Research Reveals Dramatic Rise in NFC Adoption

Research released by In-Stat suggests that chips with Near Field Communications (NFC) technology will grow at a compound annual growth rate of 129 per cent until 2015, by which time it will be included in 30 per cent of smartphones.

“As the costs of NFC chips decline, and NFC radios are combined with other chip functions, the cost to integrate NFC into handsets will be outweighed by the benefits,” says Allen Nogee, research director. “The growth of combo chips will also allow NFC radios to piggyback on technology that already has significant penetration in the market. For example, Bluetooth radios, which currently have 100% market penetration, can be integrated with NFC radios, making the choice to include NFC easy for OEMs [original equipment manufacturers].”

Traditionally, the technology has been orientated towards mobile payments, shoppers using smartphones to pay for purchases by placing them near a NFC reader, but this research suggests a move toward use in marketing. Retailers could embed the technology into posters and other advertisements to deliver customised messages to customers, as with Signbox's Enlighten smart poster system which launched last month.