Smart Card Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Smart Card Market is segmented by Type (Contact-based and Contact-less), End-user Vertical (BFSI, IT & Telecommunication, Government, and Transportation), and Geography.

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Smart Card Market Size

Smart Card Market Summary
Study Period: 2018 - 2028
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 5.4 %

Major Players

Smart Card Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Smart Card Market Analysis

The Smart Card Market size was valued at USD 9.51 billion in 2022, and is expected to reach USD 13.68 billion by 2028, growing at a CAGR of 6.20% during the forecast period (2023-2028).

The rising digitalization, increasing demand from online shopping, demand for healthcare, and access control applications are the primary factors augmenting the growth of the smart card market.

  • Smart cards provide methods to securely identify and authenticate the cardholder and third parties who want access to the card. For instance, a cardholder can use a PIN code or biometric data for authentication. Smart cards also provide a way to securely store data on the card and protect communications with encryption.
  • The demand for smart cards has been growing each year with applications in various end-use industry markets due to the recent introduction of other security and privacy issues for advanced smart card security applications. Globally, the banking and finance industry is expected to account for a significant share of the smart card market. With critical financial operations being the industry's core, security remains the primary focus. This supports the adoption of advanced authentication solutions and promotes the acceptance of the smart card within the sector.
  • The initial cost required for the smart card used for access control and other applications is high as it uses readers and chips of high quality for its functioning. The deployment of readers and chips requires additional costs, which increases the overall cost of smart cards, restraining the growth of smart cards.
  • During the COVID-19 pandemic, the business for smart cards specific to telecommunications and healthcare was less affected than other verticals. The upsurge of healthcare data brings up new challenges in providing efficient patient care and privacy. Smart cards solved both challenges by providing secure storage (dramatically more than 150 bytes that can be stored on a magnetic stripe card) and easy data distribution. Increasing healthcare expenditure is anticipated to propel the use of smart cards in the healthcare market.
  • For instance, according to the Centers for Medicare & Medicaid Services, US health spending is projected to reach nearly USD 6 trillion by 2027. Moreover, the emergence of COVID-19 has prompted several nations to develop vaccination-proofing plans, which are also anticipated to aid market growth. Digital credentials are expected to play a major role in managing the pandemic.

Smart Card Industry Segmentation

The study considers Contact-based (products that need to be in contact with secure element readers or relevant hardware for authentication) and Contactless (Products that can be activated/authenticated when the smart card is in the range of authenticating hardware) smart card products.

The Smart Card Market is segmented by Type (Contact-based and Contact-less), End-user Vertical (BFSI, IT & Telecommunication, Government, and Transportation), and Geography. The study also tracks the impact of COVID-19 on the overall smart card industry and its performance.

By Type
Contact-based
Contact-less
By End-user Vertical
BFSI
IT & Telecommunication
Government
Transportation
Other End-user Industries (Education, Healthcare, Entertainment, etc.)
By Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Rest of Europe
Asia Pacific
China
Japan
India
Rest of Asia Pacific
Rest of the World

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Smart Card Market Trends

This section covers the major market trends shaping the Smart Card Market according to our research experts:

BFSI is Expected to Drive Market

  • The adoption of smart cards in BFSI offers various benefits, such as personal data protection and secure data transactions. Additionally, in the BFSI sector, smart cards are utilized as credit or debit cards, access control cards, and authentication cards for payment.
  • They can be used as electronic wallets by loading the smart card with funds that can be transferred to a vending machine or an account using cryptographic protocols.​
  • The banking industry has witnessed the benefits of magnetic stripe card technology for a long time and has shifted towards the memory chip or microprocessor on card technology. However, over the last decade, fraud levels have increased from 2021 to 2020 and are driven by the increasing need for smart cards for secured payments.​
  • The banking industry has witnessed the benefits of magnetic stripe card technology for a prolonged period and has migrated towards the memory chip or microprocessor on card technology. However, over the last decade, fraud levels have been on the rise steeply increased in 2021 from 2020 and are driven by the increasing need for smart cards for secured payments.​
  • Across geographies, the growth of neobanks and the digital financial technology sector has directly impacted the studied market. Especially developing countries like India are adopting cashless payment methods. They have received support from government bodies encouraging the usage of cards and other cashless payment modes, creating an ancillary demand for smart cards.
  • Financial institutes have leveraged smart card technology and engaged in various partnership arrangements, which has further supported the market's growth. For instance, ICICI Bank announced that it has entered into a partnership with Greater Chennai Corporation and Chennai Smart City Limited in February 2021 to introduce the Namma Chennai Smart Card dedicated to providing citizens of Chenna, India, with a unified solution for various payments.
Smart Card Market : Card-Present Transaction that are EMV Chip, in Percentage, Global, 2020-2021

Asia Pacific to Witness Highest Growth

  • The Asia Pacific region is expected to dominate the smart card market as the region has a higher adoption rate of smart cards resulting in demand from BFSI, healthcare, retail, and government.
  • China is projected to register significant demand in the region for smart cards owing to a large presence of consumers and the presence of key manufacturers of smart cards. Various banking institutes have introduced smart cards, positively influencing the market's growth. For instance, in June 2021, China Construction Bank announced they pilot a biometric 'hard wallet' smart card that lets customers store digital yuan and authenticate payments made using the central bank's digital currency with their fingerprint. The card's stored value is further secured with advanced fingerprint recognition and authentication.
  • Several banks operational in the region have collaborated with smart card developers to introduce various kinds of smart cards in the country. Few banks that introduced smart cards in late 2020 or early 2021 include Axis Bank, ICICI Bank, and SBM Bank, among others in India.
  • Furthermore, in July 2021, MoriX Co., a Tokyo-based electronics company, partnered with Fingerprint Cards AB to develop and introduce biometric payment cards leveraging the Fingerprints' T-Shape module and is expected to be integrated with payment cards using standard automated manufacturing processes.
  • New development and initiative of smart card adoption in other end users cater to market growth. In April 2021, Octopus, one of the smart card operators in Hong Kong, introduced transit cards for public transportation users in more than 300 Chinese cities. Under the company's offshore expansion plan, Octopus transit card users will be able to cover the payments for public transportation on buses, rails, and ferries in mainland China by the end of 2021 or early 2022. The Octopus card will initially have a maximum top-up value of HKD 3,000 (USD 386) and can be upgraded to the digital Octopus cards in a phase two launch.
Smart Card Market : Growth Rate by Region (2020-2027)

