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A smart card is a card that consists of an embedded integrated circuit (IC) chip also known as ICC. This chip can either be a microcontroller with inbuilt memory or just a memory chip. A smart card gets connected with the reader only when it’s physically contacted or with the aid of a remote contactless radio-frequency interface. A smart card is capable of transacting and storing data which is either associated with a value, information or both. The smart card offers a secure solution as they are microprocessor-based with protocols of security and convenience are the reason they have been replacing the magnetic stripe card. Smart cards have the capability to store large amounts of data and process data at a faster speed leading to an increase in demand for smart cards in the last decade.
The global smart cards Market is projected to be at USD 32.65 billion in 2025 and is likely to surge during the forecast period. The factors that have bolstered the market growth include increasing security concerns, the rapid movement towards a cashless digital economy, technological advancements, and favorable government regulations are expected to boost the demand for smart cards globally. Most of the regions such as Europe and the Asia Pacific have adopted the use of EMV cards as the number of reported frauds declined by using these cards in online & offline transactions. The cards such as EMV requires personal identification number PIN at the time of transactions. It makes the transaction more secure compared to magnetic stripe cards transactions which are authenticated by card holder’s signature and visual inspection.
However, the increasing amount of online and offline frauds might restraint the market growth of smart cards. The number of frauds in online & offline payment modes reached so high when magnetic stripe cards were in use and to overcome these EMV chip and PIN cards were introduced. The number of frauds have not stopped but have reduced with the implementation of smart cards. No matter what, the fraudsters would find a loophole and are able to steal the identity and information of the cardholder and the merchant acquirers had to bear the losses caused due to theft.
For instance, according to a company named Vesta Corporation, in 2016, there is an increase in 50% online fraud known as card-not-present CNP fraud. In these, customer just need to provide the email address and no other verification details and can buy anything online by using a fake credit card number.
Key Segments of the Global smart cards Market
Type Overview, 2015-2025 (USD Billion)
Application Overview, 2015-2025 (USD Billion)
Regional Overview, 2015-2025 (USD Billion)
Reasons for the study
What does the report include?
Who should buy this report?
This study is suitable for industry participants and stakeholders in the global smart card market. The report will benefit:
The smart card is a chipset that is capable of storing and transacting data which is either associated with a value, information or both. As smart card offer a secure solution as they are microprocessor-based with protocols of security and convenience are the reason they have been replacing the magnetic stripe card. Smart cards are capable of storing large amounts of data at faster processing speed leading to increase in demand during the last decade
Telecommunications is one of the largest users of smart cards in the form of Subscriber Identity Module (SIM) and Universal Subscriber Identification Modules (USIM) which are used to bridge the identity gap as the smartphones transitions between networks of different bandwidth. Telecommunication industry is largely dependent on smart cards, they are the largest purchaser of smart cards driving the growth of the market.
The explosion in healthcare data have brought up new challenges for the sector and they are falling short to protect data and safeguard confidential information. Smart cards are solving these current challenges by offering a more secure solution as the data is stored electronically. This electronically stored data can be retrieved rapidly and efficiently facilitating timely and improved treatments for the patients.
Smart cards are also been adopted as access cards by many businesses and universities to store the data of employees and students. As these cards have stored the identity of the person they are used as access cards at multiple locations and can also be used for financial transactions at cafeterias and stores. For instance U.S. Government has adopted contactless readers as access points to their facilities.
Type Segment
Contact-based smart cards dominate the overall market by contributing 33% in 2018 and is expected to maintain its position over the forecast period. Contact cards come with an embedded chip that requires PIN authentication at the time of the transaction, a more secure process offering the user more control over transactions, as a result of which a major chunk of the population prefers contact cards for transactions. The contactless smart card type is projected to grow at the fastest CAGR of 18.23% during the forecast period due to an increase in transaction speed and increased customer convenience.
Application Type Segment
Application of smart cards in the Telecom industry was highest in 2018 and is expected to dominate the smart cards industry during the forecast period. The growing demand for Subscriber Identity Modules (SIM) cards due to increasing penetration of smartphones which work on Global System for Mobile Communication (GSM) standard has led to increase in demand of smart cards in the telecom industry. Each phone uses the inimitable identifier, stored in the SIM, to manage the privileges and rights of the respective subscriber on different networks. The banking and payments segment is estimated to hold the second largest market share following the telecom industry.
On the geographical front, the major market comes under North America, Europe, Asia Pacific, Latin America, and MEA. In 2018, Asia Pacific dominated the market with a value of USD 4.81 Billion with a strong potential during the forecast period. The presence of growing economies such as India, Indonesia, and China presents a huge revenue opportunity in the Asia Pacific for smart card players. The growing banking industry and growing demand for smartphones are expected to boost the smart card market in the Asia Pacific.
The major players of global smart cards market include Oberthur Technologies, Perfect Plastic Printing, CPI Card Group, Gemalto, Giesecke & Devrient, Inc, Goldpac Group Ltd, Valid USA, MCT Cards & Technology Pvt. Ltd, DZ card, CardLogix Corporation.
