The thriving e-commerce and telecom sector in Asia Pacific contributes to nearly 70 percent of the demand for smart card market. Increasing applications of smart cards for use in the government sector in India and China, is also one of the major drivers in the Asia Pacific smart card market. North America smart card market is expected to be a comparatively less attractive market in the forecast period owing to mature demand for new smart cards in the region. However, with migration to EMV card, the market of smart cards is anticipated to increase in North America, though at a sluggish rate. These are some of the pertinent findings of the new report published by Persistence Market Research which is titled as ‘Smart Card Market: Global Industry Analysis and Forecast 2017 – 2024’. In addition, this research report also contains the various market dynamics that are affecting the growth of the global smart card market in the form of drivers, restraints, opportunities and trends. Such in-depth qualitative data aids in the understanding of this lucrative and vast market. As per the numbers given in the report, the global smart card market was valued at US$ 9,288.9 Mn in 2017 and is estimated to reach a valuation of US$ 15,050.2 Mn at the end of the year 2024, and reflect a CAGR growth of 7.1% during the assessment period 2017-2024.
Global Smart Card Market: Dynamics
SIM cards used by the telecommunication industry are smart cards based on memory chips. Increasing number of mobile phone has initiated a strong demand for SIM cards. This escalating demand for SIM cards is driving growth of the smart card market since telecom application majorly contributes in terms of revenue to the global smart card market. According to a report published by the International Telecommunication Union, the number of mobile subscriptions globally has been estimated to reach over 7,000 Mn. The global mobile subscription is expected to exceed 9,000 Mn by 2020 end, giving a huge boost to the global smart card market.
However, reluctance in adoption of capital intensive PoS terminals is hindering the adoption of smart cards at merchant stores. According to The New Republic, (a liberal American magazine), only 10% of U.S. merchants have upgraded to new EMV terminals supporting contact and contactless EMV cards as of 2014. Merchants are reluctant to spend money until they are certain that banks will issue contact and contactless smart cards. Conversely, banks do not want to spend money on expensive cards until merchants install the card readers. These factors may hinder the growth of the global smart card market during the period of assessment.
Global Smart Card Market: Segmentation and Forecast
The global smart card market is segmented on the basis of type, component, end-use, access type and geography.
- The dual-interface segment is projected to be valued at US$ 1,884.3 Mn by 2024 end, and this segment is expected to gain market share by 2024 as compared to 2017.
- The micro-controller card segment was valued at US$ 6,672.2 Mn in 2017 and is projected to reach a valuation of US$ 11,108 Mn at the end of the year 2024.
- Among the product end use segments, telecommunication segment is expected to register highest CAGR during the forecast period. The telecommunication segment was valued at US$ 4,601.2 Mn in 2017.
- Among the access type segments, physical access card segment is anticipated to be the most attractive market in the global smart card market. This segment was valued at US$ 5,429.8 Mn in 2017.
- Europe smart card market is expected to lose a significant market share by 2024 as compared to 2017. Europe smart card market is anticipated to contribute 21.2% to the global smart card market by 2024 end.
Global Smart Card Market: Competition Landscape
In this detailed and informative report on the global smart card market, the leading companies that are operating in this market have been profiled in the competition landscape section. Some of the leading companies that have been profiled include NXP Semiconductors N.V., Infineon Technologies AG, Gemalto N.V., Inside Secure SA, CPI Card Group Inc., Morpho SA, Oberthur Technologies, Giesecke & Devrient GmbH and Watchdata Technologies.
For further insights into the global smart card market, write in to Persistence Market Research analysts at email@example.com