The global smart card market is expected to reach USD 17.21 billion by forecast 2030, with a CAGR of 6.20% during the forecast period.
Globally, the size of the Smart Cards Market is expected to reach USD 17.21 billion at a CAGR of 6.20% during the forecast period of 2030 driven by the penetration of these cards is massive in both developed and developing nations.
The smart card is a physical card that contains microcontrollers. The embedded memory in the contact pad of smart cards provides safety encryptions. These cards are generally tamper-resistant to short-range connectivity for the user. The payments cards mostly come with these smart features. For high safety transactions, these smart are highly essential.
They can protect data, enable fast transactions and deliver secure payments. Also, many legal documents such as visas and e-documents contain smart card features. Authentication, storage and application processing is possible with smart cards. Demand for constant fewer payments, the smart cards market is witnessing high requirements. Third parties cannot gain access without the notices of the cardholder when having smart cards.
Also, these cards are capable to store passwords, private keys, personal information and account numbers. The satellite and chips connected to the smart cards can help to reach cards from distance. Both healthcare and telecommunications have immense demand for smart cards. The need for contactless payments in these regions is high.
The entire globe is facing an economic crisis due to covid 19. This pandemic is affecting the healthcare, transportation, government, education and manufacturing sector. The production rate of the smart cards market is declining in many industries. Also, the supply chain disruptions of the market are massive. The lack of raw materials is causing many challenges in the production line.
However, this covid 19 periods is advantageous for the smart cards market. The healthcare and telecommunication sectors have a high demand for smart cards. Due to hygiene requirements, contactless payments are most preferred in these verticals. Secure data storage and transactions are possible through these cards. The supply chain disruptions of the smart Cards market are a challenge for the market. However, since 2021, this market is recovering faster. The development in the smart cards market is high in upcoming years.
The requirement from end-users leads to high Smart Cards Market Demand. Due to covid 19, the exposure of the smart cards is higher. The penetration of these cards is massive in both developed and developing nations. During this period, physical payment is limited in many stores. Most of the shops and businesses accepted contactless payments. Due to the ease and convenience of smart cards, the adoption rate is higher for the smart cards market. More awareness about these cards has to lead to high revenue for the market.
The demand from the healthcare, government and retail sector is leading to wider benefits. According to the Fiserv survey, smart cards are proven to be the safest payment method. Due to the wide range of benefits transition from cash payments to smart cards payment is higher. Further, the launch of tap pay modes is advantageous to the amt cards market.
Today, the advancements in payments methods are higher. The tap and pay are techniques suitable for smart cards. Even at distance just tapping the card on a biometric machine helps to make payments. The launch of new payment techniques is leading to more demand for the market. All these factors are expected increase Smart Cards Market Revenue.
The new security features by Blockchain will lead to Smart Cards Market Opportunities. Blockchain is a technology that is beneficial for many businesses. Developing fast and secure applications is possible through Blockchain. Smart cards are suitable for Blockchain transactions. They can manage cryptographic payments more efficiently and securely. When connecting to the internet and synchronization is effective.
Through smart card utilization in Blockchain, the expansion of the market is higher. Reducing cyber threats and improving Blockchain truncation is possible with smart cards. These applications of smart cards can lead to higher growth. Further, the adoption of smartcards in smart government ID and e-passports is another factor leading to market growth. Through government, the Id is interlinked with smartcards that enable the storage of user information. Authentication and transaction are possible through smart cards.
Further, multifunctional smart cards have high scope in the foreseeable future. Through multipurpose smart cards, both identification and transaction are possible. It will enhance the convenience of transactions. The smart cards market is will witness exceptional growth due to new developments. Also, the expansion rate of the market will reach the highest in the forecast period.
The high cost of infrastructure is a restraining factor of the smart cards market. High infrastructure cost is a restraining factor of the market. Smart cards are gaining more exposure due to contactless payments. The initial cost for setting smart cards payments is high. The need for control access and higher quality applications lead to more costs in the market.
Also, most of the smart cards come with chips that are high quality and sophisticated chips. The cost of the infrastructure of smart cards is comparatively higher than conventional cards. This restrains of the market are slowing down the adoption of smart cards. The lower the smart infrastructure the lesser smart cards payments will happen. All these factors can hinder the overall growth of the smart cards market.
The penetration of electronic identity cards is a significant challenge in the smart cards market. Digital cards help to authenticate licenses, smart cards and passports over digital channels. The banking sectors, education institutes and government enterprises are adopting these cards.
Also, digital identity cards are more affordable and efficient. The growing awareness about digital cards will hinder the growth of smart cards market. In upcoming years, authenticating digital cards is possible through a mobile device. This can act as an alternative for the market. Most of the end-users will be inclined to use these digital identity cards in upcoming years.
