Smart Card Market Size - By Offering, By Functionality, By Application, Growth Forecast, 2026 - 2035

Smart Card Market Size

The global smart card market size was valued at USD 65.2 billion in 2025. The market is expected to grow from USD 70.8 billion in 2026 to USD 122.8 billion in 2035 at a CAGR of 6.3%, according to latest report published by Global Market Insights Inc.

Smart cards have transformed the mode of payment, enabling people to experience contactless interfaces while paying somewhere in the shopping centers, restaurants, metros, buses and other places where we were paying through a magnetic strip card or a contract card.
 

As per the statistics, over 90% of contactless payments globally are powered by NFC technology. This creates NFC's dominance and adoption among the people because of its ease of accessibility anywhere in the world where a contactless payment system is there.
 

Also, for identical purposes, smart cards also revolutionized the security applications. A smart card is preloaded with the user data that is already fetched in a system. Thus, government and security agencies use smart cards to validate the person who is entering the place.
 

In addition to the improved authentication of the identities of the individuals accessing buildings and computer systems, smart cards have a lot of other advantages and applications to offer. For example, these cards can be used for making electronic passenger lists for military personnel deployment and also for immunization and medical record tracking.
 

In the U.S., the growth of the number of contactless transactions due to the ongoing acceptance of contactless cards has already surpassed 17 billion by 2023 and the figure keeps on increasing every year. The number will be even higher, as more people are turning away from the classic cash payment and opting for the smart card payment process.
 

Smart Card Market Trends

The worldwide market for smart cards is moving strongly toward contactless and dual-interface smart cards. In regions like Europe, contactless card payments represent over 60-70% of total card-based transactions.
 

The continued growth of contactless payments is due to consumers' demand for more convenient and quicker ways to pay for purchases. For instance, in the UK in 2023, nearly four out of ten payments were made through a contactless payment method, with 85% of the population using contactless payments regularly.
 

At the same time, government digitization is a major growth area. National ID cards account for over 50% of the government smart card application marketplace and one of the primary technologies used in this segment is dual-interface smart cards.
 

While new uses of smart card in finance and government are growing, meanwhile telecommunications remain a key part of the smart card market. This sector, mainly driven by SIM cards. This shows the strong and ongoing demand from mobile connectivity providers worldwide.
 

Smart Card Market Analysis

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Based on offering, the smart card market is divided into smart card and smart card readers. The smart card segment dominated the market with 66.5% share in 2025.
 

• Smart cards are now becoming one of the main aspects of access to the digital world. As these cards are now being expanded into numerous applications where the world was lacking in accessing some applications within sectors such as banking & finance and security and government applications.
   
• Distribution partners like VISA and Mastercard have prominently pushed the market by offering smart cards such as credit and debit cards. As per the latest data, there are currently 1.3 billion Visa credit cards and 1.1 billion Mastercard credit cards in circulation worldwide.
   
• This huge number of credit and debit card users is continuously expanding and showing opportunities in sectors like BFSI, as currently 20-30% of the total world population have at least one credit card.
   
• Also, in the meantime, as fast as the smart card segment is maturing, there will be a high need for smart card readers that will support the overall smart card market to grow. In coming years, smart cards will show numerous untapped applications that will boost the smart card and smart card reader market.
   

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Based on functionality, the smart card market is divided into transaction, communication, security & access control and others. The communication segment dominated the market with 42.3% share in 2025.
 

• The penetration of smartphone users is the main reason behind the dominance of the communication segment, which was valued at USD 27.6 billion in 2025 and is expected to continue to grow in the near future.
   
• For instance, between 2019 and 2024, smartphone penetration among teenagers reached an almost universal level of over 90%, supporting the market growth in the format of SIM cards.
   
• On the other hand, the usage of smart cards has been seen in the security & access control applications. Government, corporate sectors, manufacturing plants, healthcare facilities, and research institutions have increasingly adopted smart cards as the identity and access control option.
   
• For instance, as of June 2024, there are 28 EEA countries that have released identity cards with ICAO-compliant NFC chips. Such numbers are expected to rise in coming years as more countries are focusing on and adopting smart cards as proof of identity.
   

Based on application, the smart card market is divided into BFSI, telecommunication, government & healthcare, retail & ecommerce, transportation, media & entertainment, education & academic institutions and others. In 2025, the telecommunication segment led the smart card market, reaching a market value of USD 28.2 billion.
 

• This segment dominated because of significant rise in smartphone users across the globe. By October 2025, over 6 billion people were using the internet, showing the strong position of the telecommunications sector. GSMA previously stated that more than half of the global population now uses mobile internet.
   
