Smart Card Market 2024 Increasing Demand for Cashless Payment

April 6, 2021

A smart card refers to a special type of card-like device that comes with an integrated circuit chip integrated onto it. This chip could be a plain memory circuit or a microprocessor with memory. In a nutshell, it is a card through which one can manipulate, store, and exchange data. The global smart card market is likely to gather momentum from the growing popularity of this product across a diverse range of industries.

A card reader is utilized by a smart card to establish connection with the controller or a host computer. This card reader collects all the needed information from the smart card and passes on the information to the controller or host computer accordingly.

Increased Demand across Multiple Industries to Bolster Demand in the Market

A highly portable computational device, smart card, comes with the facility of data storage. Hence, these cards have emerged as an extremely credible and tamper-proof form of personal identification. It has secured information repository, which makes it ideal for high security application. This factor is likely to bolster the growth of the global smart card market in the years to come.

The potential uses of smart cards comprise the following.

Payphones
Health Care
Banking & Retail
Mobile Communications
Electronic Purse
Access Control and ID Verification

Smart cards are used across several industries such as health, transportation, financial, retail and gas, telecommunication, and government. These organizations are making constant efforts to make a shift toward smart card technology owing to the high security and credibility of data that it offers. It also helps in the protection of individual’s assets and identity. These factors are likely to encourage growth of the global smart card market in the forthcoming years. Manufacturers of smart cards in several countries such as the UK, China, Malaysia, Singapore, Germany, the US, and India are making constant efforts to widen their presence across the globe. The manufacturers are diversifying their product and services portfolio to grab bigger market share.

The global market for smart card is expected to expand at a CAGR of 10.5% over 2019 to 2027. The total value of the global smart card market is expected to reach a value of US$ 79.8 bn by 2027, rising up from a value of US$ 32.5 bn in 2018.

Consumer shift towards digitization and automation technologies has overhauled the functional dynamics of multiple sectors and industries. Advancements in IoT and automation technologies has also aided the growth of the global smart card market. MasterCard, Visa, and Europay are some of the popular smart cards. There is heavy demand for smart cards amongst the allied classes who are not willing to bear the hassle of carrying cash. Henceforth, the global market for smart card is projected to accumulate voluminous revenues in the years to come. Smart cards have helped individuals and business in accelerating their activities of sale and purchase. Smart cards help in making cashless transactions across selling points, and this is the primary distinction of these cards. There is a stellar need for accentuating digital transactions across various sectors, and this factor is projected to bring in voluminous revenues into the global market.

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Rapid urbanization and industrialization in the developing countries including China, India, Mexico, South Africa and Brazil are providing lucrative opportunities for the global smart card market. Over the years, growth in prepaid card and contactless card Industry has transformed that have shaped economies of several countries.

For instance, contactless and prepaid technology are comparatively new. According to Kalyani Pillay, Chief Executive of SABRIC (The South African Banking Risk Information Centre), contactless payment cards are very secure method just like a traditional cards Additionally, rising contactless card and prepaid industry with growing technological modernizations along with the convenience and benefits provided by smart cards are projected to offer an opportunities in the coming years.

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This report preview by Transparency Market Research (TMR) on the global smart card market gives a plethora of insights pertaining to market segments. The preview has been drafted with the intent to add value to market research and analysis. The geographical segments of the global smart card market have also been identified and explained within the report. The leading competitors of the global smart card market have also been enlisted.

The product usage is increasing significantly in different end use industries including BFSI, telecommunication, e-commerce, healthcare, and retail. Among these, the telecommunication sector is likely to exhibit high demand for smart cards. Moreover, the exponential rise of mobile phone subscribers and increasing penetration of mobile phones in emerging economies will further benefit the global smart card market. Growing use of near field communication (NFC), net banking, internet of things, and e-commerce that have grown the demand for smart cards at a higher rate across the globe.

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Asia Pacific & Latin America to Grow At A Higher Pace

In terms of geography, the global market for smart card is segmented into North America, Latin America, Asia Pacific, the Middle East and Africa, and Europe. North America and Europe accounted for the largest share at global level. Latin America market is expected to grow with a higher pace as a result of rising consumer spending through digital media. Rising disposable income in China and India coupled with high adoption of digital devices will further create new opportunity in smart card market.

Major players operating in the global smart card market are