The global smart card market is predicted to reach USD 23.13 billion in 2024 and USD 35.59 billion by 2029, growing at a CAGR of 9% during the forecast period.
A smart card is also known as an integrated circuit card (ICC). A smart card is small and can be used for security, authentication, identification, data storage, and application processing. It contains integrated circuits that differentiate them from other cards that can be simply plastic or polycarbonate. Memory cards contain only non-volatile memory storage components. A microprocessor chip card can contain volatile memory and microprocessor components.
The adoption of integrated microprocessor cards, especially in BFSI (EMV) and mobile phone devices (SIM cards), has resulted in lower costs due to economies of scale. In addition, this has led to microprocessor cards becoming a lucrative option for innovators in emerging markets, such as access control, electronic passports, PKI, and multiple applications where their cryptographic capabilities address security issues.
In addition, contactless smart cards reduce fraud, improve security, and allow consumers to use value-added services. It is also presumed that the demand for contactless smart cards will increase in the coming years. Also, the growing demand for tamper-evident cards will stimulate the growth in the smart card market over the forecast period. Besides, steadily growing end-use industries, such as banking, transportation, retail, healthcare, etc., in emerging and developed economies will further stimulate growth in the global smart card market during the forecast period.
Limited acceptance of capital-intensive Point of Scale (PoS) terminals is hampering the adoption of contactless smart cards in retail stores. In addition, increasing price competition and the high cost of implementation are other factors that are foreseen to dampen growth in the global smart card market over the forecast period. The lack of commercialization in emerging economies is another factor that should hamper the growth of the smart card market in the coming years.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
9% |
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Segments Covered |
By Communication, Component, Application, and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Gemalto NV (Netherlands), Giesecke & Devrient GmbH (Germany), IDEMIA France SAS (France), Infineon Technologies AG (Germany), NXP Semiconductors NV (Netherlands), Sony Corporation (Japan), Samsung Electronics Co. Ltd. (SouthKorea), HID Global Corporation (Sweden), STMicroelectronics NV (Switzerland),Ingenico Group SA (France), VeriFone Systems Inc. (United States), Beijeng Watchdata Co. Ltd. (China), Rambus Inc. (United States), CPI Card Group Inc. (United States), Identiv Inc. (United States), KONA I Co. Ltd (South Korea), VALID (Brazil), Fingerprint Cards AB (Sweden), BrilliantTS Co. Ltd. (South Korea), Bitel Co. Ltd. (South Korea), Fujian Newland Computer Co. Ltd.(China), PAX Global Technology Ltd. (Hong Kong), CardLogix Corporation (United States), ZWIPE (Norway), Versasec AB (Sweden) and Others. |
Contact-type cards accounted for most of the global smart card market in 2020. These cards are widely used in BFSI, government, healthcare, and retail applications. On the other hand, contactless smart cards are likely to witness the highest growth rate in the coming years due to their increasing usage and adoption in BFSI, government, healthcare, and transportation applications.
The hardware segment is expected to dominate the global smart card market in 2025 due to the increasing adoption of smart cards and readers in developing economies. The software market, which includes management system software and databases, is foreseen to grow at the highest rate in the forecast period.
Among these, the BFSI segment held the lion's share in the global smart card market due to the increasing number of card payments worldwide. However, in the coming years, the demand from the transportation sector is estimated to record the highest growth rate.
Geographically, the Asia Pacific smart card market is projected to register the highest growth rate and market value over the outlook period. The increasing emphasis on card payments in developing economies like India and the rising need for smart solutions in end-user applications are creating huge growth potential for the regional market. The North American smart card market currently holds the top position in the global marketplace.
Some of the main players in the global smart card market are:
The New York Metropolitan Transit Authority allows passengers to use their credit or debit cards on turnstiles to make payments. With this in mind, the largest banks in the country, including American Express and Capital One, have switched to contactless cards that will work with these new systems. This transition led Visa to anticipate that a total of 100 million of its cards in the United States will become contactless by the end of 2020.
May 2019: IDEX Biometrics ASA, the leading provider of advanced fingerprint identification and authentication solutions, announced a partnership with Sian Intelligent Technology Co, Ltd., a leading Chinese smart card manufacturer specializing in the Development, Design, Manufacturing, and sale of dual-interface smart cards, to accelerate the volume production of biometric smart cards.
March 2019: In line with the government's vision of a nation card, Ridlr, a subsidiary of Ola, the leading mobility platform in India and one of the largest public transportation companies in the world, has recently concluded an association with the NMMT (Navi Mumbai Metropolitan Transport) and HDFC Bank to launch the Navi Card, a RuPay national joint mobility card that allows Mumbai travelers to travel without money on NMMT buses.
By Communication
By Component
By Application
By Region
Frequently Asked Questions
Smart cards are extensively used in the financial sector for applications such as payment cards, credit/debit cards, electronic purses, and prepaid cards, facilitating secure transactions, reducing fraud, and enhancing customer convenience.
Technological advancements such as the integration of biometric authentication, contactless NFC (Near Field Communication) technology, and the development of dual-interface smart cards are driving innovation in the global smart card market, enhancing security and user convenience.
Factors such as high initial implementation costs, interoperability challenges, concerns regarding data privacy and security, and regulatory complexities are hindering the growth of the smart card market in certain regions, necessitating collaborative efforts among stakeholders to address these barriers effectively.
In the corporate sector, smart cards serve as secure access control credentials for employees, providing physical access to office premises, logical access to IT networks, secure authentication for enterprise applications, and encryption of sensitive data, ensuring robust security measures and regulatory compliance for businesses worldwide.
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