The global smart card market size was valued at $10.19 billion in 2019, and is projected to reach $15.57 billion by 2027, growing at a CAGR of 6.2% from 2020 to 2027.
The global smart card industry is anticipated to witness significant growth over the forecast period. Factors, such as rapid digitalisation, surge in cashless transactions and rise in demand from the healthcare sector, are driving the growth of the market.
New modes of information security around users, enabled by blockchain, are expected to create opportunities for the smart card industry. Smart cards can efficiently manage cryptographic keys, thereby enabling secure and efficient transactions in blockchain applications.
Smart Card Market
Region-wise, Asia-Pacific is dominating smart cards, owing to growing demand for telecommunication products and rapid digitalisation in this region. Asia-Pacific is also projected to register significant growth rate during the forecast period.
North America also holds a prominent position, and is expected to increase its growth rate by the end of the forecast period, followed by Europe.
Top Impacting Factors
The prominent factors that impact market growth are growing adoption of smart cards in the Banking & Financial Sector Industry (BFSI) and surge in demand for contactless smart card.
Ongoing technological advancements, such as blockchain and IoT technologies, drive the smart card market. However, high costs of incorporating chip cards restrict the market growth.
On the contrary, high demand from the Asia-Pacific region is expected to create lucrative opportunities for the market. Therefore, these factors are anticipated to definitely affect the development of the global smart card market during the forecast period.
Covid-19 Impact Analysis
The outbreak of COVID-19 has significantly affected the electronics and semiconductor sector. Business and manufacturing units across various countries were closed, owing to increase in number of COVID-19 cases, and are estimated to remain closed in 2021.
Furthermore, partial or complete lockdown has disrupted the global supply chain, thereby posing challenges for manufactures to reach customers. The overall production process has been adversely affected. However, the growth of the telecommunication segment has boosted the global market.
The COVID-19 pandemic severely impacted the electronics sector as the production facility has stalled, which, in turn, created significant product demand in industries. This resulted in large-scale manufacturing interruption across Europe and interruption in Chinese parts exports, which are expected to hinder the smart card market growth.
The post Global smart card market projected to reach $15.7 billion appeared first on Payments Cards & Mobile.