Contactless Smart Card Market Research Report - Global Forecast to 2032

Contactless Smart Card Market Research Report: Information By Type (Proximity Cards and CPU/MPU Cards), By Application (BFSI, Government, and Transportation), By Technology (Smartcard Integrated Circuits and Memory Smart Cards), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) โ€“Market Forecast Till 2032

ID: MRFR/ICT/0516-HCR | 100 Pages | Author: Aarti Dhapte | March 2024         

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Contactless Smart Card Market Overview


Contactless Smart Card Market Size was valued at USD 11.2 Billion in 2022. The contactless smart card market industry is projected to grow from USD 13.2 Billion in 2023 to USD 48.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 17.75% during the forecast period (2023 - 2032).Growing instances of identity theft and fraud caused by recent technology breakthroughs are the key market drivers enhancing market growth.


Contactless Smart Card Market


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Contactless Smart Card Market Trends


The contactless smart card’s various benefits are driving the market growth.


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.


Contactless Smart Card Market Segment Insights


Contactless Smart Card Type Insights


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.


Contactless Smart Card Application Insights


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.


Contactless Smart Card Technology Insights


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 1: Global Contactless Smart Card Market, by Technology, 2022 & 2032 (USD Billion)


Contactless Smart Card Market


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Contactless Smart Card Regional Insights


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 2: GLOBAL CONTACTLESS SMART CARD MARKET SHARE BY REGION 2022 (USD Billion)

Contactless Smart Card Market


Source: Secondary Research, Primary Research, MRFR 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.


Contactless Smart Card Key Market Players & Competitive Insights


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.


Key Companies in the Contactless Smart Card market include




  • Cubic Corporation Transportation Systems (US)




  • Gemalto NV (Netherlands)




  • ASK (France)




  • Giesecke & Devrient (Germany)




  • Oberthur Technologies (France)




Contactless Smart Card Industry Developments


The heartbeat detection feature of the ST25R3916B chip "assists a reader in determining whether it is interacting with a card or a smartphone."

NatWest introduced Tap to Pay for Android in 2023, giving merchants a new opportunity to accept payments on customers' smartphones through the NatWest Tap to Pay app. Customers may now accept in-person contactless payments on their Android phones by using Tyl by NatWest, the company's payments service, to transform compatible Android handsets into contactless mobile card readers.

The first of its type in Botswana payment solution will be made available by Absa Bank Botswana Limited (Absa) in 2023, enabling clients to make contactless card transactions using their smartphones instead of conventional Point-of-Sale (POS) terminals.

Contactless NFC payments will be made available in 2023 thanks to a partnership between KCB and Visa. A comparable service supported by M-PESA was introduced by Telco Safaricom but failed more than five years ago. Customers can now use Android smartphones or Garmin wearables to make contactless payments through Kenya Commercial Bank (KCB). The product is a first for Kenya as other contactless solutions of a similar nature rely on cards rather than smart devices, such those provided by Absa and Standard Chartered.

STMicroelectronics released an NFC chip in 2023 that supports active waveshaping and heartbeat detection, allowing developers and manufacturers to make contactless payment solutions that are more compact and effective while still ensuring that devices adhere to EMVCo 3.1 regulations. Instead of using conventional point-of-sale terminals, the new solution, dubbed a Soft Point of Sale (SoftPOS), will enable merchants and Small, Medium, and Micro Enterprises to collect payments from clients by just touching their cards on mobile smart devices.

January 2021:
To introduce the first recycled plastic payment card in Denmark, IDEMIA and Jyske Bank, the country's second-largest bank, entered a four-year deal.


July 2021:
IDEX Biometrics ASA and Infineon Technologies AG have unveiled a reference design for a cutting-edge fingerprint smart card architecture. The design uses the Infineon SLC38BML800 safety controller with a GPIO interface and the TrustedBio product from IDEX Biometrics. This enables accurate, quick, and energy-efficient fingerprint verification.


Contactless Smart Card Market Segmentation


Contactless Smart Card Type Outlook




  • Proximity Cards




  • CPU/MPU Cards




Contactless Smart Card Application Outlook




  • BFSI




  • Government




  • Transportation




Contactless Smart Card Technology Outlook




  • Smart card Integrated Circuits




  • Memory Smart Cards




Contactless Smart Card Regional Outlook




  • North America






  • US




  • Canada






  • Europe






  • Germany




  • France




  • UK




  • Italy




  • Spain




  • Rest of Europe






  • Asia-Pacific




    • China




    • Japan




    • India




    • Australia




    • South Korea




    • Australia




    • Rest of Asia-Pacific






  • Rest of the World




    • Middle East




    • Africa




    • Latin America








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Report Scope:

Report Attribute/Metric Details
Market Size 2022 USD 11.2 Billion
Market Size 2023 USD 13.2 Billion
Market Size 2032 USD 48.7 Billion
Compound Annual Growth Rate (CAGR) 17.75% (2023-2032)
Base Year 2022
Market Forecast Period 2023-2032
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.




Frequently Asked Questions (FAQ) :

The global contactless smart card market size was valued at USD 11.2 Billion in 2022.

The global market is projected to grow at a CAGR of 17.75% during the forecast period, 2023-2032.

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 2022.

The government had the largest share of the global market.

Smart integrated circuits had the largest share of the global market.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major playersโ€™ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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