Securing Tomorrow: The Rise and Evolution of Smart Cards in Modern Technologies
Tamper-resistant portable storage devices called smart cards can improve the security of several operations like code signing, email security, client authentication, and Windows domain account sign-in. Tamper-resistant storage to safeguard private keys and other types of personal data is one of the features that smart cards offer.
A smart card is a compact, lightweight, credit card-sized computer that has an integrated chip that allows it to process, store, and exchange data. Smart cards have a wide range of uses, such as communication, identification, secure transactions, and access control. Introducing Smart Cards to the Area: Residents for Contemporary Transportation because smart cards provide increased simplicity and security, they are perfect for these kinds of uses. They also have a minimal carbon impact and a lengthy life cycle.
The global smart card market size was valued at USD 10230 million in 2021 and is expected to expand at a CAGR of 6.4% from 2022 to 2030 and reach around USD 17925 million.
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The following current trends will shape the smart card market in 2024:
- Growth in the BFSI sector: Smart cards are used for secure data transfers, payment authentication, access control, and as electronic wallets. The banking, financial services, and insurance (BFSI) sector is driving the demand for smart cards. This trend is being further fueled by the growth of digital financial technologies and neobanks.
- Asia-Pacific adoption is rising: The smart card market is anticipated to grow at the fastest rate in the Asia-Pacific area due to the presence of significant manufacturers, especially in China, and a sizable consumer base. Examples of this trend are initiatives such as the introduction of the Namma Chennai Smart Card in India.
- Rise of biometric smart cards: Biometric smart cards are becoming more and more popular. They incorporate biometric identification methods including fingerprints, irises, and facial patterns. By connecting the cardholder’s identification to the smart card credential, these cards improve security. Businesses that are already using this technology include Mastercard.
- Cutting costs and streamlining production: To lower the cost of biometric smart cards for consumers, smart card makers are concentrating on streamlining the manufacturing process and reducing costs. The creation and uptake of these cards are being sped up by alliances and cooperative efforts.
- Impact of COVID-19: As a result of the epidemic, people used biometric smart cards and other contactless technology more frequently to avoid making physical contact. However, the market was initially badly affected by disruptions in the supply chain and a decline in consumer spending. It is presently anticipated that the market will expand and recover in the upcoming years.
Market Dynamics
- Market Drivers
Increasing government initiatives regarding smart payment gateways will drive the market
Government initiatives such as One Nation One Card, Digidhan, Digital India, etc., promote the use of smart cards while making payments or making India paperless and cashless. It is growing across various regions to improve the system’s efficiency. Many organizations are also working to promote smart health cards among the general public. This is expected to boost smart card demand in the market.
The healthcare industry is becoming increasingly digital
Everything is going online, and digitalization is accelerating; healthcare companies are following suit and introducing new products such as smart health cards. Furthermore, smart card adoption is increasing to manage patient data with patient management tools, which is expected to drive up smart card demand in the healthcare market.
- Market Restraints
Substantial capital investments and the high cost of chips are the obstacles
The Global Smart Card Market’s growth is expected to be hampered by the high cost of smart cards. The smart cards and associated control require a significant initial capital investment. Smart cards also need the reader to decrypt the data before providing the information. The installation of these readers will incur additional costs. Furthermore, the cost of these smart cards rises as the chip is used. As a result, high prices may limit market growth over the forecast period.
- Market Opportunities
AI has enabled a new level of data security for users
AI is a game-changing technology that allows businesses to create fast, secure apps that meet stringent security standards. Smart cards can manage cryptographic keys efficiently and securely, making transactions more efficient and safe. Cryptographic keys are kept in vaults. When smart cards are connected to the Internet via POS readers, their keys can be matched with keys stored in online libraries. When the match is successful, users are authenticated. This is expected to help banks and other ecosystem players secure and authenticate users’ identities more effectively, reducing the number of cases of cyber theft.
Segment Overview
The market can be divided into contact, contactless, and dual-interface smart cards. According to the end-users, the market can be divided into government, retail, healthcare, financial services, transportation services, government, and others. North America, Europe, Asia-Pacific, Latin America, and the Caribbean (LAMEA) make up the global smart card market.
Contact smart cards are inserted into a smart card reader or swipe machine and make physical contact with the reader, allowing them to transfer money.
An antenna on a Contactless smart card allows communication with the reader without physical contact. It’s as simple as tapping and paying. Contactless communication is straightforward and practical.
A dual interface is a smart card with a single embedded chip that can make contact and contactless transactions.
By Type
- Contact
- Contactless
- Dual Interface
By End-User
- BFSI
- Telecommunication
- Healthcare
- Government
- Transportation
- Others
By Region
- North America
- Europe
- UK
- Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Regional Insights
Three regional players are shown in the Smart Cards Market Analysis. Asia Pacific, Europe, and North America are the major players. The Asia Pacific will dominate other regional players. It is a region where smart cards are more widely used. The healthcare and government sectors have increased their demand. Many end-users are drawn to the cards because of their useful features. North America is also a significant regional player in the market. Smart card investments in the United States and Canada are higher. The majority of businesses are early adopters of this product. North America has the newest product launches and developments. Another high-growth region with a high demand for smart cards is Europe. In Europe, the rate of expansion is expected to peak.
Top Key Players of Smart Card Market
- Alioth Llc
- Cardlogix Corporation
- Cpi Card Group Inc.
- Giesecke+Devrient Gmbh
- Idemia
- Identiv, Inc.
- Infineon Technologies Ag
- Nxp Semiconductors Nv
- Thales
- Watchdata Technologies
- Shanghai Huahong
- Shanghai Fudan Microelectronics
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Recent Developments
- 05 April 2022 CPI Card Group® and Member Access Processing Bring Instant Issuance to Credit Unions.
- 05 May 2022 Green Banknote increases sustainability in the cash cycle.
- 28 April 2022 A New G+D survey proves that the future of banking is digital.
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