The smart card market has been
segmented based on communication, component, application, and geography. The
market is expected to reach USD 21.57 billion by 2023 from USD 14.22 billion in
2018, at a CAGR of 8.7% between 2018 and 2023.
The major
factors driving the growth of the smart card market include increasing use of
online payment methods enabling consumers to make secure and reliable payments.
In line with this, the use of contactless smart cards has gained remarkable
consideration as electronic payment methods are rapidly replacing cash and
carry operations. However, factors such as initial costs associated with the
deployment of contactless EPOS terminals and increasing adoption of mobile
wallets are restraining the growth of the market.
The
increasing adoption of biometric-enabled smart cards is expected to be a game
changer for the smart card market over the coming years.
Companies
such as IDEMIA France SAS, Gemalto N.V., Ingenico Group SA, KONA I Co., Ltd.
Fingerprint Cards AB, and ZWIPE AS have launched a range of bio-metric-enabled
smart cards for various end-use applications. Further, these companies are also
exploring applications of block chain technology to transform the smart card
market.
A
contactless smart card includes an embedded smart card, secure microcontroller
or equivalent intelligence, internal memory, and a small antenna; it
communicates with a reader through a contactless radio frequency (RF)
interface. Companies such as Gemalto N.V., Giesecke & Devrient GmbH, and
IDEMIA France SAS are offering customized solutions using embedding contactless
technology to their end users.
Further,
chip manufacturing players such as Infineon Technologies AG, NXP Semiconductors
N.V., and Sony Corp. are offering new contactless enabled chips owing to their
increased demand. This has encouraged providers of smart card readers such as
Ingenico Group SA and VeriFone Systems, Inc. to offer contactless smart card
readers. The BFSI and transportation sectors are expected to witness a high
adoption of contactless smart cards in the coming years.
The smart
card market in the Rest of the World (RoW) comprises South America, and the
Middle East and Africa (MEA). This region is expected to be the fastest growing
market during the forecast period. South America holds a fair opportunity for
smart cards, especially for the BFSI, government, and healthcare sectors—with
Chile, Mexico, and Brazil having high potential. The penetration of smart card
solutions in Brazil is higher than in other countries in this region. MEA is an
emerging market for smart cards, wherein companies are increasingly deploying
smart card solutions for government and healthcare applications. Dubai, Abu
Dhabi, Qatar, Israel, and South Africa are some of the potential markets for
smart cards in the MEA region.
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