Global Smart Card Market: Snapshot
Recent advancements in technology have made smart cards more secure with respect to users data. The demand for smart cards is increasing remarkably due to their rising use for making transactions. Furthermore, using smartcards is considered a more convenient method for various services. The growing use of IoT devices and mobile phones has further increased the use of SIM and data chips, which has augmented the demand for smart cards.
The application of smart cards is widely seen in cell phones, payment transactions, ID verification & access controls. The rising application across various sectors is projected to escalate the demand for this smart cards. The relevance of smart cards is also seen extensively in sectors such as BFSI, healthcare, government, and various other fueling the demand for smart cards. Companies such as MasterCard, Europay, and Visa are also offering various cost-saving techniques to ease and boost the tractions.
The global smart card market is expected to rise at 7.4% of CAGR during the forecast period between 2016 and 2023. In terms of revenue, the market is projected to reach a valuation of US$ 14.1 bn by 2023 progressing from US$ 8.5 bn in 2016.
Higher Usability of Contactless Smart Card to Enable the Market Flourish
The global smart card market is segmented on the basis of component and type of smart cards. Based on type, the global smart card market includes contact, contactless, dual-interface, and hybrid smart cards. Among the type of smart cards, the contactless smart card is expected to rise at healthy CAGR of 11.5% during the course of forecast period between 2016 and 2023. On the other hand, the contact smart card segment is also estimated to grow at a high rate and is projected to reach a valuation of US$ 7.7 bn by the end of 2023.
On the basis of component, the global market for the smart card is bifurcated into memory card-based smart cards and microcontroller based smart cards. As per the report, microcontroller based smart cards is expected to dominate this segment during the forecast tenure.
Latin America to Lead Market With Rising Implementation of LATAM Smart Cards
On the basis of geography, the global smart card market covers North America, Asia Pacific, Latin America, Europe, and the Middle East and Africa. Out of the regions, Latin America held the second lowest share in terms of volume and revenue in 2014. Currently Latin America shows over 70% of market presentation by smart card solutions and services, as per Smart Card Alliance Organization. In Latin America, the most implementation of smart cards is witnessed across the aforementioned nations. Thus, due to high usage of smart cards in these countries have made the region lead in the global smart card market. These countries have shown high usage of smart cards and are attracting leading players across the globe.
Developing countries in Asia Pacific such as Japan, Hong Kong, South Africa, and Australia are the chief destinations preferred by the regional and the global smart cards solutions providers. Rapid economic development in India and China is also showing high smart card implementation. However, they are in a nascent stage of smart card implementation, they will gain traction in coming years due to high population density. In APAC region, application of smart cards is aiming at financial, retail, and loyalty sectors.
Some of the leading players contributing in the global smart card marker are GmbH, Gemalto NV, Giesecke & Devrient (G&D) NXP Semiconductors, and Infineon Technologies AG.
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