The market for the smart card is consolidated with a limited number of well-established players in the global market. The major companies are acquiring the regionally established companies to combine their synergies and increase its presence in the market. For instance, in May 2017, Oberthur Technologies global leader in embedded secure element announced the acquisition of Safran Identity and Security also known as Morpho S.A.S. the acquisition is expected to improve the needs of major industries such as Telecom, Financial services, Security, and Identity
A smart card is a card that consists of an embedded integrated circuit (IC) chip also known as ICC. This chip can either be a microcontroller with inbuilt memory or just a memory chip. A smart card gets connected with the reader only when it’s physically contacted or with the aid of a remote contactless radio-frequency interface. A smart card is capable of transacting and storing data which is either associated with a value, information or both. The smart card offers a secure solution as they are microprocessor-based with protocols of security and convenience are the reason they have been replacing the magnetic stripe card. Smart cards have the capability to store large amounts of data and process data at a faster speed leading to an increase in demand for smart cards in the last decade.
The global smart cards Market is projected to be at USD 32.65 billion in 2025 and is likely to surge during the forecast period. The factors that have bolstered the market growth include increasing security concerns, the rapid movement towards a cashless digital economy, technological advancements, and favorable government regulations are expected to boost the demand for smart cards globally. Most of the regions such as Europe and the Asia Pacific have adopted the use of EMV cards as the number of reported frauds declined by using these cards in online & offline transactions. The cards such as EMV requires personal identification number PIN at the time of transactions. It makes the transaction more secure compared to magnetic stripe cards transactions which are authenticated by card holder’s signature and visual inspection.
However, the increasing amount of online and offline frauds might restraint the market growth of smart cards. The number of frauds in online & offline payment modes reached so high when magnetic stripe cards were in use and to overcome these EMV chip and PIN cards were introduced. The number of frauds have not stopped but have reduced with the implementation of smart cards. No matter what, the fraudsters would find a loophole and are able to steal the identity and information of the cardholder and the merchant acquirers had to bear the losses caused due to theft.
For instance, according to a company named Vesta Corporation, in 2016, there is an increase in 50% online fraud known as card-not-present CNP fraud. In these, customer just need to provide the email address and no other verification details and can buy anything online by using a fake credit card number.
Key Segments of the Global smart cards Market
Type Overview, 2015-2025 (USD Billion)
Application Overview, 2015-2025 (USD Billion)
Regional Overview, 2015-2025 (USD Billion)
Reasons for the study
What does the report include?
Who should buy this report?
This study is suitable for industry participants and stakeholders in the global smart card market. The report will benefit:
Chapter 1 Executive Summary
Chapter 2 Research Methodology
2.1 Methodology/Research Approach
2.2 Research Scope
2.3 Assumptions:
2.4 List of Data Sources
Chapter 3 Market Outlook
3.1 Introduction
3.2 Key trends
3.2.1 Market drivers
3.2.2 Market restraints
3.3 International standards for smart cards
3.4 Payment smart card frauds and how to avoid it
3.4.1 Card-not-present (CNP) frauds
3.4.2 Card-present-frauds
3.5 Data & identity breach
3.6 Value chain analysis
3.7 Porter’s five forces analysis
Chapter 4 Smart Card Market Overview, By Type
4.1 Global smart card market share, by type, 2018 & 2025 (USD Million) (Million Units)
4.1.1 Contact
4.1.2 Contactless
4.1.3 Dual Interface
4.1.4 Hybrid
Chapter 5 Smart Card Market Overview, By Application
5.1 Global smart card market share, by application, 2018 & 2025 (USD Million) (Million Units)
5.1.1 Payment & Banking
5.1.2 Government & Healthcare
5.1.3 Telecom
5.1.4 Device Manufacturing
5.1.5 Others
Chapter 6 Global Smart Card Market Overview, By Region
6.1 Global smart card market share, by region, 2018 & 2025
6.2 North America
6.2.1 U.S.
6.2.2 Canada
6.3 Europe
6.3.1 Germany
6.3.2 United Kingdom
6.3.3 Rest of Europe
6.4 Asia Pacific
6.4.1 China
6.4.2 India
6.4.3 Rest of Asia Pacific
6.5 Rest of the World
Chapter 7 Company Profiles
7.1 Perfect Plastic Printing
7.1.1 Company overview
7.1.2 Product offerings
7.1.3 Recent initiatives
7.2 Oberthur Technologies
7.2.1 Company overview
7.2.2 Product offerings
7.2.3 Recent initiatives
7.3 Gemalto
7.3.1 Company overview
7.3.2 Product offerings
7.3.3 Financial performance
7.3.4 Recent initiatives
7.4 CPI Card Group
7.4.1 Company overview
7.4.2 Product offerings
7.4.3 Financial performance
7.4.4 Recent initiatives
7.5 Giesecke & Devrient
7.5.1 Company overview
7.5.2 Product offerings
7.5.3 Financial performance
7.5.4 Recent initiatives
7.6 Valid USA, Inc.
7.6.1 Company overview
7.6.2 Product offerings
7.6.3 Financial performance
Note: The revenue is of the parent company VALID SA.
7.6.4 Recent initiatives
7.7 Goldpac Group Ltd
7.7.1 Company overview
7.7.2 Product offerings
7.7.3 Financial performance
7.7.4 Recent initiatives
7.8 MCT Cards & Technology Pvt. Ltd
7.8.1 Company overview
7.8.2 Product offerings
7.9 DZ Card
7.9.1 Company overview
7.9.2 Product offerings
7.10 CardLogix Corporation
7.10.1 Company overview
7.10.2 Product offerings
7.10.3 Recent initiatives
7.11 Disclaimer