Smart Card Market

Smart Card Market by Communication (Contact and Contactless), Component (Hardware, Software, and Services), Application (BFSI, Government and Healthcare, Transportation, Retail, and Others) and Geography - Global Forecast to 2023

Report Code: SE 6382 Jun, 2018, by marketsandmarkets.com
COVID-19

Get in-depth analysis of the COVID-19 impact on the Smart Card Market

Benchmarking the rapid strategy shifts of the Top 100 companies in the Smart Card Market

Request For Special Pricing
Updated date as on -

The smart card market was valued at USD 13.18 billion in 2017 and is expected to reach USD 21.57 billion by 2023, at a CAGR of 8.7% during the forecast period. The base year considered for the study is 2017, and the forecast period is between 2018 and 2023.

Smart Card Market

Smart Card Market by Component, the software segment is expected to grow at the highest growth rate during the forecast period

The smart card market for software was valued at USD 1,891.9 million in 2017 and is expected to reach USD 3,604.2 million by 2023, at the highest CAGR of 11.5% between 2018 and 2023. Using relevant software, it is possible to configure an entire smart card system with smart cards and readers. Considering this, it is expected that the market for software would grow at the highest CAGR during the forecast period.

Smart Card Market by Application, BFSI accounted for the largest share during the forecast period

BFSI applications accounted for the largest share of 44.8% the smart card market in 2017. The market for BFSI applications was valued at USD 5,912.3 million in 2017 and is expected to reach USD 8,850.1 million by 2023, at a CAGR of 6.9% between 2017 and 2023. The market for transportation applications is expected to grow at the highest CAGR of 11.7% during the forecast period.

Smart Card Market in Asia Pacific to account for the largest market size during the forecast period.

Asia Pacific is expected to hold the largest market size in the smart card market during the forecast period. Asia Pacific is the largest and fastest-growing market because of the fact that several countries in the region are likely to adopt smart card solutions owing to the increasing demand specifically in the transportation, BFSI, retail, government, and healthcare sectors.

Smart Card Market

Market Dynamics: Smart Card Market

Driver: Governments worldwide spend large amount of money for the welfare of their people.

Governments worldwide spend large amount of money for the welfare of their people. According to the Organization for Economic Co-operation and Development (OCED), social benefits provided by governments in developed economies such as European Union and countries such as the US and Japan are more that in developing and underdeveloped economies. Further, according to the World Bank, public healthcare expenditure is high in Europe and North America compared with other regions. Thus, to help avail social benefits, government entities in several countries provide documentations for proper validation of their citizens’ credentials. With the introduction of digitization in government processes, many regional government organizations in these countries have started to provide licenses, and healthcare and social benefit documentations in the form of smart cards to their people. Smart cards aid in the process of digitizing all kinds of identification documents (including facial snapshots and bio-metrics). Further, it is easy for government officials to crosscheck smart card credentials against in-house digital database. MarketsandMarkets believes that the use of smart card-based identity documentations in government processes will increase in the coming years.

Restraint: High costs involved in deploying EPOS terminals

Usually, large retailers such as McDonalds and Walmart can easily absorb the huge cost involved in deploying contactless EPOS terminals. However, the cost of contactless EPOS is high for small or midsized merchants, and hence these merchants would refrain from deploying such terminals. As a result, they would not be able to reap the benefits of this technology. Also, several small retail merchants rely more on cash transactions than on credit or debit cards for payments. For traditional bank acquirers and contactless payment service providers (PSPs), cash transactions act as a major hindrance in the propagation of card-based acceptance solutions. High capital costs related to acquiring POS machines, recurring maintenance, and difficulty in servicing POS machines in remote areas, along with lack of incentives for merchants to accept contactless card payments, are the major factors limiting the adoption of contactless payment technology in developing countries such as India. Government frameworks and subsidies pertaining to the installation of EPOS terminals for SMBs would promote adoption.

