Smart Card Market Outlook – 2027
The global smart card market size was valued at $10.19 billion in 2019, and is projected to reach $15.57 billion by 2027, growing at a CAGR of 6.2% from 2020 to 2027. A smart card is a physical card that contains either an embedded memory or a microcontroller contained in a contact pad. It connects to a reader either by a short-range wireless connectivity or through direct physical contact standard such as near-field communication (NFC) or radio-frequency identification (RFID). Smart cards use encryption to provide safety for in-memory information and are generally designed to be tamper-resistant. Smart cards with microcontroller chip can accomplish on-card processing functions and can manipulate data in the chip's memory.
Smart cards are used in many applications such as credit cards and other payment cards. These cards are usually used in applications that must deliver secure, fast transactions, and protect individual data such as credit cards, other kinds of payment cards, government identification & corporate cards, and transit fare payment cards. It is also sometimes used as a legal document such as e-passports and visas. A subscriber identity module (SIM) card is also a form of microcontroller-based smart card, which is widely used in mobile phones and other devices.
The global smart card industry is anticipated to witness significant growth over the forecast period. Factors, such as rapid digitalization, surge in cashless transactions, and rise in demand from the healthcare sector, drive the growth of the smart card market. However, high set-up cost along with data theft & security concern is a major restraint to the global smart card industry. In addition, new mode of information security of users enabled by blockchain is expected to create opportunities for the smart card industry. Smart cards can efficiently manage cryptographic keys, thereby enabling secure & efficient transactions in blockchain applications.
Segment Overview
The global smart card market is segmented into type, end user, and region. By type, the market is divided into contact, contactless, and dual interface. Depending on end user, it is segregated into BFSI, telecommunication, healthcare, government, transportation, and others.
By Type
Dual Interface segment will grow at a highest CAGR of 7.4% during 2020 - 2027
Region-wise, the smart card market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). Asia-Pacific is dominating the smart card market, owing to growing demand for telecommunication products and rapid digitalization in this region. Asia-Pacific is also projected to register significant growth rate during the forecast period. Furthermore, North America holds a subsequent position, and is expected to increase its growth rate by the end of the forecast period, followed by Europe.
Leading smart card manufacturers, such as Thales, NXP Semiconductors NV, and Giesecke+Devrient GmbH, are focusing their investment on technologically advanced, cost effective, and more secure products & solutions for various applications.
Top Impacting Factors
The prominent factors that impact the smart card market growth are growing adoption of smart cards in the banking & financial sector and surge in demand for contactless smart card. Ongoing technological advancements, such as blockchain and IoT technologies, drive the smart card market. However, high costs of incorporating chip cards restrict the market growth. On the contrary, high demand from the Asia-Pacific region is expected to create lucrative opportunities for the market. Therefore, these factors are anticipated to definitely affect the development of the global smart card market during the forecast period.
Competitive Analysis
Competitive analysis and profiles of the major smart card market players, such as Alioth LLC, CardLogix Corporation, CPI Card Group Inc., Giesecke+Devrient GmbH, IDEMIA, Identiv, Inc., Infineon Technologies AG, NXP Semiconductors NV, Thales, and Watchdata Technologies, are considered.
By End User
Telecommunication Segment holds a dominant position throughout the forecast period.
Covid-19 Impact Analysis
The outbreak of COVID-19 has significantly affected the electronics and semiconductor sector. Business and manufacturing units across various countries were closed, owing to increase in number of COVID-19 cases, and are estimated to remain closed in 2021. Furthermore, partial or complete lockdown has disrupted the global supply chain, thereby posing challenges for manufactures to reach customers. The overall production process has been adversely affected. However, the growth of the telecommunication segment boosts the global smart card market.
The COVID-19 pandemic is impacting the society and overall economy across the globe. The impact of this outbreak is growing day-by-day as well as affecting the overall business globally. The crisis is creating uncertainty in the stock market, falling business confidence, massive slowing of supply chain, and increasing panic among the customer segments.
