The smart card market was
valued at USD 13.18 billion in 2017 and is expected to reach USD 21.57
billion by 2023, at a CAGR of 8.7% during the forecast period.
Smart Card Market by Component, the software segment is expected to grow at the highest growth rate during the forecast period
The
smart card market for software was valued at USD 1,891.9 million in
2017 and is expected to reach USD 3,604.2 million by 2023, at the
highest CAGR of 11.5% between 2018 and 2023. Using relevant software, it
is possible to configure an entire smart card system with smart cards
and readers. Considering this, it is expected that the market for
software would grow at the highest CAGR during the forecast period.
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Smart Card Market by Application, BFSI accounted for the largest share during the forecast period
BFSI
applications accounted for the largest share of 44.8% the smart card
market in 2017. The market for BFSI applications was valued at USD
5,912.3 million in 2017 and is expected to reach USD 8,850.1 million by
2023, at a CAGR of 6.9% between 2017 and 2023. The market for
transportation applications is expected to grow at the highest CAGR of
11.7% during the forecast period.
Smart Card Market in Asia Pacific to account for the largest market size during the forecast period.
Asia
Pacific is expected to hold the largest market size in the smart card
market during the forecast period. Asia Pacific is the largest and
fastest-growing market because of the fact that several countries in the
region are likely to adopt smart card solutions owing to the increasing
demand specifically in the transportation, BFSI, retail, government,
and healthcare sectors.
Market Dynamics: Smart Card MarketOpportunity: Blockchain technology enhancing security features
Blockchain
can be used to generate and store cryptographic keys in smart cards;
this would help users authenticate financial transactions by swiping
smart cards. A smart card acts as a vault where the cryptographic key
can be stored. When the smart card is connected to the Internet via a
POS reader, the key stored in the card can be matched with the key
stored in the online library, and the authentication of the user would
be done. This would help banks and other ecosystem players secure and
authenticate user identity in an improved way, thereby reducing cyber
theft practices. In 2016, SETL and Metro Bank demonstrated a
blockchain-enabled contactless smart card system to help users utilize
cash transaction for shopping applications. MarketsandMarkets believes
that the use of blockchain technology by smart card providers will
increase in the coming years.
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Challenge: Security related to contactless technology
Interrupted
operations, service denials, covert transactions, and communication
links and dual modes are a few security issues facing the contactless
smart card market, potentially restricting market growth. The NFC
technology and the development of applications to store credit card
information could result in privacy issues—theft, regulatory compliance,
etc. Failure to protect decrypted data at the contactless payment
gateway increases the vulnerability of PSP databases to intruder
attacks, potentially resulting in large payment data compromise. These
factors have prompted the governments of several countries to cap the
maximum limit of contactless payment.