Opportunity: Blockchain technology enhancing security features

Blockchain can be used to generate and store cryptographic keys in smart cards; this would help users authenticate financial transactions by swiping smart cards. A smart card acts as a vault where the cryptographic key can be stored. When the smart card is connected to the Internet via a POS reader, the key stored in the card can be matched with the key stored in the online library, and the authentication of the user would be done. This would help banks and other ecosystem players secure and authenticate user identity in an improved way, thereby reducing cyber theft practices. In 2016, SETL and Metro Bank demonstrated a blockchain-enabled contactless smart card system to help users utilize cash transaction for shopping applications. MarketsandMarkets believes that the use of blockchain technology by smart card providers will increase in the coming years.

Challenge: Security related to contactless technology

Interrupted operations, service denials, covert transactions, and communication links and dual modes are a few security issues facing the contactless smart card market, potentially restricting market growth. The NFC technology and the development of applications to store credit card information could result in privacy issues—theft, regulatory compliance, etc. Failure to protect decrypted data at the contactless payment gateway increases the vulnerability of PSP databases to intruder attacks, potentially resulting in large payment data compromise. These factors have prompted the governments of several countries to cap the maximum limit of contactless payment.

Smart Card Market

Scope of the Report

Report Metric

Details

Report Metric

Details

Report Name

Smart Card Market

Base year considered

2017

Forecast period

2018 - 2023

Forecast units

Million (USD)

Segments covered

Communication Type, Application, Component and Geography

Geographies covered

North America, Europe, APAC, RoW (South America, Middle East & Africa

Companies covered

Gemalto N.V(Netherlands),Giesecke & Devrient Gmbh (Germany), Idemia (France), Infenion Technologies AG (Germany), NXP Semiconductors N.V.(Netherlands), Sony (Japan), Samsung Electronics (South Korea), HID Global Global Corporation(Sweden), STMicroelectronics N.V. (Switzerland), Ingenico Group SA (France), VeriFone Systems Inc. (US), Beijeng watchdata Co. Ltd. (China)

 

The smart card market in this report has been segmented:

Smart Card Market by Communication

  • Contact
  • Contactless

Smart Card Market by Component

  • Hardware
  • Smart Cards
  • Readers
  • Software
  • Services

Smart Card Market by Application

  • Banking, Financial Services, and Insurance (BFSI)
  • Government and Healthcare
  • Transportation
  • Retail
  • Others (Enterprises, Entertainment, and Education)

Smart Card Market by Geography

  • North America
  • Europe
  • Asia Pacific (APAC)
  • Rest of the World (RoW)

Key Market Players

Gemalto N.V (Netherlands) , Giesecke & Devrient Gmbh (G+D) (Germany), Idemia (France), Infenion Technologies AG (Germany), NXP Semiconductors N.V. (Netherlands), Sony (Japan), Samsung Electronics (South Korea), HID Global Corporation (Sweden), STMicroelectronics N.V. (Switzerland), Ingenico Group SA (France), VeriFone Systems Inc. (US), Beijeng watchdata Co. Ltd. (China)

Gemalto is one of the leading players in the smart card market. The company focuses on providing its solutions primarily to the government and banking sectors. It is focused toward organic growth strategies, such as launching innovative products and expanding its customer base.

Gemalto strengthens its market presence by acquiring companies. In December 2016, Gemalto acquired 3M’s Identity Management business for USD 850 million. The company intends to grow organically year-on-year through product innovation and development, and by broadening its product portfolio. The company’s investments in product development have substantially increased over the past years.

The company also has a good geographic reach, which helps it strengthen its customer base. Further, it intends to grow further by penetrating existing markets and by capitalizing on demand for mobile communication. Gemalto also focuses on boosting the adoption of EMV-based banking solutions by targeting developing countries in APAC and MEA; this will help the company improve its market share in the coming years.