The Smart Cards Market Report shows a positive trend. Telecommunications segment of the market witnesses’ high growth. Smart cards bring more developments to the market. The penetration of smart cards is a crucial driver. Contactless payments are beneficial and convenient for many users.
Due to the safety of such cards and transactions, the demand is constantly surging. The high cost of infrastructure is a restraining factor of the smart cards market. Also, the availability of identity cards can impede growth. However, the opportunities available for this market are high. The adoption of smart cards in the governmental sector will lead to more growth.
Asia Pacific market will hold maximum Smart Cards Market Share. The financial sector is moving towards digitalization. The government agencies are rapidly adopting chip-based systems for secure transactions.
The monitoring process is enhanced through this adoption. Further, healthcare and BFSI are other sectors having demand for smart cards. In the Asia Pacific, China is a key regional player. The production of smart cards is high in this region. The proper and quality smart cards are highly beneficial. Effective prevention of fraud and theft is possible through this card. The wider penetration of smart cards in Asia pacific leads to higher growth.
By Smart Card Type
By Smart Card Interface
Competition in the market is surging in the forecast period. The market plenty of updates in the smart card market in the next few years. Price competitiveness is expected among key players. There are market acquisitions, expansion and collaborations in the smart cards market.
The Smart Cards Market Analysis shows three regional players. The key players are Asia Pacific, Europe and North America. The Asia Pacific will dominate other regional players. It is a region that has higher adoption of smart cards. Demand from the healthcare and government sector is more. Effective features of the cards attract many end-users.
Further, North America is another powerful regional player in the market. The investments from US and Canada are higher for smart cards. Most of the enterprises are early adopters of this product. The developments and new product launches are highest in North America. Europe is another high scope region that has a massive demand for smart cards. The expansion rate is estimated to reach its peak in Europe.
The key players of the smart cards market are
|Market Size||USD 17.21 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Component, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Rambus Inc. (the U.S.), CardLogix Corporation (the U.S.), CPI Card Group Inc. (the U.S.), Identiv, Inc. (the U.S.), VeriFone Systems, Inc. (the U.S.), Gemalto N.V. (Netherlands), Giesecke & Devrient GmbH (Germany), IDEMIA France SAS (France), Infineon Technologies AG (Germany), NXP Semiconductors N.V. (Netherlands), HID Global Corporation (Sweden), STMicroelectronics NV (Switzerland), ZWIPE (Norway), Versasec AB (Sweden), Ingenico Group SA (France), Beijing Watchdata Co. Ltd. (China), , KONA I Co., Ltd. (South Korea), VALID (Brazil), Fingerprint Cards AB (Sweden), BrilliantTS Co. Ltd. (South Korea), Bitel Co. Ltd. (South Korea), Fujian Newland Computer Co., Ltd. (China), Sony Corporation (Japan), Samsung Electronics Co., Ltd. (South Korea), and PAX Global Technology Ltd. (Hong Kong)|
|Key Market Opportunities||Availability of hybrid smart cards.|
|Key Market Drivers||
A smart card, simply put, is a pocket-sized card that is embedded with an integrated circuit chip and has wide applications in data storage, personal identification, application processing, and authentication.
Key contenders profiled in the global smart cards market include BrilliantTS Co. Ltd. (South Korea), PAX Global Technology Ltd. (Hong Kong), Rambus Inc. (the U.S.), STMicroelectronics NV (Switzerland), IDEMIA France SAS (France), VALID (Brazil), KONA I Co., Ltd. (South Korea), Fingerprint Cards AB (Sweden), HID Global Corporation (Sweden), Identiv, Inc. (the U.S.), Ingenico Group SA (France), Beijing Watchdata Co. Ltd. (China), Bitel Co. Ltd. (South Korea), VeriFone Systems, Inc. (the U.S.), NXP Semiconductors N.V. (Netherlands), Giesecke & Devrient GmbH (Germany), Sony Corporation (Japan), ZWIPE (Norway), CardLogix Corporation (the U.S.), Samsung Electronics Co., Ltd. (South Korea), Fujian Newland Computer Co., Ltd. (China), Versasec AB (Sweden), CPI Card Group Inc. (the U.S.), Infineon Technologies AG (Germany), and Gemalto N.V. (Netherlands).
North America will lead the global smart cards market.
Increasing use in mobile phones and increasing use of smart cards are the key factors driving the global smart cards market growth.
A smart card has wide applications in enterprises, entertainment, education, transportation, retail, BFSI, healthcare, and government.