the outbreak of the pandemic have negatively impacted the retail sector specially hypermarkets, supermarket, and specialty stores amongst others. The severe impact of covid-19 on the region has also shifted the consumer buying behaviour from offline mode to online mode. For instance, India has recorded an increase in e-commerce by 53% during the period. Thus, the shift from offline stores to online buying by the population across the region is expected to negatively impact the NFC POS terminal market across the region over the years.