Recent Developments

  • In January 2018, Thales Group finalized the financing of its proposed Gemalto acquisition, expected to be completed in the second half of 2018.
  • In November 2017, Gemalto partnered with the Center for Identity at the University of Texas at Austin for facilitating research on identity management, privacy, and security.
  • In June 2017, G+D Mobile Security division completed the acquisition of CPS Technologies from IDEMIA (OT-Morpho) to strengthen its business in France by providing bank card personalization and service management center services. CPS Technologies provides delivery and card personalization, identification, transport, and loyalty services.
  • In November 2017, IDEMIA announced that MOTION CODE cryptograms can be deployed faster, reducing drastically the time to market for banks so that they can immediately begin offering this unique payment solution to consumers. Based on the Visa’s dCVV2 specification, MOTION CODE will be seamless for issuers to get started with a dynamic payment card by removing the need for any system upgrade. It will facilitate the deployment of MOTION CODE payment cards from IDEMIA to secure Card-Not-Present (CNP) payments such as online transactions.
  • In November 2017, under the brand SECORA Pay, Infineon Technologies bundled state-of-the-art contact and dual-interface EMV security controllers with the latest EMV applets. SECORA Pay allows a flexible approach fitting to regional market requirements. Hence, it significantly eases the adoption of EMV-compliant payment cards and emerging form factors such as smart wearable devices.
  • In March 2016, NXP Semiconductors N.V. broadened its product offerings by introducing two contactless smart card development platforms—MIFARE and DESFire EV2.

Key Questions Answered

  • Where will all these developments take the industry in the long term?
  • What are the upcoming trends for the image sensor market?
  • Which segment provides the most opportunity for growth?
  • Who are the leading vendors operating in this market?
  • What are the opportunities for new market entrants?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

Table of Contents

1 Introduction (Page No. - 14)
    1.1 Objectives of the Study
    1.2 Definition
    1.3 Study Scope
           1.3.1 Markets Covered
           1.3.2 Geographic Scope
           1.3.3 Years Considered for the Study
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 18)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 List of Major Secondary Sources
                    2.1.1.2 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
                    2.1.2.2 Key Industry Insights
                    2.1.2.3 Breakdown of Primaries
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
           2.2.2 Top-Down Approach
    2.3 Market Breakdown & Data Triangulation
    2.4 Research Assumptions

3 Executive Summary (Page No. - 27)

4 Premium Insights (Page No. - 31)
    4.1 Attractive Opportunities for Smart Card Market
    4.2 Market, By Communication Type
    4.3 Market, By Application
    4.4 Market, By Component
    4.5 Market, By Geography

5 Market Overview (Page No. - 34)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Growing Demand for Identification Cards to Avail Government Facilities
                    5.2.1.2 Contactless Interfaces to Boost Adoption of Smart Cards
                    5.2.1.3 Globalization Driving the Adoption of Epassports and Smart Cards in Banking Systems
           5.2.2 Restraints
                    5.2.2.1 High Costs Involved in Deploying Epos Terminals
                    5.2.2.2 Increasing Adoption of Mobile Wallets Reducing the Demand for Smart Cards
           5.2.3 Opportunities
                    5.2.3.1 Blockchain Technology Enhancing Security Features
           5.2.4 Challenges
                    5.2.4.1 Security Related to Contactless Technology
                    5.2.4.2 Lack of Standardization and Consumer Awareness
    5.3 Value Chain Analysis

6 Smart Card Market, By Communication (Page No. - 43)
    6.1 Introduction
    6.2 Contact Smart Cards
    6.3 Contactless Smart Cards
    6.4 Microprocessor-Based Smart Cards
    6.5 Memory-Based Smart Cards

7 Smart Card Market, By Component (Page No. - 56)
    7.1 Introduction
    7.2 Hardware
           7.2.1 Smart Cards
           7.2.2 Smart Card Readers
    7.3 Software
    7.4 Services

8 Smart Card Market, By Application (Page No. - 67)
    8.1 Introduction
    8.2 Banking, Financial Services, and Insurance (BFSI)
    8.3 Government and Healthcare
    8.4 Transportation
    8.5 Retail
    8.6 Others

9 Geographic Analysis (Page No. - 73)
    9.1 Introduction
    9.2 North America
    9.3 Europe
    9.4 APAC
    9.5 RoW

10 Competitive Landscape (Page No. - 84)
     10.1 Overview
     10.2 Market Ranking Analysis
     10.3 Competitive Scenario
             10.3.1 Product Launches and Developments
             10.3.2 10 Most Recent Partnerships, Contracts, Acquisitions, and Agreements

