Near Field Communication (NFC)

Interim Technologies and Devices, and NFC Mobile Handsets

NFC in handsets is a market in waiting. Since the technology was first aimed at integration into mobile handsets there have been significant expectations for adoption and rollout. While NFC supports and enables multiple applications on handsets, it is payment and ticketing that have driven much of the interest and complexity within its development path towards mass adoption. That has pushed out the standards development and the business partnership requirements for establishing mass NFC deployment. While trials and pilots by MNOs investigating investment in broad NFC rollouts will continue for the next 12—18 months, alternative applications and interim technologies are emerging to bridge the gap between mobile handsets and contactless applications.

This report delivers analysis on all aspects of the NFC ecosystem, technology development and standardization, key trials and vendors, key learnings and strategies for a range of industries and groups, and includes a timeline for NFC adoption, key applications and interim technologies.

What Questions Does This Report Answer?

  • How will the market for NFC technology and applications develop over the next five years?
  • What has been achieved so far in developing NFC technology and applications?
  • Who are the key players within the NFC ecosystem?
  • What are the key drivers and key steps for companies involved in NFC adoption and deployment?
  • What other applications are emerging from NFC adoption and what is their potential to speed up or delay NFC rollout in mobile handsets?

Who Needs This Report?

  • Mobile handset and IT/CE device manufacturers.
  • MNOs
  • Retails banks
  • IC manufacturers
  • Contactless card manufacturers
  • OTA and Trusted Service Manager players
  • Card personalization vendors
  • NFC and contactless payment start-ups
  • Transit operators
  • SIM card manufacturers
  • Retailers



Section 1.
EXECUTIVE SUMMARY
1.1. NFC - A Market in Waiting
1.2. What Should Be Done with NFC Today?
1.2.1. MNOs
1.2.2. Financial Institutions
1.2.3. Transit MNOs
1.2.4. Retailers
1.2.5. Systems Integrators
1.2.6. Computing and Consumer Electronics
1.2.7. Marketing

Section 2.
MARKET ISSUES
2.1. The NFC Vision
2.2. The Promise of NFC and the Touch Paradigm
2.3. NFC and the Road to Deployment
2.3.1. Delays, Setbacks, and Next Steps
2.4. NFC Is Looking to Original Applications Again
2.4.1. Trials Are Not Just about the Technology
2.4.2. NFC in Bespoke Applications
2.4.3. Interim and Non-Embedded NFC Technologies
2.4.3.1. Contactless Stickers
2.4.3.2. SIM-Based Contactless Attachments
2.4.3.3. NFC and Bluetooth Stickers
2.4.3.4. Removable NFC Using SD Cards
2.4.4. NFC Momentum Is Underway
2.5. The Evolutionary Path for NFC Adoption
2.5.1. Consensus vs. Competition between Single Industry Players
2.5.2. Consensus vs. Competition across Industries
2.6. NFC Industry Backers
2.6.1. MNOs and NFC Revenue Streams
2.6.2. Rousing Operator Handset Investment
2.6.3. NFC Payments and Financial Services Enthusiasm
2.6.3.1. NFC and Handset Vendor Interest
2.7. NFC Handsets
2.7.1. NFC Handset Availability Remains Limited
2.7.2. NFC Handset Configuration - Solidified for GSM/WCDMA Networks
2.7.2.1. For Full Handset Deployments, UICC SE Bests Handset-Embedded SE
2.7.2.2. NFC SD or USB?
2.8. Ecosystem Development
2.8.1. Trusted Service Managers
2.8.2. Does the Trusted Third-Party Model Last?
2.8.3. GSM Association NFC Projects and Trials
2.8.3.1. GSMA Handset Requirements
2.8.4. Handset Availability
2.8.5. A Handset Market Shakeup?
2.8.6. The Contactless Infrastructure for NFC Adoption
2.9. What Is Still Required?
2.10. What Is the Potential for NFC in the Near Term?
2.11. Which Regions and What Timescale?
2.12. NFC Target Demographic
2.12.1. By Region
2.12.2. By Subscriber
2.12.3. What Is the Optimal NFC Customer Demographic?
2.12.4. Matching NFC Application Packages to Appropriate Customer Segments
2.13. Rival Technologies
2.13.1. Payment
2.14. Service Discovery

