Smart Cards Market – High Security Offered Augments Uptake of Smart Cards

Smart Cards Market - High Security Offered Augments Uptake of Smart Cards

Leading companies in the global smart market cards technologies and solutions have come up with strategies that concentrate on contactless, contact, and dual interface services. The four dominant companies in the global market for smart cards are Gemalto NV, Infineon Technologies AG, NXP Semiconductors NV, and Giesecke & Devrient (G&D) GmbH. These four companies cumulatively hold majority of share in the all the key geographical regions pertaining to the use of smart cards and terminals of smart cards.

The overall competitive landscape of the global market for smart cards is considered to be highly competitive and has been consistently bossed by the four players mentioned before. However, players in the global market are presently vying to sustain high standards and deploy smart card based software and services as a part of their elemental business strategies. On the other hand, the spectrum of growth of new market entrants such as Eastcompeace Technology Co. Ltd. and Watchdata that are making improvements in their respective businesses, are giving a tough fight to the established players by introducing newer solutions that are designed to fit the way customers want to conduct their transactions on a day to day basis.

The global market for smart cards stood at an overall valuation of US$8.5 bn in the year 2016. This valuation was expected to grow and reach a figure worth US$14.1 bn by the end of 2023. This considerable growth of the global smart cards market in terms of value is expected to be achieved with the help of an impressive CAGR of 7.4% over the course of the given forecast period of 2016 to 2023.

In terms of type of smart cards, the segment of contactless smart cards is expected to show a most promising CAGR of 11.5% over the course of the given forecast period of 2016 to 2023 with respect to generation of revenue. However, the segment of contact smart cards is expected to sustain its rank of top earning segment for the same period of forecast, and is estimated to reach an overall market valuation worth US$7.7 bn by the fall of 2023.

High Security Offered Augments Uptake of Smart Cards

There are multiple factors that are helping in driving the overall growth of the global market for smart cards over the course of the given forecast period. One of the key factor responsible for augmenting the growth of the market is the security offered by the smart cards. The traditional magnetic strip cards are presently highly vulnerable to attacks of data theft because of the absence of proper encryption codes. This is factor has been easily dealt with by the current smart cards, where the feature of EMV chip on chip has added an extra level of security to the information of the user.

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In addition to this, with the advent of near field communication (NFC), IoT, net banking, and e-commerce, there has been a growing preference towards using smart cards all across the globe. This has also significantly helped in driving the overall growth of the market.

High Prices of Adoption to Impede Market Growth

However, there are some factors which might negatively impact the growth of the market in the coming years. One of the key restraining factor for the global market is thought to be the high cost related to the adoption of these smart cards.

This review is based on the research report by Transparency Market Research titled, “Smart Cards Market – (by Product Type (Contact Smart Cards, Contactless Smart Cards, Hybrid Smart Cards, and Dual Interface Smart Cards), by Component (Microcontroller Based Smart Cards and Memory Card based Smart Cards)) – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 – 2023

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Pragati Pathrotkar

As one of the lead news writers on cmfenews, Pragati’s specialization lies in the science and technology domains. Her passion for the latest developments in cloud technology, connected devices, nanotechnology, and virtual reality, among others, shines through in the most recent industry coverage he provides. Pragati’s take on the impact of digital technologies across the science, technology, and business domains gives her writing a fresh and modern outlook.

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