PUBLISHER: IMARC | PRODUCT CODE: 1635914
PUBLISHER: IMARC | PRODUCT CODE: 1635914
The global smart card market size reached USD 10.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 14.0 Billion by 2033, exhibiting a growth rate (CAGR) of 3.6% during 2025-2033. The integration of smart card technology into mobile devices, smartphones, and wearables, growing need for secure and efficient payment systems, and the increasing utilization of smart cards by public corporations and organizations are some of the major factors propelling the market. At present, Asia Pacific holds the largest market share, driven by growing population, paired with rapid urbanization and economic development.
A smart card integrated circuit (IC), also known as a chip card, is embedded in a plastic card and serves as a service token for storing and transacting data between users. It is associated with value and information and stored and processed within memory and microprocessor card chip. It is commonly available in microcontroller and memory variants. Among these, the microcontroller smart card IC comprises a central processing unit (CPU), crystal oscillator, timers, watchdog, and analog input and output. It helps reduce the complexity, costs, size of circuits, and discrete components in embedded systems. On the other hand, the memory smart card IC is dependent on the card reader for their processing and suitable for uses wherein the card performs a fixed operation.
The increasing adoption of cashless transactions on account of rapid digitization, rising sales of smartphones and high-speed internet connectivity represents one of the key factors driving the demand for smart card IC around the world. Moreover, there is an increase in the number of debit and credit card users as they provide secured transactions and security. This, coupled with cashbacks and discount vouchers offered by banks of numerous countries to small and medium-sized merchants for encouraging digital transactions. In addition, the rising number of e-commerce websites and increasing preferences for online shopping is driving the adoption of smart card IC worldwide. Apart from this, the growing adoption of smart employee identification (ID) cards in small and medium-scale enterprises (SMEs) for securing access to physical facilities and computer systems and networks is influencing the market positively. Furthermore, the increasing use of contactless smart card IC for public transportation is contributing to the market growth. Besides this, the rising use of smart card IC in the healthcare industry to manage patient identity, provide practitioners and pharmacists secure access to their medical records and reduce fraud is strengthening the growth of the market. Additionally, the increasing use of smart card IC in eSIM or SIM for various internet of things (IoT) devices to authenticate user identity and store data is creating a positive outlook for the market.
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