Plastic cards gave various opportunities across countries on the backdrop of an increasing number of banks and financial institutions, worldwide. Moreover, growth in the usage of mobile phones have resulted in the increased demand for plastic cards. This has encouraged manufacturers to come up with more novel products in the market.
A recent Persistence Market Research study predicts the plastic cards market to record expansion at a 7.4% CAGR over the forecast period (2018-2026). Plastic cards continue to witness increased traction in banks and SIM cards. However, growth in gift card application is also expected to be impressive.
In today’s era, it is impossible to visualize modern banking operations, commercial transactions, and other payments without using plastic cards. Plastic cards are now gradually becoming the custom across the globe, as people nowadays are choosing plastic as compared to paper, since there are numerous compensations. The rising intrusion of smart phones has made expertise much more accessible to users through technological applications. Governments are also moving forward for a 'Digital World', and the focus on growing e-payments is a significant driver in replacing physical payments with new innovative solutions.
But, at the same time, in existing ecosystems, the use of plastic cards is growing at an unprecedented rate, globally. People are looking towards hassle-free techniques. Smart cards have many innovative features, which may spurt their use. Smart cards are safer to use in an electronic form than the present form of cards.
Increasing Technological Developments in Developing and Developed Countries Creating the Demand for Plastic Cards
APAC holds a high market share in plastic cards market when compared to other regions, owing to the increased number of financial institutions present in the region. The increasing usage of financial cards has created the demand for plastic cards in the region. Manufacturers are focusing on meeting consumer demand for plastic cards in the APAC region.
Plastic Cards Replacing Cash and Coins
Owing to a decrease in the cash flow between retailers and consumers, there is an increased demand for plastic cards. Plastic cards give consumers certain offers for any purchase, which eventually creates a demand for them. Consumers in North America use gift cards, as this helps the person to make a variety of purchases according to requirement. Gift cards are a good replacement for buying gifts/presents.
Increasing Growth in the Debit Card Sector
Debit cards are the most common card types, which makes up nearly 71% of the worldwide total. The share of debit cards is expected to rise further, mainly as a result of financial inclusion initiatives in developing markets in Asia Pacific, the Middle East and Africa, and Latin America.
Plastic Cards Market Analysis by Technology
The chip enabled cards segment is expected to be valued at US$ 31,293.5 Mn by 2026, and is projected to register a CAGR of 7.5% over the forecast period. Furthermore, the segment is also the primary revenue generator in the global plastic cards market. This segment accounts for 81% market share in the overall plastic cards market in terms of technology, and is anticipated to continue to maintain its significant market share during the forecast period.
Plastic Cards Market Analysis by Application
In terms of value, the payment cards application segment is anticipated to register a CAGR of 8.6% over the forecast period. The payment cards segment is further categorized as credit cards, charge cards, debit cards, and prepaid cards. The debit cards segment accounts for a high market share in terms of value.
Plastic Cards Market Analysis by Region
On the basis of region, Asia Pacific is projected to remain dominant in the global plastic cards market throughout the forecast period. The chip enabled cards segment is estimated to account for a significant market share of 79% in the APAC market by 2018 end.
This Persistence Market Research report on the global plastic cards market analyzes opportunities in the market, and presents updates and insights relating to various segments of the global plastic cards market over the forecast period 2018–2026.
The scope of the report on the plastic cards market consists of different technologies used in plastic cards, such as chip enabled plastic cards, regular plastic cards, and smart plastic cards, used for various application segments such as the government sector, financial sector, mobile phones, and others. Plastic cards analyzed in this report include both magnetic stripe cards and barcode cards.
To understand consumption patterns and assess opportunities in the plastic cards market, the plastic cards market report is divided into three sections, namely, analysis by technology, by application, and by region. The plastic cards report analyzes the global market in terms of market value (US$ Mn) and volume (million units). The plastic cards report highlights existing opportunities in the global market to equip the client with crystal-clear, decision-making insights. The report also includes an analysis of the drivers and restraints witnessed in the plastic cards market. Key trends observed across the value chain are also included in the report.
The plastic cards market is segmented as follows:
To deduce the market size, the report considers various aspects based on secondary research. Furthermore, key data points such as region-wise split and market split by technology, application, and qualitative inputs from primary respondents have been incorporated to arrive at appropriate market estimates. The forecast presented in the report assesses total revenue generated and expected revenue contribution in the global plastic cards market.
The report begins by sizing the base year in terms of value and volume. This forms the basis for forecasting how the market is anticipated to take shape in the near future. Given the characteristics of the market, Persistence Market Research triangulates the data by means of various approaches based on supply side, demand side, and dynamics of the global plastic cards market. To develop the market forecast, PMR conducted a thorough factor analysis to understand the impact of various forces/factors on the target market. However, quantifying the market across the abovementioned segments is more a matter of quantifying expectations and identifying opportunities rather than rationalizing them after the forecast has been completed.
It is imperative to note that, in an ever-fluctuating economy, we not only provide forecasts in terms of CAGR but also analyze on the basis of key parameters, such as year-on-year (Y-o-Y) growth, to understand the predictability of the market and identify the right opportunities.
Another key feature of this report is an analysis of the global plastic cards market and the corresponding revenue forecast in terms of absolute dollar opportunity. This is usually overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales perspective in the global plastic cards market.
To understand key segments in terms of their growth and performance in the global plastic cards market, PMR has developed a market attractiveness index. The resulting index should help providers identify existing market opportunities in the global plastic cards market.
The report covers an in-depth analysis of all components of the value chain in the global plastic cards market. In the final section of the report on the global plastic cards market, a detailed competitive landscape is included to provide a dashboard view of global plastic card manufacturers, retailers, and distributors.
Some market players featured in this report are as follows: