Smart Card Market Size By Solution (Smart Card [Product {Contact-Based, Contactless, Hybrid, Dual Interface}, Type {Memory Card, Microprocessor Card}], Smart Card Reader [Component {Hardware, Software, Service}, Product {Contact-Based, Contactless}]), By Application (SIM & Telecom, Financial, Government & Health, Retail & Gas, Access Control, Transportation, Loyalty), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Jun 2020  |  Report ID: GMI4312  |  Authors: Preeti Wadhwani, Saloni Gankar

Report Format: PDF   |   Pages: 585   |   Base Year: 2019




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Smart Card Market size valued at over USD 35 billion in 2019 and will grow at a CAGR of 10.5% from 2020 to 2026. The global industry shipment is expected to reach 40 million units by 2026. Rapid adoption of smart cards among various end-use verticals, such as retail, transportation, and BFSI, to facilitate secure and seamless payment process is driving the market growth.
 

Smart Card Market

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The advent of technology, such as IoT, blockchain, and biometric, is further propelling the market revenue. BFSI sector players are focusing on implementing blockchain technology for providing enhanced security to the digital payment process. Government agencies are utilizing the technology for preventing tax fraud and enabling more transparent government-citizen relations. Blockchain applications require proper management of cryptographic keys, which are managed by smart card technology. Blockchain developers are integrating smart cards into these applications for convenient & secure transactions.
 

The ongoing coronavirus (COVID-19) pandemic will positively impact the smart card market size due to rise in demand for contactless payments. World Health Organization (WHO) and government administrations are advising citizens to obey the social distancing norms to contain spread of the virus. The contactless payment is carried out in a safe distance, assuring both payee and payer a secure payment process.
 

Smart Card Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: USD 35 Billion
Historical Data for: 2016 to 2018 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 10.5% 2026 Value Projection: USD 75 Billion
Pages: 585 Tables, Charts & Figures: 1024
Geographies covered (27): U.S., Canada, UK, Germany, France, Italy, Spain, Turkey, Netherlands, Switzerland, Russia, China, India, Japan, Australia, South Korea, Taiwan, Singapore, Malaysia, Thailand, Brazil, Mexico, Argentina, South Africa, Saudi Arabia, UAE, Qatar
Segments covered: Solution, Application and Region
Companies covered (23): American Banknote Corporation, Bartronics India Limited, Cardcom Technology, CardLogix Corporation, CPI Card Group, Eastcompeace Technology Co., Ltd, Giesecke & Devrient (G&D) GmbH, GOLDPAC Group, Hengbao Co. Ltd., IDEMIA, Infineon Technologies AG, Ingenico Group, Inteligensa Group, Kona I Co., Ltd., NXP Semiconductors N.V., Perfect Plastic Printing Corporation, Identiv, Inc., Square, Inc., Thales Group, VALID, VeriFone Systems, Inc., Watchdata, Wuhan Tianyu Information Industry Co., Ltd.
Growth Drivers:
  • Ongoing technological advancements
  • Growing adoption in the banking and financial sector
  • Infrastructure development initiatives stimulate smart card demand
  • Rising demand in the healthcare sector in Europe
  • Increasing investments and developments in Asia Pacific
Pitfalls & Challenges:
  • Security-related concerns

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Secured payment processing and convenience offered by dual interface cards are driving the market growth

Dual interface smart cards will expand at around 13% CAGR during the forecast timeline. These cards include both contact and contactless interfaces, enabling convenient compatibility with any card reader or POS terminal. The card is integrated with RFID technology and EMV chips and allows contactless payment. The faster payment processing nature of card reduces waiting time for customers in a queue. In January 2020, CPI Card Group Inc. introduced its patented encased steel & tungsten cards that feature dual interface EMV technology to enhance customer experience.
 

Several businesses are implementing contactless payment terminals and are also dependent on traditional contact-based POS card readers. The dual interface smart card offers flexibility to be used for both contact and contactless payments, influencing the market growth in developing nations. Market players, such as NXP Semiconductor, are focusing on developing an efficient chip for manufacturing dual-interface cards. This will further boost the market demand and allow secure and efficient payment processing for its customers.
 

