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Smart Card Materials Market Size
Smart Card Materials Market will register significant growth between 2024 and 2032 due to a rising need prompted by shortages of card materials, which are causing delays in various processes.
For instance, in March 2023, For approximately three months, numerous applicants in Jammu and Kashmir were eagerly awaiting the issuance of their permanent driving licenses from Regional Transport Offices (RTOs) which were delayed. The delay was attributed to the unavailability of printing materials, including smartcards and colored films, necessary for the process. Over 16,000 applicants faced these drastic delays in receiving their permanent licenses from RTO Jammu.
As the demand for smart cards continues to increase across various industries, such as banking, transportation, and healthcare, the availability of essential materials like PVC, PET, and polycarbonate has become limited. This shortage is hindering the production and distribution of smart cards, leading to delays in implementing critical systems and services reliant on these cards.
The Smart Card Materials Market is experiencing heightened demand driven by increasing concerns for sustainability and the launch of recyclable materials. With growing environmental consciousness, industries are actively seeking eco-friendly alternatives for smart card production. The introduction of recyclable materials such as biodegradable plastics and sustainable polymers has gained traction as businesses aim to reduce their carbon footprint and adhere to green initiatives. This trend is fueling the demand for smart card materials that are both innovative and environmentally responsible.
For instance, in May 2023, Up unveiled a novel debit card composed of 82% recycled materials alongside a fresh collaboration with waste-data startup Seabin, signaling the digital bank's pursuit of eco-conscious consumers. Customers utilizing their 2Up joint account on Up can now request a physical debit card crafted primarily from reprocessed plastic packaged in a recyclable mailer.
The Smart Card Materials Market faces constraints due to several factors. One significant restraint is the limited availability and fluctuating costs of raw materials such as PVC, PET, and polycarbonate, impacting production scalability and profitability. Additionally, stringent environmental regulations concerning the disposal of smart card materials pose challenges, particularly regarding non-recyclable components. Moreover, technological advancements in alternative payment methods and digital wallets have resulted in reduced demand for physical smart cards, further impeding market growth. These restraints necessitate innovative strategies to overcome challenges and sustain market relevance.
Smart Card Materials Market Trends
The Smart Card Materials Market is witnessing an upward trend propelled by the increased adoption of smart cards by government officials for legal documents. Government agencies worldwide are embracing smart card technology to enhance security and efficiency in managing identification and legal documentation processes. Smart cards offer robust authentication features, encrypted data storage, and multifunctional capabilities, making them ideal for applications such as e-passports, national ID cards, and driver's licenses. This rising adoption by government authorities is driving demand for smart card materials, shaping market dynamics, and fostering innovation in the industry.
To cite an instance, in April 2023, Chief Minister Pinarayi Vijayan inaugurated the new smart driving licenses made from PVC PETG material. These updated cards featured seven security enhancements replacing the previous laminated versions. Available to both new applicants and current license holders, the smart cards were distributed to Civil Supplies Minister G R Anil and MLA V K Prasanth at the launch event. Transport Minister Antony Raju, presiding over the ceremony, announced the commencement of issuing registration certificates (RC) as smart cards starting May 2023.
Smart Card Materials Industry Analysis
Based on type, 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 could help bolster smart card materials market trends.
In terms of material, the acrylonitrile butadiene styrene (ABS) segment will 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.
Smart Card Materials Market Share
Major companies operating in the smart card materials industry competitive landscape include:
- Eastman Chemical Company
- LG Chemicals (LG Corp)
- PetroChina Company Limited (a subsidiary of China National Petroleum Corporation)
- SABIC Innovative Plastics
- Teijin Ltd
- Solvay SA
- BASF SE
Smart Card Materials Industry News
In June 2021, according to a recent study conducted by Mastercard, 58% of consumers are now more conscious of their environmental impact, with 85% expressing a willingness to take personal action this year. To facilitate this commitment, Mastercard introduced a new badge to identify cards manufactured more sustainably, recycled, bio-sourced, utilizing recyclable, degradable, or ocean plastics, and chlorine-free. Easily recognizable on the card, the badge serves as a simple reminder of the efforts undertaken to address sustainability concerns.