As per a new report by Transparency Market Research (TMR), the leading vendors of smart card solutions, such as Gemalto NV, NXP Semiconductors NV, Infineon Technologies AG, and Giesecke & Devrient GmbH, are focusing on developing contact, contactless, and dual-interface services. Currently, the rivalry between the key players is high in this market and it is likely to intensify further in the years to come, states the report.
According to TMR’s estimations, the global market for smart cards, which stood at US$8.5 bn in 2016, is anticipated to proliferate at a CAGR of 7.40% during the period from 2016 to 2023 and attain a value of US$14.1 bn by the end of the forecast period. Contactless smart cards report a greater adoption among end users. Analysts project the trend to continue in the near future, establishing contactless smart cards as the most valued product in this market.
Microcontroller-based Cards to Enjoy Strong Demand
Based on the components, the research report has classified the global market for smart cards into microcontroller-based smart cards and memory card-based smart cards. Among the two, the demand for microcontroller-based smart cards is much higher than the other one. Due to the superior qualities of contactless and dual-interface cards, the implementation of microcontroller-based cards has increased significantly in financial bodies, which is likely to reflect positively on their sales over the next few years.
In terms of geography, the research study has categorized the worldwide smart cards market into Europe, the Middle East and Africa, North America, Latin America, and Asia Pacific. With Australia, Hong Kong, South Korea, and Japan being the most preferred locations for local and multi-national smart card solutions providers, Asia Pacific has emerged as the leading regional market for smart cards. The market is anticipated to remain on the top over the forthcoming years, thanks to the high potential for market penetration offered by India and China due to increasing population and strengthening economy, states the research report.
Rising Concerns over Data Theft Threats to Fuel Demand
“The rising concerns over the data theft threats and the risk of hackers and fraudsters gaining an access to all the information of a user that is stored in his/her magnetic strip card have influenced consumers to shift to smart cards,” says a TMR analyst. Apart from this, the emergence of NFC, net banking, IoT, and e-commerce is also contributing significantly to the rising adoption of smart cards and are anticipated to boost the worldwide market for smart card in the near future too.
Going forwards, the escalating base of mobile phone subscribers and the increasing number of cost savings schemes for merchants from various payments brands, such as MasterCard, Visa, and Europay are projected to propel this market over the forecast period. However, the initial high cost incurred in migrating to smartcard compatible readers may affect the rate of smart card uptake in years to come, notes the study.
The study presented here is based on a report by Transparency Market Research (TMR), titled “Smart Cards Market (Type - Contact Smart Cards, Contactless Smart Cards, Hybrid Smart Cards, and Dual-interface Smart Cards; Component - Microcontroller Based Smart Cards and Memory Card-based Smart Cards) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2016-2023.”
The global smart card market is segmented into:
- Contact Smart Cards
- Contactless Smart Cards
- Hybrid Smart Cards
- Dual-interface Smart Cards
- Microcontroller Based Smart Cards
- Memory Card-based Smart Cards
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
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