Smart Card Market
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Smart Card Market size exceeded USD 40 billion in 2021 and is projected to expand at 10% CAGR from 2022 to 2028. The global shipments are anticipated to cross 45 billion units by 2028.
The increasing adoption of digital payment techniques that ensure improved convenience and security over traditional cash-based payments will fuel the industry growth. The market will gain traction with an increasing number of consumers using smart cards to avoid the hassle of carrying cash. As smart card-based transactions are highly encrypted, an increasing number of individuals use them to ensure confidentiality and easy management of payment records. These cards include a tamper-proof microprocessor with substantial processing power to protect the stored data and encrypt & implement instructions from specific programs. The increasing popularity of cashless transactions in both developed and developing economies will foster market demand.
The outburst of the COVID-19 pandemic has impacted the smart card industry in the first half of 2020 owing to lockdowns imposed in several countries by government administrations. Disruptions in the global supply chains also hindered the manufacturing capabilities of the market players. The industry regained traction in the second half of 2020, following relaxations on pandemic-related restrictions. Since 2020, consumers are increasingly using contactless cards for payments at retail stores, restaurants, transportation terminals, and hospitals.
| Report Attribute | Details |
|---|---|
| Base Year: | 2021 |
| Smart Card Market Size in 2021: | 40 Billion (USD) |
| Forecast Period: | 2022 to 2028 |
| Forecast Period 2023 - 2032 CAGR: | 10 |
| 2023 Value Projection: | 90 Billion (USD) |
| Historical Data for: | 2018 to 2021 |
| No of Pages: | 630 |
| Tables, Charts & Figures: | 1134 |
| Segments Covered: | Solution, Application, Region |
| Growth Drivers: |
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| Pitfalls Challenges: |
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The U.S. smart card reader market is poised to register growth rate of about 15% through 2028, which is attributed to the increasing demand for high-performance readers at transportation terminals. With automatic fare collection systems gaining popularity in the region, transportation authorities are installing smart card readers at terminals to ensure improved convenience for citizens. Transit agencies, such as the Chicago Transit Authority (CTA), the Utah Transit Authority (UTA), and the Southeastern Pennsylvania Transportation Authority (SEPTA), have fully operational fare collection systems installed at the entry and exit points. The increasing usage of high-end smart card readers that facilitate fast & real-time payments will boost the industry statistics.
The India smart card market is estimated to witness nearly 18% gain during 2022 to 2028. Government organizations in the country are increasingly supporting the adoption of smart cards across several industry verticals. The Indian government uses smart cards to help individuals living below the poverty line access medical facilities. In Tamil Nadu, impoverished people use smart cards to seek improved healthcare and avail the benefits of medical facilities. Similarly, Health ID Card, launched by the government in 2020, will play a vital and revolutionary role in the health empowerment of every Indian citizen.
In 2021, Europe accounted for around 25% of the smart card market share impelled by rising number of individuals using biometric cards for both identity authentication and increased convenience. For instance, in the UK, Biometric Residence Permit (BRP) helps citizens to confirm their identity, right to any public services, and right to study. Industry participants are strengthening their position in the region in response to the high demand for biometric smart cards. The growing popularity of smart cards that ensure enhanced security and user comfort will propel the market revenue.
The industry leaders are focusing on developing technologically advanced solutions to cater to the changing consumer demands. For instance, in July 2021, Infineon Technologies AG partnered with IDEX Biometrics ASA to announce a reference design for an innovative biometric smart card architecture. The design leverages the combination of the TrustedBio solution from IDEX Biometrics with Infineon’s SLC38BML800 security controller with GPIO-interfaces. This enables fingerprint verification with high accuracy, low latency, and power efficiency. Market participants are focusing on developing smart cards & readers that ensure fast identity authentication, access control, and payments.
Key players operating in the smart card market include
Market, By Solution
Market, By Application
The above information has been provided for the following regions and countries:
Reputed companies, including CardLogix Corporation, Infineon Technologies AG, Cardcom Technology, Verifone Inc., NXP Semiconductors NV, IDEMIA, and Square, Inc., among several others, are positively influencing the market outlook.
Europe accounted for nearly 25% of the market share in 2021 as a large percentage of the regional population is extensively using biometric cards for greater convenience as well as identity authentication.
The market size of smart card valued at more than $40 billion in 2021 and is projected to register a strong 10% CAGR during the forecast timeframe of 2022-2028.
India smart card industry size is predicted to register a healthy CAGR of 18% through 2028 as the government uses these cards to help citizens living below the poverty line access advanced healthcare facilities.
The U.S. market is poised to record more than 15% CAGR through 2028 as there is a rising demand for high-performing smart card readers at transportation terminals.