Section 3.
ADDITIONAL NFC APPLICATIONS, MARKETS,AND INTEROPERABILITY OPPORTUNITIES
3.1. NFC Connectivity
3.1.1. Higher Bandwidth Communications
3.1.2. NFC and Bluetooth
3.1.2.1. Bluetooth and NFC Integration
3.1.3. Bluetooth/Wi-Fi and NFC
3.1.3.1. NFC and Wi-Fi Market Development
3.1.4. NFC Can Boost Mobile Wireless Internet Use
3.1.4.1. NFC and Wireless USB
3.2. NFC and PCs and Peripheral Electronics
3.3. NFC and Consumer Electronics
3.4. NFC and Peer-to-Peer/Mobile Money Transfer Payments
3.5. NFC and Automobiles
3.6. NFC and Gaming

Section 4.
TECHNOLOGY ISSUES
4.1. Technology Synopsis
4.2. Specifications
4.2.1. ISO 14443
4.2.2. ISO 18092
4.2.3. ETSI TS 102 613 (Release 7)
4.2.4. HCI TS
4.2.5. ISO 15693
4.3. NFC Devices
4.3.1. Working Modes
4.3.2. The NFC Device IC and Modem
4.3.3. The NFC Device Secure Element
4.3.4. NFC Forum Device Specification Architecture
4.3.4.1. Analog Specifications
4.3.4.2. Digital Protocol Specification
4.3.4.3. NFC Activities Specification
4.3.4.4. NFC Reader Writer Specifications
4.3.5. NFC Forum Specifications
4.3.5.1. NFC Data Exchange Format (NDEF)
4.4. NFC Tags and Smart Posters
4.4.1. NFC Forum Tag Specifications
4.4.1.1. NDEF Technical Specification
4.4.1.2. NFC Record Type Definition (RTD)
4.4.1.3. NFC Smart Poster RTD Technical Specification
4.4.1.4. Text RTD
4.4.1.5. URI RTD
4.4.2. Tag Specifications
4.4.2.1. NFC Forum Type 1 Tag Operation Specification
4.4.2.2. NFC Forum Type 2 Tag Operation Specification
4.4.2.3. NFC Forum Type 3 Tag Operation Specification
4.4.2.4. NFC Forum Type 4 Tag Operation Specification
4.4.3. NFC Forum Specifications in Progress
4.4.3.1. The EMVCo Mobile Payment Working Group

Section 5.
MARKET FORECASTS
5.1. Methodology
5.2. The New Product Diffusion Model
5.2.1. Deriving the Growth Coefficients
5.2.2. The New Product Conundrum
5.2.3. Using Analogical Products as a Baseline
5.3. NFC Forecasts
5.3.1. Mobile Handsets
5.3.2. NFC-Enabled Handsets

Section 6.
KEY INDUSTRY PLAYERS
6.1. Advanced Card Systems Ltd
6.2. Airtag
6.3. Authentec
6.4. BenQ
6.5. Cassis International
6.6. Cubic Corp
6.7. Ericsson Technology Licensing AB
6.8. France Telecom Orange
6.9. Gemalto
6.10. Giesecke & Devrient GmbH
6.11. GSM Association
6.12. Infineon Technologies AG
6.13. Innovision Research and Technology plc
6.14. Inside Contactless
6.15. LogicaCMG
6.16. MasterCard Worldwide
6.17. Microsoft Corp
6.18. Mobey Forum
6.19. Motorola Inc
6.20. Narian Technologies
6.21. National Technical Systems
6.22. NEC
6.23. Neowave
6.24. Nexperts
6.25. NFC Forum
6.26. Nokia
6.27. NTT DoCoMo
6.28. NXP Semiconductors
6.29. Oberthur Card Systems
6.30. On Track Innovations
6.31. Panasonic
6.32. Polaric
6.33. Proxima
6.34. Qualcomm
6.35. Renesas
6.36. Samsung Electronics Co Ltd
6.37. SCM Microsystems
6.38. Sony Corp
6.39. STMicroelectronics
6.40. StoLPaN
6.41. Tikitag
6.42. Venyon
6.43. Visa International
6.44. ViVOtech Inc

