ID: MRFR/SEM/6190-CR | April 2019 | Region: Global | 137 pages
Global Smart Card Reader Market is predicted to touch USD 79,000 Million at a whopping 40.8% CAGR between 2018- 2024, states the recent Market Research Future (MRFR) report. The strong growth is due to the rapid adoption of smart cards.
The on-going COVID-19 pandemic has cast its shadow on different industries barring a few, such as the smart card reader market. The pandemic had a positive impact on the market growth chiefly on account of the growing need for contactless payments. Government administrations and WHO have advised people to maintain the norms of social distancing to prevent the spread of this deadly virus. Contactless payment is performed at a safe distance to assure the payer and the payee a secure payment process, thus boosting the demand for the contactless smart card market.
With the growing priority for the healthcare industry amid the crisis, smart cards are helping healthcare providers to maintain privacy safeguards and efficiency of patient care. A smart card reader system or smart card reader software enables the safe storage of information and also facilitate the provision to update when needed to reduce healthcare fraud. This will fuel the smart card reader online demand.
Use of Blockchain Technology to Bolster Market Growth
The use of blockchain technology for securing the data of the owner and improve the security features is likely to bolster market growth over the forecast period. Smart cards support the basic blockchain functionalities like signing methods, pin protection, and secure key generation.
Additional factors adding to the smart card reader market growth include an increase in the use of access cards, electronic identification cards, debit cards, credit cards, SD card reader online and USB smart card reader, increasing adoption for identity management, improvement in the smart card reader, application of smart card in different end use verticals like BFSI, transportation, and retail for a seamless and secure payment process, burgeoning demand for a smart credit card with chip, smart media card reader, and smart card reader input device, and growing need for security of applications which employ credential, documents, and critical information with the help of contactless cards as they improve security through communication and encryption between the card reader and the smart card device. Besides, the growing need for enhanced security for private data, increasing adoption of next-generation smart card technology for debit cards, access cards, credit cards, and others, the growing use of smart card readers in attendance and authorization in different industries, growing need for identification cards for availing government facilities, use of e-passports and smart cards in the banking system, use of smart card readers in businesses to protect login to laptops, networks, and computer, digitally encipher and sign email, and encrypt hard drives, and increasing awareness about the different benefits of smart card readers such as data integrity, security, flexibility, and portability are also adding market growth
Increasing Use of E-Commerce Apps to Offer Robust Opportunities
The increasing adoption of e-commerce (electronic commerce applications) is likely to offer robust opportunities to market players in the upcoming years
High Cost to Act as a Market Restraint
The high cost of smart card readers, along with compatibility issues, may act as market restraints over the forecast period.
Security Issues to Act as a Market Challenge
Security concerns related to contactless smart card reader technology, lack of standardization, and lack of consumer awareness may act as major market challenges for market players in the upcoming days.
Global Smart Card Reader Market has been segmented based on Application, Technology, and Type.
Contact-Based Segment to Lead Smart Card Reader Market
By type, the smart card reader market is segmented into dual interface based, contactless-based, and contact-based. Of these, the contact-based segment will lead the market over the forecast period. It is likely to develop at a healthy 40.6% CAGR by 2024. High preference by businesses for payment transactions due to their security benefits is adding to the growth of the segment. Smart card readers that are contact-based are common in debit card and credit card systems.
EMV Segment to Dominate Smart Card Reader Market
By technology, the smart card reader market is segmented into near field communication (NFC), europay mastecard visa (EMV), and others. Of these, the EMV segment will dominate the market over the forecast period as it is a highly secure kind of card transaction. It is likely to develop at a whopping 40.5% CAGR by 2024.
Payments Segment to Spearhead Smart Card Reader Market
By application, the smart reader market is segmented into ticketing, security and access management, identity management, payments, and others. Of these, the payments segment will spearhead the market over the forecast period. It is likely to develop at a 43% CAGR by 2024. The wide use of smart card readers for payment applications across the globe for its convenience over traditional methods of cash payments is adding to the growth of the segment.
APAC to Dominate Smart Card Reader Market
Geographically, the global smart reader market is segmented into North America, Asia Pacific (APAC), Europe, South America, and the Middle East & Africa (MEA). Of these, the APAC region will dominate the market over the forecast period. It is likely to develop at a healthy 42.5% CAGR by 2024. Escalating reputation of cashless payment in South Korea, China, Indonesia, and India, shift to cashless payments, local policymakers presenting frameworks for maintaining cashless payment modes, various micro and macroeconomic factors, increasing popularity of digital payments, and increasing adoption of smart card readers in retail, government, BFSI are adding to the global smart reader market growth in the region. Besides, smart card enabled e-governance project initiatives undertaken by the central government of India and its related departments and organizations, growing digitalization, growing banking sector, and rising e-commerce sector in India and China are also adding market growth.
North America to Hold Second-Largest Share in Smart Card Reader Market
In North America, the global smart card reader market is predicted to hold the second-largest share over the forecast period. Preference for plastic money coupled with initiatives by the government for cashless transactions is adding to the global smart card reader market growth in the region.
The global smart reader market is highly fragmented as well as competitive with the presence of a couple of top market players. These market players have encompassed strategies such as acquisitions, alliances, contracts, R&D activities, and others to strengthen their share in the market.
Prominent players profiled in the global smart card reader market report include 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, among others.
Global Smart Card Reader Market is highly competitive and fragmented in nature with the presence of several market players. These players have adopted strategies such as R&D activities, mergers, collaborations, partnerships, and others to widen their scope in the market.
The global smart card reader report by Market Research Future throws light on the current trends and niches in the industry. The report also lays emphasis on the various market drivers, opportunities, market restraints, and challenges, as well as offers insights for the forecast period. It also throws light on the different market segments for a comprehensive understanding of the reader
|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||
Frequently Asked Questions (FAQ) :
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.