|Status : Published
|Published On : Sep, 2023
|Report Code : VRICT5173
|Industry : ICT & Media
|Available Format :
|Page : 225
The Market for Smart Card IC is anticipated to increase dramatically, going from USD 2.1 billion in 2023 to USD 5.8 billion in 2030 with a Growing CAGR of 8.7%. An integrated circuit (IC) chip incorporated into a smart card is called a smart card IC. Typically, it is a plastic card the size of a credit card that has an embedded integrated circuit (IC) chip. Personal identity, authentication, data archiving, and application processing are among the services that smart cards can offer. Identification, financial, public transportation, computer security, educational, and medical applications are only a few examples. Smart card ICs come in two major varieties: contact and contactless. To link the chip to a reader electrically, contact smart cards include a pattern of metal contacts on their surface. Metal connections are absent from contactless smart cards, which communicate with readers using radio waves instead.
Typically, applications requiring security and data integrity use smart card ICs. They are often used for banking, identification, access control, and payment applications. Smart card ICs are a versatile and secure technology that is used in a wide variety of applications. There are many benefits of using smart card ICs such as security, convenience, and durability.
Insight by Card type
The market for smart card ICs is segmented by type into memory smart cards and microprocessor smart cards. The micro smart card market is expected to grow at the highest CAGR from 2023 to 2030, due to the increasing demand for micro smart cards in various applications. These include payment cards, transportation cards, government and ID applications, and healthcare applications. The market is driven by the increasing adoption of contactless payment cards, public transportation cards, and smart transportation systems. Government and ID applications, such as e-passports, e-visas, and national ID cards, demand secure and reliable identification documents. Healthcare applications, such as electronic health records (EHRs) and patient identification cards, also see growth due to the increasing adoption of these technologies.
Insight by End-user Vertical
The smart card IC market is segmented by end-user vertical into telecommunications, BFSI, government and healthcare, transportation, and others. The telecommunications segment is the largest segment of the smart card IC market, accounting for a market capture of one-third share in 2023. This segment’s growth is driven by the increasing adoption of smart cards in mobile phones and other telecommunications devices. The BFSI segment is the second-largest segment of the smart card IC market, accounting for a market share of 25% in 2023. This segment’s growth is driven by the increasing adoption of smart cards in banking and financial applications. Smart cards are used in banking cards to store customer data and authenticate users when making payments. Smart cards are also used in other financial applications, such as electronic wallets and e-passports.
Insight by Interface
The smart card IC market is segmented by interface into contact, contactless and dual interface. The contactless smart card segment is expected to grow at the fastest rate, due to the increasing popularity of contactless smart cards in applications such as public transportation, payment, and access control. The dual interface smart card segment is also expected to grow significantly, due to the increasing demand for smart cards that can be used in both contact and contactless mode.
Global Smart Card IC Market Report Coverage
2018 - 2023
Base Year Considered
2025 - 2030
Market Size in 2023
U.S.D. 2.1 Billion
Revenue Forecast in 2030
U.S.D. 5.8 Billion
Segments Covered in the Report
By Card Type, By End-User Vertical, and By Interface
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
Regions Covered in the Report
North America, Europe, Asia-Pacific, Middle East, and Rest of the World
The smart card IC market is expected to experience significant growth due to various factors. The adoption of contactless payment systems, enhanced security and fraud prevention features, and government initiatives for e-governance and identification are driving the demand for smart card ICs. The Internet of Things (IoT) is creating opportunities in sectors like smart meters, access control systems, and healthcare devices. Secure access control systems in organizations and institutions are also fueling market growth. Technological advancements, such as improved memory capacities and enhanced security features, are driving innovation and expanding market potential.
Additionally, the increasing demand for contactless ticketing and identification systems in sectors like public transportation and healthcare is boosting the smart card IC market. Overall, these drivers, along with market trends and regional analysis, offer valuable insights for industry participants and investors to make informed decisions in the smart card IC market.
