Smart Card Market

Smart Card Market

Smart Card Market Forecasts to 2028 – Global Analysis By Component (Hardware, Software, Service), Functionality (Communication, Transaction, Security & Access Control) and By Geography

4.1 (41 reviews)
4.1 (41 reviews)
Published: 2022 ID: SMRC21346

This report covers the impact of COVID-19 on this global market

Years Covered


Estimated Year Value (2021)

US $13.90 BN

Projected Year Value (2028)

US $20.90 BN

CAGR (2021 - 2028)


Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

Asia Pacific

Highest Growing Market


According to Stratistics MRC, the Global Smart Card Market is accounted for $13.90 billion in 2021 and is expected to reach $20.90 billion by 2028 growing at a CAGR of 6.0% during the forecast period. Smart Card is the device type that is used to exchange and manipulate the data stored in it. It is embedded in an integrated circuit chip, which can be either a simple memory circuit or a microprocessor with memory. The smart card is connected to the host controller through the smart card reader based on RF communication technology. It offers key features such as reusability, secure transaction, and provisions for storing numerous data on a card. It is extensively used to encourage the smart payment mode and to enhance the secure payment transactions.

Market Dynamics:


Rising demand for contactless payments

With the outbreak and the spread of the COVID-19, the use of contactless payments grew quickly. Amid the pandemic, which obligates limited contact and social distancing, people buy groceries, household items, etc., using contactless payment options. Consumers aim to limit their exposure during transactions. People consider contactless (tap-and-pay) cards as the fastest and the safest way to pay. The general perception of tap-and-pay cards being the most secure, preferred, convenient, and fastest payment method has expanded since the outbreak of the pandemic.


Concerns regarding security and data theft

Smart cards have generated a great deal of interest among consumers in recent years owing to the advantages offered by them. However, their cost is one of the factors that restrain the growth of the smart card market. The initial capital investments required for setting up smart cards for access control and other applications are high. Smart cards require readers to read encryptions and obtain the information to provide physical or logical access. The deployment of these readers involves additional purchase costs. Costs of these cards increase with the use of chips that have high capacity and offer highly sophisticated capabilities. Thus, equipping employees with multifunctional smart cards is expected to require more initial investments than those required by conventional cards.


Advent of blockchain technology

Blockchain is a revolutionary technology that helps businesses develop fast and secure applications that fulfill stringent security requirements. Smart cards can effectively manage cryptographic keys, thereby enabling efficient and secure transactions in blockchain applications. They act as vaults for storing cryptographic keys. When smart cards are connected to the Internet through POS readers, the keys stored in them can be matched with keys stored in online libraries. If the match is successful, users are authenticated. This is expected to help banks and other ecosystem players secure and authenticate the identity of users in an improved manner, thereby reducing instances of cyber thefts.


Increasing use of digital identity cards

Digital identity cards are the electronic equivalent of identity cards. Unlike paper-based identity cards such as driving licenses and passports, digital identity cards can be authenticated remotely over digital channels. This results in unlocking their access to banking services, government schemes, educational facilities, etc. It is expected that in the next three to four years, mobile devices will serve as digital identity cards to access enterprise services and data. The technology required by digital identity cards is not only easily available but is also more affordable than ever, making it possible for emerging economies to skip paper-based approaches for identification. There is a growing demand for digital identity cards across the world as governments of different countries are adopting this technology to identify their population and cater to their requirements.

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

Contactless smart cards include an embedded smart card secure microcontroller or equivalent intelligence, internal memory, and a small antenna; it communicates with readers through a contactless radio frequency (RF) interface. Radio-frequency identification (RFID) or near-field communication (NFC) communication technologies are primarily used for contactless smart card applications. COVID-19 is positively impacting the contactless smart card market as the World Health Organization (WHO) and governments across the world are advocating the use of contactless smart cards for various purposes to ensure social distancing to contain the spread of the virus. Contactless smart cards provide ease, speed, and convenience to users. The contactless interface has become highly relevant in the current COVID-19 situation, especially for payment applications, as it facilitates safe and secure transactions without physical contact.

The subscriber identity module (SIM) & telecommunications segment is expected to have the highest CAGR during the forecast period

A subscriber identity module (SIM) card is a type of microcontroller-based smart card used in mobile phones and other devices. A SIM identifies and authenticates a subscriber to a wireless cell phone network. Expanding global mobile network and improvements in its infrastructure are boosting the growth of the segment. COVID-19 has also led to an increased demand for connectivity. The current crisis provided a push to the trend of digitalization of business and private communication with cellular technology, along with the generalization of digital conferences. The penetration of high-end SIM card technologies is also expected to augment the market growth in the coming years.

Region with largest share:

Asia Pacific is projected to hold the largest market share owing to expanding and progressing transportation infrastructure in the region. The robust financial system that is being increasingly digitized and government agencies incorporating smart chip-based systems for better monitoring of processes are propelling several Asian countries to adopt smart card solutions owing to increasing demand, specifically in the transportation, BFSI, retail, government, and healthcare sectors. Smart cards are used to purchase tickets in metros, buses, and ferries, among others, in several countries in the region. China is projected to witness the highest demand for smart cards in the region owing to a large consumer base and the presence of a number of smart card manufacturers.