Sim & telecom industry in the U.S. is incorporating smart card for secure data storage

U.S. Smart Card Market By Application

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In 2019, smart card market revenue for the U.S. sim & telecom sector crossed USD 1.2 billion and is predicted to witness 2% growth till 2026. SIM cards are microcontroller-based cards used in mobile phones and other devices. These cards identify and authenticate a subscriber to a wireless cell phone network and facilitate global roaming, providing access to data, voice, and other services during their travel. SIMs can store contact information & phone numbers and can be used for other market applications. The Universal Integrated Circuit Card (UICC) is a new-generation SIM technology optimized for newer wireless network standards. It offers several enhanced capabilities including enhanced support for multiple applications and IP addressing.
 

Technological advancements in M2M/IoT and adoption of eSIM are driving the adoption of smart card technology in the U.S. In 2019, over 10 billion secure eSIMs were shipped globally for telecommunication applications. The incorporation of card allows phones to securely store payment application and consumer account information. The increasing demand is a mix of renewal and migration smart card demand.
 

European countries are rapidly adopting contactless smart cards in the transportation sector

Europe Smart Card Market By Region

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The Europe smart card market held over 25% revenue share in 2019 and is poised to register substantial growth through 2026. In UK, development in the self-service functionality is gaining traction to reduce wait time and enable hassle-free travel. Contactless cards are being adopted in the UK market as an alternative option to paper ticketing on the National Rail System in London. The city has implemented the Oyster card payment method for public transport, allowing quicker, easier, and hassle-free travel options to individuals.
 

Several transport market players are focusing on including advanced features in the technology to make customers’ journey easier. For instance, in September 2019, the South Western Railway (SWR), UK announced the launch of Tap2Go account-based smart card ticketing, which can also be used outside London. The cards help calculate the best fare and allow customers to store other tickets such as season tickets on their cards.
 

Industry players are focusing on incorporating advanced technologies in cards to ensure enhanced customer satisfaction

Market players are integrating advanced technologies into cards to ensure improved customer satisfaction. For instance, in June 2019, CardLogix Corporation introduced an Instant Biometric Smart Card Issuance System (IDBX) that streamlines multi-app biometric enrollment feature and card remote access at the desktop. The solution enables users to capture face, fingerprints, iris, signature, and biographic information and encode, print, and verify the data to a contact or contactless card.
 

Increasing competition amongst market key players to offer enhanced solutions will boost the market. Key companies operating in the industry include Cardcom, Infineon Technologies AG, CardLogix, Hypercom, Inteligensa Group, CPI Card Group, Verifone, Bartronics, Giesecke & Devrient (G&D) GmbH, NXP Semiconductors NV, Ingenico, and Square, Inc.
 

The smart card market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and shipments in units from 2015 to 2026 for the following segments:
 

Market, By Solution

  • Smart card
    • By product
      • Contact-based
      • Contactless
      • Hybrid
      • Dual interface
    • By type
      • Memory cards
      • Microprocessor cards
  • Smart card reader
    • By component
      • Hardware
      • Software
      • Services
    • By type
      • Contact-based
      • Contactless

Market, By Application

  • SIM & telecom
  • Financial
  • Government & health
  • Retail & gas
  • Access control
  • Transportation
  • Loyalty
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Turkey
    • Netherlands
    • Russia
    • Switzerland
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Singapore
    • Malaysia
    • Thailand
    • Australia
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East & Africa (MEA)
    • UAE
    • Saudi Arabia
    • South Africa
    • Qatar
       

Frequently Asked Questions (FAQ) :

The market size of smart card was valued at over USD 35 billion in 2019.
The industry share of smart card will grow at a CAGR of 10.5% from 2020 to 2026.
According to the analysts at GMI, the global industry shipment is expected to reach 40 million units by 2026.
Dual interface smart cards will expand at around 13% CAGR during the forecast timeline as these cards include both contact and contactless interfaces, enabling convenient compatibility with any card reader or POS terminal.
Key industry players include Cardcom, Infineon Technologies AG, CardLogix, Hypercom, Inteligensa Group, CPI Card Group, Verifone, Bartronics, Giesecke & Devrient (G&D) GmbH, NXP Semiconductors NV, Ingenico, and Square, Inc.
The high adoption of smart card technology in Europe can be attributed to contactless cards being adopted in the UK as an alternative option to paper ticketing on the National Rail System in London.

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Premium Report Details

  • Published Date: Jun 2020
  • Pages: 585
  • Tables: 990
  • Charts / Figures: 34
  • Companies covered: 23
  • Countries covered: 27

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