Smart cards are integrated circuit (IC-based) devices that can be used for various electronic applications. These devices are used by connecting them to a smart card reader by physical or contactless connection. Smart cards equipped with IC chips that can hold more information as compared to the traditional magnetic strip and bar code cards. This enables better security features making cloning and other misuse of smart cards difficult. Due to better security over traditional cards, the demand for smart cards is expected to continue accelerating in the coming years. 

Rising penetration of smartphones worldwide is the most significant factor driving the smart cards market growth. Smart cards enjoy strong adoption in the telecommunication industry due to use in the subscriber identity modules (SIM) cards for mobile phones. Thus, rising number of mobile phones subscribers worldwide is expected to retain the strong market growth in the coming years. Further, the demand for smart cards is also driven by the proliferating adoption of these cards across various other applications. Banking sector and ID cards are already being issued using smart cards in significant number of countries. This is another major factor fueling the market growth. 

The report titled “Global Smart Cards Market- Growth, Share, Opportunities and Competitive Analysis, 2015 – 2023” offers strategic insights into the global smart cards market along with the market size and estimates for the duration 2013 to 2023. The said research study covers in-depth analysis of multiple market segments based on types, components, applications and cross-sectional study across different geographies. The study covers the comparative analysis of different segments for the years 2014 & 2023. The report also provides a prolific view on market dynamics such as market drivers, restraints and opportunities.

In order to help strategic decision makers, the report also includes competitive profiling of the leading smart cards system vendors, their SCOT (Strength, Challenges, Opportunities and Weaknesses) analysis, market positioning and key developments. Some of the major players profiled in the report are Giesecke & Devrient (G&D) GmbH, Gemalto NV, Oberthur Technologies, Infineon Technologies AG, NXP Semiconductors NV, Atos SE, INSIDE Secure SA, CardLogix Corporation, American Express Company and others. Other in-depth analysis provided in the report includes:

• Current and future market trends to justify the forthcoming attractive markets within the smart cards industry
• Market fuelers, market impediments, and their impact on the market growth
• In-depth competitive environment analysis
• Trailing 2-Year market size data (2013 – 2014)
• SRC (Segment-Region-Country) Analysis

Overall, the research study provides a holistic view of the global smart cards systems market, offering market size and estimates for the period from 2015 to 2023, keeping in mind the above mentioned factors.

As of 2014, the contact-based smart cards accounted for the largest market share, in terms of revenue, of the global smart cards market. Contact-based smart card are widely used across the prime applications such as telecommunication and payment cards. Additionally, contact-based smart cards are commonly used in ID cards and physical access control system. Since these cards are cheaper as compared to the other types, the dominance of the segment is estimated to persist throughout the forecast period.

The contactless smart cards segment is estimated to register the highest growth in the global smart cards market during the forecast period. These cards offer better security as compared to the contact-based cards and are cheaper as compared to dual-interface and hybrid smart cards. This is the prime factor anticipated to fuel the adoption of contactless smart cards in the global market. Prime applications for contactless smart cards are payment cards (banks, transportation, retail etc.), identity (ID) cards and healthcare informatics.

The global smart cards market was led by the telecommunication segment as of 2014. Smart cards are widely used in the subscriber identity modules (SIM) used in mobile phones and similar devices. The rising penetration of smartphones and other subscriber identity module (SIM) based mobile devices worldwide is the prime factor boosting the segment growth. Further, with the increasing number of mobile phone subscribers worldwide, the segment is estimated to retain its dominant position in the market throughout the forecast period.

The telecommunication segment is followed by the payment segment accounting for the second largest revenue share worldwide, as of 2014. The payment segment comprises various applications including debit/credit cards (issued by banks) and other payment cards (including fuel stations, grocery stores, e-commerce etc.). Various national banks are increasingly shifting towards issuing smart cards as credit/debit cards. As a result, the segment is estimated to retain its second dominant position in the market in the coming years. The healthcare segment is estimated to register the highest growth in the market in the near future.

The global smart cards market was dominated by the microcontroller-based smart cards segment, as of 2014. The microcontroller-based smart cards are capable of storing larger amount of information as compared to the memory card-based smart cards. Additionally, due to larger information stored, these cards offer better security features and can carry out the on-card functions.

Microcontroller-based smart cards are popularly used in debit/credit cards, SIM cards and other subscriber cards. Due to rising advancements in the microcontroller-based smart cards segment (such as dual-interface and hybrid smart cards), the segment is estimated to retain its dominant position throughout the forecast period in the global market.

The memory card-based smart cards are used in applications such as identity wherein simply data reflection is required. These cards offer lesser security feature and storage. As a result, memory card-based smart cards are used across few number of applications. The segment is estimated to show sluggish growth during the forecast period.

In 2014, the smart cards market was dominated by the Asia Pacific region contributing to more than forty percent of the total market revenue. The market here is mainly backed by the telecommunication application segment. Due to rising number of subscribers in countries such as India and China, the demand for smart cards is expected to remain strong in the coming years.

Apart from the telecommunication segment, the demand for smart cards is also driven by growing adoption of smart cards for payment cards. Due to further anticipated penetration in the healthcare and security application segments, the region is estimated to register the highest growth during the forecast period. Countries such as South Korea, Japan, India and China are the major contributors to the Asia Pacific smart cards market.

North America is expected to register strong growth in the coming years in the global smart cards market. Smart cards are now increasingly being used in the payment applications in the region. This is the prime factor for rise in demand for smart cards in the region. Due to strong penetration across majority of the applications, Europe is estimated to register steady growth in the global market in the coming years.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Smart Cards market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Smart Cards market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Smart Cards market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Smart Cards market?
• Which is the largest regional market for Smart Cards market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Smart Cards market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Smart Cards market worldwide?