Region with highest CAGR:

Europe is projected to have the highest CAGR due to the high demand for smart card readers for access control in corporate organizations and transit. The corporate organizations in the region are assigning these smart cards to employees to deploy an automated staff identification and attendance system.

Key players in the market

Some of the key players profiled in the Smart Card Market include Thales Group (Gemalto), Giesecke & Devrient (G+D), Cardcom Technology, Cardlogix, HID Global, Identiv, Inc., Eastcompeace, Inteligensa, CPI Card Group, Valid, Watchdata, Idemia, Abcorp, Ingenico, and Kona I Co., Ltd.

Key developments:

In January 2021: IDEMIA signed a four-year agreement with Jyske Bank, the second-largest Danish-owned bank, to introduce the first recycled plastic payment card in Denmark.

In June 2020: CPI and Visa Inc. launched the Earthwise High Content Card, which is made with up to 98% upcycled plastic. Through an exclusive agreement, the companies will initially provide all Visa-issuing financial institutions worldwide access to the Earthwise High Content Card, which is EMV-compliant and dual interface capable, enabling both contact and contactless payments.

In January 2020: Confidex, a leading designer and supplier of short-range wireless identification solutions, entered into a partnership with Thales to develop a flexible smart media for Calypso-based systems. Confidex used Gemalto’s software solutions to create a new category of microprocessor-based smart media. These products include durable contactless paper cards embedded with a PET layer that reinforces the structure of the card. This makes the product resistant to harsh environments associated with transportation applications.

In January 2018: Gemalto expanded its footprint for access management as a service solution across the European Union. This new facility will help the company respond to the rising demand for its cloud-based authentication and smart cards, and help customers maintain privacy and data sovereignty.

Types Covered:
• Microcontroller
• Memory Protection Unit (MPU) Microprocessor
• Memory

Interfaces Covered:
• Contactless
• Contact
• Dual Interface
• Hybrid

Components Covered:
• Hardware
• Software
• Service

Offerings Covered:
• Smart Card Readers
• Smart Cards

Functionalities Covered:
• Communication
• Transaction
• Security & Access Control

Accesses Covered:
• Physical
• Logical

End Users Covered:
• Banking, Financial Services And Insurance (BFSI)
• Subscriber Identity Module (SIM) & Telecommunications
• Retail and Loyalty
• Healthcare
• Government
• Entertainment
• Transportation
• Education
• Energy & Utility (Smart Meters for Electricity, Water, and Gas)

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 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 2020, 2021, 2022, 2025, and 2028
- 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

Table of Contents

1 Executive Summary      
2 Preface       

 2.1 Abstract      
 2.2 Stake Holders     
 2.3 Research Scope     
 2.4 Research Methodology    
  2.4.1 Data Mining    
  2.4.2 Data Analysis    
  2.4.3 Data Validation    
  2.4.4 Research Approach    
 2.5 Research Sources     
  2.5.1 Primary Research Sources   
  2.5.2 Secondary Research Sources   
  2.5.3 Assumptions    
3 Market Trend Analysis     
 3.1 Introduction     
 3.2 Drivers      
 3.3 Restraints      
 3.4 Opportunities     
 3.5 Threats      
 3.6 End User Analysis     
 3.7 Emerging Markets     
 3.8 Impact of Covid-19     
4 Porters Five Force Analysis     
 4.1 Bargaining power of suppliers    
 4.2 Bargaining power of buyers    
 4.3 Threat of substitutes     
 4.4 Threat of new entrants    
 4.5 Competitive rivalry     
5 Global Smart Card Market, By Type    
 5.1 Introduction     
 5.2 Microcontroller     
 5.3 Memory Protection Unit (MPU) Microprocessor  
 5.4 Memory      
6 Global Smart Card Market, By Interface    
 6.1 Introduction     
 6.2 Contactless     
 6.3 Contact      
 6.4 Dual Interface     
 6.5 Hybrid      
7 Global Smart Card Market, By Component   
 7.1 Introduction     
 7.2 Hardware      
 7.3 Software      
 7.4 Service      
8 Global Smart Card Market, By Offering    
 8.1 Introduction     
 8.2 Smart Card Readers     
 8.3 Smart Cards     
9 Global Smart Card Market, By Functionality   
 9.1 Introduction     
 9.2 Communication     
 9.3 Transaction     
 9.4 Security & Access Control    
10 Global Smart Card Market, By Acces    
 10.1 Introduction     
 10.2 Physical      
 10.3 Logical      
11 Global Smart Card Market, By End User    

