The Global Smart Card IC Market size is expected to reach $4.3 billion by 2029, rising at a market growth of 6.3% CAGR during the forecast period.
A smart card IC, or a chip card, is implanted in a plastic card and acts as a service token or credential for storing and exchanging data between users. Typically, it looks like a plastic credit card with an integrated circuit (IC) chip. In order to connect electrically to the inside chip, many smart cards have a grid of metal contacts. Smart cards can be used for application processing, data storage, personal identification, and authentication.
Applications include identity, finance, transportation, computer security, educational institutions, and healthcare. In addition, for single sign-on (SSO) within businesses, smart cards may offer strong security authentication. Smart cards have been introduced in many countries and are widely used. It is processed and saved in memory and on a card chip that has a microprocessor. It is frequently offered in memory and microcontroller variations.
The microcontroller smart card IC has a CPU, a crystal oscillator, a watchdog, timers, and analog output and input, among others. It aids in reducing the complexity, expense, size, and discrete component count of embedded systems' circuits. The memory smart card IC, on the other hand, relies on the card reader for processing and is best used when the card must carry out a specific function.
Smart cards can be composed of plastic or metal and are normally the same dimensions as a credit card or driver's license. Direct physical contact, often known as chip and dip, or a short-range wireless connectivity method like near-field communication or radio-frequency identification (RFID) are the two ways they link to a reader.
The business of smart cards in the telecommunications and healthcare sectors was less impacted. In the medium to long term, the expanding medical sector may cause the market's growth. The growth of healthcare data creates significant difficulties for efficient patient care as well as privacy. Smart cards provide secure data storage and distribution, addressing both problems. Once the market recovers from the COVID-19 pandemic by 2023, this could present an opportunity for market players. Due to expanding demand for contactless payments, government initiatives for national ID cards, and increased e-commerce sales, the smart card IC market is anticipated to grow in the coming years.
A large number of people are employing contactless payment methods to buy groceries, household goods, etc. When making purchases during the pandemic, consumers wanted to minimize their exposure. People believed contactless (tap-and-pay) cards to be the quickest and safest method of payment. Post-pandemic, cash and checks are viewed as the least secure by consumers in terms of halting the transmission of COVID-19. Since 2019, the overall view of tap-and-pay or contactless cards as the most secure, convenient, practical, and quick payment method has grown. Therefore, the rise in contactless cards would increase the need for smart cards or devices with smart cards, which will propel the growth of the smart card IC market in the coming years.
The development of encrypted machine-to-machine (M2M) communication made possible by eSIM technology has advanced the connected ecosystem. Hence, eSIMs provide safe, dependable, and economical cellular connectivity for IoT/M2M applications, which has expanded the use of wireless cellular-based solutions like eSIMs among many end-use verticals. Therefore, the smart card IC market will expand throughout the forecast period owing to the higher demand for SIMs that use smart cards IC extensively.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
The use of smart card IC in SIMs is still less because of the data security concerns attached to it. An eSIM's operational flexibility would be useless if its security were jeopardized. For example, 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 physical platforms and MNOs to operate, which exposes it to the danger of the virtual environment. Therefore, the high cost of smart card deployment, along with the data security concerns of eSIMs, substantially lower their use, which is detrimental to the market's growth.
Based on type, the smart card IC market is categorized into microprocessor and memory. The microprocessor segment garnered the highest revenue share in the smart card IC market in 2022. Microprocessor smart cards feature memory blocks and a microprocessor incorporated into the chip. A microprocessor card can also contain specialized file sections, each linked to a different function. A smart card OS handles the memory allocation and the data in the files. This card can do multiple tasks and often permits adding, removing, and other memory data manipulations.
Based on interface, the smart card IC market is segmented into contact, contactless, and dual interface. The contact segment garnered a remarkable growth rate in the smart card IC market in 2022. Contact smart cards contain exposed metal pads that must make physical touch with the card reader. The need for smart cards in commercial transactions as well as identity verification, is rising, and contact smart cards are becoming more and more popular as a result.
On the basis of application, the smart card IC is fragmented into USIMs/eSIMs, ID cards, financial cards, and IoT devices. The USIMs/eSIMs segment procured the highest revenue share in the smart card IC market in 2022. The adoption of USIM and eSIM in consumer electronic devices, including mobile phones, tablets, smartwatches, and smartphones, as well as Internet of Things (IoT) devices, can be credited with the expansion of this particular market segment. eSIM technology is currently being developed by several firms that manufacture smartphones to integrate it into their most recent product lines.
By industry, the smart card IC market classified into telecommunications, BFSI, government & healthcare, transportation, education, retail, and others. The BFSI segment procured a significant revenue share in the smart card IC market in 2022. The banking and financial industry makes extensive use of smart cards. Prepaid cards, credit & debit cards, and ATM cards are just a few areas where smart card ICs are used. With the advancements in technology along with a greater adoption of them by BFSI industry has propelled the use of smart cards for authentication as well as financial transactions. This is boosting the expansion of the segment.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 2.8 Billion |
| Market size forecast in 2029 | USD 4.3 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2029 |
| Revenue Growth Rate | CAGR of 6.3% from 2023 to 2029 |
| Number of Pages | 285 |
| Number of Table | 480 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Companies Strategic Developments, Company Profiling |
| Segments covered | Type, Interface, Application, Industry, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region wise, the smart card IC market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment recorded the highest revenue share in the smart card IC market in 2022. The market in this region is expanding due to the rapid industrialization and urbanization that is taking place, as well as the continuous technological innovations that are taking place in the verticals of telecommunications, banking, financial services, government, healthcare, and transportation.
Free Valuable Insights: Global Smart Card IC Market size to reach USD 4.3 Billion by 2029
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Toshiba Corporation, ON Semiconductor Corporation, Microchip Technology Incorporated, STMicroelectronics N.V., Texas Instruments, Inc., Sony Corporation, Analog Devices, Inc., Infineon Technologies AG, Samsung Electronics Co., Ltd. (Samsung Group) and NXP Semiconductors N.V.
By Type
By Interface
By Application
By Industry
By Geography
The Market size is projected to reach USD 4.3 billion by 2029.
Increase in contactless payments and transactions globally are driving the Market in coming years, however, High infrastructure expenditures and worries about data theft and security restraints the growth of the Market.
Toshiba Corporation, ON Semiconductor Corporation, Microchip Technology Incorporated, STMicroelectronics N.V., Texas Instruments, Inc., Sony Corporation, Analog Devices, Inc., Infineon Technologies AG, Samsung Electronics Co., Ltd. (Samsung Group) and NXP Semiconductors N.V.
The Contactless segment acquired maximum revenue share in the Global Smart Card IC Market by Interface in 2022 thereby, achieving a market value of $2.2 billion by 2029.
The Telecommunications segment is leading the Market by Industry in 2022 thereby, achieving a market value of $1.6 billion by 2029.
The Asia Pacific market dominated the Market by Region in 2022, and would continue to be a dominant market till 2029; thereby, achieving a market value of $1.6 billion by 2029.
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