• Transportation industry is growing at the fastest CAGR of 8.6% due to the expansion of metros and buses across the world. Urbanization and smart city initiatives have propelled the demand for smart cards for payment and allowing citizens to travel in these transportation modes.
   
• For instance, in May 2025, Washington Metropolitan Area Transit Authority announced the launch of credit and debit card payments for Metrorail that allows riders to pay at Metrorail stations using contactless credit and debit cards as part of the “Tap Ride Go” system.
   

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The US smart card market reached USD 12.1 billion in 2025, growing from USD 11.2 billion in 2024.
 

• The U.S. is a leader in the smart card market, showing how widely the technology is used in the country. For example, the U.S. Federal government uses smart card technology in its key credentialing programs. The Department of Defense uses smart cards in its Common Access Card for identifying military and civilian staff.
   
• The Department of State also uses contactless smart card technology for electronic passports. Following the Homeland Security Presidential Directive 12, all Federal government employees now receive smart card-based identity credentials.
   
• In the U.S., companies give employees smart ID badges to secure access to buildings and systems.
   
• These examples show how important smart card technology is for keeping credential systems secure. Smart cards are portable devices that safely store sensitive information, allow secure transactions, confirm a person’s identity in secure systems, and ensure only authorized people can access the information on the card.
   

The North America region is valued at USD 16.3 billion in 2025 and expected to grow at the CAGR of 5.6% between 2026 and 2035.
 

• The region has a rising demand for secure and contactless payment. Thus, key players in the smart card market are benefiting from the region. In the region, major banks have introduced EMV chip cards, and the rise in tap-to-pay transactions in retail, transit, and hospitality has made smart cards an important part of the region's digital payments system.
   
• For instance, financial institutions in the U.S. and Canada are quickly replacing old magnetic-stripe cards with dual-interface smart cards that support both contact and contactless payments. In cities like Toronto, Chicago, and New York, where contactless payments are becoming common, the use of smart cards is increasing rapidly.
   
• Moreover, the application of smart cards is not limited to the BFSI sector. They are now common in government identity programs, healthcare, and enterprise access control. For example, U.S. federal agencies use PIV smart cards to securely identify employees and control building access. Hospitals and insurance networks also use health ID smart cards to verify patients and manage their records.
   

The Europe smart card market accounted for USD 19.4 billion in 2025 and is anticipated to grow at the CAGR of 6.7% between 2026 and 2035.
 

• Governments in Europe are supporting the smart card market by using these cards for secure identity programs, national ID cards, and e-government services.
   
• For example, Germany uses ID cards with quantum-resistant encryption to protect personal data. The German eID system is based on chip-based ID cards provided by the government to German citizens, residents, and EU/EEA nationals.
   
• Recently, the UK government announced a new digital ID scheme that will be introduced across the country. This scheme aims to stop illegal working and make it easier for most people to access important government services.
   

Germany's smart card market is growing quickly in Europe, with a strong CAGR of 7.4% between 2026 and 2035.
 

• Local companies play a major role in the German market. Giesecke+Devrient (G+D), a key German company, focuses on launching products and forming partnerships. For example, in May 2025, G+D signed a global partnership to work together in different markets and technologies.
   
• This partnership includes services for banks, fintech, and mobile network operators in the private sector, as well as public sector projects like eID programs, mobile driver’s licenses, and digital identity systems.
   
• Additionally, the German government’s national digital identity program shows its strong push toward a more advanced ecosystem across the cities of Germany.
   

The Asia Pacific smart card market is estimated to reach USD 48.03 billion by 2035, by growing at a CAGR of 7% between 2026 and 2035.
 

• Smart city initiatives and urbanization across the region require a more advanced and user-friendly ecosystem. Smart cards, which have become a key aspect in the form of credit/debit cards, identity cards, driver licenses, health cards and student cards, are further tapping into new applications.
   
• In January 2025, the Metropolitan Transport Corporation (MTC) launched the Singara Chennai Travel Card to make buying tickets for public transport easier and cashless. This card, part of the national common ticketing system, can be used to travel on buses and metro trains across the country.
   
• Other examples like South Korea’s T-money and China’s smart transportation card are continuously expanding with new users across the countries. Such factors are the primary reasons that make Asia Pacific a dominant region in the market.
   

China is estimated to grow with a CAGR of 8% in the projected period between 2026 and 2035, in the Asia Pacific smart card market.
 

• China's market is one of the most sophisticated worldwide, the major contributing factor being its huge banking sector. For example, the People's Bank of China (PBOC) noted that at the end of Q4 2024, 9.913 billion bank cards were distributed all over the country, which is approximately 7.04 cards for each person.
   