Smart Card Industry Overview

The Smart Card Market is fragmented because of the presence of several global companies. Some of the key players are HID Global Corporation, CardLogix Corporation, Thales Group, etc. Key players in this market are introducing new innovative products and forming partnerships and collaborations to gain competitive advantages.

  • July 2021 - Infineon and IDEX Biometrics announced a platform for biometric smart cards with superior performance and scalable, cost-effective manufacturability. This new design significantly improves the card system level, allowing easy integration into existing hot lamination card manufacturing processes. The architecture enhances card performance while reducing manufacturing sophistication at the same time.
  • July 2021 - Gemalto NV announced a new card incorporating a biometric sensor, providing users with increased security. The contactless biometric card simplifies proximity payments and provides an essential level of privacy. Prominent EMV payment schemes, like MasterCard and Visa, fully certified the cards.

Smart Card Market Leaders

  1. CardLogix Corporation

  2. Watchdata Technologies

  3. Bundesdruckerei GmbH

  4. IntelCav

  5. Secura Key

*Disclaimer: Major Players sorted in no particular order

Smart Card Market Concentration

Smart Card Market News

  • April 2022 - IDEX Biometrics ASA announced its collaboration with a smart card technology company, E-kart, to commercialize biometric payment solutions in Eastern Europe. This partnership will offer banks and other payment card users in Turkey and globally access to biometric smart cards with enhanced performance and cost efficiency.
  • June 2021 - The 'ONE MUMBAI' Smart Card has been launched by Mumbai Metro One, Axis Bank, and RuPay, allowing citizens to travel in a contactless and cashless manner. It is intended to provide Mumbai residents with a smooth contactless, and cashless transit experience.
  • May 2021 - dzcard, the prominent smart card solution provider and digital security provider in South-East Asia, partnered with Finnov, a Fintech company based in the Sultanate of Oman, to expand its worldwide presence in the Middle East. Finnov will act as a reseller and authorized distributor of dzcard to its customer base. Through this partnership, dzcard and Finnov offer a marketing platform that proposes all dzcard products and solutions across Oman and the Middle East.

Smart Card Market Report - 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 INSIGHT

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Assessment of the Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Deployment in Personal Identification and Access Control Applications

      2. 5.1.2 Extensive Use in Travel Identity and Transportation

      3. 5.1.3 Growing Demand for Contactless Payments

    2. 5.2 Market Restraints

      1. 5.2.1 Privacy and Security Issues and Standardization concerns

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Type

      1. 6.1.1 Contact-based

      2. 6.1.2 Contact-less

    2. 6.2 By End-user Vertical

      1. 6.2.1 BFSI

      2. 6.2.2 IT & Telecommunication

      3. 6.2.3 Government

      4. 6.2.4 Transportation

      5. 6.2.5 Other End-user Industries (Education, Healthcare, Entertainment, etc.)

    3. 6.3 By Geography

      1. 6.3.1 North America

        1. 6.3.1.1 United States

        2. 6.3.1.2 Canada

      2. 6.3.2 Europe

        1. 6.3.2.1 United Kingdom

        2. 6.3.2.2 Germany

        3. 6.3.2.3 France

        4. 6.3.2.4 Rest of Europe

      3. 6.3.3 Asia Pacific

        1. 6.3.3.1 China

        2. 6.3.3.2 Japan

        3. 6.3.3.3 India

        4. 6.3.3.4 Rest of Asia Pacific

      4. 6.3.4 Rest of the World

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 CardLogix Corporation

      2. 7.1.2 Watchdata Technologies

      3. 7.1.3 Bundesdruckerei GmbH

      4. 7.1.4 IntelCav

      5. 7.1.5 Secura Key

      6. 7.1.6 Alioth LLC

      7. 7.1.7 Gemalto NV (Thales Group)

      8. 7.1.8 Giesecke & Devrient GmbH (MC Familiengesellschaft mbH)

      9. 7.1.9 HID Global Corporation (Assa Abloy AB)

      10. 7.1.10 IDEMIA France SAS

      11. 7.1.11 Infineon Technologies AG

      12. 7.1.12 Fingerprint Cards AB

      13. 7.1.13 Samsung Electronics Co. Ltd

      14. 7.1.14 CPI Card Group Inc.

      15. 7.1.15 KONA I Co. Ltd

    2. *List Not Exhaustive

  8. 8. VENDOR POSITIONING ANALYSIS

  9. 9. INVESTMENT ANALYSIS

  10. 10. FUTURE OF THE MARKET

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Smart Card Market Research FAQs

The Smart Card Market is studied from 2018 - 2028.

The Smart Card Market is growing at a CAGR of 5.4% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2018 - 2028.

North America holds highest share in 2021.

CardLogix Corporation, Watchdata Technologies, Bundesdruckerei GmbH, IntelCav, Secura Key are the major companies operating in Smart Card Market.

Smart Card Industry Report

Statistics for the 2023 Smart Card market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Smart Card analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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