11 Company Profiles (Page No. - 89)
     11.1 Key Players
(Business Overview, Products Offered, Recent Developments, MnM View, SWOT Analysis)*
             11.1.1 Gemalto N.V.
             11.1.2 Giesecke & Devrient GmbH
             11.1.3 Idemia
             11.1.4 Infineon Technologies AG
             11.1.5 NXP Semiconductors N.V.
             11.1.6 Sony Corporation
             11.1.7 Samsung Electronics Co. Ltd
             11.1.8 HID Global Corporation/Assa Abloy AB
             11.1.9 Stmicroelectronics N.V.
             11.1.10 Ingenico Group Sa
             11.1.11 Verifone Systems Inc.
             11.1.12 Beijeng Watchdata Co. Ltd.
*Business Overview, Products Offered, Recent Developments, MnM View, SWOT Analysis Might Not Be Captured in Case of Unlisted Companies.
     11.2 Other Key Players
             11.2.1 Rambus Inc.
             11.2.2 CPI Card Group Inc.
             11.2.3 Identiv, Inc.
             11.2.4 Kona I Co., Ltd.
             11.2.5 Valid
             11.2.6 Fingerprint Cards AB
             11.2.7 Brilliantts Co., Ltd.
             11.2.8 Bitel Co. Ltd
             11.2.9 Fujian Newland Payment Technology Co., Ltd
             11.2.10 PAX Global Technology Ltd.
             11.2.11 Cardlogix Corporation
             11.2.12 Zwipe As
             11.2.13 Versasec AB

12 Appendix (Page No. - 138)
     12.1 Insights of Industry Experts
     12.2 Discussion Guide
     12.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     12.4 Available Customizations
     12.5 Related Reports
     12.6 Author Details


List of Tables (68 Tables)

