Smart Card Reader Market is projected to reach USD 79,000 Million at an enormous rate of 40.8% CAGR between the forecast period of 2018 and 2024. The growing adoption rate of digital payment techniques that ensures improved convenience and safety over traditional-based payments such as cash transactions has boosted the industry's growth. The market will increase traction with a rising number of consumers using the smart card method to stay away from the hassle of carrying cash. As smart card-based transactions are highly encoded, there is an increase in the number of individuals who use them to make sure of the privacy and easy management of payment records. These cards consist of a tamper-proof microprocessor with a large processing power for the protection of the stored data and encoding & application of the instructions in specific programs. The rising demand for cashless transactions in developing and developed economies promotes market demand. The outbreak of the COVID-19 pandemic has negatively affected the smart card industry in 2020 due to lockdowns implemented in several nations by the government. There was breakage in supply chains globally which has also hampered the production capabilities of the market players. The industry has recovered its market demand in the second half of 2020 after the relaxation by the government on pandemic-related restrictions. By 2020, consumers are increasingly using contactless cards for payments at restaurants, retail stores, hospitals, and transportation terminals.
COVID 19 Analysis:
The pandemic has been negatively influencing the industrial sectors and commercial sectors. The reduced production rate and stringent governmental norms have significantly affected the economic condition of several countries. The social distancing and COVID shots were mandated in several countries to combat the crisis. Such factors are impacting the overall growth of the smart card readers industry. Since the demand for food and beverages and other essential articles have been increasing throughout the pandemic, the payment for those was increasingly made through the contactless smart card readers, which is considered as the primary factor for the overall growth of the smart card readers market.
Since smart cards are the potential to store information, they have been utilized in the medical sector and health care industries to simplify the tedious administration procedures and other personal information. Therefore the pandemic has positively influenced the smart card reader market value.
The increasing utilization of blockchain technologies and banking sectors across the globe has significantly increased the Smart card reader market growth. Also, the varied end-user applications such as Sim Cards and Telecommunication, Physical access in the offices and business sectors, DTH cards and other domestic applications, governmental applications which serve as an identity for the individual, banking and retail, e-purse, healthcare, and other access control cards. The growth of such end-user applications is propelling the overall growth of the smart card reader market.
The increasing necessity for security in organizations and the requirement for the efficient storage of personal information is considered as the primary growth factors of the Smart Card Reader Market.
The convenience and the lightweight feature are considered as the major factors that stimulate the utilization of smart cards, which in turn impacts the growth of the smart card reader industry. The increasing digitalization in Asia-pacific countries and other developed countries are also presenting lucrative opportunities for the overall growth of the Smart card reader industry.
The increasing number of E-commerce mobile applications and developing technologies across various sectors such as RFID, NFC, and others are impacting the overall growth of the Smart Card reader industry. Especially, the advancements in the medical sectors, have propelled the medical management to adopt smart cards for efficient personal information storage of the patient. Such practices in medical sectors and healthcare centers are expected to stimulate the smart card reader market growth during the forecast period.
The lack of awareness about the security issues regarding the smart card readers during the interaction with the interfaces. The card details and personal information can be acquired by these interfaces.
Compatibility issues with the interfaces are also considered as a major restraint in the Smart card reader market growth. On the other hand, the higher costs incurred in manufacturing the smart card readers are also impacting the overall growth of the smart card readers market.
The security issues in the contactless smart card readers are considered as the major challenge in the Smart Card reader market growth. Other factors such as improper standardization in the industry, poor awareness among the consumers, and end-user applications are also impacting the Smart Card Reader industry negatively.
The production and usage of the payment cards in the stores charge the cardholder extra for making the payment using the smart card for the usage of the hardware. Such factors are hindering the overall growth of the smart card reader industry.
