‘Smart Card’ are cards with embedded integrated circuit, used to accumulate and retrieve information. These embedded circuits can either be memory chip- or microcontroller-based. Microcontroller-based smart cards are preferred over memory-based owing to ability to store large amounts of data and efficient functionality of secure encryption and mutual authentication. Microcontroller cards interact with smart card readers for transaction of data. Contact smart cards require physical interaction with the reader; however, contactless smart cards have embedded antenna to enable communication with the reader, without physical contact. Dual smart card are a combination of contact and contactless smart cards; whereas hybrid smart cards are cards with multifunctional applications. Extensive functionality, secure and encrypted storage, and robust adoption of smart cards across application such as government, payment, telecom, transportation, entertainment, energy & utility, and telecom applications are boosting sales of smart card across the globe.
A clear cut report structure for the ease of understanding of this vast market
To understand and assess the opportunities in this market, the report is categorically split into four segments namely market analysis, by product type, component, end use and access type. The report analyzes the market performance of smart card market in terms of market value (US$ Mn) and volume (Mn Units).
The smart card market also covers the smart card market value chain along with a comparative analysis of smart card technologies such as near field communication (NFC) & machine-to-machine (M2M) and comparative analysis of smart card components memory-based and microcontroller-based smart cards. The section also includes PMR’s analysis of the key trends, drivers, and restraints from the supply and demand perspective.
The next section of the report analyzes the smart card market on the basis of product type, component, end use, and access type, and represents the market size in terms of value and volume over the forecast period (2017 - 2024).
A valuable section of the report focuses on the competitive intelligence aspect of the market
Another part of the report features the competition landscape of the global smart card market and has information on the key players operating in this market. The competition landscape contains detailed information on the important companies operating in the global smart card market in the form of company description, product overview, key developments, strategic overview and key financials of each of the featured companies along with the SWOT analysis of the companies. This competition landscape is a valuable part of the report as it contains all the necessary information to study the leading companies operating in the global smart card market in detail and also reveals how they implement their strategies and vision to stay at top in this highly competitive market.
A robust research methodology for getting the accurate market numbers
Overall market size has been analysed through historical data, primary responses, and public domain data. Revenue of companies in the global smart card market has been benchmarked to ascertain the market size for the base year. Macroeconomic indicators such as GDP and industry growth have been considered to forecast the market size over the forecast period. The historical growth trend of end-use industries, market participants’ performance, as well as the present macro-economic outlook has been taken into consideration for estimating the overall market trend forecast. This data is then validated using the triangulation method and is extensively scrutinised using advanced tools to garner quantitative and qualitative insights into the global smart card market.
Growing demand for secure and reliable payment transactions across the retail and BFSI industry is boosting the global market for smart cards
Access to the Internet has become convenient and usage has increased substantially due to rising demand for online banking and shopping experience, and access to e-Government services. Due escalating adoption of e-commerce services, online payments have witnessed exponential growth globally. According to Deloitte, the market for mobile payments is expected to reach US$ 617 Bn in terms of transaction value by 2016. Growth is anticipated to be mainly driven by increasing adoption of NFC77 technology in the U.S. and the global consumer market.
Along with increasing online payments, security risk associated with this mode has increased significantly. Smart cards help to enhance security, reduce fraud, and allows utilization of value-added services to the end-user industry including banking, telecommunication, and government.
Europay, MasterCard and Visa (EMV) cards restrict fraud activities and guard insightful payment data stored in the card. EMV chip technologies are becoming the global standards for debit card and credit card payments. Additionally, smart card technology provides a tamper-proof container for biographic and biometric identifiers, and digital identity credentials. Due to such enhanced security measures offered by the smart cards and the convenience associated with them, the global smart card market is growing at a steady pace.
Delivering complete solutions including software and services related to smart cards is enhancing the growth of the global smart card market
Smart card vendors are entering into mergers and acquisitions to increase their market presence. This would also enable the acquirer to gain access to innovative technology to offset price pressures. Moreover, increasing card payment transactions are expected to open up untapped opportunities for the smart card industry. The total value of transactions using card payments was valued at US$ 10 trillion (as of 2013). This accounted for about one-third of all payments worldwide. Conversely, the market for mobile payment is growing at a higher rate than the global payments market. Thus, smart card vendors have tremendous business opportunity to provide SIM-related services and solutions in mobile payments and device management to increase their revenue.
For instance, in 2013, Standard Chartered Bank wanted a superior facility for both e-Banking and card payment for its customers while ensuring enhanced security and convenience. Gemalto NV offered Standard Chartered Bank an innovative two-in-one card that featured a small LCD display and combined EMV payment with a one-time password and transaction signing for e-Banking.
Convergence of smart cards bringing a huge opportunity for the global smart card market
Currently, the market observes incorporation of payment functionality into various identity credentials such as social security/welfare cards and healthcare and national IDs. However, the market is slowly witnessing a trend of convergence. Moreover, convergence is not limited to the government ID and payments market; it is likely to have convergence of driver's licenses, healthcare cards, national IDs, passports and voter's cards with the payment networks.
Global Smart Card Market Analysis, by Type
Among the product type segments, contactless segment is expected to register highest CAGR during the forecast period. This is attributed to increasing adoption of these cards, particularly in markets such as Europe and Asia for application in banking and payment. The contact card segment is estimated to account for highest value share of nearly 63% in 2017. However, the segment is expected to lose significant market share by 2024 end. Dual-interface card segment is anticipated to register second highest CAGR in terms of value over the forecast period. The hybrid card segment is expected to gain market share by 2024 as compared to 2017.
Key players in the smart card market include