Table 1 Smart Card Market (USD Million And, Million Units), 2016–2023
Table 2 Adoption of Contactless Smart Cards (2017) (In %)
Table 3 Comparison Analysis
Table 4 International Migrant Stock (1990–2017) (In Millions)
Table 5 Market, By Communication, 2016–2023 (USD Million)
Table 6 Market, By Communication, 2016–2023 (Million Units)
Table 7 Market for Contact Smart Cards, By Type, 2016–2023 (USD Million)
Table 8 Market for Contact Smart Cards, By Type, 2016–2023 (Million Units)
Table 9 Market for Contact Smart Cards, By Application, 2016–2023 (USD Million)
Table 10 Market for Contact Smart Cards, By Application, 2016–2023 (Million Untis)
Table 11 Market for Contact Smart Cards, By Region, 2016–2023 (USD Million)
Table 12 Market for Contact Smart Cards, By Region, 2016–2023 (Million Units)
Table 13 Market for Contactless Smart Cards, By Type, 2016–2023 (USD Million)
Table 14 Market for Contactless Smart Cards, By Type, 2016–2023 (Million Units)
Table 15 Market for Contactless Smart Cards, By Application, 2016–2023 (USD Million)
Table 16 Market for Contactless Smart Cards, By Application, 2016–2023 (Million Untis)
Table 17 Market for Contactless Smart Cards, By Region, 2016–2023 (USD Million)
Table 18 Market for Contactless Smart Cards, By Region, 2016–2023 (Million Units)
Table 19 Market for Microprocessor-Based Smart Cards, By Application, 2016–2023 (USD Million)
Table 20 Market for Microprocessor-Based Smart Cards, By Application, 2016–2023 (Million Untis)
Table 21 Market for Microprocessor-Based Smart Cards, By Region, 2016–2023 (USD Million)
Table 22 Market for Microprocessor-Based Smart Cards, By Region, 2016–2023 (Million Units)
Table 23 Market for Memory-Based Smart Cards, By Application, 2016–2023 (USD Million)
Table 24 Market for Memory-Based Smart Cards, By Application, 2016–2023 (Million Units)
Table 25 Market for Memory-Based Smart Cards , By Region, 2016–2023 (USD Million)
Table 26 Market for Memory-Based Smart Cards, By Region, 2016–2023 (Million Units)
Table 27 Smart Card Market, By Component, 2016–2023 (USD Million)
Table 28 Market for Hardware, By Region, 2016–2023 (USD Million)
Table 29 Market for Hardware, By Region, 2016–2023 (Million Units)
Table 30 Market for Hardware, By Type, 2016–2023 (USD Million)
Table 31 Market for Hardware, By Type, 2016–2023 (Million Units)
Table 32 Market for BFSI Applications, By Hardware, 2016–2023 (USD Million)
Table 33 Market for BFSI Applications, By Hardware, 2016–2023 (Million Units)
Table 34 Market for Government and Healthcare Applications, By Hardware, 2016–2023 (USD Million)
Table 35 Market for Government and Healthcare Applications, By Hardware, 2016–2023 (Million Units)
Table 36 Market for Transportation Applications, By Hardware, 2016–2023 (USD Million)
Table 37 Market for Transportation Applications, By Hardware, 2016–2023 (Million Units)
Table 38 Market for Retail Applications, By Hardware, 2016–2023 (USD Million)
Table 39 Market for Retail Applications, By Hardware, 2016–2023 (Million Units)
Table 40 Market for Other Applications, By Hardware, 2016–2023 (USD Million)
Table 41 Market for Other Applications, By Hardware, 2016–2023 (Million Units)
Table 42 Market for Software, By Region, 2016–2023 (USD Million)
Table 43 Market for Services, By Region, 2016–2023 (USD Million)
Table 44 Market for BFSI Applications, By Component, 2016–2023 (USD Million)
Table 45 Market for Government and Healthcare Applications, By Component, 2016–2023 (USD Million)
Table 46 Market for Transportation Applications, By Component, 2016–2023 (USD Million)
Table 47 Market for Retail Applications, By Component, 2016–2023 (USD Million)
Table 48 Market for Other Applications, By Component, 2016–2023 (USD Million)
Table 49 Market, By Application, 2014–2023 (USD Million)
Table 50 Market for BFSI Applications, By Region, 2016–2023 (USD Million)
Table 51 United Nations E-Government Development Index, 2003–2014
Table 52 Market for Government and Healthcare Applications, By Region, 2016–2023 (USD Million)
Table 53 Market for Transportation Applications, By Region, 2016–2023 (USD Million)
Table 54 Market for Retail Applications, By Region, 2016–2023 (USD Million)
Table 55 Market for Other Applications, By Region, 2016–2023 (USD Million)
Table 56 Market, By Region, 2016–2023 (USD Million)
Table 57 Market, By Region, 2016–2023 (Million Units)
Table 58 Market in North America, By Country, 2016–2023 (USD Million)
Table 59 Market in North America, By Country, 2016–2023 (Million Units)
Table 60 Market in Europe, By Country/Region, 2016–2023 (USD Million)
Table 61 Market in Europe, By Country/Region, 2016–2023 (Million Units)
Table 62 Market in APAC, By Country/Region, 2016–2023 (USD Million)
Table 63 Market in APAC, By Country/Region, 2016–2023 (Million Units)
Table 64 Market in RoW, By Region, 2016–2023 (USD Million)
Table 65 Market in RoW, By Region, 2016–2023 (Million Units)
Table 66 Top 5 Smart Card Manufacturers
Table 67 10 Most Recent Product Launches in the Smart Card Market
Table 68 Partnerships, Contracts, and Agreements in the Smart Card Market


List of Figures (42 Figures)

