A smart card is a device embedded with an integrated circuit that can be either a secure microcontroller or equivalent intelligence with internal memory or a memory chip alone. Some of the key applications of smart cards include fraud prevention, time reduction by dispensing redundant paperwork and potentially enabling one-card access to diverse networks. The smart card market continues to evolve and new and imaginative ideas for smart card applications are swiftly becoming a reality.
The smart card market can be segmented by type, component, access type, industry vertical and geography.
Based on type, the market can be segmented into contact, contactless, and dual-interface smart cards. The contact smart card segment is expected to hold the largest market share during the forecast period, owing to the widespread use of these smart cards across various industries such as BFSI and retail.
On the basis of component, the market can be segmented into hardware and software. The hardware segment is projected to hold the largest market share and currently accounts for more than three-fourths of the smart card market, which includes cards and readers.
On the basis of access type, the market can be bifurcated into physical and logical. The physical smart card segment is expected to grow at the highest rate during the forecast period. On the basis of end-use, the market can be segmented into, government, retail, healthcare, financial service, transportation service, government, and others. The transportation service segment is anticipated to grow at the highest CAGR during the forecast period, due to the increasing use of smart cards in ticketing systems at railway stations and airports.
Geographically, the smart card market can be segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East and Africa (LAMEA).
North America is projected to hold the largest market share during the forecast period, due to the widespread use of smart cards and rapid adoption of technology in the region. The North America smart card market is growing with new technologies such as RFID cards, USB-enabled cards, and integrated SIM cards.
The Asia Pacific smart card market is witnessing high growth, due to strong demand from countries such as South Korea, Japan, Hong Kong, and Australia. Furthermore, Asia Pacific’s thriving e-commerce and telecom sectors are also boosting market growth in the region. Europe is pegged to be the largest consumer of smart card technology in the world.
The LAMEA region is expected to observe healthy growth in the smart card market during the forecast period, due to the increasing penetration of mobile phones in countries such as those in the Middle East.
Some of the key players in the smart card market are Gemalto N.V. (Netherlands), Giesecke & Devrient GmbH (Germany), STMicroelectronics NV (Switzerland), Ingenico Group SA (France), IDEMIA France SAS (France), CPI Card Group Inc. (U.S.), Identiv, Inc. (U.S.), Infineon Technologies AG (Germany), NXP Semiconductors N.V. (Netherlands), Sony Corporation (Japan), Samsung Electronics Co., Ltd. (South Korea), and HID Global Corporation (Sweden).
By Access Type
By End Use