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, Price Trend, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Published Date: Jun 2021  |  Report ID: GMI4312  |  Authors: Preeti Wadhwani, Saloni Gankar

Report Format: PDF   |   Pages: 593   |   Base Year: 2020




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Smart Card Market size exceeded USD 35 billion in 2020 and is expected to expand at 11% CAGR from 2021 to 2027. The global industry shipments are anticipated to be over 45 billion by 2027.
 

The developments in wireless communication techniques that enable fast transactions will boost industry growth. Advancements in technologies, such as NFC and RFID, that enable seamless digital transactions will support the adoption of these cards. They are hassle free as they eliminate the need to carry physical wallets. End-to-end data encryption used in the process provides security of data. As smart card-based payments enable users to keep a precise record and track of transactions, the market will gain significant traction.
 

Smart Card Market

Get more details on this report - Request Free Sample PDF
 

In 2020, the outbreak of the pandemic resulted in the high demand for contactless smart cards across several industry verticals. Concerns associated with the spread of the pandemic through physical contact or through bank notes boosted the contactless smart card market demand. There was a lower demand for smart cards and readers in the first half of 2020 due to strict restrictions imposed on public transport coupled with the temporary closure of retail stores. The stringent lockdown measures to restrict unnecessary public movement impacted the demand for these cards from the transportation sector.
 

However, the industry regained demand in the second half of 2020, following the relaxations in lockdown measures. With the reopening of retail stores and transportation terminals, the industry is witnessing prolific growth in 2021.
 

The rapid transition from contact-based to contactless transactions in the U.S. will support the market growth

U.S. Smart Card Market

Get more details on this report - Request Free Sample PDF
 

The U.S. contactless smart card market revenue is projected to grow at 11% CAGR through 2027. Retailers are adopting advanced smart card readers that accept a wide range of payment modes to ensure customer convenience. Around 20% of U.S. consumers made a digital payment in a store for the first time in May 2020.
 

The transportation industry is also implementing non-contact-based smart card systems for access control and ticketing. For instance, the Chicago Transit Authority (CTA) has implemented a fully consolidated fare collection system that accepts open contactless bank cards at entry/exit gates. The Southeastern Pennsylvania Transportation Authority (SEPTA) is also migrating to open contactless smart card payments. Increasing number of consumers leveraging the benefits of contactless transactions, such as high speed and convenience is likely to drive the market statistics.
 

The modernizing transportation sector in India to offer strong growth opportunities

The India smart card market demand is poised to observe 13% CAGR till 2027 owing to the expanding and progressing transportation infrastructure in the region. The government aims to construct 65,000 km of national highways by 2022 and is investing in railway infrastructure development projects with investor-friendly policies. The government is also focusing on implementing automated fare collection, ticketing, and access control systems at transportation terminals to ensure passenger convenience and streamline operations.
 

For instance, two cities in the state of Gujarat have implemented automated fare collection system (AFCS) by NEC Corporation. The smart cards adopted by both cities for the public transport systems comply with RuPay, a payment service developed by National Payments Corporation of India (NPCI). Similarly, Delhi metro already has smart cards and RFID coins used by consumers. The increasing focus of the Indian government on demonetization will support the market outlook.
 

High demand for advanced access control solutions in Europe to propel the smart card market growth

Europe Smart Card Reader Market

Get more details on this report - Request Free Sample PDF
 

In 2020, the Europe smart card reader market accounted for more than 25% revenue share and will grow steadily on account of high demand for smart card readers for access control in corporate organizations and transit. The corporate organizations in the region are assigning these smart cards to employees to deploy an automated staff identification and attendance system.
 

Increasing number of offices adopting digital technologies for physical security of infrastructure and employees is driving the regional market trends. Similarly, the transportation industry is also deploying smart cards to revolutionize the customer travel experience. For instance, in September 2020, Scheidt & Bachmann collaborated with Visa, Kompetenzcenter Digitalisierung NRW, and SWB Bus & Bahn for project BONN smart. It is one of the first ticketing services that went live. The project allows passengers to pay from mobile devices or contactless cards for traveling through buses, airplanes, and trains.
 

Differentiated product launches forms a key strategy amongst market players

The market players are focusing on launching innovative smart cards to ensure robust growth and address modern-day consumer demands. For instance, in October 2020, Mastercard collaborated with IDEMIA and MatchMove to launch a fingerprint biometric card in Asia to enhance the safety and security of contactless payments. The F.CODE Easy card ensures intuitive and seamless experience of biometric authentication to a smart card. Companies are addressing the changing consumer demands of fast and secure transactions. They are capitalizing on the growing biometric system market to launch solutions that further reduce the hassle of entering PINs and ensure accurate cardholder identification.
 

Key players operating in the smart card market include Cardcom Technology, CardLogix Corporation, CPI Card Group, Infineon Technologies AG, Verifone Inc., Giesecke & Devrient (G&D) GmbH, Bartronics India Limited, Ingenico, NXP Semiconductors NV, and Square, Inc.
 

This market research report on smart card includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and shipments in units from 2017 to 2027, for the following segments:

Market, By Solution

  • Smart card
    • Product
      • Contact
      • Contactless
      • Hybrid
      • Dual interface
    • Type
      • Memory card
      • Microprocess card
  • Smart card reader
    • Component
      • Hardware
      • Software
      • Service
    • Product
      • Contact
      • 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
    • Russia
    • Turkey
    • Netherlands
    • Switzerland
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Australia
    • Singapore
    • Malaysia
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa
    • Qatar

 

Frequently Asked Questions (FAQ) :

The market for smart card will surpass USD 35 billion in 2020 and will grow at a CAGR of 11% through 2027 on account of growth in wireless communication techniques.
The contactless smart card solution segment in the U.S. will expand at a robust CAGR of 11% through 2027 owing to adoption of advanced smart card readers and rise of digital payments.
The Europe smart card market revenue accounted for over 25% share in 2020 and will flourish with increased demand for smart card readers in corporate organizations.
The India smart card market is expected to grow at an impressive growth rate of 13% through 2027 due to thriving transportation infrastructure in the region.

Premium Report Details

  • Published Date: Jun 2021
  • Pages: 593
  • Tables: 991
  • Charts / Figures: 34
  • Companies covered: 23
  • Countries covered: 25

Get a report that explains COVID-19 impact on this market

Buy NowImmediate delivery available

Need a Discount? Get in touch with us for special pricing

Request Discount

 Connect with our sales team

Chat with us
We use cookies to enhance user experience. (Privacy Policy) X