 11.1 Introduction     
 11.2 Banking, Financial Services And Insurance (BFSI)  
 11.3 Subscriber Identity Module (SIM) & Telecommunications 
 11.4 Retail and Loyalty     
 11.5 Healthcare     
 11.6 Government     
 11.7 Entertainment     
 11.8 Transportation     
 11.9 Education      
 11.10 Energy & Utility (Smart Meters for Electricity, Water, and Gas) 
12 Global Smart Card Market, By Geography    
 12.1 Introduction     
 12.2 North America     
  12.2.1 US     
  12.2.2 Canada     
  12.2.3 Mexico     
 12.3 Europe      
  12.3.1 Germany     
  12.3.2 UK     
  12.3.3 Italy     
  12.3.4 France     
  12.3.5 Spain     
  12.3.6 Rest of Europe    
 12.4 Asia Pacific     
  12.4.1 Japan     
  12.4.2 China     
  12.4.3 India     
  12.4.4 Australia     
  12.4.5 New Zealand    
  12.4.6 South Korea    
  12.4.7 Rest of Asia Pacific    
 12.5 South America     
  12.5.1 Argentina     
  12.5.2 Brazil     
  12.5.3 Chile     
  12.5.4 Rest of South America   
 12.6 Middle East & Africa     
  12.6.1 Saudi Arabia    
  12.6.2 UAE     
  12.6.3 Qatar     
  12.6.4 South Africa    
  12.6.5 Rest of Middle East & Africa   
13 Key Developments      
 13.1 Agreements, Partnerships, Collaborations and Joint Ventures 
 13.2 Acquisitions & Mergers    
 13.3 New Product Launch     
 13.4 Expansions     
 13.5 Other Key Strategies     
14 Company Profiling      
 14.1 Thales Group (Gemalto)    
 14.2 Giesecke & Devrient (G+D)    
 14.3 Cardcom Technology    
 14.4 Cardlogix      
 14.5 HID Global     
 14.6 Identiv, Inc.     
 14.7 Eastcompeace     
 14.8 Inteligensa     
 14.9 CPI Card Group     
 14.10 Valid      
 14.11 Watchdata     
 14.12 Idemia      
 14.13 Abcorp      
 14.14 Ingenico      
 14.15 Kona I Co., Ltd.     

List of Tables       
1 Global Smart Card Market Outlook, By Region (2020-2028) ($MN) 
2 Global Smart Card Market Outlook, By Type (2020-2028) ($MN)  
3 Global Smart Card Market Outlook, By Microcontroller (2020-2028) ($MN) 
4 Global Smart Card Market Outlook, By Memory Protection Unit (MPU) Microprocessor (2020-2028) ($MN)
5 Global Smart Card Market Outlook, By Memory (2020-2028) ($MN) 
6 Global Smart Card Market Outlook, By Interface (2020-2028) ($MN) 
7 Global Smart Card Market Outlook, By Contactless (2020-2028) ($MN) 
8 Global Smart Card Market Outlook, By Contact (2020-2028) ($MN) 
9 Global Smart Card Market Outlook, By Dual Interface (2020-2028) ($MN) 
10 Global Smart Card Market Outlook, By Hybrid (2020-2028) ($MN)  
11 Global Smart Card Market Outlook, By Component (2020-2028) ($MN) 
12 Global Smart Card Market Outlook, By Hardware (2020-2028) ($MN) 
13 Global Smart Card Market Outlook, By Software (2020-2028) ($MN) 
14 Global Smart Card Market Outlook, By Service (2020-2028) ($MN) 
15 Global Smart Card Market Outlook, By Offering (2020-2028) ($MN) 
16 Global Smart Card Market Outlook, By Smart Card Readers (2020-2028) ($MN)
17 Global Smart Card Market Outlook, By Smart Cards (2020-2028) ($MN) 
18 Global Smart Card Market Outlook, By Functionality (2020-2028) ($MN) 
19 Global Smart Card Market Outlook, By Communication (2020-2028) ($MN) 
20 Global Smart Card Market Outlook, By Transaction (2020-2028) ($MN) 
21 Global Smart Card Market Outlook, By Security & Access Control (2020-2028) ($MN)
22 Global Smart Card Market Outlook, By Acces (2020-2028) ($MN)  
23 Global Smart Card Market Outlook, By Physical (2020-2028) ($MN) 
24 Global Smart Card Market Outlook, By Logical (2020-2028) ($MN) 
25 Global Smart Card Market Outlook, By End User (2020-2028) ($MN) 
26 Global Smart Card Market Outlook, By Banking, Financial Services And Insurance (BFSI) (2020-2028) ($MN)
27 Global Smart Card Market Outlook, By Subscriber Identity Module (SIM) & Telecommunications (2020-2028) ($MN)
28 Global Smart Card Market Outlook, By Retail and Loyalty (2020-2028) ($MN)
29 Global Smart Card Market Outlook, By Healthcare (2020-2028) ($MN) 
30 Global Smart Card Market Outlook, By Government (2020-2028) ($MN) 
31 Global Smart Card Market Outlook, By Entertainment (2020-2028) ($MN) 
32 Global Smart Card Market Outlook, By Transportation (2020-2028) ($MN) 
33 Global Smart Card Market Outlook, By Education (2020-2028) ($MN) 
34 Global Smart Card Market Outlook, By Energy & Utility (Smart Meters for Electricity, Water, and Gas) (2020-2028) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

List of Figures


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.

Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.

For more details about research methodology, kindly write to us at

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