Global plastic cards market lose $3 billion amid COVID-19 disruption

The COVID-19 pandemic severely impacted the global plastic cards market manufacturing industry last year, according to the International Card Manufacturers Association (ICMA).

Global plastic cards market lose $3 billion amid COVID-19

The 2020 Global Card Market and Personalization and Fulfilment Statistics Reports reveal a total worldwide loss of $3 billion. Most regional geographic markets and vertical markets experienced significant declines in revenue.

The global card manufacturing market is valued at $16.8 billion and the personalisation and fulfilment services market is valued at $7.2 billion, making the overall global card industry a $24 billion market.

“The reports account for a bad year for the global plastic card manufacturing industry as a result of the pandemic and the impact of technology,” said Al Vrancart, ICMA founder emeritus and industry advisor.

“The only good news is that the value of cards produced in North America increased because of the penetration of contactless cards in the US market. But remember, the rest of the world including Canada and the Caribbean has had contactless cards for several years.”

The 10.8% decrease from $27 billion in 2019 to $24 billion in 2020 includes revenue from cards manufactured as well as cards personalised and fulfilled around the globe, according to the reports.

The number of cards manufactured globally decreased 19.7% from 37.1 billion cards in 2019 to 29.8 billion cards in 2020. The number of cards personalized and fulfilled decreased 19.1% from 25.4 billion in 2019 to 24.9 billion in 2020.

The Asia Pacific region has the largest (41%) share of the industry, having manufactured $7.5 billion worth of cards and personalised and fulfilled $2.4 billion worth of cards in 2020.

Europe has the second largest share (23.2%), having manufactured $3.9 billion worth of cards and personalised and fulfilled $1.7 billion worth of cards.

North America has the third largest share (22.4%), having manufactured $3.3 billion worth of cards and personalised and fulfilled $2.1 billion worth of cards.

Latin America has the fourth largest share, having manufactured $1.4 billion worth of cards and personalized and fulfilled $560 million worth of cards.

The Middle East/Africa region manufactured $775.5 million worth of cards and personalised and fulfilled $407 million worth of cards.

Highlights from the reports:

• The financial card market experienced one of the smallest unit volume decreases, down 6.6% from 2019 to 5.2 billion in 2020. This market had the only revenue increase of 9% to $4.2 billion. These cards represent 17% of the global card unit volume with the largest volumes manufactured in the Asia Pacific followed by North America.
• The transportation card market segment lost 36.2% globally in revenue, down to $994 million. The number of transportation cards produced globally dropped 39.4% to 1.8 million.
• The number of gift cards produced globally dropped 28% from the prior year to 3.8 billion with most cards being produced in North America. The gift card market’s revenue decreased 26.6% from the prior year to $328 million in 2020.
• The prepaid phone card market is a rapidly declining market segment that produced 3.5 billion cards in 2020, down 22.4% from the prior year. This card market segment’s revenue decreased 20% from the prior year to $180 million.
• The SIM card market segment experienced a 15% revenue decrease to $3.9 billion. The number of SIM cards manufactured globally decreased 13.9% to 4.7 billion with the largest volumes produced in the Asia Pacific and Europe.
• The retail and gas card market segment’s overall revenue dropped 5.7% to $1.2 billion with 2.3 billion cards produced, which is a decrease in unit volume of 13.3% from the prior year.
• The government/health card market segment experienced a revenue decrease, down 4.5% from the prior year to $4.6 billion. The number of cards manufactured in this market segment decreased 6.5% to 3.8 billion with the largest volumes produced in the Asia Pacific and Europe.

The post Global plastic cards market lose $3 billion amid COVID-19 disruption appeared first on Payments Cards & Mobile.