Smart Card Market
A smart card is embedded with an integrated chip that enables financial and non-financial transactions via short period wireless connectivity standards like Near-Field Communication (NFC) and Radio-Frequency Identification (RFID). The smart card market globally is expected to grow notably over the forecast time period, due to the rising demand for online payment methods, thereby saving time and cost without human intervention and errors. With the rising use of smart cards, the transportation sector is adopting the same and accepting payments via Europay, MasterCard, and Visa (EMV)/Online.
Smart cards are majorly used in the telecommunication sector globally as telephone cards and prepaid. It is also used as Universal Integrated Circuit Card (UICC) in mobile phones, microprocessor smart card - based SIM or Subscriber Identity Module. This is contributing to the growth of the global smart card industry. Smart cards are generally used to make secure and smooth transactions and mainly used to eliminate cash transaction or promote cashless payments. Moreover, it can be utilized for buying movie tickets, metro tickets, making transactions, etc. The rising demand for electronic payment methods is rapidly replacing cash transactions due to its secure and reliable operations. However, the high cost of shifting to smart cards, technical challenges faced by retailers or business, and the risk of losing contactless cards may hinder the smart card market growth.
The global smart card market is segmented based on type, component, and application. The type segment is divided into contact and contact less. Contactless cards are expected to grow at a considerable rate in the future as they are extensively used by the financial sector. The component segment includes hardware, smart card, readers, software, and services. The hardware segment is predicted to hold the largest share of the smart card market over the forecast time period. The software segment consists of databases and management system software programs. Management system software helps in verifying certain information of a person with stored facts in a particular database. Additionally, support, maintenance, and consulting are some of the core activities while implementing smart card systems. Application segment is sectored into BFSI, government, telecommunication, healthcare, hospitality, transportation, retail, and others.
By region, the Middle Eastern and African smart card market is expected to grow at a considerable rate over the forecast time period. The region offers a wide range of smart card solutions for organizations, educational institutions, and companies. Moreover, the United Arab Emirates is among the leading ID card printers, which also offers customer loyalty card printing solutions and unique E-purses. Companies in the Middle East are installing access control technology to extend the capabilities of smart cards or phones, which enables consumers to unlock doors and access common activity areas at the workplace.
Some key participants of the global smart card market include Giesecke & Devrient GmbH, Infineon Technologies AG, Gemalto N.V., IDEMIA France SAS, NXP Semiconductors N.V., Sony Corporation, Samsung Electronics Co., Ltd, STMicroelectronics N.V., Beijing Watchdata Co. Ltd., KONA I Co., Ltd., and OT-Morpho.