Section 7.
APPENDIX A: NFC MARKET FOUNDATIONS
7.1. The Appeal of NFC
7.1.1. The Appeal of NFC to End Users
7.1.2. The Appeal of NFC to MNOs
7.1.3. The Appeal of NFC to Financial Services Providers
7.1.4. The Appeal of NFC to Merchants
7.1.5. The Appeal of NFC to Handset Vendors
7.2. NFC Payment Infrastructure
7.2.1. Soft Payment Cards and NFC Handset Management
7.3. NFC and Transportation
7.4. NTT DoCoMo and FeliCa
7.4.1. The NTT DoCoMo Example
7.4.1.1. Tokyo Transit
7.4.2. FeliCa and NFC
7.5. Prepaid Services and NFC
7.6. Event Ticketing and NFC
7.7. Smart Tags and Smart Infrastructure
7.8. NFC as Infrastructure
7.8.1. NFC Smart Tags Shift Infrastructure Costs
7.9. Global NFC Interoperability
7.9.1. Simplifying NFC Manufacturing and Adoption
7.10. Managing NFC Applications
7.10.1. The StoLPaN European NFC Initiative
7.10.2. OTA Activation/Management

Section 8.
COMPANY DIRECTORY

Section 9.
ACRONYMS


SCOPE OF STUDY
SOURCES AND METHODOLOGY
NOTES

Tables
  • Total NFC-Enabled Device Shipments, World Market, Forecast: 2007 to 2013
  • Total NFC Chipset Shipments, World Market, Forecast: 2007 to 2013
  • NFC Chipset ASPs , World Market, Forecast: 2007 to 2013
  • Total NFC Chipset Revenue, World Market, Forecast: 2007 to 2013
  • Contactless HF RFID Transponder IC Average Factory Selling Prices (AFSPs) , World Market, Forecast: 2007 to 2013
  • Total NFC-Enabled Device Shipments by Form Factor, World Market, Forecast: 2007 to 2013
  • Contactless HF RFID Tag Shipments, World Market, Forecast: 2007 to 2013
  • Contactless HF RFID Tag Revenue, World Market, Forecast: 2007 to 2013
  • Contactless HF RFID Reader Shipments, World Market, Forecast: 2007 to 2013
  • Contactless HF RFID Reader Revenue, World Market, Forecast: 2007 to 2013
  • Wireless Handset Shipments by Region, World Market, Forecast: 2007 to 2013
  • Wireless Handset Shipments by Phone Type, World Market, Forecast: 2007 to 2013
  • NFC-Enabled Handset Shipments by Phone Type, World Market, Forecast: 2007 to 2013
  • NFC-Enabled Handset Shipments by Phone Type, Asia-Pacific, Forecast: 2007 to 2013
  • NFC-Enabled Handset Shipments by Phone Type, North America, Forecast: 2007 to 2013
  • NFC-Enabled Handset Shipments by Phone Type, Europe, Forecast: 2007 to 2013
  • NFC-Enabled Handset Shipments by Phone Type, Rest of World, Forecast: 2007 to 2013
  • NFC Wi-Fi Connectivity-Enabled Shipments by Phone Type, World Market, Forecast: 2007 to 2013
  • NFC Bluetooth Connectivity-Enabled Shipments by Phone Type, World Market, Forecast: 2007 to 2013
  • NFC Payment-Enabled Shipments by Phone Type, World Market, Forecast: 2007 to 2013
  • NFC Service Discovery-Enabled Shipments by Phone Type, World Market, Forecast: 2007 to 2013
  • NFC Prepaid/Top-Up-Enabled Shipments by Phone Type, World Market, Forecast: 2007 to 2013
  • NFC Event Ticketing-Enabled Shipments by Phone Type, World Market, Forecast: 2007 to 2013
  • NFC Transit-Enabled Shipments by Phone Type, World Market, Forecast: 2007 to 2013
  • NFC Wi-Fi Enabled Consumer Electronics Shipments by Type, World Market, Forecast: 2007 to 2013

Charts
  • Notable Interest in Mobile Phone Purchases, but This Is Not a" Must Have" Application Yet

Figures
  • New Product Diffusion Profile
  • New Product Diffusion Profile (Net Adoptions)