Smart Card Market size worth over $90 Bn by 2028

Smart Card Market size is slated to cross USD 90 billion by 2028, according to a new research report by Global Market Insights Inc.
 

The increasing proliferation of digitalization across the retail sector will boost the smart card industry growth. Large retailers are connecting POS terminals with dedicated software solutions that enable them to track individual customer preferences, regular customers, and promotional offers & discounts. This factor enables them to provide personalized services to regular customers. They also use advanced smart card readers to facilitate user convenience by enabling them to pay digitally and avoid the hassle of carrying cash. Market players offer high-quality smart card readers in response to the growing demand from small retailers.
 

The COVID-19 pandemic impacted the smart card market negatively in the first half of 2020 due to the temporary closure of transportation terminals, retail stores, restaurants, and corporate offices. However, the industry regained traction in the latter half of 2020 with the gradual resumption of industrial activities, following relaxations on pandemic-related restrictions. According to Worldpay’s Global Payment report, cash accounted for around 45% of the total instore payments in Europe before the pandemic. The figure dropped by almost 10% within the few weeks of the pandemic outbreak. Contactless smart cards will continue to gain popularity in the wake of the pandemic and the threat of consequent waves in 2022.
 

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High demand for contactless smart cards that ensure improved durability

Contactless smart card market is poised to grow at about 5% CAGR till 2028 owing to high demand for sturdy cards that ensure easy use. Contact-based cards offer lesser durability as they are subjected to wear & tear by direct contact with the reader. Companies are offering contactless smart cards in response to the high demand from several industry verticals. For instance, in July 2021, Thales Group launched a smart card with an integrated biometric sensor that provides users with improved convenience and security. The contactless biometric card simplifies proximity payments while offering an essential level of confidentiality and privacy. The pandemic has further fueled the adoption of contactless cards led by the fear associated with the spread of the virus through contact-based cards.
 

Browse key industry insights spread across 630 pages with 1098 market data tables and 36 figures & charts from the report, “Smart Card Market Size By Solution (Smart Card [Product {Contact, Contactless, Hybrid, Dual Interface}, Type {Memory Card, Microprocessor Card}], Smart Card Reader [Component {Hardware, Software, Service}, Product {Contact, Contactless}]), By Application (SIM & Telecom, Financial, Government & Health, Retail & Gas, Access Control, Transportation, Loyalty), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2028”, in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/smart-card-market
 

High demand for streamlined access control systems that ensure accurate user authentication

SMEs and large enterprises are implementing robust access control solutions for employees to ensure the entry of only authorized people in the office premises. Banks are also incorporating smart card-based access control systems to avoid intruders in crucial areas such as bank lockers and rooms with confidential papers.
 

The expanding transportation sector in Asia Pacific

The Asia Pacific smart card market size is estimated to exhibit growth rate of above 13% from 2022 to 2028 led by growing adoption of advanced digital technologies in the transportation sector. Transportation authorities in countries including India, China, Singapore, Japan, and Australia are focusing on digitalizing several aspects by interconnecting smart-card-based payment terminals with centralized cloud-based software. Travelers can use their smart cards for access control, ticketing & payments and can recharge their cards through a mobile application.
 

Strategic mergers and acquisitions from key strategy amongst industry players

The industry is characterized by collaborations and acquisitions undertaken by major participants to solidify their presence. For instance, mergers and acquisitions aid in innovating their offerings by integrating the technical expertise offered by different companies. The combined companies aimed at developing clean and crisply designed vertical cards in innovative packaging. The partnership will help the company in enhancing relationship with fintech firms and pioneers in the payment cards industry landscape.
 

Prominent companies operating in the smart card market include CardLogix Corporation, CardCom Technology, Infineon Technologies AG, Verifone Inc., CPI Card Group, NXP Semiconductors NV, Giesecke & Devrient (G&D) GmbH, IDEMIA, Identiv Inc., Thales Group, and Square, Inc.