The Contactless Smart Card Market is projected to grow from USD 15.54 billion in 2024 to USD 48.7 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.35% during the forecast period (2024 - 2032). Additionally, the market size for contactless smart card was valued at USD 13.2 billion in 2023. Growing instances of identity theft and fraud caused by recent technology breakthroughs are the key market drivers enhancing market growth.
Figure 1: Contactless Smart Card Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review
Market CAGR for contactless smart cards is being driven by recent technology breakthroughs; identity fraud and duplication are on the rise, which are the main drivers behind the growth of the worldwide contactless smart card market. Furthermore, these cards are PIN protected and challenging to read, allowing them to be utilized for contactless payments. Demand for contactless smart cards is further driven by growing use in industries like BSFI, retail, transit, hospitality, and government. Additionally, this technology is becoming required for passports and driver's licenses in several wealthy nations. Additionally, it is anticipated that using contactless smart cards for transit applications to offer a simple payment alternative would further spur the growth of the worldwide contactless smart card market.
Additionally, the worldwide contactless smart card market analysis reveals that contactless transmission has given rise to numerous business prospects. Contactless cards will be used more frequently, according to the market. These often now come in soft tokens, UPI, or QR cards that provide contactless and secure money transfers. Many major businesses are competing to dominate the world of money transfers, including PayPal, Google Pay, and Amazon Pay. All banks have switched to microchips during the past ten years, enabling wireless transfer in place of the commonly used debit and credit cards. These days, chips are built into every piece of cutting-edge technology, and by utilizing the data stored on the chips, they also assist in keeping track of our parcels.
The newest addition to the contactless smart card goods that are revolutionizing the e-commerce industry is e-passports. Market giants like Tesla, Google, and Amazon have created a lot of employment and helped many people around them by making the newest technology available.
For instance, to expand its product lineup, metal-based contactless payment cards were added via the acquisition of XCore Technologies in October 2019 by IDEMIA, a French company with expertise in augmented identities. Thus, growing instances of identity theft and fraud caused by recent technological breakthroughs drive the contactless smart cards market revenue.
The global contactless smart card market segmentation, based on type, includes proximity cards and CPU/MPU cards. The proximity cards segment dominated the market, accounting for 65% of market revenue (7.28 Billion). Better customer experience with contactless cards, expanding proximity technology in numerous applications and areas worldwide, and rising interest from public and private sector organizations in implementing RFID technologies for security.
The global contactless smart card market segmentation, based on application, includes BFSI, government, and transportation. The government category generated the most income (49.2%), with the highest CAGR. The government has been monitoring people for record-keeping purposes for a long time; earlier, it relied on thumbprint tracking; today, it relies more on apps on our phones.
The global contactless smart card market segmentation, based on technology, includes smart card Integrated Circuits and smart memory cards. The smart card integrated circuits category generated the most income (75.9%) with the highest CAGR. These cards have antennae built, allowing non-contact communication with the reader. Due to its rising advantages, including speed, use, and versatility, the market for contactless smart cards is growing quickly. Its uses in governmental and commercial settings include access control, parking, cashless vending, road toll, and student and employee IDs.
Figure 2: Contactless Smart Card Market, by Technology, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. With the increase in regional consumer spending on digital media, the North American contactless smart card market will dominate this market. In the coming years, it is predicted to make significant progress. The region's need for smart cards is expected to increase as more modern technologies are adopted.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: CONTACTLESS SMART CARD MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review
Europe's contactless smart card market accounts for the second-largest market share due to the interest of technology investors in both urban and rural communities has expanded globally. World leaders and local consumers have been linked by rural industry. Further, the German contactless smart card market held the second largest market share, and the UK contactless smart card market was the second largest growing market in the European region.
The Asia-Pacific contactless smart card market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the appropriate products in all international industries, including business, healthcare, retail, and e-commerce. Moreover, China’s Contactless Smart Card market held the largest market share, and the Indian contactless smart card market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the contactless smart card market, grow even more. Participants in the market are also engaging in a variety of strategic initiatives to global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The contactless smart card industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global contactless smart card industry to benefit clients and increase the market sector. In recent years, the contactless smart card industry has offered some of the most significant medical advantages. Major players in the Contactless Smart Card market, including Cubic Corporation Transportation Systems (US), Gemalto NV (Netherlands), ASK (France), Giesecke & Devrient (Germany), and Oberthur Technologies (France)Gemalto International SAS provides digital security solutions. In addition to cloud computing, secure document software, tokens, and remote management systems, the company offers banking cards. Customers are served globally by Gemalto International. Gemalto NV has unveiled a new card featuring a biometric sensor to give users more security. Cards using contactless biometric technology make proximity payments easier and offer the required level of privacy. Mastercard, Visa, and other well-known EMV payment systems have completely verified these cards.
The defence division of Cubic Corporation supplies military forces with battle command training, instrumented air and ground combat training systems, and simulation support. The business also manufactures communications, data connections, and avionics systems. Cubic's transportation division provides Intermodal ticketing systems for public transit projects around the world. The public and private sectors have experienced organic growth in the contactless smart card market. Contactless package transmission has grown tremendously at Cubic Corporation Transportation Systems (US) in recent years. These packages contain embedded chips that enable deliverables to track the recipient's address and the time and date of delivery.
Cubic Corporation Transportation Systems (US)
Gemalto NV (Netherlands)
ASK (France)
Giesecke & Devrient (Germany)
Oberthur Technologies (France)
Proximity Cards
CPU/MPU Cards
BFSI
Government
Transportation
Smart card Integrated Circuits
Memory Smart Cards
US
Canada
Germany
France
UK
Italy
Spain
Rest of Europe
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Middle East
Africa
Latin America
| Attribute/Metric | Details |
| Market Size 2023 | USD 13.2 Billion |
| Market Size 2024 | USD 15.54 Billion |
| Market Size 2032 | USD 48.7 Billion |
| Compound Annual Growth Rate (CAGR) | 15.35% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, Technology, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Cubic Corporation Transportation Systems (US), Gemalto NV (Netherlands), ASK (France), Giesecke & Devrient (Germany), and Oberthur Technologies (France) |
| Key Market Opportunities | Industrialization and rapid urbanization create profitable prospects in developing nations like India, China, Mexico, South Africa, and Brazil. |
| Key Market Dynamics | Opted for contactless smart cards since they pose a lower virus dissemination risk. |
Contactless Smart Card Market Highlights:
Frequently Asked Questions (FAQ):
The global contactless smart card market size was valued at USD 13.2 Billion in 2023.
The global market is projected to grow at a CAGR of 15.35% during the forecast period, 2024-2032.
North America had the largest share of the global market
The key players in the market are Cubic Corporation Transportation Systems (US), Gemalto NV (Netherlands), ASK (France), Giesecke & Devrient (Germany), and Oberthur Technologies (France).
The proximity cards category dominated the market in 2023.
The government had the largest share of the global market.
Smart integrated circuits had the largest share of the global market.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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