The global smart card market size was US$ 9.1 billion in 2021. The global smart card market is forecast to grow to US$ 15.8 billion by 2030 by growing at a compound annual growth rate (CAGR) of 6.1% during the forecast period from 2022 to 2030.
A smart card is integrated with embedded memory or a microcontroller incorporated in a contact pad. It links to a reader through short-range wireless connectivity.
Factors Influencing the Market
The global smart card market is forecast to gain traction, owing to the growing digitalization and surge in cashless transactions. In addition, the growing demand for smart cards from the healthcare sector will benefit the market during the study period.
The high set-up costs may restrict the growth of the global smart card market during the study period. On the contrary, the introduction of a new model of information security will offer ample growth opportunities for the market.
Smart cards can manage cryptographic keys, which allow secure & efficient transactions. Such benefits are forecast to propel the smart card market forward.
The new forms of smart cards, such as soft-tokens, UPI, or QR cards, will contribute to the market growth. Furthermore, the growing deployment of e-passports will serve as a major advantage for the market growth.
The growing number of collaborations between industry players will benefit the market. For instance, CPI Card Group partnered with Oxygen, a digital banking platform, in 2020. Furthermore, IDEMIA inked a pact with Cembra and IKEA Switzerland in 2021. with this partnership, the companies aim to supply entirely eco-friendly credit cards entirely made from recycled plastic (rPVC).
Various banks have started offering chip-enabled smart cards in order to maintain the safety and convenience of the consumer. Thus, it will escalate the growth of the global smart card market during the study period.
Regional Analysis
The Asia-Pacific smart card market is forecast to grow at the fastest growth rate, owing to the contribution of emerging economies like India and China. China is among the prominent pioneers in introducing contactless payments, which will further surge the deployment of digital cards. In November 2019, Alipay, one of China’s leading payment platforms, offered its services to around 1.2 billion customers. In addition, the development of a robust financial system and growing digitization driven by government bodies will contribute to the market growth.
COVID-19 Impact Analysis
The global smart card industry witnessed huge growth potential due to the wake of the pandemic. During the pandemic, the demand for digital transactions surged significantly. In addition, people preferred cashless deliveries in order to save themselves from the spread of the virus. Thus, all of these factors have significantly contributed to the smart card market growth.
Competitors in the Market
Market Segmentation
The global smart card market growth segmentation focuses on Type, End-User, and Region.
By Type Outlook
By End User Outlook
By Regional Outlook
