PUBLISHER: The Business Research Company | PRODUCT CODE: 1653395
PUBLISHER: The Business Research Company | PRODUCT CODE: 1653395
A smart card is a physical plastic card incorporating an integrated chip that serves as a security token. These cards offer a means to identify and authenticate both the cardholder and third parties utilizing the card. Connection to the host computer or controller occurs through a card reader, which receives data from the card and transmits it to the host computer for authentication.
The primary types of smart cards include contact, contactless, hybrid, and dual interface. Contact smart cards require physical contact with the card reader and can be identified by a gold or silver chip on the card body. Smart cards provide both physical and logical access. The components of smart cards can be memory-based or microcontroller-based. Industries utilizing these cards span government, healthcare, transportation, communications, financial services, retail and loyalty, entertainment, and energy and utilities.
The smart card market research report is one of a series of new reports from The Business Research Company that provides smart card market statistics, including smart card industry global market size, regional shares, competitors with a smart card market share, detailed smart card market segments, market trends and opportunities, and any further data you may need to thrive in the smart card industry. This smart card market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The smart card market size has grown strongly in recent years. It will grow from $22.75 billion in 2024 to $24.83 billion in 2025 at a compound annual growth rate (CAGR) of 9.1%. The growth in the historic period can be attributed to rising cybersecurity concerns, government initiatives, financial inclusion, contactless payment trends.
The smart card market size is expected to see strong growth in the next few years. It will grow to $36.1 billion in 2029 at a compound annual growth rate (CAGR) of 9.8%. The growth in the forecast period can be attributed to mobile and wearable technology, biometric authentication, smart cities initiatives, e-commerce and online transactions, government-led digital initiatives. Major trends in the forecast period include rapid adoption in healthcare, blockchain integration, green and sustainable smart cards, customization and personalization.
The rising demand for contactless payments is expected to significantly boost the growth of the smart card market. The shift towards digitalization accelerated during the COVID-19 pandemic, driven by the need for social distancing. This rapid digital transformation, along with the growth of e-commerce services, has led to a surge in contactless payment adoption across various platforms. For example, in February 2023, a report by Barclays plc, a UK-based universal bank, revealed that the total value of contactless payments increased by 49.7% in 2022, with the average user making 220 transactions compared to 180 in 2021. Therefore, the increasing demand for contactless payments is expected to propel the growth of the smart card market.
The increasing usage in telecommunications is expected to drive the growth of the smart card market in the future. The telecom industry is experiencing rapid growth due to the rising demand for high-speed internet, mobile services, and IoT connectivity. Smart cards, such as SIM cards, are essential in the telecom sector as they support subscriber identity, enhance mobile security, and provide data storage. As mobile devices and the Internet of Things (IoT) continue to expand, the utilization of smart cards in telecommunications is also growing quickly. For instance, in December 2023, CEIC Data, a China-based data and analytics provider, reported that the number of mobile subscribers in the United States reached 386 million, up from 373 million in December 2022. Therefore, the rising use in telecommunications is fueling the growth of the smart card market.
Technological advancement is a key trend gaining traction in the smart card market. Major companies operating in this sector are focusing on delivering technologically advanced products to enhance their market positions. These companies are integrating next-generation smart card technologies into their offerings, including memory technology, RFID, NFC, integrated circuits, Bluetooth tags, Wi-Fi RTLS, and more. These features and enhancements provide security, confidentiality, and convenience for users. For example, in January 2024, Advanced Card Systems Ltd. (ACS), a Hong Kong-based technology company specializing in smart card technology, launched the ACR40U Standard Contact Smart Card Reader and the ACR40U Premium Contact Smart Card Reader for secure digital transactions and user authentication across various applications. The ACR40U Standard Reader is particularly well-suited for financial transactions, making it ideal for secure processing at ATMs and point-of-sale terminals. Additionally, it supports secure identification in various sectors, including banking and government, and is used in access control systems to verify users.
Companies operating in the smart card market are actively pursuing partnerships to meet consumer demand. Strategic partnerships involve leveraging each other's strengths and resources to achieve mutual benefits and success. In May 2023, IDEX Biometrics, a Norway-based biometrics company, partnered with AuthenTrend Technology Inc., a Taiwan-based computer and network security company, to introduce innovative multi-application biometric smart cards for digital authentication. This collaborative effort aims to revolutionize the authentication process, providing enhanced security and convenience for consumers and enterprises globally.
In January 2022, Nayax Ltd., an Israel-based fintech company, announced the acquisition of On Track Innovations Ltd. for $4. 5 million in cash. This strategic move by Nayax is aimed at expanding its presence and gaining market share in targeted regions, such as Japan, to accelerate growth opportunities. On Track Innovations Ltd. is an Israel-based company specializing in smart card technology.
Major companies operating in the smart card market include CardLogix Corporation, CPI Card Group - Colorado Inc., Giesecke & Devrient GmbH, IDEMIA, Infineon Technologies AG, ABCorp Corporation, Bartronics India Limited, BrilliantTS. co. Ltd., Bundesdruckerei GmbH, CardCom Technology, Eastcompeace Smart Card Co. Ltd., HID Global Corporation, Identiv Inc., Ingenico SA, Intelcav Cartoes Ltda., Inteligensa Group, Kona M Co. Ltd., NXP Semiconductors Austria GmbH Co. & KG, Perfect Plastic Printing Corp., Samsung Electronics Co. Ltd., Secura Key, Sony Corporation, Square Inc., Thales Group, Valid S. A., VeriFone Inc., Watchdata Technologies Ltd., Taglio LLC, Cardzgroup Ltd.
Asia-Pacific was the largest region in the smart card market in 2024. The regions covered in the smart card market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the smart card market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.
The smart card market consists of sales of CPU/MPU microprocessor multifunction cards, memory cards, multi-mode communication cards and multi-component cards. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Smart Card Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on smart card market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for smart card ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The smart card market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.