Global Powered Smart Card Market is expected to Exhibit a CAGR of 4.25%. During the Forecast Period (2023 - 2030) Owing to Rising Need for Data Security Worldwide
Global Powered Smart Card Market, By Type (Contactless Cards, Hybrid Cards, and Dual-interface Cards), By Application (Government, Healthcare, Transportation, Telecommunication, Financial Services, Retail, and Loyalty, Pay TV, and Energy and Utility (Smart Meters for Electricity, Water, and Gas)), and By Region (North America, Latin America, Europe, Asia Pacific, and Middle East and Africa) - Global Forecast to 2030, is expected to be valued at US$ 18.29 Billion by 2030, exhibiting a CAGR of 4.25% during the forecast period (2023 - 2030), as highlighted in a report published by Coherent Market Insights.
The technology behind powered smart cards involves a microprocessor or a chip embedded within the card, which interacts with the card reader to execute commands and processes data securely. They may utilize contact-based communication, where the chip makes physical contact with the card reader, or contactless communication, where the chip communicates wirelessly using Radio Frequency (RF) technology.
The global powered smart card market has experienced substantial growth over the years, driven by the increasing demand for secure and convenient payment solutions, advancements in technology, government initiatives promoting smart identification systems, and the growing need for data security.
Global Powered Smart Card Market - Drivers
Mobile Payments and Digital Wallets
The increasing popularity of mobile payment platforms and digital wallets has contributed to the demand for powered smart cards, as they can be integrated into mobile devices, enabling secure mobile transactions.
Transportation and Ticketing Solutions
Powered smart cards are extensively used in public transportation systems and ticketing solutions. Contactless smart cards make fare payment faster and more convenient for commuters, leading to their widespread adoption in transportation networks. For instance, London's Oyster Card System,a payment method in 2020, the transportation and ticketing sectors continued to drive the adoption of powered smart card solutions. A notable instance is the "Oyster card" system in London, U.K. The Oyster card is a powered smart card used for fare payments across London's public transportation network including buses, trams, the London Underground, and some National Rail services.
Increasing Use in Internet of Things (IoT) Applications
The integration of smart card technology with IoT devices has opened up new opportunities for powered smart cards. They are now being used in various IoT applications, including access control, authentication, and secure data storage. For instance, a homeowner with a powered smart card could tap it on a reader near the front door to gain access, eliminating the need for traditional keys. Similarly, the same card could be used to activate or deactivate the home's security cameras, smart thermostats, and lighting systems. This seamless integration of powered smart card technology with IoT devices offered users a secure and hassle-free way to control their smart homes and added an extra layer of protection against unauthorized access.
Global Powered Smart Card Market - Opportunities
Transportation and Ticketing Solutions
The transportation sector offers opportunities for powered smart cards, particularly in contactless ticketing systems for public transport. As cities continue to develop smart transportation networks, the demand for efficient, secure, and contactless payment solutions is expected to grow.
Mobile Payments and Digital Wallets
The rise of mobile payments and digital wallets provides opportunities for powered smart cards to be integrated into mobile devices, making secure contactless payments even more accessible and convenient for consumers.
Contactless Payment Adoption
The global trend towards contactless payments, driven by the consumer demand for fast and secure transactions, creates opportunities for powered smart cards with contactless capabilities. Businesses and financial institutions can leverage this trend to offer more secure and user-friendly payment options.
Global Powered Smart Card Market - Restraints
Competing Payment Technologies
The global powered smart card market faces competition from other payment technologies such as mobile wallets, QR code-based payments, and wearable devices. The availability of multiple payment options could lead to fragmentation in the market and pose challenges for the widespread adoption of powered smart cards.
Limited Acceptance Network
The adoption of powered smart cards relies on the acceptance and support of merchants, financial institutions, and payment networks. In regions with a limited acceptance network for contactless payments or powered smart cards, the potential for widespread adoption can be restricted.
Consumer Awareness and Education
In some regions, consumers might not be fully aware of the benefits and security features of powered smart cards. Educating consumers about the advantages of using smart cards and dispelling any misconceptions about their safety is essential for driving their adoption.
Global Powered Smart Card Market -Trends
Convergence of power smart cards
Currently, there are different types of payment functionalities available in the market that are linked to various identity credentials such as social security/welfare cards and healthcare and national IDs. However, there is steady trend of convergence in the market. The trend is not limited to the government ID and payment applications though convergence of driver's licenses, healthcare cards, national IDs, passports, and voter's cards with the payment networks is expected to take place in the near future.
IoT Integration
The integration of powered smart card technology with Internet of Things (IoT) presents new opportunities for the market. Powered smart cards can be embedded into various IoT devices, enabling secure authentication, data storage, and access control in smart homes, connected vehicles, and industrial IoT applications.
Healthcare Applications
The healthcare sector showed increased interest in adopting powered smart cards for maintaining electronic health records, patient identification, and secure access to medical data. The use of smart cards in healthcare can enhance data security, streamline medical processes, and improve patient care.
COVID-19 Impact Analysis
The COVID-19 outbreak has disrupted all economies and most sectors across the world. Trade and movement restrictions, lockdowns, and manufacturing disruptions have thrown most sectors off track. However, the pandemic turned into an opportunity for the global powered smart card market.
The virus outbreak accelerated the use of contactless payments, so as to facilitate social distancing and combat the spread. Thus, the revenue generated by contactless smart cards will expand at a high rate in the future, due to the increasing adoption of contactless smart cards across the globe.
Global Powered Smart Card Market: Competitive Landscape
The key players operating in the global powered smart card market are Watchdata Technologies Ltd., Texas Instruments Incorporated, Safran Identity and Security (Morpho SA), Samsung, Oberthur Technologies, Shanghai Huahong Integrated Circuit Co., Ltd., Wuhan Tianyu Information Industry Co., Ltd., Gemalto NV, NXP Semiconductors N.V., Giesecke & Devrient GmbH, Infineon Technologies AG, Eastcompeace Technology Co., Ltd., and Datang Telecom Technology Co., Ltd.
Key Takeaways
The global powered smart card market is estimated at US$ 13.67 Billion in 2023 and is estimated to reach US$ 18.29 Billion by 2030 exhibiting a CAGR of 4.25% between 2023 and 2030.
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/powered-smart-card-market-3446
Global Powered Smart Card Market - Recent Developments
In June 2020, CPI and Visa Inc., a U.S.-based multinational financial services corporation, launched 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 Europay, Mastercard, and Visa (EMV) compliant and dual interface capable, enabling both contact and contactless payments.
In July 2021, Gemalto NV, a digital security company providing software applications, secure personal devices, such as smart cards and tokens, e-wallets, and managed services, announced a new card incorporating a biometric sensor to provide users with increased security. Contactless biometric cards simplify proximity payments and provide the necessary level of privacy. These cards are fully authenticated by well-known EMV payment schemes such as Mastercard and Visa.