The major types of Smart Card readers are bifurcated into Contact, Contact-less, and dual interface, among which the contactless smart card readers were increasingly preferred by the retailers and business sectors. The Contact Smart Card applications are Radio-frequency identification (RFID) or near-field communication (NFC) and so on. The growth of the Smart Card readers industry is highly influenced by the growth of ends user applications such as BFSI, Telecommunications, healthcare, Government, Transportation, and others. Moreover, the countries are digitalizing the financial systems and the governmental organizations are integrating smart chip-based systems for efficient processing. Also, the developing regions such as Asia-pacific regions are intensively utilizing smart cards for ticketing for the metro trains, buses, and other things. Such factors are impacting the overall growth of the Smart Card Reader industry. The Smart Card Reader Market predicted to reach USD 79,000 Million at a whopping 40.8% CAGR between 2018- 2024.
The convenience and the immediate record creation on every transaction are the basic factors that impact the growth of Smart Card utilization which are in turn fuelling the Smart Card Reader market growth. The growing momentum for the blockchain technologies, banking sectors, e-commerce sectors, digital marketing is bolstering the Smart Card Reader market growth. However, the increasing costs of the Smart Card readers are negatively impacting the Smart Card reader market demand in recent years. As the Smart Card Readers are portable and efficient in making money transactions, they are deployed in several end-users which include, Ticketing, security management, identity management, and many others are positively influencing the Smart Card Readers market growth. In the countries like North America and other developed countries is a growing inclination towards plastic money due to convenience in a transaction. Europe was holding a market share of over 25% in the year 2020 amidst the declining economic condition due to pandemics. Moreover, the increasing demand for smart card readers was due to the increasing adoption of the applications such as automated staff identification and attendance systems across the region.
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Currently, Asia Pacific is expected to hold the largest market share in the Smart card Reader industry as the experts estimate that there would be healthy growth with a CAGR of 42.5% by the year 2024. Such estimation by the experts is based on the increasing momentum of the cashless transaction in the countries such as South Korea, China, Indonesia, and India. Moreover, the increasing popularity of digital payment and the increasing adaptation of the smart card readers by the retail sectors, governmental organizations, BFSI, and other crucial sectors are presenting lucrative opportunities for the overall growth of the Smart Card Reader industry. The countries like India are showcasing rapid growth in the banking department, e-commerce, and other related organizations. Such factors are also severely impacting the overall growth of the Smart Card Reader industry.
Next to the Asia-pacific regions, North America is expected to grow with a steady CAGR owing to the increasing preference for plastic money. A recent status shows that there were over 1044.1 million credit cardholders in the year 2017 and that has grown up to 1103.4 million within the next year, and there were nearly 320.9 million debit cardholders in the year 2018. Such statuses are growing with the year. Such factors present lucrative opportunities for the growth of the Smart Card Reader industry in the region.
Among all the leading market players, Drayson Technologies, based in London, has launched its magnificent project of biometric smart cards with the third generation Freevolt technology characterized by a capacitor-bank-on-card storage component. The technology holds a high-efficiency RF communication switching mechanism and is therefore utilized in several cryptocurrency verticals.
In the year 2022
Among all the leading market players, DT research has launched their military standard 360 convertible laptop, which is surrounded by a smart card reader and optional RGB and IR back and front cameras.
This report has covered:
|Market Size||USD 79,000 Million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Technology, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Identive Group, Rocketek Electronics, Square, Inc., Advanced Card Systems Ltd., Gemalto NV, CHERRY, HP Inc., Ingenico Group, PayPal Holdings, Inc., PAX Global Technology Limited, IOGEAR, Stanley Global LLC., Verifone Systems Inc., ID TECH|
|Key Market Opportunities||The increasing adoption of e-commerce (electronic commerce applications).|
|Key Market Drivers||
The market is going to surpass a valuation of USD 79,000 Mn in the coming years.
Asia Pacific accounted for more than one-third share of the market in terms of valuation.
The factors of rising popularity of cashless payment in countries such China, India, Indonesia, South Korea among other is driving the market growth in APAC region.
A CAGR of 40.8% is noted at which the market will be growing in next few years.
Type, technology and application are the segments offers the maximum growth opportunity.