Global Smartcard MCU Market - Growth, Trends, Forecasts (2022-2027)

The Global Smartcard MCU Market is Segmented by Product (8-bit, 16-bit, 32-bit), by Offerings (Smart Card, Smart Card Readers), by Functionality (Transaction, Communication, Security & Access Control), by End-User Industry (BFSI, Telecommunications, Government and Healthcare, Education, Retail, Transportation), and by Geography.

Market Snapshot

Global Smartcard MCU Market
Study Period: 2020-2027
Base Year: 2021
Fastest Growing Market: North America
Largest Market: North America
CAGR: 5.5 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The global smartcard MCU market is expected to register a CAGR of 5.5% during the forecast period (2022-2027). The rapid development of digital technologies is a primary factor fueling the growth of the smartcard MCU market. This type of card is being used for more than one function and is being designed to enable adding, deleting, and otherwise manipulating data in memory. In addition, various features such as faster processing, large memory storage, and enhanced security have enabled microprocessor-based smart cards to penetrate conventional smart card application areas and reach newer applications, such as NFC and M2M communications. Growing banking frauds and increasing security concerns have led to a rapid increase in demand for microprocessor-based smart cards.

  • The market is expected to grow over the coming years due to the rising demand from governments, financial institutions, and retailers. The demand for security of applications that employ critical information, credentials, and documents has increased demand for these cards recently, as they enhance security through encryption.
  • Governments are investing in technologies that enhance passenger convenience and streamline operations. Increasing public investments in ticketing automation and access control also drives smart cards' MCU demand.
  • For instance, in April 2021, the City and County of Honolulu's Department of Transportation Services (DTS) announced plans to transition to the HOLO smart card for the bus passengers, which would replace the old paper passes.
  • Further, the deployment of different types of smart-card-based products, including contact-based, contactless, dual interface, and hybrid cars, across numerous industry verticals, also accelerated amid the rapidly shifting landscape in the wake of the COVID-19 pandemic. In addition, with the increased pressure on healthcare institutions amid the pandemic, smartcard technology-assisted frontline workers by providing efficient and reliable patient care. These cards ensure security against healthcare fraud and allow secure storage of patient information that healthcare providers can access conveniently.
  • As per a recent study, almost two-thirds of digital consumers worldwide will use a digital wallet to purchase products in a physical store or online in 2021. The increasing popularity of mobile or digital wallets might dampen the demand for smart cards for banking applications in the coming years.
  • Further, the lack of consumer awareness about the benefits of smart cards, particularly in underdeveloped countries, hinders the market.

Scope of the Report

A microcontroller unit (MCU) is an intelligent semiconductor IC (Integrated Circuit) that includes memory modules, processor units, communication interfaces, and peripherals. MCUs are often embedded in smart cards. As a result, these cards can store a large amount of data. The smart cards are primarily targeted toward applications that require high-security requirements such as authentication, identification, data storage, and application processing.

The Global Smartcard MCU Market is Segmented by Product (8-bit, 16-bit, 32-bit), by Offerings (Smart Card, Smart Card Readers), By Functionality (Transaction, Communication, Security & Access Control), By End-User Industry (BFSI, Telecommunications, Government and Healthcare, Education, Retail, Transportation) and by Geography. All market estimates in the report are the most recent findings and estimates of the market and are adjusted as per COVID-19 impact on the market studied.

Segmentation - By Product
8-bit
16-bit
32-bit
Segmentation - By Offerings
Smart Card
Smart Card Readers
Segmentation - By Functionality
Transaction
Communication
Security and Access Control
Segmentation - By End-User Industry
BFSI
Telecommunications
Government and Healthcare
Education
Retail
Transportation
Others
Segmentation - By Geography
North America
Europe
Asia-Pacific
Rest of the World

Report scope can be customized per your requirements. Click here.

Key Market Trends

BFSI industry to emerge as a major end-user industry

  • Smart Card with an embedded microcontroller unit (MCU) provides not only memory capacity but also computational capability, and thus it is capable of processing data. Smart Cards can store much more data than a conventional card with a magnetic stripe. Moreover, it can be programmed to display the relevant information only.
  • Smart cards are now increasingly used in electronic purse payment applications. In this application, the smart card carries a stored monetary value. Cardholders can use these cards to replace cash in frequent, low-value transactions. Electronic purses are used for both retail payment and transit fare payment.
  • MCU-based smart cards are also debit or credit cards to pay for goods and services. Unlike a credit card, a smart card can be programmed to store information and applications. The cards aren't just linked to a bank account or line of credit, but they can also store the user's emergency medical information, driver's license number, and other personal details.
  • Many credit card companies are replacing traditional magnetic strips-based credit cards with smart cards to help curb fraud and protect customer information from hackers. The microprocessors embedded in the cards provide an additional layer of security for the users through cryptography algorithms.
  • For instance, in November 2021, Karta.io, an automated financial control system, launched new smart credit cards that are majorly being designed for transparent management and automation of company expenses. This tool facilitates smarter company spending by enabling both the finance team and employees to efficiently control, pay, track and report on operational expenses in real-time.
Global Smartcard MCU Market

