Smart Card Integrated Circuit Ic Market

According to Stratistics MRC, the Global Smart Card Integrated Circuit (IC) Market is accounted for $3.1 billion in 2023 and is expected to reach $5.4 billion by 2030 growing at a CAGR of 8.2% during the forecast period. An embedded smart card integrated circuit (IC), commonly referred to as a chip card, is a service token for storing and exchanging data between users. It is processed and stored in memory and on a microprocessor card chip and is connected to value and information. It is frequently offered in memory and microcontroller variations. Among these, the microcontroller smart card IC comprises a central processing unit (CPU), crystal oscillator, timers, watchdog, and analog input and output. It helps reduce the complexity, costs, size of circuits, and discrete components in embedded systems.

According to GSM Association, the Internet penetration rate in APAC exceeded 1.2 billion, with a penetration rate under 45% in 2021.

Market Dynamics:

Driver:

Growing IoT adoption among end-user industries

Manufacturing operations in Industry 4.0 are totally automated with minimal to no human involvement. Due to ongoing technical improvements, rising cellular connectivity & data transfer speeds, and the development of cloud infrastructure, industry participants are concentrating on embracing IoT. Additionally, the need for low-cost, highly effective smart card ICs used for protected data storage and data transmission has increased. As a result, IoT has recently attracted the attention of technology companies, organisations and consumers.

Restraint:

Increasing use of mobile wallets

Businesses in the banking sector see ongoing innovation. A smartphone app and a digital wallet are software platforms for conducting online transactions. Globally, the use of digital wallets is constantly growing. This is motivating a number of businesses to introduce digital wallets in an effort to meet consumers' growing demand. Due to the rising demand for digital wallets, consumers will switch from using smart cards to mobile wallets. This will result in a decline in the use of smart cards, which will impede the market's expansion.

Opportunity:

Dual-interface cards are in high demand.

A debit or credit card with a dual interface can be used for both contactless and contact transactions thanks to an IC chip that is incorporated in the card. In order to assist customers wait less in businesses with high transaction volumes, merchants are choosing devices with dual-interface cards. Due to the increasing demand, numerous businesses are now providing dual-interface cards on the market. The need for smart card ICs will rise as the demand for dual-interface cards increases.

Threat:

Data security for eSIMs

By offering automatic compatibility across connectivity systems and various SIM operator profiles, eSIM cards enable remote provisioning of SIM profiles. An eSIM's operational flexibility, nevertheless, would be useless if its security were to be jeopardised. A mobile network operator's (MNO) login information is gathered and stored by an eSIM in the device's built-in software, which is vulnerable to numerous security breaches. It also uses a variety of MNOs and physical platforms to operate, which exposes it to the risk of the virtual environment.

Covid-19 Impact

The use of smart cards in the healthcare and telecommunications industries was less affected. The market may expand in the medium to long term as a result of the rising medical industry. The expansion of healthcare data poses considerable challenges to both privacy and effective patient care. Smart cards offer safe data distribution and storage, solving both issues. The market for smart card ICs is expected to rise in the upcoming years as a result of rising demand for contactless payments, government initiatives for national ID cards, and growing e-commerce sales.

The contactless segment is expected to be the largest during the forecast period

The contactless segment is estimated to have a lucrative growth, due to increasing usage of these cards in various organizations and educational institutions as an access control device. They are employed in biometric systems since they only transfer data in one direction and don't process data over the internet. Additionally, many organisations switched to contactless smart cards in response to the pandemic because they are a more hygienic alternative than touch-based biometric technologies like palm geometry and fingerprint identification.

The government and healthcare segment is expected to have the highest CAGR during the forecast period

The government and healthcare segment is anticipated to witness the fastest CAGR growth during the forecast period, due to an increase in the adoption of eID cards. Due to the ability of electronic government papers to track citizen information, the epidemic increased the necessity for regulation of their use. Additionally, by keeping track of important medical information, medication histories, and acting as an electronic prescription, e-health cards have the potential to enhance the patient experience. Social Security numbers can be safely stored on these cards as well.

Region with Largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the ongoing technological innovations in the telecommunications, BFSI, government and healthcare, and transportation verticals, the increasing adoption of digital technologies, and rapid urbanization and industrialization. Other significant factors include the expanding use of Internet of Things (IoT) devices, the expansion of digital technology use in the retail, corporate, educational, and entertainment sectors, and the expansion of electrification in the transportation sector.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to increasing adoption of cashless transactions on account of rapid digitization, rising sales of smartphones and high-speed internet connectivity. In addition, more people are using debit and credit cards since they offer secure transactions and security. The industry is primarily being driven by the increased use of cashless transactions due to the growing use of smartphones and high-speed internet connectivity.

Key players in the market

Some of the key players profiled in the Smart Card Integrated Circuit (IC) Market include Infineon Technologies AG, Microchip Technology Inc., Samsung Electronics Co. Ltd., Datasonic Group Berhad, Smart Card IT Solutions Ltd., NXP Semiconductors NV, ON Semiconductor Corp., STMicroelectronics, Imatric LLC, Toshiba Corporation, Shanghai HuaHong Integrated Circuit, Broadcom Inc., CPI Card Group, Eastcompeace, Tongxin Microelectronics Co. Ltd., JCB Co. Ltd., Protolab Electrotechnologies Pvt. Ltd., Sony Corporation, Texas Instruments, Inc. and Analog Devices, Inc.

Key Developments:

In March 2023, NXP announced the launch of PN7642. The new one-chip solution combines a low-power Arm Cortex M33-based microcontroller, NFC front end, and a SESIP-certified security system. The PN7642 features a High output power of 2W and Integrated DC/DC allows a single 3.3V supply with max Tx power.

In Jan 2023, Infineon joined hands with Sentry Enterprises, a technology company. The collaboration focuses on powering cold storage crypto wallets and biometric access control platforms.

Types Covered:
• Memory
• Microcontroller
• Other Types

Architectures Covered:
• 32-bit
• 16-bit

Interfaces Covered:
• Dual Interface
• Contactless
• Contact

Applications Covered:
• Financial Cards
• ID cards
• USIMs/eSIMs
• IoT Devices
• Other Applications

End Users Covered:
• Transportation
• Retail
• Telecommunications
• Government & Healthcare
• Education
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances