Chicago, June 20, 2022 (GLOBE NEWSWIRE) -- According to a research report by MarketsandMarkets™, the "Smart Card Market with Covid-19 Impact by Interface (Contact, Contactless, Dual), Type (Memory, MPU Microprocessor), Functionality (Transaction, Communication, Security and Access Control), Offering, Vertical, and Region - Global Forecast to 2026", is projected to reach USD 13.9 billion in 2021 and projected to reach USD 16.9 billion by 2026, at a CAGR of 4.0% during the forecast period. A smart card is a plastic or metallic card embedded with an integrated circuit (IC) chip intended for financial transactions or secure identification purposes. It can store and transmit data on machine-to-machine platforms. A smart card can be featured with or without radio frequency identification (RFID) or near-field connection (NFC) technologies depending on the requirement. Smart cards are available in different interfaces, namely, contact, contactless, and dual interface, and are extensively used in hospitality, entertainment, education, retail, transportation, healthcare, and other applications.
Smart cards find prominent usage in telecommunications and BFSI verticals, and they are likely to be adopted at large across the government and healthcare verticals in the coming years. The APAC region is a key contributor to the global smart card market. Increase in the demand for contactless card (tap-and-pay) payments amid COVID-19, proliferation of smart cards in healthcare, transportation, and BFSI verticals; and increased penetration of smart cards in access control and personal identification applications are some of the major factor propelling the market growth.
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In type segment, MPU Microprocessor type is expected to grow at higher CAGR during the forecast period
MPU Microprocessor based smart card is expected to dominate the market and grow at higher CAGR during the forecast period. The trend will remain same owing to its benefits such as it provides highly security compare to memory based smart card. These smart cards are commonly used in access control, sensitive data encryption and personal identification applications where their cryptographic capabilities address the issues of security. MPU Microprocessor-based smart cards have a microprocessor embedded onto the chip in addition to memory blocks. This type of card can be used for more than one function and is usually designed to enable adding, deleting, and otherwise manipulating data in memory. Features such as faster processing, large memory storage, and enhanced security have enabled microprocessor-based smart cards to penetrate conventional smart card application areas and reach newer application areas, such as NFC and M2M communications. Increasing banking frauds and rising concern towards security has led to the rapid growth of the market for microprocessor-based smart cards.
Key Players of Smart Card Market:
- Thales Group (France),
- IDEMIA (France),
- Giesecke + Devrient GmbH (Germany),
- CPI Card Group (US),
- HID Global Corporation (US),
- Watchdata (China),
- Eastcompeace (China),
- Inteligensa (US),
- ABCorp (US),
- CardLogix (US)
In functionality segment, the communication functionality holds the highest market in 2020 and is also expected to hold the same during the forecast period
Smart cards are used to perform various functionalities. The communication segment accounted for the largest size of the smart card market in 2020. The increasing use of mobile phones and IoT devices has further propelled the use of SIM cards (smart card), thereby driving the growth of the market. Smart cards are widely used for communication purposes. One of the prominent applications of smart card technology is in subscriber identity modules (SIM), required for all phone systems under the global system for mobile communication (GSM) standard. A smart card is inserted (removable SIM) or integrated (eSIM, M2M SIM) into a mobile handset or the M2M module. Each phone utilizes the unique identifier stored in the SIM to manage the rights and privileges of each subscriber on various networks.
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The smart card market in APAC is projected to hold the highest market share during the forecast period
The market in APAC accounted for the largest share of the overall smart card market in 2020. The presence of various large-scale smart card chip manufacturers and a large population base gives the region unprecedented leverage for the growth of the market. The outbreak of the novel coronavirus has affected the smart card market to a certain extent, but a steady recovery is expected by 2021. Asia Pacific (APAC) is the largest market for smart cards. The robust financial system that is being increasingly digitized and government agencies incorporating smart chip-based systems for better monitoring of processes are propelling several APAC countries to adopt smart card solutions owing to increasing demand, specifically in the transportation, BFSI, retail, government, and healthcare sectors. Smart cards are used to purchase tickets in metros, buses, and ferries, among others, in several countries in APAC. China accounted for the largest share of the smart card market in APAC in 2020. The market in China is expected to grow at the highest CAGR during the forecast period due to rising manufacturing activities and export. However, negative sentiments toward the country due to COVID-19 could lead to short-term disruptions, but the Chinese government is taking every measure to remain a manufacturing hub for companies. China is a leading manufacturer of electronics and semiconductor products in APAC, which allows for chips to be manufactured at the lowest rate. Moreover, it has the largest consumer base of mobile phones owing to the large population in APAC. The country is among the early adopters of technologies. The continuously flourishing retail sector in China is expected to fuel the demand for smart cards from retailers.
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Access Control Market by Offering (Card-based Readers, Biometric Readers, Electronic Locks, Controllers, Software, Services), ACaaS (Hosted, Managed, Hybrid), Vertical, and Region (2021-2026)