Figure 1 Segmentation of the Smart Card Market
Figure 2 Smart Card Market: Research Design
Figure 3 Bottom-Up Approach to Arrive at the Market Size
Figure 4 Top-Down Approach to Arrive at the Market Size
Figure 5 Data Triangulation
Figure 6 Assumptions of the Research Study
Figure 7 Snapshot: Smart Card Market (2016–2023)
Figure 8 Market, By Component, 2016–2023
Figure 9 Market, By Communication, 2016–2023
Figure 10 Market, By Application, 2016–2023 (USD Million)
Figure 11 Market, By Geography
Figure 12 BFSI Sector to Contribute to the Growth of the Market During Forecast Period
Figure 13 Contact Smart Cards to Hold A Larger Size of the Market Throughout the Forecast Period
Figure 14 BFSI to Hold the Largest Share of the Market Throughout the Forecast Period
Figure 15 Hardware to Hold the Largest Share of the Market Throughout the Forecast Period
Figure 16 Market in RoW to Grow at the Highest Between 2018 and 2023
Figure 17 Drivers, Restraints, Opportunities, & Challenges Pertaining to the Smart Card Market
Figure 18 Social Benefits to Households in Cash (% of GDP), 2009 – 2015
Figure 19 Healthcare Expenditure, Public (% of GDP)
Figure 20 Comparison Analysis
Figure 21 Value Chain Analysis: Major Value is Added Between Smart Card Vendors and Card Issuers Phases
Figure 22 Market, By Communication
Figure 23 Market for Contactless Smart Cards to Grow at A Higher CAGR During the Forecast Period
Figure 24 Hardware to Hold the Largest Size of the Market Throughout the Forecast Period
Figure 25 Market for Transportation Application to Grow at the Highest CAGR During the Forecast Period
Figure 26 Geographic Snapshot of the Smart Card Market
Figure 27 Snapshot of the Market in North America
Figure 28 Snapshot of the Market in Europe
Figure 29 Snapshot of the Market in APAC
Figure 30 Snapshot of the Market in RoW
Figure 31 Companies in the Market Adopted Contract as the Key Growth Strategy Between January 2015 and February 2018
Figure 32 Market Evaluation Framework
Figure 33 Gemalto N.V.: Company Snapshot
Figure 34 Giesecke & Devrient GmbH: Company Snapshot
Figure 35 Infineon Technologies AG: Company Snapshot
Figure 36 NXP Semicondcutors N.V.: Company Snapshot
Figure 37 Sony Corporation: Company Snapshot
Figure 38 Samsung Electronics Co. Ltd.: Company Snapshot
Figure 39 Assa Abloy AB: Company Snapshot
Figure 40 Stmicroelectronics N.V.: Company Snapshot
Figure 41 Ingenico Group Sa: Company Snapshot
Figure 42 Verifone Systems Inc: Company Snapshot


Request for detailed methodology, assumptions & how numbers were triangulated.

Please share your problem/objectives in greater details so that our analyst can verify if they can solve your problem(s).
  • Select all
  • News-Letters with latest Market insights
  • Information & discussion on the relevant new products and services
  • Information & discussion on Market insights and Market information
  • Information & discussion on our events and conferences
    • Select all
    • Email Phone Professional and social network (Linkedin, etc)
Report Code
SE 6382
Published ON
Jun, 2018
Choose License Type
BUY NOW
  • SHARE
X
Request Customization
Speak to Analyst
Speak to Analyst
OR FACE-TO-FACE MEETING
PERSONALIZE THIS RESEARCH
  • Triangulate with your Own Data
  • Get Data as per your Format and Definition
  • Gain a Deeper Dive on a Specific Application, Geography, Customer or Competitor
  • Any level of Personalization
REQUEST A FREE CUSTOMIZATION
LET US HELP YOU!
  • What are the Known and Unknown Adjacencies Impacting the Smart Card Market
  • What will your New Revenue Sources be?
  • Who will be your Top Customer; what will make them switch?
  • Defend your Market Share or Win Competitors
  • Get a Scorecard for Target Partners
CUSTOMIZED WORKSHOP REQUEST
ADJACENT MARKETS
REQUEST BUNDLE REPORTS
+1-888-600-6441
  • Call Us
  • +1-888-600-6441 (Corporate office hours)
  • +1-888-600-6441 (US/Can toll free)
  • +44-800-368-9399 (UK office hours)
CONNECT WITH US
ABOUT TRUST ONLINE
© MarketsandMarkets Research Private Ltd. All rights reserved
...

Digital Virtual Assistant - MarketsandMarkets

Home