Mobile commerce has been on a steady drive upward since smartphones got smart enough to take our orders at Amazon. The ability to pull out a mobile device while waiting at a doctor's office or anywhere else and do a bit of shopping has proven to be a powerful one, and one that's tough to resist. But as is so often the case, one market's massive explosion has proven to be a powerful boost to another market: in this case, the global market for near-field communications (NFC) tools.
The word came from a new report from Reportsnreports.com, and spelled out the idea that the various components that make up the NFC market—ranging from products like tags and readers to applications like payments and data sharing—are seeing some impressive growth thanks to the positively staggering growth of mobile commerce. Additionally, there's another point contributing to big growth for the NFC market, and that's the increasing move from the NFC Forum (News - Alert) and the Groupe Speciale Mobile Association (GSMA) to make NFC a standard worldwide, which is in turn driving more interest in and more purchases from this market.
The numbers, meanwhile, suggest an even clearer picture of what's going on in the field. The overall NFC market is said to be growing at a compound annual growth rate (CAGR) of 8.83 percent, which in turn should lead to a total combined market of $16.25 billion by 2022. Naturally, most of the market for NFC goods and services seems to be coming back to the United States / North America markets, but there are reports the rest of the world won't prove to be much of a slouch on this one, if any. Meanwhile, the Reportsnreports.com reports suggest that the comparatively cost-effective nature of NFC parts will also give it a hand here, and since NFC can play a part in so many different market verticals, that sheer versatility will also lend it a hand as it carries on.
Indeed, NFC is looking like a market with plenty of upside potential. Mobile commerce isn't likely to slow up any time soon, especially with mobile devices overall still gaining ground on several fronts. But even if mobile commerce should happen to slow down—unlikely after a recent Mobile Commerce Index report showing retail revenue nearly doubled between July 2013 and July 2014--there's actually still room for growth in NFC thanks to its uses in other market sectors. One thing that the Reportsnreports.com report shows quite well is how many different things can be classified as being part of the NFC market—even microSD cards and SIM cards are said to show up herein—and a market that's both extremely versatile and covers several different points at once, well, it's easy to see how such a market might experience impressive gains even when one of its primary drivers starts to buckle.
So in the long term, it would likely be a safe bet to keep a weather eye on the NFC market, as this one's got quite a bit of upward momentum potential behind it. There are too many different parts to it for the whole thing to fail, and if it does, it may be indicative of a much broader problem at hand.
Edited by Maurice Nagle
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