The global smart card market was valued at $19.47 billion in 2022 and is expected to reach $36.14 billion in 2028, at a CAGR of 9% during the forecast period between 2023 and 2028.
A smart card is also known as a integrated circuit card (ICC). A smart card is small and can be used for security, authentication, identification, data storage and application processing. It contains integrated circuits that differentiate them from other cards that can be simply plastic or polycarbonate. Memory cards contain only non-volatile memory storage components. A microprocessor chip card can contain volatile memory and microprocessor components.
The adoption of integrated microprocessor cards, especially in BFSI (EMV) and mobile phone devices (SIM cards), has resulted in lower costs due to economies of scale. In addition, this has led to microprocessor cards becoming a lucrative option for innovators in emerging markets, such as access control, electronic passports, PKI and multiple applications where their cryptographic capabilities address security issues.
Market drivers
The increasing demand for reliable and secure payment options in various end-user sectors is supposed to be a key factor driving growth in the global smart card market over the forecast period. In addition, contactless smart cards reduce fraud, improve security and allow consumers to use value-added services. It is also presumed to increase the demand for contactless smart cards in the coming years. Also, the growing demand for tamper-evident cards will stimulate the growth in the smart card market over the forecast period. Besides, steadily growing end-use industries, such as banking, transportation, retail, healthcare, etc., in emerging and developed economies, will further stimulate growth in the global smart card market during the forecast period.
Market restraints
Limited acceptance of capital-intensive Point of Scale (PoS) terminals is hampering the adoption of contactless smart cards in retail stores. In addition, increasing-price competition and the high cost of implementation are other factors that are foreseen to dampen growth in the global smart card market over the forecast period. Also, the lack of commercialization in emerging economies is another factor that should hamper the growth of the smart card market in the coming years.
REPORT METRIC |
DETAILS |
Market Size Available |
2022 - 2028 |
Base Year |
2022 |
Forecast Period |
2023 - 2028 |
CAGR |
9% |
Segments Covered |
By Communication, Component, Application, and Region |
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
Gemalto NV (Netherlands),Giesecke & Devrient GmbH (Germany),IDEMIA France SAS (France),Infineon Technologies AG (Germany),NXP Semiconductors NV (Netherlands),Sony Corporation (Japan),Samsung Electronics Co. Ltd. (SouthKorea),HID Global Corporation (Sweden),STMicroelectronics NV (Switzerland),Ingenico Group SA (France),VeriFone Systems Inc. (United States),Beijeng Watchdata Co. Ltd. (China),Rambus Inc. (United States),CPI Card Group Inc. (United States),Identiv Inc. (United States),KONA I Co. Ltd (South Korea),VALID (Brazil),Fingerprint Cards AB (Sweden),BrilliantTS Co. Ltd. (South Korea),Bitel Co. Ltd. (South Korea),Fujian Newland Computer Co. Ltd.(China),PAX Global Technology Ltd. (Hong Kong),CardLogix Corporation (United States),ZWIPE (Norway),Versasec AB (Sweden) and Others. |
Smart Card Market Segmentation
Contact type cards accounted for most of the global smart card market in 2020. These cards are widely used in BFSI, government and healthcare and retail applications. On the other hand, contactless smart cards are likely to witness the highest growth rate in the coming years due to their increasing usage and adoption in BFSI, government and health and transportation applications.
The hardware segment is expected to have most of the global smart card market in 2025 due to the increasing adoption of smart cards and readers in developing economies. The software market is foreseen to grow at the highest rate in the forecast period. The software segment includes management system software and databases.
Among these, the BFSI segment held the lion's share in the global smart card market due to the increasing card payments around the world. However, in the coming years, the demand from the transportation sector is estimated to record the highest growth rate.
Regional Analysis
Geographically, Asia Pacific smart card market is projected to register the highest growth rate and market value over the outlook period. The increasing emphasis on card payments in the developing economies like India and the rising need for smart solutions in end-user applications are creating a huge growth potential for the growth of the regional market. North America smart card market currently holds the top position in the global marketplace
Key Market Players
Some of the main players in the global smart card market are:
Recent Developments
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