NFC-enabled cell phone shipments are significantly growing. As consumer awareness about the numerous benefits of NFC technology increases, NFC-enabled cell phones are expected to gain further momentum and change the game.

1. On the Upswing
NFC-enabled cell phone shipments on the rise
NFC-enabled cell phone shipments are expected to increase at a CAGR
of 33.6% during 2013–18 to ~1.2 billion units by 2018.
Estimated growth of NFC - enabled cell phone shipments, million units (2013-18F)
33.6%
275
416
575
797
939
By 2018, two of every three cell phones shipped are expected
to be equipped with NFC technology
Source: IHS Research, Aranca Analysis
NOTE: Near field communication (NFC) is a set of standards for Smartphones and similar devices to establish radio communication with each other by
touching them together or bringing them into proximity, usually no more than a few inches
Compiled by: Mayur Varandani
Aranca’s Views
Aranca estimates a notable increase in the shipments of NFC-enabled mobile phones globally.
As a technology platform, Near Field Communication (NFC) has moved from “innovation and development”
to “adoption and growth.” Today, this platform is provided in almost all mobile phones and unlike existing
technology platforms (SMS, unstructured supplementary service data (USSD), mobile web, mobile app), NFC
is one of the easiest platforms in terms of consumer experience. However, limited awareness about its
various benefits among end users and lack of a secured infrastructure for usage may aect the upward
movement of the market in the near future.
According to Aranca, it will take a while for NFC to gain a foothold in the handset market, but it has the
potential to be a game changer.
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1,170
2013 2014F 2015F 2016F 2017F 2018F
Increasing awareness among customers regarding the
benefits of NFC technology resulted in the total shipments
of NFC-enabled cell phones reaching ~275 million units in
2013
A majority of smartphone manufacturers are adopting NFC
wireless communications and payment technology in their
products as a standard solution, thereby allowing the
integration levels of NFC-enabled cell phones to rise from
the current 18.2% to ~64% by 2018
In 2013, shipments of NFC modem-type devices stood at
around 321 million units, with standalone modem devices
accounting for ~90% of total shipments. However, in the
near future, other implementations, such as combination
connectivity integrated circuits (ICs), are expected to
become more popular, increasing shipments to ~603.0
million units by 2018 (2013: 17.2 million units)
Global shipments of NFC-enabled cell phones are expected to increase at a CAGR of 33.6% to around 1,170
million units by 2018
However, the growth of this technology in the near future may be hampered by the lack of interest among
consumers in case of using mobile payment solutions, increasing security concerns regarding confidential
information, lack of compelling services as well as applications, and sluggish progress on establishing the
required infrastructure by the manufacturers
In 2013, Android-based smartphones dominated the NFC
marketplace with 254 million units (93% of total
NFC-enabled cell phone shipments). By 2018, this figure is
expected to reach 844 million units, accounting for more
than 70% of total NFC-enabled cell phone shipments