• On the technological side, the smart card market in China is tending towards high-security chips. The MPU Microprocessor segment had the highest revenue intake in 2024. The government is also backing the payment systems’ improvement and enhancement in security.
   
• For instance, in April 2024, the PBOC along with other departments released a notification that aimed at the promotion of electronic payments. They ordered that the government agencies should upgrade the digital payments’ infrastructure which would include debit and credit cards, particularly in the cultural and tourism sectors.
   

Latin America smart card market is estimated to reach USD 3.4 billion in 2025 and is anticipated to show lucrative growth over the forecast period.
 

• The smart cards market in Latin America is growing due to the rise in digital payments, increased use of prepaid and debit cards, and efforts to include underbanked populations in the financial system.
   
• Governments and financial institutions in countries like Brazil, Mexico, Argentina, and Colombia are using smart and prepaid cards for social benefits, payroll, and daily payments. This shift is helping people move from cash to electronic payments. At the same time, mobile wallets and contactless payments are growing, but instead of replacing cards, they are supporting a system where physical smart cards remain important.
   
• Smart cards are also widely used in urban transportation, such as metro, bus, and other transit systems in big cities. Examples include Argentina’s SUBE card and contactless transit payments in Mexico City and Colombian cities. These systems help reduce cash handling, shorten waiting times, and provide targeted discounts.
   

Brazil is estimated to grow with a CAGR of 4.3% between 2026 and 2035, in the Latin America smart card market.
 

• Smart card market in Brazil is growing quickly due to the rise of digital payments and supportive regulations in banking and public services. Debit and credit cards, along with instant payment systems like Pix, have made EMV and contactless smart cards popular for secure and easy daily transactions.
   
• Banks and fintech companies are issuing more chip-based payment cards with better security features to meet customer needs and follow strict rules from the central bank and monetary council.
   
• The government initiatives that are digital IDs and transportation oriented are also encouraging this growth. The new systems for national ID and public transport employ smart cards or QR/NFC technology.
   
• For instance, Brazil had the roll out of the Carteira de Identidade Nacional, which has both a digital and a mobile ID option, and the EMV/contactless ticketing was carried out in the cities of São Paulo, Rio de Janeiro, and Curitiba.
   

The Middle East and Africa accounted for USD 2 billion in 2025 and is anticipated to show lucrative growth over the forecast period.
 

• The smart card market in the MEA region is growing due to cashless payment goals under Saudi Arabia and UAE's Vision 2030. Projects like the Riyadh Metro and efforts to improve financial inclusion are also driving this growth. Vision 2030 aims to achieve 70% cashless transactions by 2030, which is expected to bring more investments.
   
• Contactless and dual-interface cards are widely used because of NFC/RFID technology, which supports payments and IoT applications. In smart cities like NEOM, biometric technologies, such as palm-vein scanning in the UAE, are being tested to improve security.
   
• The UAE is growing the fastest, supported by biometric systems and fintech innovation. However, both countries face challenges like compatibility issues and competition from mobile wallets in wealthy Gulf states. In South Africa, urbanization and government rules for secure transactions are helping the microprocessor segment grow.
   

UAE to experience substantial growth in the Middle East and Africa smart card market in 2025.
 

• In the UAE, there is a general tendency to use contactless cards, EMV chip cards, and virtual cards in retail, transport, and government services, which are predominantly supported by sophisticated payment systems and favorable regulations.
   
• Moreover, the growth of such government-led digital programs is the major factor contributing to this expansion. The adoption of secure ID and payment solutions is being fostered by the smart ID, e-government, and smart cities initiatives that are gaining ground daily.
   
• Smart cards in the future will be collaborating with digital wallets, QR codes, and super-apps more than ever, which will open up their applications even more in transportation, health care, public services, and online shopping. This will make the UAE a key place to test advanced contactless and biometric payment systems in the Middle East.
   

Smart Card Market Share

• The top 7 companies in the smart card industry are Thales, IDEMIA, Giesecke & Devrient, HID Global, NXP Semiconductors, CPI Card, Infineon Technologies, contributing 8.9% of the market in 2025.
   

• Thales offers smart card solutions for payments, government IDs, transport, and corporate access. Their products include EMV payment cards, PKI and FIDO authentication cards, SIM/eSIM, and card management and reader services for banks, businesses, and public authorities.
   
• IDEMIA provides smart cards for payments, IDs, travel documents, telecom SIM/eSIM, and access control. They also offer instant card issuance, card personalization, and digital services for banks, governments, mobile operators, and businesses.
   
