admin, 2024-09-10 17:41
NFC is a short-range communications technology. Use cases are wide-ranging and encompass many industries, including security. This article looks at NFC, its market status and applications in physical security.
NFC, which stands for near field communication, is a wireless communications technology that enables data exchanges between devices over short distances, typically within 4 cm. The way NFC works is such that when two NFC-supported devices are brought in close range, the reader sends a signal, and the other device – be it a smartphone or card – receives the signal and sends the requested information. The communication is carried out pretty quickly, usually within seconds.
With its convenience and wide applications, NFC sees strong demand and growth. According to a market report by MarketsandMarkets, the NFC market is estimated to be US$21.69 billion in 2024 and is projected to reach $30.55 billion by 2029, at a compound annual growth rate (CAGR) of 7.1 percent during the forecast period. “There is an expectation of high usage of mobile devices for mobile-to-mobile data transfer and mobile-based payments, which is expected to create lucrative market opportunities for players ahead,” the market research firm said.
Further, MarketsandMarkets finds that NFC growth potential is especially strong in Asia. “NFC-enabled handsets, wearable devices, and products are most used in Japan for payment, customer or product identification, and access control applications. Similarly, South Korea, China, and India also contribute to the NFC market in Asia Pacific,” it said. “Contactless debit and credit cards have become popular in many parts of India. Some of the banks offering NFC-enabled contactless credit cards in India are Citibank, Kotak Mahindra Bank, HDFC Bank, IndusInd Bank, Standard Chartered Bank, American Express (India), ICICI Bank, and State Bank of India, among others.”
NFC has use cases in a range of industries. Below we look at some of NFC’s key applications in physical security.
Access control is a main application of NFC. This is especially the case now that mobile access control, where the user opens the door with their NFC-enabled smart device, becomes more popular and widespread. Most smartphone brands and models today support NFC. In other areas of access control, organizations are known to issue NFC badges or smartcards with which employees can gain access to secured areas. Visitors can also be issued with NFC tags or cards to access buildings/end user organizations.
Another key application of NFC in security is cashless payment. NFC-enabled devices can be utilized for cashless, contactless transactions. Tapping the phone at a reader at Starbucks or on a subway turnstile to gain entry is something we should all be familiar with.
Now cashless payment can be made with wearable devices such as smartwatches and fitness trackers. “This technology allows these devices to interact with other NFC-enabled devices or tags for contactless payments and data transfer applications. For instance, smartwatches from major brands such as Apple and Samsung feature NFC capabilities, allowing these devices to be used for contactless payments, access control, and data sharing. The market for wearable devices has lucrative growth potential in the consumer electronics sector,” MarketsandMarkets said.
Tracking the movement of assets in secured areas is also a useful NFC application in security. By putting NFC tags on items or equipment, users can scan them with NFC-enabled devices, thus ensuring the goods are in the correct location and properly accounted for. This is useful for inventory management and to prevent theft or misplacement.
Finally, NFC has use cases in event management. Gone are the days when event attendees or guests gets a stamp on their arms to reenter the site. NFC can be employed for secure event access, such as for conferences or large gatherings, where each attendee receives an NFC-enabled wristband or card. This ensures smooth and secure check-ins and access to different areas within the venue.
NFC, which stands for near field communication, is a wireless communications technology that enables data exchanges between devices over short distances, typically within 4 cm. The way NFC works is such that when two NFC-supported devices are brought in close range, the reader sends a signal, and the other device – be it a smartphone or card – receives the signal and sends the requested information. The communication is carried out pretty quickly, usually within seconds.
With its convenience and wide applications, NFC sees strong demand and growth. According to a market report by MarketsandMarkets, the NFC market is estimated to be US$21.69 billion in 2024 and is projected to reach $30.55 billion by 2029, at a compound annual growth rate (CAGR) of 7.1 percent during the forecast period. “There is an expectation of high usage of mobile devices for mobile-to-mobile data transfer and mobile-based payments, which is expected to create lucrative market opportunities for players ahead,” the market research firm said.
Further, MarketsandMarkets finds that NFC growth potential is especially strong in Asia. “NFC-enabled handsets, wearable devices, and products are most used in Japan for payment, customer or product identification, and access control applications. Similarly, South Korea, China, and India also contribute to the NFC market in Asia Pacific,” it said. “Contactless debit and credit cards have become popular in many parts of India. Some of the banks offering NFC-enabled contactless credit cards in India are Citibank, Kotak Mahindra Bank, HDFC Bank, IndusInd Bank, Standard Chartered Bank, American Express (India), ICICI Bank, and State Bank of India, among others.”
Applications in security
NFC has use cases in a range of industries. Below we look at some of NFC’s key applications in physical security.
Access control
Access control is a main application of NFC. This is especially the case now that mobile access control, where the user opens the door with their NFC-enabled smart device, becomes more popular and widespread. Most smartphone brands and models today support NFC. In other areas of access control, organizations are known to issue NFC badges or smartcards with which employees can gain access to secured areas. Visitors can also be issued with NFC tags or cards to access buildings/end user organizations.
Cashless payment
Another key application of NFC in security is cashless payment. NFC-enabled devices can be utilized for cashless, contactless transactions. Tapping the phone at a reader at Starbucks or on a subway turnstile to gain entry is something we should all be familiar with.
Now cashless payment can be made with wearable devices such as smartwatches and fitness trackers. “This technology allows these devices to interact with other NFC-enabled devices or tags for contactless payments and data transfer applications. For instance, smartwatches from major brands such as Apple and Samsung feature NFC capabilities, allowing these devices to be used for contactless payments, access control, and data sharing. The market for wearable devices has lucrative growth potential in the consumer electronics sector,” MarketsandMarkets said.
Asset tracking and management
Tracking the movement of assets in secured areas is also a useful NFC application in security. By putting NFC tags on items or equipment, users can scan them with NFC-enabled devices, thus ensuring the goods are in the correct location and properly accounted for. This is useful for inventory management and to prevent theft or misplacement.
Event management
Finally, NFC has use cases in event management. Gone are the days when event attendees or guests gets a stamp on their arms to reenter the site. NFC can be employed for secure event access, such as for conferences or large gatherings, where each attendee receives an NFC-enabled wristband or card. This ensures smooth and secure check-ins and access to different areas within the venue.