“Global Contactless Smart Cards Market to reach a market value of USD 17.7 Billion by 2031 growing at a CAGR of 8.3%”
The Global Contactless Smart Cards Market size is expected to reach $17.7 billion by 2031, rising at a market growth of 8.3% CAGR during the forecast period.
Contactless smart cards are also used for healthcare credentialing and licensing purposes, including verifying the identity and qualifications of healthcare professionals. Consequently, the healthcare segment captured $880.9 million revenue in the market in 2023. These can store critical medical information like allergies, medical conditions, and emergency contacts. Patients can always carry contactless smart cards with them, allowing first responders and healthcare providers to quickly access vital medical information in emergencies and facilitating timely and informed medical interventions.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In November, 2022, IDEMIA SAS came into partnership with Sella Personal Credit, part of the larger Sella Banking Group. Through this partnership, both companies would launch a new card for featuring biometric authentication for both contact and contactless transactions. Additionally, In March 2022, Infineon Technologies joined hands with IDEX Biometric, a biometric company. This collaboration aimed to unify the TrustedBioÒ fingerprint authentication module from IDEX Biometrics with Infineon’s latest SLC38 security controller.
Based on the Analysis presented in the KBV Cardinal matrix; Sony Corporation is the forerunner in the Market. Companies such as Infineon Technologies AG, STMicroelectronics N.V., NXP Semiconductors N.V. are some of the key innovators in Market. For Instance, In July, 2021, Infineon Technologies teamed up with IDEX Biometrics, the leading provider of advanced fingerprint identification and authentication solutions. This collaboration aimed to offer substantial enhancement at the card system level, which allows simple unification into current hot lamination card manufacturing processes.
Contactless ticketing solutions enhance the attendee experience by providing a convenient and hassle-free entry process. As technology evolves, these smart cards can be integrated with emerging technologies such as biometrics, wearables, and IoT devices to enhance further ticketing solutions' functionality, security, and convenience. Hence, contactless ticketing solutions for events and venues has been a pivotal factor in driving the growth of the market.
Additionally, the daily transaction volume is substantially higher in densely populated urban areas than in rural areas. According to the report by the World Bank updated in 2023, 56% of the world's population, or 4.4 billion people, live in cities. By 2050, nearly 7 out of 10 individuals will reside in cities, representing more than doubling the current urban population. Therefore, the market is expanding significantly due to the expansion of urbanization and population.
The initial expenses of deploying contactless smart card infrastructure may be difficult for small and medium-sized enterprises to justify. These businesses may operate on tight budgets and prioritize other investments over contactless technology, hampering adoption. The high initial cost of implementing contactless smart card infrastructure may result in a longer period for businesses to realize a return on their investment. Thus, high initial cost can slow down the growth of the market.
On the basis of functionality, the market is segmented into transaction and security & access control. In 2023, the transaction segment held the 77.93% revenue share in the market. These cards offer a convenient payment method. Users can complete transactions quickly and easily with a simple tap or wave of the card, eliminating the need to swipe or insert their card into a terminal.
By type, the market is bifurcated into memory and MPU microprocessor. The memory segment acquired a 36.64% revenue share in the market in 2023. The memory segment of contactless smart cards comes in various capacities, ranging from low-memory to high-memory configurations. This flexibility allows card manufacturers and application developers to tailor the cards to specific use cases and requirements.
Based on industry vertical, the market is categorized into BFSI, retail, healthcare, hospitality, transportation & logistics, media & entertainment, and others. In 2023, the BFSI segment dominated the market with 26.21% revenue share. Banks and financial institutions issue contactless smart cards to their customers as debit cards, credit cards, or prepaid cards.
Free Valuable Insights: Global Contactless Smart Cards Market size to reach USD 17.7 Billion by 2030
Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the North America region acquired a 30.79% revenue share in the market. Payment processors, financial institutions, and merchants in North America have invested in contactless payment infrastructure, including POS terminals and payment networks, to support the growing demand for contactless transactions.
The market competition in the Market is robust and dynamic, fueled by advancements in technology and increasing adoption across various sectors. Established players in the industry engage in fierce competition by continuously enhancing their product offerings, improving security features, and expanding their geographical reach through strategic partnerships and acquisitions. Additionally, emerging startups and innovative companies disrupt the market by introducing novel solutions that cater to specific industry needs and consumer demands, driving further competition and innovation. As the demand for secure and convenient payment solutions continues to rise, players in the market vie for dominance through differentiation in product features, competitive pricing strategies, and efficient distribution networks, shaping a competitive landscape characterized by rapid technological advancements and evolving market dynamics.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 9.5 Billion |
| Market size forecast in 2031 | USD 17.7 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 8.3% from 2024 to 2031 |
| Number of Pages | 248 |
| Number of Tables | 373 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Functionality, Type, Industry Vertical, Region |
| Country scope |
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| Companies Included | Sony Corporation, Watchdata Co., Ltd., Infineon Technologies AG, IDEMIA SAS (Advent International, Inc.), NXP Semiconductors N.V., Thales Group S.A., HID Global Corporation (Assa Abloy AB), STMicroelectronics N.V., CardLogix Corporation, CPI Card Group Inc. (Parallel49 Equity) |
By Functionality
By Type
By Industry Vertical
By Geography
This Market size is expected to reach $17.7 billion by 2031.
Risk mitigation and contingency planning are driving the Market in coming years, however, High initial cost of implementation restrictions issues restraints the growth of the Market.
Sony Corporation, Watchdata Co., Ltd., Infineon Technologies AG, IDEMIA SAS (Advent International, Inc.), NXP Semiconductors N.V., Thales Group S.A., HID Global Corporation (Assa Abloy AB), STMicroelectronics N.V., CardLogix Corporation, CPI Card Group Inc. (Parallel49 Equity)
The expected CAGR of this Market is 8.3% from 2024 to 2031.
The MPU Microprocessor segment is leading the Market by Type in 2023; there by, achieving a market value of $10.9 billion by 2031.
The Asia Pacific region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; there by, achieving a market value of $6.6 billion by 2031.
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