• Giesecke & Devrient delivers smart cards and secure elements for banking, telecom, transport, and IDs. Their products include EMV cards, SIM/eSIM, transit cards, and secure hardware, along with lifecycle management and personalization services.
   
• HID Global supplies contact, contactless, and dual-interface cards for access control, identity badges, government IDs, and payment or ticketing. They also provide credential management platforms and card printers for businesses and public-sector users.
   
• NXP Semiconductors creates smart card platforms like MIFARE and DESFire, as well as secure elements for transit cards, ID documents, access badges, and EMV payment cards. Their products support both contact and contactless uses in different sectors.
   
• CPI Card Group focuses on EMV payment cards, dual-interface and contactless cards, and eco-friendly card materials. They also provide card personalization and instant issuance services for banks, fintech, and credit unions in debit, credit, and prepaid programs.
   
• Infineon Technologies makes secure microcontrollers and chipsets for smart cards used in banking, government IDs, transport, telecom, and IoT. Their products support EMV and NFC standards and include hardware-based encryption and authentication features.
   

Smart Card Market Companies

Major players operating in the smart card industry are:

• Thales
• IDEMIA
• Giesecke & Devrient
• HID Global
• NXP Semiconductors
• CPI Card
• Infineon Technologies
• Eastcompeace
• Hengbao
• Watchdata Technologies
   

• Thales offers a wide range of products, including payment, ID, telecom, and access cards. Its strong expertise in cryptography and payment security hardware helps it integrate smart cards, HSMs, readers, and lifecycle management platforms for customers worldwide.
   
• IDEMIA is experienced in producing banking, ID, and telecom cards on a large scale. It has strong expertise in biometrics and security, serving banks, governments, and mobile operators globally. The company also has many patents and develops its own cards and modules.
   
• Giesecke & Devrient (G&D) has long experience in payment and ID markets. It focuses on secure element design and card personalization, offering integrated cards, software, and services to banks, governments, and mobile operators.
   
• HID Global combines smart cards with access control systems, including readers, controllers, and credential management. This allows enterprises and governments to use physical and digital access systems that work together using standard protocols and multi-technology credentials.
   
• NXP Semiconductors is a major supplier of smart card ICs. Its platforms, like MIFARE and DESFire, are widely used in transit, access control, and e-government. The company is known for its expertise in RF, secure elements, and contactless technologies.
   
• CPI Card focuses on the payment card process, offering EMV and dual-interface cards, eco-friendly materials, and instant issuance. It works closely with North American banks and fintech to provide flexible card programs and personalization services.
   
• Infineon Technologies provides secure microcontroller and security IC platforms used in banking, ID, telecom, and IoT smart cards. It also works on biometric cards and partners with others to create secure, contactless payment solutions.
   

Smart Card Industry News

• In December 2025, LG Innotek introduced a new smart IC (integrated circuit) substrate for smart cards that do not need metal plating. These substrates send electrical signals to the IC chips in smart cards, like credit and SIM cards, and protect the chips from damage.
   
• In July 2025, IDEMIA announced that its ID-One PIV 243 card was added to the General Services Administration (GSA)'s Approved Products List (APL). This is the first new PIV card added to the list in four years.
   
• In May 2025, Giesecke+Devrient and Daon signed a global partnership to work together in different markets and technologies. The partnership combines G+D's products with Daon's identity verification (IDV) and biometric authentication tools to improve security and trust worldwide.
   
• In February 2025, CardLab launched a new smart card with Fingerprint Cards AB’s FPC1323 T-Shape fingerprint sensor. The Access card combines physical and digital security and replaces traditional passwords with fingerprint authentication.
   

The smart card market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and volume (Units) from 2022 to 2035, for the following segments:

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Market, By Offering

• Smart Card
  • Interface
    • Contact
    • Contactless
      • NFC-enabled
      • RFID-based
    • Dual Interface
  • Chip
    • Memory cards
    • Microprocessor cards
• Smart Card Readers
  • Interface
    • Contact-based
    • Contactless
    • Dual Interface
  • Component
    • Hardware
    • Software
    • Services

Market, By Functionality

• Transaction
• Communication
• Security & Access Control
• Others

Market, By Application

• BFSI
• Telecommunication
• Government & healthcare
• Retail & ecommerce
• Transportation
• Media & entertainment
• Education & academic institutions
• Others

The above information is provided for the following regions and countries:

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Benelux
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Singapore
  • Malaysia
  • Indonesia
  • Vietnam
  • Thailand
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
• MEA
  • South Africa
  • Saudi Arabia
  • UAE