Smart Card Materials Market Size, Share and Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032

Smart Card Materials Market size is anticipated to witness healthy growth during 2023 to 2032, due to the robust demand for smart cards in different sectors including the BFSI as they offer superior security features. The number of cashless transactions is on the rise across the world. In 2022, at least 6 out of 10 or 60% of German citizens made contactless payments either through their contactless cards or smartphones. This scenario has boosted the popularity of digital wallets, thereby fostering the usage of smart card materials.
 

The telecommunication sector might emerge as one of the major consumers of smart card materials. These materials can be used to manufacture universal integrated circuit cards for mobile phones and SIM cards. Moreover, the rising penetration of NFC-enabled mobile applications and payphones is another factor that will accelerate smart card materials market progress.
 

However, volatility in the prices of raw materials that are used as chemicals to make smart cards may hinder the industry expansion. Security issues and fraudulent activities may also hamper the adoption of these materials.
 

Based on type of smart cards, the multi-component card segment is projected to capture a significant market share by 2032. These cards can process complex calculations and store data that can be used in contact or contactless cards. This feature can eventually decrease the total time required to complete a transaction and enable faster processing speed. Also, multi-component smart cards are designed for a specific market solution, which may spur their usage in sectors, such as healthcare, telecommunication, BFSI, and retail. These features are expected to bolster smart card materials market trends.
 

In terms of material, the acrylonitrile butadiene styrene (ABS) segment is set to grow commendably by 2032. The mechanical properties of ABS make it suitable for strengthening the impact resistance of cards even in low temperatures. The material is a polymerized alloy formed by injection molding. In addition, ABS cards boast high print quality, making them an ideal material for making cards that rely heavily on graphics, such as branded access cards and ID cards for universities. These properties will augment smart card materials industry development.
 

Asia Pacific smart card materials market will register a commendable CAGR through 2032. The region’s telecommunication sector is expanding at a strong pace. In November 2022, 5G services were implemented in more than 50 towns across 14 states and union territories of India. The trend of digitization is also picking up immense pace in the region. Smart card products, such as debit & credit cards, gift cards, and ID recognition cards are gaining notable popularity in India, Japan, China, and South Korea. Furthermore, several central governments are introducing digitization initiatives that might support the regional market expansion over the coming years.
 

Prominent key players operating in the global smart card materials market include BASF SE, SABIC Innovative Plastics, LG Chemicals (LG Corp), Eastman Chemical Company, PetroChina Company Limited (subsidiary of China National Petroleum Corporation), Teijin Ltd, Solvay SA, and many others.These companies are implementing numerous corporate strategies, such as partnerships, mergers & acquisitions, and new product launches to gain a competitive advantage over others in the market.
 

The Russia-Ukraine war worsened the global chip shortage issues, which further reduced the production and supply of smart cards. Since the threat of cyberattacks grew at an alarming rate during this period, many citizens might have become reluctant to use smart cards, which may have eventually hampered smart card materials market progress.
 

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