Global Smart Cards Market: Snapshot
The scope and advantages of using smart cards in the current banking and finance industry are massive. The primary aim of implementing smart card technologies, especially in developed economies, is the introduction of stronger security measures against the growing counts of data theft. The retail and BFSI industries have shown a high demand for smart cards as a feasible security measure.
The implementation of smart cards can also help introduce multiple cost saving techniques for vendors and the companies that handle the transactions, such as Europay, MasterCard, and Visa. This in turn helps the above companies and similar ones to improve their market penetration and visibility. This flows in conjunction to the rapidly growing number of smartphone users in the world and the presence of a high number of retail apps.
Future opportunities for smart card players will lie in the use of high-end SIMs in cohesion with LTE providers as well as NFC-enabled devices. Players will need to rapidly adopt smart card oriented software and services into their core business strategies to maintain and improve revenue generation.
Through these factors, the global smart cards market is expected to progress at a CAGR of 7.4% from 2016 to 2023 in terms of revenue. This market is expected to reach a value of US$8.5 bn by the end of 2016 and US$14.1 bn by 2023.
LATAM Shows Much Promise in Smart Card Implementation, APAC Maintains Subtantial Market Volume Till 2023
Latin America held the second-lowest share in both revenue and volume in 2014. However, according to the Smart Card Alliance Organization, Latin America currently shows over 70% of market penetration by smart card solutions and services. Most of the LATAM smart card implementations are being done in Brazil, Mexico, and Argentina. These countries therefore show top potential in the use and growth of smart card solutions, making this region highly attractive for global players, especially in contact-based smart cards.
Asia Pacific contains Australia, South Korea, Hong Kong, and Japan are the top locations for global and regional smart card solutions providers. Meanwhile, India and China, although currently in a nascent stage of smart card implementation, are showing high potential for market penetration due to rapid economic growth and a high population density. Most of the current applications of smart cards in APAC are aimed at the sectors of retail, loyalty, and financial. By the end of 2023, it is expected for smart cards services to perforate into low-end applications, government transactions, and transportation transactions.
Microcontroller-based Smart Cards Expected to Dominate in Components
Dual-interface and contactless smart cards are expected to take over as the mainstay in all smart card utilities in the near future. Contactless smart cards already hold a high rate of use in major parts of the financial services sector. These smart cards make use of microcontrollers due to the higher level of security and reliability that these components can offer. While multiple countries and finance organizations begin the adoption of smart cards, the superior qualities provided by dual-interface cards and contactless cards are being recognized by major financial bodies, further promoting the implementation of microcontroller-based smart cards.
Key players involved in smart card services and technologies include Gemalto NV, Giesecke & Devrient (G&D) GmbH, Infineon Technologies AG, and NXP Semiconductors.
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