The global smart card market (henceforth, referred to as the market studied) was valued at USD 8. 14 billion in 2019, and it is expected to reach USD 11. 50 billion by 2025, registering a CAGR of 6. 19%, during the period of 2020-2025.
New York, Dec. 21, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Smart Card Market - Growth, Trends, Forecasts (2020 - 2025)" - https://www.reportlinker.com/p05891614/?utm_source=GNW
The need for security of applications that employ critical information, documents, and credential is leading to an increasing adoption of smart contact-less card technology, as they enhance security through encryption and communication between the smart card device and the card reader. ?
- Apart from this, smart cards are increasingly getting deployed as a tool of stored value, particularly in loyalty programs across various sectors, like transportation, parking, and retail that track data and offer incentives to retain their customer bases.?
- The advent of multifunction cards has made it convenient to manage the network system access and store valuable and other data. In addition, smart cards help in safeguarding the private information of individuals and keeping their informational details safe from hacking and other unwanted intrusions.?
- Smart cards hold tremendous promises in the advanced authentication applications, as smart card coupled with PIN provides two-factor authentication in a much more secure means of authenticating users. ?Technological advancements in the market has witnessed the advent of cards that allow authentication to provide unified access and advanced authentication for physical access to the buildings and computer systems.?
- In September 2019, Standard Chartered Bank launched “DigiSmart” credit card that focusses on the convenience needs of the millennials segment. This credit card has been designed to offer instant benefits across key e-commerce categories of travel, entertainment, fashion, groceries and food delivery throughout the year.?
- Amid the rapidly shifting landscape in the wake of the COVID-19 pandemic, the smart cards are finding increasing deployment in various end-user industries, barring a few, owing to the benefits rendered.?
- With an increasing priority for the healthcare sector as a whole, amid the pandemic, smart cards are assisting the healthcare providers with maintaining the efficiency of patient care and privacy safeguards. These cards allow the safe storage of information pertaining to a patient’s medical history and instantly access the information while also facilitating the provision to update if needed. This will ensure the reduction of health care fraud.
Key Market Trends
Contactless Smart Card is Expected to Drive the Market
- Contactless smart cards differ from contact-based smart cards because the chip is not visible on the card. Instead, the chip and its antenna are embedded within the card’s body. The card is waved over an RFID reader instead of inserted like a contact card. When the contactless card passes through the specifically tuned RFID field, the antenna powers up the chip and relays its information to the application.
- Furthermore, account information is transmitted wirelessly over radio frequency (RF). The consumer’s contactless payment device can assume a variety of form factors, including cards, near field communication (NFC)-enabled smartphones, and wearables. Contactless transactions are cryptographically secure and generate a unique code for each transaction.
- Moreover, contactless is finding its place globally, particularly in transit. For instance, the Metropolitan Transportation Authority (MTA) reported that the OMNY system surpassed 5 million total taps in January, since the start of the pilot. Though transit is a major driver of the technology, acceptance is still not uniform in other retail outlets.
- Additionally, in the beginning of 2020, Helsinki Regional Transport signed a deal with LittlePay to introduce contactless smart payments across all modes of transport in Finland’s capital, as part of a three-year deal. Work has already started on the roll-out across Helsinki’s ferry, rail, and bus systems. Furthermore, the introduction of contactless payments is seen as a vital way in boosting the use of public transport.
Asia-Pacific to Witness Highest Growth
- Emerging economies across Asia-Pacific are set to offer potential opportunities for the growth of the smart card market, owing to the growth of a robust financial system that is getting increasingly digitized and push by the government agencies to incorporate smart chip-based systems for better monitoring of processes.
- China has been one of the pioneers in phasing out checks and introducing contactless payments, leading to the introduction of digital cards. In November 2019, Alipay, China’s leading payment platform, was serving more than 1.2 billion customers. China’s ID cards feature an embedded chip and digital encryption. The card contains personal information, including the individual’s full name in the Chinese characters, gender, ethnicity, date of birth, domicile, identification number, and a color photo.
- Enterprises across the region are also involved in partnerships to expand their services to China. For instance, IDEX Biometrics and Goldpac partnered to introduce dual-interface biometric smart cards to the customers in China and beyond. In addition, the company also teamed up with Excelsecu, a Shenzhen-based security solutions provider specializing in security solutions, including FIDO-based security keys, one-time password systems, and smart cards.?
- The developing regions, including India, are likely to propel the demand. The Delhi government allowed the Delhi Metro smart cards to pay for bus rides in Delhi. Furthermore, the Delhi Metro Rail Corporation (DMRC), in October 2019, announced its plans to make the transition toward the biometric transit cards in the process, making it the first transit provider in India to do so.??
The smart card market is fragmented. Some of the major players are using tactics such as partnerships, new product launches, agreements, expansions, innovations, joint ventures acquisitions, and other strategies to increase their footprints in this market. Besides, many other players are looking to expand their production capacity, especially in Asia-Pacific, which is the fastest growing smart card market. In the emerging economies, companies are focussing on launching new smart card products for government and transportation applications. Some of the recent developments are as follow:-
- February 2020 - Bundesdruckerei GmbH collaborated with Gematik GmbH to set up and operate the key generation service 2 (SGD2) for the ePA as a service of the telematics infrastructure (TI) for the electronic health card.
- October 2019 - CardLogix has started looking for clients owing to the official release of NXP’s latest generation Java Card OS, JCOP 4 technology backed smart cards with custom applet development and existing applet support. JCOP 4 smart cards deliver benchmark transaction performance for EMV payments and other high-speed applications.
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