The smart cards market is mainly driven by the growing trend of adoption of IoT devices, such as mobile phones and tablets, that contribute toward digital services including e-banking and mobile payment facilities. The usage of these products is instrumental in reducing handling and operational costs as well as providing efficient storage of user data.
The increasing penetration of internet in developing economies further encourages the implementation of smart cards for digital services across industries, thus enabling operational efficiency for businesses. They stimulate secure data transfers that are instrumental in processing banking transactions and information storage, thereby saving space.
The low manufacturing cost is a significant contributor toward the growth of the global market. These products find applications across various industries such as telecommunication, healthcare, retail, and BFSI.
Their use in telecommunication is an essential catalyst for growth owing to its usage in SIM and data cards in mobile devices. Furthermore, retail applications in the form of payment and loyalty cards enable reduced checkout time and secure transactions. Technological advancements have enabled the usage of smart cards in employee IDs, electronic passports, online authentication devices, driver licenses, and health ID cards.
Smart cards are available in three major types, including contact cards, contactless cards, and multi-component cards.
The demand for smart cards is mainly attributed to their cost effectiveness that allows the product to be used in applications such as ticketing, digital banking services, and communication. Its tamper-proof storage and user identity data storage capabilities are superior to other conventional machine readable cards.
Smart cards prevent the risk of fraudulent activities such as data theft and cloning due to their enhanced security features. They also contribute toward cost saving for payment merchants, thereby encouraging the adoption of these cards for digital services and reduced overhead costs for service providers.
Contact cards: They offer enhanced protected storage capabilities and protection against loss of data and fraud. They also provide faster processing capabilities that enable high-speed data transfer and financial transactions. Contact cards are extensively used across telecommunication and BFSI applications.
Contactless cards: They promote convenient and secure payments and do not require a PIN to facilitate transactions. Moreover, they are used for transactions in public arenas such as parking facilities, gas stations, and tolls.
Multi-component cards: These cards have the ability to process complex calculations and are mainly used in transactions related to large bulk orders and multi-regional logistics. Their high-speed processing capabilities and advanced features such as fingerprint sensing makes them useful in retail, healthcare, and telecommunication industries.
In-depth report on global smart cards market by Grand View Research:
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