North-America Market to grow significantly

  • Smart cards with an embedded microcontroller unit (MCU) provide not only memory capacity but also computational capability, and thus, it is capable of processing data. Smart cards can store much more data than a conventional card with a magnetic stripe. Moreover, it can be programmed to display the relevant information only.
  • Smart cards are now increasingly used in electronic purse payment applications. In this application, the smart card carries a stored monetary value. Cardholders can use these cards to replace cash in frequent, low-value transactions. Electronic purses are used for both retail payment and transit fare payment.
  • MCU-based smart cards are also debit or credit cards to pay for goods and services. Unlike a credit card, a smart card can be programmed to store information and applications. The cards aren't just linked to a bank account or line of credit, but they can also store the user's emergency medical information, driver's license number, and other personal details.
  • Many credit card companies are replacing traditional magnetic strips-based credit cards with smart cards to help curb fraud and protect customer information from hackers. The microprocessors embedded in the cards provide an additional layer of security for the users through cryptography algorithms.
  • For instance, in November 2021, Karta.io, an automated financial control system, launched new smart credit cards that are majorly being designed for transparent management and automation of company expenses. This tool facilitates smarter company spending by enabling both the finance team and employees to efficiently control, pay, track and report on operational expenses in real-time.
Global Smart Card MCU Market

Competitive Landscape

The smartcard MCU market is moderately competitive and consists of a few key players operating in the market. These significant players with a noticeable share in the market concentrate on expanding their customer base across foreign countries. The companies are adopting various strategies such as mergers and acquisitions, product innovations, and expansions, among others, to improve their market percentage and enhance their profitability.

  • December 2021 - STMicroelectronics released the latest version of its ST31 secure microcontroller. The new microcontroller, ST31N600, can be deployed in ID cards, transit ticketing platforms, and biometric payment cards.
  • October 2021 - Infineon launched a new portfolio of SECORA Pay payment solutions. The plug-and-play solutions utilize Infineon’s SOLID FLASH chip platform, addressing new payment card and device solutions while meeting the latest requirements.

Recent Developments

  • January 2022 - Samsung Electronics introduced its new fingerprint security IC (integrated circuit), S3B512C, with enhanced security features. The new solution is EMVCo and Common Criteria Evaluation Assurance Level (CC EAL) 6+ certified and performs in line with Mastercard’s latest Biometric Evaluation Plan Summary (BEPS) specifications for biometric payment cards.
  • September 2021 - Infineon Technologies opened a new high-tech chip factory for power electronics. It is based on 300-millimeter thin wafers at its Villach site in Austria at 1.6 billion EUR. the investment made by the semiconductor group represents one of the most significant projects in the microelectronics sector in Europe.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness-Porters 5 Force Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Intensity of Competitive Rivalry

      5. 4.2.5 Threat of Substitutes

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Impact of COVID-19 Outbreak on the Industry

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Rapid Development of Digital Technologies

      2. 5.1.2 Increasing Investments by Governments in Transportation Systems

    2. 5.2 Market Challenges

      1. 5.2.1 Growing Popularity of Mobile or Digital Wallets

  6. 6. MARKET SEGMENTATION

    1. 6.1 Segmentation - By Product

      1. 6.1.1 8-bit

      2. 6.1.2 16-bit

      3. 6.1.3 32-bit

    2. 6.2 Segmentation - By Offerings

      1. 6.2.1 Smart Card

      2. 6.2.2 Smart Card Readers

    3. 6.3 Segmentation - By Functionality

      1. 6.3.1 Transaction

      2. 6.3.2 Communication

      3. 6.3.3 Security and Access Control

    4. 6.4 Segmentation - By End-User Industry

      1. 6.4.1 BFSI

      2. 6.4.2 Telecommunications

      3. 6.4.3 Government and Healthcare

      4. 6.4.4 Education

      5. 6.4.5 Retail

      6. 6.4.6 Transportation

      7. 6.4.7 Others

    5. 6.5 Segmentation - By Geography

      1. 6.5.1 North America

      2. 6.5.2 Europe

      3. 6.5.3 Asia-Pacific

      4. 6.5.4 Rest of the World

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 NXP Semiconductors NV

      2. 7.1.2 Renesas Electronics Corporation

      3. 7.1.3 Infineon Technologies AG

      4. 7.1.4 STMicroelectronics

      5. 7.1.5 Microchip Technology Inc.

      6. 7.1.6 Texas Instruments Incorporated

      7. 7.1.7 Maxim Integrated

      8. 7.1.8 Onsemi

      9. 7.1.9 Zilog, Inc.

      10. 7.1.10 Samsung

    2. *List Not Exhaustive
  8. 8. Investment Analysis and Market Outlook

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Global Smartcard MCU Market market is studied from 2020 - 2027.

The Global Smartcard MCU Market is growing at a CAGR of 5.5% over the next 5 years.

North America is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

NXP Semiconductors N.V., Infineon Technologies AG, STMicroelectronics, Texas Instruments Incorporated are the major companies operating in Global Smartcard MCU Market.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!