New York City, NY, 01 October, 2019/ 24 Market Reports:
At a CAGR of 7.6%, it is estimated for the smart card market to reach USD 14.3 billion by the year 2023. In the year 2016, the market stood at USD 8.5 billion. The increasing use of smart cards resulting in the consistent growth of the market is estimated to drive the growth of the market during the forecast year. The contribution made by the contactless smart cards will help the market to grow at a significant rate. Contactless smart card is a segment under the types of smart cards available in the market. In recent year Latin America is showing more than 70% of the market penetration whereas, the Asia Pacific is also believed to become a potential market in the upcoming years.
High security, the key for market growth
The use of smart card takes place in various industries such as BFSI, e-commerce, retail, health, and telecommunication. Among these, the telecommunication sector is likely to witness high demand. The rise of mobile phone users in the developing economies is expected to rise the growth of the smart card market.
Provision of high security is the feature that is driving the growth of the market. The current smart cards own EMV chips on them that provide increased security and protects the information of the user. Also, the increased use of e-commerce, net banking, and internet of things is driving the growth of the smart card market across the globe. These factors are expected to propel the growth of the market.
The higher cost of adoption to act as a market restraint
The high initial cost to be paid while shifting to smart cards is likely to hinder the growth of the market. However, being an initial and one-time expense it is expected to overcome this restraint with the lapse of time. Increasing use of digital wallets may restrain the growth of the market up to some extent but the features provided by the smart cards is likely to increase its pace of growth in the market.
Segmentation of the smart card market
Based on type, the market can be segmented into contact smart cars, contactless smart cards, hybrid smart cards, and dual-interface smart cards. Microcontroller based smart cards and memory card-based smart cards are the segmentation for the market based on components. North America, Europe, Asia Pacific, Latin America, and MEA are the geographical segmentation.
