The demand within the global market for smart card has been rising on account of the growing popularity plastic currency. The advent of digitization and automation technologies has overhauled the functional dynamics of multiple sectors and industries. Smart cards have helped individuals and business in accelerating their activities of sale and purchase. Smart cards help in making cashless transactions across selling points, and this is the primary distinction of these cards. There is a stellar need for accentuating digital transactions across various sectors, and this factor is projected to bring in voluminous revenues into the global market. Advancements in IoT and automation technologies has also aided the growth of the global smart card market. MasterCard, Visa, and Europay are some of the popular smart cards. There is heavy demand for smart cards amongst the allied classes who are not willing to bear the hassle of carrying cash. Henceforth, the global market for smart card is projected to accumulate voluminous revenues in the years to come.
The global market for smart card is expected to expand at a healthy CAGR of 7.4% over 2016 to 2023. The total value of the global smart card market is expected to reach a value of US$ 14.1 bn by 2023, rising up from a value of US$ 8.5 bn in 2016.
This report preview by Transparency Market Research (TMR) on the global smart card market gives a plethora of insights pertaining to market segments. The preview has been drafted with the intent to add value to market research and analysis. The geographical segments of the global smart card market have also been identified and explained within the report. The leading competitors of the global smart card market have also been enlisted.
Growing Popularity of Contactless Smart Cards
The global market for smart card consists of the multiple segments that are based on different parameters. On the basis of component, the global market for smart card can be segmented into contactless cards, contact cards, hybrid smart cards, and dual interface. The demand for contact smart cards is expected to keep rising as customers become more inclined towards an improved digital landscape. Based on component type, the global market for smart card can be segmented into microcontroller-based smart cards and card-based smart cards. The demand for microcontroller-based smart cards is increasing on account of the need to track transactions.
Latin America to Lead Market Growth
Smart card technology has overhauled the transaction dynamics of several nations and countries. On the basis of geography, the global market for smart card is segmented into Latin America, North America, Asia Pacific, the Middle East and Africa, and Europe. The market for smart card in Latin America has been expanding at a stellar as the region undergoes widespread digitisation. The smart card market in Latin America shall accumulate voluminous revenues as cutting-edge technologies for transaction come to the fore. The demand within the market for smart card in Asia Pacific increased when demonetisation hit the Indian economy. The market for smart cards in Europe is expected to grow as shopkeepers prefer digital transactions over cash transasctions in the region.
Some of the key players in the global smart card market are Gemalto NV, GmbH, Giesecke & Devrient (G&D) Infineon Technologies AG, and NXP Semiconductors. These vendors have delved into the specifics of digitisation to understand the needs of the consumers.
Smart cards are IC-based cards that accumulate and retrieve information using various computer systems. Smart cards consist of central processing units and memory units. Smart cards primarily act as a cost-effective way to store, manage, and maintain credentials for their users. This makes these products highly convenient for different applications. In addition, the portability of smart cards enables their extensive adoption across different applications. Currently, smart cards are widely used across sectors such as telecommunications, BFSI, and government. Due to the numerous advantages they offer, smart cards are increasingly used in the healthcare, government IDs (e-passports), and retail sectors. Thus, strong ongoing adoption of smart cards across different sectors is estimated to substantially spur the market’s growth in the coming years.
The research study titled “Smart Cards Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2016 - 2023” provides in-depth analysis of the market and related sub-segments. The report strategically focuses on market segments including different types of smart cards and components. In addition, this report provides market insights and forecasts of the size and growth of each segment across each of the geographic regions. The report includes detailed analysis of prevalent market trends and profiles of key players. In order to provide better understanding of competition in the market, the report offers ecosystem analysis and competitive landscape. The study on the global smart cards market has been conducted with the objective of providing thorough coverage of the underlying technological and socio-economic factors driving the market.
The smart cards market is expected to see consistent growth in the coming years due to the increasing demand for secure and reliable payment transactions across the retail and BFSI sectors. Moreover, cost-saving schemes for merchants from payments brands such as Visa, MasterCard, and Europay is driving the smart card technology innovations. The decreasing prices of subscriber identification module (SIM) cards and tariff rates are increasing the number of mobile subscribers, and thus further contributing to the growth of the smart cards market. However, factors such as price pressures and technological challenges along with the cost of migrating to smartcard compatible readers affect the adoption of smartcards. Conversely, technological advancements, falling prices, and the introduction of high-end SIMs offer potential opportunities for the growth of the smart cards market.
This report studies the current scenario as well as the future market potential for smart cards globally. The market for smart cards has been segmented based on three major parameters: card type, components, and geography. The major types of smart cards used are contact smart cards, contactless smart cards, hybrid smart cards, and dual-interface smart cards. On the basis of components, the smart cards market is segmented into microcontroller-based smart cards and memory-based smart cards. The demand for microcontroller-based smart cards is significantly high owing to the wide adoption of such cards for contactless and dual-interface smart cards. The market size and forecast, in terms of revenue and volume (US$ Mn & Mn units), for each of these segments has been provided for the period from 2013 to 2023, considering 2013 and 2014 as the base years. For 2015, report provides actual data for the first half and estimate for the second half. Also, the report provides market size and forecast in terms of volume (Mn Units) for various segments for the above mentioned period. The report also provides the compounded annual growth rate (CAGR) for each segment of the market for the forecast period 2016 to 2023.
Geographically, the market for global smart cards has been segmented into four regions: North America, Europe, Asia Pacific, and Rest of the World. The report also provides a competitive landscape, wherein the market share analysis of leading players in the global smart cards market for the year 2014, in terms of value percentage, has been discussed. The report concludes with the company profiles section, which provides an overview of the major companies operating in the market including strategies deployed by them to gain competitive advantage, annual revenue generated by them in the past two years, and key developments in the market. The companies profiled in this report include the American Express Company, Atos SE, NXP Semiconductors NV, Infineon Technologies AG, Gemalto NV, INSIDE Secure, Giesecke & Devrient (G&D) GmbH, and Texas Instruments, Inc.
The global smart cards market is categorized into the following segments:
Smart Cards Market, by Type
- Contact Smart Cards
- Contactless Smart Cards
- Hybrid Smart Cards
- Dual-interface Smart Cards
Smart Cards Market, by Component
- Memory Card
Smart Cards Market, by Geography
- North America
- Asia Pacific
- Middle East & Africa (MEA)
- Latin America