NEAR FIELD COMMUNICATION MARKET ANALYSIS

Security and privacy concerns are one of the major restraints hindering the growth of the global Near Field Communication market. As NFC technology enables contactless communication between devices like smartphones, tablets, etc. within a short distance of 4 centimeters, it raises valid security and privacy issues. Many users are reluctant to adopt NFC due to the lack of control over how and with whom their personal data is being shared. NFC allows sharing of payment details, personal contacts, and other sensitive information with a tap of phone. This lack of transparency in data flow raises red flags for users.

There is always a risk of eavesdropping and cybercrimes like identity theft when transferring data wirelessly through NFC. Hackers can potentially intercept contactless financial transactions and personal data being exchanged between NFC enabled devices. This threat of personal data breach discourages users from embracing new applications of NFC technology in mobile payments, access control, and even healthcare sector.

Market Opportunities: Integration of NFC in IoT devices

The integration of NFC technology in IoT devices presents a huge opportunity for the growth of the global Near Field Communication market. With most devices becoming 'smart' these days, the ability to easily share data between devices through tap and go contactless payments will provide a seamless experience to consumers. Technologies like Bluetooth and WiFi require pairing of devices whereas NFC simplifies the process through proximity. This ease of use will encourage the adoption of NFC among manufacturers of appliances, wearables, and other connected hardware. Contactless tagging through NFC can enable smart refrigerators to automatically generate shopping lists by scanning food items. Farmers can easily share crop details with buyers by tapping devices. IoT devices with NFC can authenticate users securely for access control without the need for passwords.