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ABI eyes robust growth for NFC market

Posted: 08 Jan 2008 ?? ?Print Version ?Bookmark and Share

Keywords:Near Field Communication? NFC market? NFC chipsets?

According to ABI Research, over 419 million Near Field Communication (NFC) chipsets will ship in 2012, amounting to total market revenue of $406 million.

"NFC chipset shipments and revenue will continue to grow steadily over the next five years, as the market adapts to this new technology," said ABI senior analyst Douglas McEuen.

However, similar to most semiconductor markets, NFC revenue is offset by declining unit ASPs. By 2012, ABI forecasts that NFC chipset ASP will decline to 97 cents.

"Transportation systems are implementing contactless payment schemes, wireless device content management is growing, and connectivity options are escalating without offering clear ease-of-use focused applications," added McEuen. "NFC technology, aided by NFC IC short-range communication capability, addresses each of these issues with proven technology in an industry-standardized format."

In North America, ABI sees demand for handset application directives from operators and third parties. Europethough lagging in the contactless RFID payment space due to payment infrastructure constraints tied to the EMV (Europay, MasterCard and Visa) deploymentsis extremely well-suited for NFC. The region is a highly transit-centric environment full of content and mobile payment opportunity across its GSM family networks, explained ABI.

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