San Francisco, 13 Dec 2018 - Smart Cards Market Analysis By Type (Contact Cards, Contactless Cards, Multi-Component Cards), By Component (Memory-Based, Microcontroller-Based), By Application, By Region, And Segment Forecasts, 2018 - 2025
According to a report by Grand View Research, Inc., global smart cards market is anticipated to value USD 15.4 billion by 2025. Growing requirement for digitalization of payment processes and efficient storage of personal data is anticipated to propel demand for smart cards.
Rising adoption of internet of things (IOT) coupled with continual advancements in micro-embedded electronics is estimated to fuel growth of market. Growing consumer preference for cashless payments and increasing use of devices based on embedded circuits in retail, healthcare, and hospitality sector can fuel market growth. In addition, technological proliferation can lead to development of innovative techniques such as contactless and multi-component card facilities. Devices integrated with embedded circuit chips or microcontrollers are likely to enable organizations to facilitate secure payment, authentication, and information storage to their customers. Technology is instrumental in reducing operational costs as manufacturing and handling cost is expected to be quite low. This, in turn can fuel growth of market during the forecast period (2014 to 2025).
However, high investments of incorporating chip cards and hesitance of payment merchants to adopt capital-intensive point of sales (POS) terminal machines can restrain market growth over near future.
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To cater to rising demand for smart cards, most companies are investing in R&D to launch advanced products and use them for better applications. For instance, Beijing recently announced that people from Hong Kong, Macau, and Taiwan, who had been living, working, and studying on mainland for at least six months can apply for new smart cards. These cards are likely to provide holders almost same rights as mainlanders in accessing 18 types of schemes and services. These services can include identification for housing funds, social insurance, financial services, and public services such as transportation & education.
The smart cards market can be segregated on the basis of type, component, application, and region. Based on type, the market can be categorized into contactless cards, contact cards, and multi-component cards. Contact-type segment dominated the market and accounted for market share equivalent to USD 4675 million in 2015. It is predicted to grow at similar pace over the forecast period. Lower costs of contact-based cards can fuel growth.
On the contrary, multi component type segment is predicted to grow fast over the forecast period. Advantages such as enhanced data security and faster processing speed can stimulate market growth. Thus, it can encourage consumers and payment merchants to incorporate contact type cards in their respective applications.
Based on component, the market can be bifurcated into microcontroller-based and memory-based. Benefits such as extended durability and fraud prevention capabilities can drive microcontroller based segment over the forecast period. In addition, high data-usage capacity can drive consumer interests.
Similarly, memory based segment is predicted to witness growth attributed to high data-storage capabilities. Two major sectors that are likely to use memory-based cards are banking and retail.
Based on application, the market can be classified into government, retail, healthcare, hospitality, BFSI, telecommunications, and others. In 2015, telecommunication segment dominated the market and accounted for 45% market share. It is expected to grow at similar pace during the forecast period attributed to increasing use of smartphones to promote mobile transactions. Rising adoption of mobile devices is likely to promote use of SIM & data cards, mobile-banking, and mobile-ticketing. All these factors can stimulate growth of market during the forecast period.
Similarly, BFSI segment accounted for market share equivalent to 1191 million in 2015. Growing adoption of product in banking and financial institutions can offer several benefits including personal data protection and secure data transaction.
Retail segment is estimated to contribute well to market share over the forecast period owing to increasing use of smart cards in this sector attributed to faster transactions and reduction in checkout time.
Regional segmentation includes Europe, North America, Asia Pacific, and rest of the world (ROW). In 2015, Asia Pacific dominated the market and accounted for 40% revenue share. Growing adoption of digitization in various sectors including healthcare, government, retail, and BFSI can fuel growth of market during the forecast period. In addition, increasing number of businesses in the region adoption internet of things (IOT) to utilize smart cards for payment purpose can stimulate market growth over near future.
Some of the leading companies offering smart cards are American Express Company, Atos SE, Giesecke & Devrient (G&D) GmbH, Infineon Technologies AG, and Inside Secure SA.
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Grand View Research has segmented the global smart cards market based on type, component, application and region:
Smart Cards Type Outlook (Revenue, USD Million; 2014 - 2025)
- Contact cards
- Contactless cards
- Multi-component cards
Smart Cards Component Outlook (Revenue, USD Million; 2014 - 2025)
- Memory-based
- Microcontroller-based
Smart Cards Application Outlook (Revenue, USD Million; 2014 - 2025)
- BFSI
- Government
- Telecommunications
- Retail
- Healthcare
- Hospitality
- Others
Smart Cards Regional Outlook (Revenue, USD Million; 2014 - 2025)
- North America
- Europe
- Russia
- Asia Pacific
- Rest of the world
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About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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