Smart Card Materials Market Report

Smart Card Materials Market Analysis Report By Material (PVC, Polycarbonate), By Type (Contact, Contactless, Multi-Component), By Application (Telecom, BFSI, Retail, Government), And Segment Forecasts, 2018 - 2025

  • Published Date: Aug, 2018
  • Base Year for Estimate: 2017
  • Report ID: GVR-2-68038-435-2
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 125

Industry Insights

The global smart card materials market size was estimated at USD 961.9 million in 2017. It is projected to expand at a CAGR of 3.7% during the forecast period. Burgeoning demand for reliable and secure payment transactions and growing inclination towards cashless payments are expected to be the primary growth stimulants for the market. In addition, rapid growth of end-use industries, especially in Asia Pacific, is anticipated to work in favor of the market over the forecast period.

Smart card materials are likely to witness substantial rise in demand over the forecast period, thanks to widening scope of applications of these cards in the telecommunication industry. It is used in the production of universal integrated circuit card (UICC) in mobile phones and in subscriber identity module (SIM). Additionally, NFC-enabled mobile applications and pay phones are further fueling the demand for these materials in the telecommunication sector.

U.S. smart card materials market

The U.S. market was valued at USD 125.9 million in 2017. It is poised to progress at a CAGR of 3.4% over the forecast period. Rising micropayment transactions, subsequent need for a secure IT environment, increasing consumer acceptance, and security concerns are some of the key factors triggering the demand for the materials in the U.S. Furthermore, rapid advancements in the U.S. payment industry are boosting the demand for contactless cards.

The BFSI sector has undergone major changes in recent times. Conventionally, smart cards were used for pay-phone applications to prevent theft. However, they are now being used across multiple applications, such as payment cards, ticketing, and ID recognition, in the form of embedded chips. This is estimated to augment the market over the forecast period.

Uncertainty in prices of ethylene are resulting in increase in cost of production and distribution, which in turn, is affecting prices of vinyl chloride monomer (VCM). VCM is the immediate raw material required for production of PVC. Fluctuating VCM prices are negatively influencing the final cost of PVC. Such volatility in ethylene prices may consequently affect profit margins of market participants. Hence, protean prices of ethylene are limiting the market from realizing its utmost potential.

Material Insights

Demand for polyvinyl chloride for manufacturing smart cards is projected to post a CAGR of 3.7% in terms of revenue between 2017 and 2025. Over last many years, it has been the most preferred material for the production of smart cards. PVC is a thermoplastic polymer with excellent chemical, mechanical, and thermal properties. It is used in the form of films for the production of different types of cards.

Several drawbacks of PVC material have resulted in a shift from it to polycarbonate (PC) material. In comparison with PVC material, PC material has more advantageous properties such as high temperature resistance, low shrinkage, excellent printable surface, a lifespan of over ten years, and optical properties.

Type Insights

Based on type, contact cards will be the leading revenue contributor in the smart card materials market throughout the forecast horizon. Multi-component type can process complex calculations and store information that can be used in contact and contactless cards. This feature facilitates faster processing speed and reduced transaction time. Thus, this type of smart card is expected to be widely adopted in various sectors including BFSI, telecommunication, retail, and healthcare. the multi-component segment was valued at USD 155.8 million in 2017. It is anticipated to grow substantially over the forecast period.

Application Insights

The telecommunication segment is poised to dominate the market throughout the forecast horizon. Increasing utilization of SIM across the world is positively influencing the growth of the global market. Surging utilization of mobile phones is further promoting the demand for smart card materials. Introduction of universal integrated circuit card (UICC) is likely to contribute to the growth of the segment.

The BFSI segment is estimated to witness a CAGR of 4.0% over the forecast period. Rising adoption of these cards in the BFSI sector is ensuring convenient payment facilities and curtailing the risk of carrying cash. This, in turn, is projected to drive the market through 2025.

Regional Insights

The Asia Pacific market was valued at USD 414.0 million in 2017. The regional market is expected to exhibit a CAGR of 4.3% over the forecast period. The growth of the region can be attributed to rising adoption of digital services in emerging economies such as China and India. In recent times, there is an increase in the use of smart card products such as debit/credit cards, gift cards, and ID recognition cards in this region.

Booming end-use industries of smart cards are escalating the growth of the market in Asia Pacific. Digitalization of operations and spiraling use of mobile phones are leading to an increase in adoption of smart card products, such as SIM, thereby providing a significant push to the market in the region.

Global smart card materials market

Asia Pacific was followed by Europe, which is projected to register a CAGR of 3.8% during the same period. Widespread usage of smart cards in several industries such as defense, healthcare, government, and BFSI is one of the major factors supplementing the growth of the regional market.

Smart Card Materials Market Share Insights

With presence of a raft of key players accounting for the majority of market share, competition in the global arena is high. Some of the prominent components operating in the market are Eastman Chemical Company, SK Chemicals, PetroChina Company Limited, Solvay S.A., Axiall Corporation, KEM One, SABIC Innovative Plastics, 3A Composites GmbH, Teijin Ltd., LG Chemicals, Formosa Plastics Group, and BASF SE.

Report Scope

Attribute

Details

Base year for estimation

2017

Actual estimates/Historical data

2014 - 2016

Forecast period

2018 - 2025

Market representation                                

Revenue in USD Million, and CAGR from 2018 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Country scope

U.S., Canada, Mexico, Germany, U.K., France, China, India, Japan, and Brazil

Report coverage      

Revenue forecasts, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, & country levels and provides an analysis on industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global smart card materials market report on the basis of material, type, application, and region:

  • Material Outlook (Revenue, USD Million, 2014 - 2025)

    • Polyvinyl Chloride (PVC)

    • Polycarbonate (PC)

    • Acrylonitrile Butadiene Styrene (ABS)

    • Polyethylene Terephthalate-Glycol (PETG)

    • Others

  • Type Outlook (Revenue, USD Million, 2014 - 2025)

    • Contact Cards

    • Contactless Cards

    • Multi-Component Cards

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • BFSI

    • Government

    • Telecommunication

    • Retail

    • Healthcare

    • Hospitality

    • Others

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

      • Saudi Arabia

      • South Africa

      • U.A.E.

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