Multiple secure elements power NFC market above $1 billion in 2016


Out
of a total of 552 million NFC handsets shipped in 2016, 227 million will
feature multiple secure elements. The increased inclusion of multiple secure
elements will drive the mobile NFC market valuation above the $1 billion mark.


Though
MNOs favor SWP SIM implementation, the market will develop with both SWP and
embedded solutions shipping onto single devices. Continued development of ICs
combining both controller and secure element will result in most handsets
shipping with an embedded solution as standard practice.


ABI
Research forecasts that 78 percent of all NFC handsets will ship with some form
of embedded secure solution in 2016.


“The
issues affecting the location of the secure element remain a hot topic and
although progress has been made there remains uncertainty among ecosystem
players,” said Phil Sealy, research analyst, ABI Research.


As
the market matures and business models are realized and deployed, a variety of
secure elements are being deployed into devices to meet different client demands.
In the long run, this will allow service providers to enter the NFC market
alongside MNOs, in turn making the offerings of NFC applications more
competitive.


As
well as the well-publicized NFC handset market, lesser known sectors, such as
CE devices, tags, bridging solutions, and other markets will account for
additional IC shipments totaling 534 million in 2016.


NFC
will be an extremely prosperous market for IC vendors, generating estimated
revenues totaling $1.3 billion in 2016 in the handset market alone.


“The
ongoing uncertainly over secure elements and ownership will drive IC vendors to
develop a variety of competitive solutions, including integrating the NFC RF in
a combo connectivity IC or the baseband, embedding the secure element and
controller together, as well as standalone solutions. This will enable a number
of business models to develop and be served, meeting the anticipated long-term
market requirement to support more than one secure element in a device,” said John
Devlin, group director, security and ID.


By
Telecomlead.com Team
[email protected]