The market for smart card ICs has some limitations. First off, competing with emerging alternative technologies is never easy. Smart cards are being challenged by many alternative technologies, including Near Field Communication (NFC) and Radio Frequency Identification (RFID). These emerging technologies could hinder the expansion of the market for smart card ICs because of their rising popularity. The second factor is the high price of smart card ICs. Because they are somewhat pricey, smart card ICs can limit the market's expansion. However, it is anticipated that smart card IC prices would come down in the future, which could contribute to the market's expansion. Smart cards are a target for hackers, and there have been many security breaches involving smart cards. This could damage the reputation of smart cards and could lead to a decline in demand therefore high security of smart cards is very necessary.
The Internet of Things (IoT) is a rapidly growing technology that is connecting billions of devices around the world. As the IoT market continues to grow, there are many opportunities for smart card ICs in end-user industries such as access control, payments, authentication, data collection, and logistics. The increasing adoption of IoT by end-user industries is also creating new opportunities for smart card ICs in a variety of other areas. Smart cards can be used to manage access to buildings and facilities, provide secure access to medical records and other sensitive data, Track the movement of people and assets, collect data for analytics and decision-making, and Provide loyalty programs and other incentives. As the IoT market continues to grow, the demand for smart card ICs is expected to grow as well. This is creating new opportunities for smart card IC manufacturers to develop innovative new products and solutions that meet the needs of end-user industries.
Asia Pacific is the largest market for smart card ICs, accounting for over 50% of the global market in 2023. The growth of the market in this region is driven by the increasing adoption of smart cards in the telecommunications, government, and transportation sectors. Europe is the second largest market for smart card ICs, followed by North America. The growth of the market in these regions is driven by the increasing adoption of smart cards in the financial services, healthcare, and retail sectors. South America and Middle East & Africa are the two smallest markets for smart card ICs. However, these markets are expected to grow at a faster rate than the other regions during the forecast period.
Infineon Technologies AG is a leading German semiconductor manufacturing company in the smart card IC market, offering high-security, performance, and reliability products for various applications. In 2022, Infineon was ranked as the third-largest supplier of smart card ICs globally. The company's success can be attributed to its strong product portfolio, global reach, and innovation. With sales and support offices in over 100 countries, Infineon provides local support and expertise to its customers. The company's commitment to innovation and continuous development of new products and technologies ensures its continued growth in the market.
Samsung is a major player in the smart card IC market, focusing on developing secure and innovative solutions. The company's smart card ICs are used in various applications, including financial services, government ID, healthcare, transportation, access control, smart homes, and connected devices. Samsung's market share is expected to grow due to the increasing demand for smart cards in various applications. Key factors contributing to Samsung's success in the market include its strong product portfolio, global reach, and commitment to innovation. With sales and support offices in over 100 countries, Samsung provides local support and expertise to its customers. As a leading innovator in the smart card IC market, Samsung is well-positioned to continue growing its market share in the coming years.
Recent Development by Key Players
In March 2023, the SECORATM Pay 2 portfolio on 28 nm technology was released. It comprises a range of contactless payment card options, such as dual interface, EMV, and NFC. The portfolio is designed to fulfill the most recent security and performance criteria, and it is already being utilized by top payment card makers.
In January 2023, the S3B512C fingerprint security IC has launched and it is designed for use in smartphones and other devices that require biometric authentication. The IC includes support for numerous fingerprint sensors, excellent accuracy, and low power consumption, making it perfect for these applications.
Key Players Covered in the Report
Some of the major players operating in the smart card IC global market are- Infineon Technologies AG, NXP Semiconductor N.V., Samsung, STMicroelectronics, CEC Huada Electronic Design Co., Ltd, EM Microelectronic-Marin SA, On Semiconductor Corporation, Gemalto.
The Smart Card IC Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.
Segments Covered in the Report
Region Covered in the Report
Source: VynZ Research
Source: VynZ Research