Smart Card Market Worth $21.57 Billion by 2023

According to MarketsandMarkets’ new market research report, “Smart Card Market by Communication (Contact and Contactless), Component (Hardware, Software, and Services), Application (BFSI, Government and Healthcare, Transportation, Retail, and Others) and Geography – Global Forecast to 2023,” this market is expected to reach $21.57 billion by 2023 from $14.22 billion in 2018, at a CAGR of 8.7% between 2018 and 2023.
 
Use of smart cards in the BFSI sector has also been rising, supported by the transition of magnetic cards to EuroPay, MasterCard, and Visa (EMV) standard (chip and PIN) cards. EMV standards mandate the use of smart cards such as credit/debit/ATM and prepaid cards in financial transactions. The major factors driving the growth of the smart card market include increasing use of online payment methods enabling consumers to make secure and reliable payments. In line with this, the use of contactless smart cards has gained remarkable consideration as electronic payment methods are rapidly replacing cash and carry operations.
 
Contact smart cards are expected to hold the largest share of the smart card market throughout the forecast period. Currently, contact smart cards account for more than three-fourth of the smart card market and are widely used in BFSI, government and healthcare, and retail applications.
 
Hardware is expected to hold the largest share of the smart card market, by component, during the forecast period. Currently, hardware accounts for more than three-fourth of the smart card market, which comprises smart cards and readers.
 
The smart card market for transportation applications is expected to grow at the highest CAGR during the forecast period. Smartcards are used for parking fee payment as well as for transit fare payment in the transportation sector. Transit ticketing systems are transforming into open-payment systems owing to the introduction and widespread adoption of debit and credit cards.
 
Asia Pacific is expected to hold the largest share of the smart card market during the forecast period owing to the increasing demand specifically in the transportation, BFSI, retail, government, and healthcare sectors. Companies in developing countries such as India, China, Malaysia, and Thailand are implementing smart cards to make the process of payments and other documentations easy for consumers. Smart cards are used to purchase tickets in metros, buses, and ferries, among others, in several countries in APAC.
 
Key players in this market are Gemalto N.V. (Netherlands), Giesecke & Devrient GmbH (Germany), IDEMIA France SAS (France), Infineon Technologies AG (Germany), NXP Semiconductors N.V. (Netherlands), Sony Corporation (Japan), Samsung Electronics Co., Ltd. (South Korea), HID Global Corporation (Sweden), STMicroelectronics NV (Switzerland), Ingenico Group SA (France), VeriFone Systems, Inc. (US), Beijeng Watchdata Co. Ltd. (China), Rambus Inc. (US), CPI Card Group Inc. (US), Identiv, Inc. (US), KONA I Co., Ltd. (South Korea), VALID (Brazil), Fingerprint Cards AB (Sweden), BrilliantTS Co. Ltd. (South Korea), Bitel Co. Ltd. (South Korea), Fujian Newland Computer Co., Ltd. (China), PAX Global Technology Ltd. (Hong Kong), CardLogix Corporation (US), ZWIPE (Norway), and Versasec AB (Sweden).