The Asian and European countries under lockdowns have suffered major loss of business and revenue due to the shutdown of manufacturing units in the region. Operations of the production and manufacturing industries have been heavily impacted by the outbreak of the COVID-19 disease, leading to decline in growth of the smart card market in 2020.
The COVID-19 pandemic severely impacted the electronics sector as the production facility has stalled, which, in turn, created significant product demand in industries. This resulted in large-scale manufacturing interruption across Europe and interruption in Chinese parts exports, which are expected to hinder the smart card market growth.
By Region
Asia-Pacific would exhibit the highest CAGR of 7.4% during 2020-2027
Key Benefits For Stakeholders
- This study comprises analytical depiction of the global smart card market outlook along with the current trends and future estimations to depict the imminent investment pockets.
- The overall smart card market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The current smart card market forecast is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and the smart card market share key vendors.
- The report includes the market trends and market share of key vendors.
Key Market Segments
By Type
- Contact
- Contactless
- Dual Interface
By End User
- BFSI
- Telecommunication
- Healthcare
- Government
- Transportation
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Uk
- Germany
- France
- Rest Of Europe
- Asia-Pacific
- China
- Japan
- India
- Rest Of Asia-Pacific
- Lamea
- Latin America
- Middle East
- Africa
Key Players
- Alioth Llc
- Cardlogix Corporation
- Cpi Card Group Inc.
- Giesecke+Devrient Gmbh
- Idemia
- Identiv, Inc.
- Infineon Technologies Ag
- Nxp Semiconductors Nv
- Thales
- Watchdata Technologies
Smart Card Market Report Highlights
| Aspects | Details |
 By TYPE |
|
 By END USER |
|
 By Region |
|
 Key Market Players | Infineon Technologies, Thales Group, Watchdata Technologies, IDEMIA, Identiv, Inc., CardLogix Corporation, Giesecke+Devrient GmbH, CPI Card Group Inc., NXP Semiconductors NV, Alioth Company |
Analyst Review
A smart card is also identified as an integrated circuit card or chip card, which contains a computer chip and permits the user to buy goods & services, access medical, financial or other records, enter restricted areas or perform other actions that need data stored on the chip. The universal integrated circuit card or SIM card is also a form of smart card. Smart card provides several benefits to users, which include improvements in service efficiency and help governments & the transport sector to collect travel data of commuters. It is also widely used in transportation areas such as car parking, fueling, servicing, and washing.
The global smart card market is anticipated to witness significant growth over the forecast period. Factors, such as rapid digitalization, surge in cashless transactions, and rise in product demand from the healthcare sector, drive the growth of the smart card market. However, high set-up cost along with data theft & security concern is a major restraint to the global smart card market. In addition, new mode of information security of users enabled by blockchain is expected to create opportunities for the smart card industry. Smart cards can efficiently manage cryptographic keys, thereby enabling secure & efficient transactions in blockchain applications.
The key players of the market focus on introducing technologically advanced products to remain competitive in the market. Product launch, collaboration, and expansion are expected to be the prominent strategies adopted by the market players. Asia-Pacific accounted for a major share of the market in 2019, owing to the presence of major players in the region. Also, Asia-Pacific is expected to grow at the highest CAGR, owing to rise in adoption of smart card in a variety of fields.
The Smart Card Market is estimated to grow at a CAGR of 6.2% from 2020 to 2027.
The Smart Card Market is projected to reach $15.57 billion by 2027.
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Factors such as rapid digitalization, surge in cashless transactions, and rise in demand from the healthcare sector drives the growth of the Smart Card market
The key players profiled in the report include Alioth LLC, CardLogix Corporation, CPI Card Group Inc., Giesecke+Devrient GmbH, IDEMIA, Identiv, Inc., Infineon Technologies AG, NXP Semiconductors NV, Thales, and Watchdata Technologies, and many more.
On the basis of top growing big corporations, we select top 10 players.
The Smart Card Market is segmented on the basis of type, end user, and region.
The key growth strategies of Smart Card market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
Telecommunication Segment holds a dominant position throughout the forecast period.
Dual Interface segment will grow at a highest CAGR of 7.4% during 2020 - 2027
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