Smart Card Market Analysis - Global Industry Size, Share, Trends and Forecast 2022 - 2030

Category : Semiconductor and Electronics | Published at : July-2021 | Delivery Format : PDF | Status: Published | Pages : 190

The global smart card market is expected to grow at a CAGR of around 4.2% from 2020 to 2027 and expected to reach the market value of around US$ 17.5 Bn by 2027.

A smart card is a card that stores information on a microprocessor or memory chip rather than the magnetic stripe found on ATM and credit cards. Financial institutions and merchants in the United States, Europe, Latin America, Asia/Pacific, and Canada are issuing and accepting contact or dual-interface EMV chip cards for credit and debit payment, or are transitioning to EMV. According to EMVCo, over 7.0 billion EMV cards were in circulation at the end of 2017, and EMV chip technology was used in 63.7% of all card-present transactions worldwide.  Over 780 million EMV chip cards were issued in the United States as of the end of 2017, with 59% of U.S. merchant locations accepting EMV chip transactions accounting for 41.2% of card-present transactions.

Smart card witnessed surge in demand amid COVID-19 pandemic

According to the IEEE report, diagnosing and controlling the spread of infectious diseases such as COVID-19 is critical to epidemic management. One common method for limiting spread is identifying infected individuals and tracing their primary contacts to selectively isolate any individuals who are likely to be infected. The devices dubbed the "Smart Access Card System," are designed to help with contact tracing, early symptom diagnosis, and social distancing. Using sensor tags and Internet of Things (IoT) technology, it can continuously collect their owners' location and contact information. The proposed mobile gadget technology may also be useful in the spread of future diseases.

Market Drivers

Big calls for smart card in healthcare

Healthcare organizations around the world are implementing smart health cards with a wide range of features and applications. Smart health cards can improve patient information security and privacy, serve as a secure carrier for portable medical records, reduce healthcare fraud, and provide other applications required by healthcare organizations. The government of India is making digitally enabled services a priority, and the ‘Multi-Application Smart Card' is a new tool to ensure access and delivery of public services for various social sector schemes. The scheme is made visible by the ‘RSBY smart card,' a chip-enabled plastic card containing personal data of individuals and their families that counts and conditions the provision of health services to them; no smart card means no health coverage. In India, there are more than 38 million active RSBY smart cards as of 2017. Furthermore, according to a report released by IMPACT INSURANCE, smartcards simplify the authentication process and reduce the amount of paper work. Because of these benefits, health care providers have been able to reduce the patient's waiting time (between seeing a doctor and leaving the facility) from 25 minutes to 13 minutes - a reduction of nearly 52%.

Rising demand for contactless payment bolster the growth of global smart card market

According to the Reserve Bank's 2019 Consumer Payments Survey, Australian consumers increasingly prefer to use electronic payment methods. Many people now use their cards, or sometimes their phones, to make small purchases instead of cash. Consumers are also seeing an increase in the number of payment options available to them. Consumers increasingly prefer to use contactless cards to ‘tap and go' for these purchases, so there has been a shift away from cash for transactions of all sizes, including lower-value payments. This trend was continued in the most recent survey, with the proportion of transactions of US$10 or less conducted in cash falling by 18 percentage points since 2016. For all payments over US$5, cards are now used more frequently than cash. Nonetheless, cash continues to account for a sizable portion of small transactions: approximately 45% of payments of US$10 or less are made in cash.

Market Segmentation

The global smart card market is segmented as type, component, and application. By type, the market is segmented as contact cards, contactless cards, and multi-component cards. By component, the market is bifurcated into memory-based and microcontroller-based. The market is segregated as BFSI, government, telecommunication, retail, healthcare, hospitality, and others based on application.

Based on type, the contact card segment is expected to dominate the global smart card market. Furthermore, based on application, the BFSI segment has held a dominant share in the past and is expected to maintain this trend throughout the forecast period.

Regional Overview

Asia Pacific to dominate the smart card market

Emerging economies in Asia-Pacific are expected to offer potential opportunities for smart card market growth, owing to the development of a robust financial system that is becoming increasingly digitized and pushed by government agencies to incorporate smart chip-based systems for better process monitoring. China's ID cards include an embedded chip as well as digital encryption. Personal information on the card includes the individual's full name in Chinese characters, gender, ethnicity, date of birth, domicile, identification number, and a color photo. China was a pioneer in phasing out checks and introducing contactless payments, which paved the way for the introduction of digital cards. Partnerships are also being formed by businesses from across the region in order to expand their services to China. IDEX Biometrics and Goldpac, for example, collaborated to bring dual-interface biometric smart cards to customers in China and beyond. The developing world, including India, is expected to drive demand. The Delhi government authorized the use of the Delhi Metro smart cards to pay for bus rides in the city. For example, the Delhi Metro Rail Corporation (DMRC) announced plans in October 2019 to transition to biometric transit cards, making it the first transit provider in India to do so. In contrast, the United States is expected to have the fastest growing CAGR in the smart card market in the coming years. To ensure customer convenience, retailers are implementing advanced smart card readers that accept a variety of payment methods. In May 2020, approximately 20% of US consumers made their first digital payment in a store. Furthermore, with continuous globalization, demand for smart cards and e-passports is increasing rapidly, which is driving the smart card market. Furthermore, the retail and e-commerce industries are expanding at a rapid pace, which is expected to increase demand for smart cards and, as a result, provide significant opportunities to players in the smart card market.

Competitive Landscape

The prominent players of the global smart card market involve The American Express Company, Atos, CPI Card Group®, Gemalto, Infineon Technologies AG, NXP Semiconductors N.V., Texas Instruments, and among others

Market Segmentation

Market By Type

Contact Cards
Contactless cards
Multi-component cards

Market By Component


Market By Application


Market By Geography

North America
•    U.S.
•    Canada

•    U.K.
•    Germany
•    France
•    Spain
•    Rest of Europe

•    China
•    Japan
•    India
•    Australia
•    South Korea
•    Rest of Asia-Pacific

Latin America
•    Brazil 
•    Mexico
•    Rest of Latin America

Middle East & Africa
•    GCC
•    South Africa
•    Rest of Middle East & Africa

Frequently Asked Questions

Smart card market is expected to reach a market value of around US$ 17.5 Bn by 2027.

The smart card market is expected to grow at a CAGR of around 4.2% from 2020 to 2027.

Based on type, contact cards segment is the leading segment in the overall market.

Technological advancement is one of the prominent factors that drive the demand for smart card market.

The American Express Company, Atos, CPI Card Group®, Gemalto, Infineon Technologies AG, NXP Semiconductors N.V., Texas Instruments, and among others.

Asia Pacific is anticipated to grab the highest market share in the regional market

Europe is expected to be the fastest growing market in the forthcoming years

Cart Summary