Global Smart Card Market – Industry Trends and Forecast to 2029

Global Smart Card Market, By Type (Memory, MPU Microprocessor), Interface (Contact, Contactless, Dual), Functionality (Transaction, Communication, Security and Access Control), Offering (Smart Card, Smart Card Readers), Vertical (BFSI, Telecommunications, Government and Healthcare, Education, Retail, Transportation, Others) – Industry Trends and Forecast to 2029.

Market Analysis and Size

Various industries have recognized the immense potential of smart cards in the recent years. These cards with memory and microprocessors are widely being used especially for physical access to prohibited areas. These are known to offer authentication, application processing, personal identification and data storage.

Global Smart Card Market was valued at USD 12724.26 million in 2021 and is expected to reach USD 29963.59 million by 2029, registering a CAGR of 11.30% during the forecast period of 2022-2029. Government and Healthcare is expected to witness high growth in the vertical segment of the market owing to the high use by governments to issue identity cards to individuals. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team also includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Market Definition

A smart card refers to an electronic authorization device that assists in controlling the manipulation process, data accessing along with performing financial transactions. It is an ordinary plastic credit card, but embedded with a built-in integrated circuit (IC) chip or microprocessor that functions as a service token for storing and transacting data between users.

Report Scope and Market Segmentation

Smart Card Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:

Drivers

• Growth in E-Commerce Sector

The rise in the sector of e-commerce sector offering numerous online websites to purchase goods and services acts as one of the major factors driving the smart card market. The increase in the adoption of cashless or digital payments has a positive impact on the market.

• Increase in Demand for Contactless Payment Processes

The increase in demand for seamless and contactless payment processes is rising the use of smart cards for transactions across the globe accelerate the market growth. The rise in the use of smart cards in everyday use, such as prepaid mobile recharge and paying utility bills assist in the expansion of the market.

• Use of Cards in Various Sectors

The rise in the use of cards across various sectors including healthcare, hospitality, retail, and entertainment, for installing these terminals and supporting the industry progression accelerate the market growth.

Additionally, rapid urbanization, change in lifestyle, surge in investments and increased consumer spending positively impact the smart card market.

Opportunities

Furthermore, advent of smart cities and IoT and rise in need for new mode of information security of users enabled by blockchain extend profitable opportunities to the market players in the forecast period of 2022 to 2029. Also, advancements in digital systems will further expand the market.

Restraints/Challenges

On the other hand, high infrastructure costs, along with security and data theft concerns and emergence of mobile wallets impacting demand for smart cards are expected to obstruct market growth. Also, the lack of standardization in smart cards and increased security concerns and rise in popularity of digital identity cards are projected to challenge the smart card market in the forecast period of 2022-2029.

This smart card market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on smart card market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Smart Card Market

The COVID-19 had a negative impact on the smart card market owing to the strict lockdowns and social distancing to contain the spread of the virus. The economic uncertainty, partial shutdown of the business and low consumer confidence impacted demand smart solar technology. The supply chain got hampered during the pandemic along with delay logistics activities. However, the smart card market is expected to regain its pace during the post pandemic scenario due to the easing on the restrictions and rapid growth of e-commerce sector.

Recent Developments

• IDEMIA signed a four-year contract with Jyske Bank in January’2021. Jyske Bank is known to be the the second-largest Danish-owned bank. The aim of the decision is to introduce a recycled plastic payment card in Denmark.
• Watchdata (China) joined hands with Zwipe in June’2020 for the development and launch of wearables for banks and next-generation contactless payment cards in multiple regions.

Global Smart Card Market Scope and Market Size

The smart card market is segmented on the basis of type, interface, functionality, offering and vertical. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Memory
• MPU Microprocessor

Interface

• Contact
• Contactless
• Dual

Functionality

• Transaction
• Communication
• Security and Access Control

Offering

• Smart Card
• Smart Card Readers

Vertical

• BFSI
• Telecommunications
• Government and Healthcare
• Education
• Retail
• Transportation
• Others

Smart Card Market Regional Analysis/Insights

The smart card market is analysed and market size insights and trends are provided by country, type, interface, functionality, offering and vertical as referenced above.

The countries covered in smart card market report are U.S., Canada, and Mexico in North America, Brazil, Argentina, and the rest of South America as part of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, rest of Asia-Pacific (APAC)  in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, rest of the Middle East and Africa (MEA) as a part of the Middle East and Africa (MEA).

North America dominates the smart card market because of the surge in number of individuals using biometric cards for both convenience and identity authentication within the region.

Asia-Pacific is expected to witness significant growth during the forecast period of 2022 to 2029 because of increase in adoption of chip-based systems for secure transactions in the region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Smart Card Market Share Analysis

The smart card market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to smart card market.

Some of the major players operating in the smart card market are

• Thales. (Netherlands)
• CPI Card Group Inc (US)
• Giesecke+Devrient GmbH (Germany)
• IDEMIA (France)
• NXP Semiconductors Austria GmbH Styria (Venezuela)
• CardLogix Corporation. (US)
• Watchdata Co., Ltd. (Singapore)
• Eastcompeace Technology Co., Ltd. (China)
• HID Global Corporation (US)
• ABCorp (US)
• CardCom (US)
• Ingenico. (France)
• Kona (South Korea)
• Identiv, Inc. (US)
• Valid (Brazil)
• VeriFone, Inc. (US)
• BrilliantTS (South Korea)
• Perfect Plastic Printing (US)
• Bartronics India Limited (India)
• Infineon Technologies AG (Germany)