Multiple Secure Elements to grow NFC Market above $1 Billion in 2016

Multiple Secure Elements to grow NFC Market above $1 Billion in 2016 says ABI Research

The ability to fit NFC phones with multiple Secure Elements is projected to propel the NFC IC industry to a value of $1.3 billion in the NFC phone market by 2016 according to ABI Research. The recent announcements of Broadcom’s BCM2079x NFC chip which has enables multiple Secure Elements on a single NFC phone, is a game changer according to ABI. The facts and figures fun doesn’t stop there though. ABI Research also project that in 2016 227 million NFC phones or NFC devices will ship with multiple Secure Elements.

Research analyst Phil Sealy says, “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.”

Mobile Network Operators may face competition even if they lock off the market when multiple Secure Elements are in NFC phones and NFC tablets

Mobile network operators haven’t played nicely with others when it has come to NFC services so far. Isis and the NFC UK joint venture for example have attempted to keep competitors off of their networks. However ABI feels this will not last as multiple Secure Elements are gradually added to NFC phones. So far most mobile network operators have chosen SWP SIM implementation. However ABI projects that the market will develop with both SWP and embedded solutions shipping onto single devices. That’s bad news for mobile network operators and great news for consumers.

John Devlin, group director, security and ID, adds, “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.”

In fact ABI forecasts that multiple Secure Elements will become so prolific by 2016 that 78% of all NFC handsets will ship with some form of embedded secure solution.

“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,” the company said.

The NFC phone market will make up the bulk of the market that will benefit from multiple Secure Elements in NFC phones. However ABI forecasts that CE devices, tags, bridging solutions, and other markets will account for additional IC shipments totaling 534 million in 2016.

Those bridging solutions that will get a boost from multiple Secure Elements include stickers, foils and micro SD cards, and an array of other applications in the healthcare, automotive, and security sectors.

It appears it is a great day to be NXP, UPM RFID, Avery or the Identive Group or a consumer. However the news isn’t so great for Isis type companies who may now have no choice but to have competitors on their networks. The real winner of multiple Secure Elements in NFC phones will be consumers who will now have more choice and a more competitive market place.