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 expected to develop 17.21 by 2030 , at a compound annual increase in price (CAGR) of 6.2% throughout the forecast period.
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.
Smart Cards Market Scope
Metrics Details Base Year 2022 Historic Data 2020-2021 Forecast Period 2022-2030 Study Period 2020-2030 Forecast Unit Value (USD) Revenue forecast in 2030 USD 17.21 billion Growth Rate CAGR of 6.2 % during 2022-2030 Segment Covered By Smart Card Type, By Smart Card Interface, By Functionality, By Vertical, Region Regions Covered North America, Europe, Asia Pacific, South America, Middle East and Africa Key Players Profiled Rambus Inc. (the U.S.), CardLogix Corporation (the U.S.), CPI Card Group Inc. (the U.S.), Identiv Inc. (the U.S.), VeriFone Systems Inc. (the U.S.), Gemalto N.V. (Netherlands), Giesecke & Devrient GmbH (Germany), IDEMIA France SAS (France)
Key Segments of the Global smart cards Market
Type Overview, 2015-2025 (USD Billion)
Contact
Contactless
Dual Interface
Hybrid
Application Overview, 2015-2025 (USD Billion)
Payment & Banking
Government & Healthcare
Telecom
Others
Regional Overview, 2015-2025 (USD Billion)