A smart card, a plastic card embedded with a microprocessor chip, is used for information storage, management, and authentication. Card data is transacted through a reader, which is a part of a computing system. Smart cards enhance transaction security and provide tamper-proof storage of user and account identity. There are three types of smart cards, namely contact smart cards, contactless smart cards, and dual-interface smart cards. Increasing use of IoT (Internet of things) technology and mobile phones in the form of SIM cards drives the growth of the smart card market. In addition, the pressing need to ensure transaction security and convenience is a key factor surging the demand for smart cards.
Increasing use of smart cards in various industrial sectors, including healthcare, banking, IT, retail, and transportation is expected to drive market growth during the forecast period. Another key factor propelling market growth is the increasing demand for smart cards from government sectors. For instance, the Indian Government has initiated various programs such as the Rashtriya Swasthya Bima Yojana (RSBY), National Rural Employment Guarantee Act (NREGA), and Public Distribution System (PDS), which are surging the demand for smart card technology in India.
The global smart card market is expected to grow at a CAGR of 8.5% during the forecast period (2019–2026.
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. On the basis of component, the market can be segmented into software, hardware, and others. By access type, the market can be bifurcated into physical and logical. On the basis of end users, the market can be segmented into government, retail, healthcare, financial service, transportation service, government, and others. Geographically, the global smart card market has been divided into North America, Europe, Asia-Pacific, and LAMEA.
Asia Pacific is expected to hold the largest market share during the forecast period, owing to increasing demand, specifically in transportation, BFSI, retail, government, and healthcare sectors. Furthermore, growth of the region’s telecom and e-commerce sectors is also contributing to the growth of the smart card market.
In comparison, North America is pegged to be a relatively less attractive market, due to the region’s mature smart card market. Several U.S. states are planning to adopt chip card programs across various government applications, ranging from the Department of Motor Vehicles to Electronic Benefit Transfers (EBTs). Many industries have implemented smart cards in their products, such as GSM digital cellular phones and TV-satellite decoders.
The Europe market is anticipated to grow at a healthy rate as the European healthcare sector is increasingly applying smart cards for both patients and healthcare providers.
The LAMEA region is expected to witness 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 operating in the smart card market include Gemalto N.V. (Netherlands), Giesecke & Devrient GmbH (Germany), STMicroelectronics NV (Switzerland), Ingenico Group SA (France), IDEMIA France SAS (France), CPI Card Group Inc. (US), Identiv, Inc. (US), Infineon Technologies AG (Germany), NXP Semiconductors N.V. (Netherlands), Sony Corporation (Japan), Samsung Electronics Co., Ltd. (South Korea), and HID Global Corporation (Sweden).
This report provides key insights pertaining to the smart card market with stress on recent developments across geographies and development strategies adopted by prominent market participants. The following sections have specifically been covered in the report.