GVR Report cover 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

  • Report ID: GVR-2-68038-435-2
  • Number of Pages: 125
  • Format: Electronic (PDF)

Report Overview

The global smart card materials market size to be valued at USD 1.29 billion by 2025 and is expected to grow at a compound annual growth rate (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. Also, the rapid growth of end-use industries, especially in the Asia Pacific, is anticipated to work in favor of the market over the forecast period. Smart card materials are likely to witness a substantial rise in demand over the forecast period, thanks to widening the scope of applications of these cards in the telecommunication industry. It is used in the production of universal integrated circuit cards (UICC) in mobile phones and subscriber identity module (SIM). Additionally, NFC-enabled mobile applications and payphones are further fueling the demand for these materials in the telecommunication sector.

Smart Card Materials Market size, by application

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

Smart Card Materials Market Trends

Market forces for strong security smart cards are influenced by increasing information security needs connected to user credentials. The growing availability of small-sized IC chips with improved functionality built-in in them assists businesses in providing technology-enabled smart cards to their clients. Aside from that, rising consumer demand for innovative products is expected to fuel demand for the market.

Additionally, global e-commerce penetration leads to the widespread use of smart cards for safe transaction activities during product purchases. Furthermore, rising transportation infrastructures such as airlines, railways, and buses are expected to drive the demand for smart cards for user identification, thereby increasing the need for smart card materials.

Lack of certainty in ethylene prices increased the price of manufacture and supply, affecting the price of vinyl chloride monomer. Vinyl chloride monomer(VCM) is the primary raw material used to manufacture PVC, and VCM price fluctuations significantly impact the outcome cost of PVC. The volatility in ethylene prices affects market participants' profit margins. As a result, ethylene's volatile prices are excepted to hamper the market growth.

Global manufacturers' increased awareness and importance of developing environmentally friendly and sustainable materials are expected to create opportunities for the smart card materials market. Due to the environmentally-conscious customers, the banking and financial sectors are now incorporating sustainable materials to produce green smart cards. The growing demand for eco-friendly materials for manufacturing is expected to create further opportunities for the market.

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 the 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 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 the utilization of SIM across the world is positively influencing the growth of the global market. Surging the utilization of mobile phones is further promoting the demand for smart card materials. The introduction of a 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. The 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 the 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.

Smart Card Materials Market share, by region

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

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 Trends by Region

Key Companies & Market Share Insights

With the 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.

Recent Developments

  • In May 2022, Eastman Chemical Company announced an ASR deal with Mizuho Markets Worldwide LLC and Wells Fargo, NA. With this acquisition, Eastman will have made significant strides toward its objective of repeat purchases upwards of $1 billion of shares by 2022, with roughly $750 million done in the 2nd period.

  • In August 2020, Onyx Center Source Company, a leading player in the United States, created a new virtual smart credit card for hospitality and travel clients. This essentially assists the organization in closely managing or restricting the use to improve security, first contact resolution, and minimize complaints.

Smart Card Materials Market Report Scope

Report Attribute

Details

Revenue forecast in 2025

USD 1.29 billion

Growth rate

CAGR of 3.7% from 2019 to 2025

Base year for estimation

2017

Historical data

2014 - 2016

Forecast period

2018 - 2025

Quantitative units

Revenue in USD billion and CAGR from 2018 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Material, type, application, and region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

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

Key companies profiled

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

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country; regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Global Smart Card Materials Market Segmentation

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

Global Smart Card Materials Market Segmentation

  • 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

      • The 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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