Smart Card Market Size By Solution (Smart Card [Product {Contact-Based, Contactless, Hybrid, Dual Interface}, Type {Memory Card, Microprocessor Card}], Smart Card Reader [Component {Hardware, Software, Service}, Product {Contact-Based, Contactless}]), By

Smart Card Market Size By Solution (Smart Card [Product {Contact-Based, Contactless, Hybrid, Dual Interface}, Type {Memory Card, Microprocessor Card}], Smart Card Reader [Component {Hardware, Software, Service}, Product {Contact-Based, Contactless}]), By Application (SIM & Telecom, Financial, Government & Health, Retail & Gas, Access Control, Transportation, Loyalty), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 - 2026

The smart card market is expected to gain significant momentum in coming time as ongoing technological advancements and adoption of electronic payment methods keeps rising on a large scale. A smart card is a card like device comprising of an integrated circuit chip implanted on it. A smart card works by connecting it to a controller or host computer through a card reader, which retrieves information from the card and further passes the data along to the host computer or controller.

The smart card market is segmented in terms of solution, application, and regional landscape.

In terms of solution, the smart card market is bifurcated into smart card and smart card-reader. The smart card segment is further categorized into product and type.

Based on product, the smart card market is classified into dual interface, hybrid, contactless, and contact. With the introduction of 4G LTE SIM cards and the emergence of 5G technology, the demand for the contact cards will increase in the coming years.

The contactless product segment is expected to witness tremendous gains as its ability to provide fast as well as convenient transactions is resulting in a rising demand for technology across numerous emerging applications including transport, corporate, banking, and government.

With respect to type, the smart card market is classified into microprocessor cards and memory cards. The smart cards that come under the memory cards segment are essentially based on memory cards. This type of card is basically used to store memory and is the least secured amongst other types of smart cards, which might hamper its growth going forward.

In terms of application, the overall smart card market is segmented into loyalty, transportation, access control, retail & gas, financial, government & health, sim & telecom, and others. In the financial segment smart cards increase trust by enhanced security. It provides two-factor authentication, which protects the data and value throughout the internet. Threats like the Trojan Horses and Man in the middle can be eliminated.

Rising technological advancements and innovations in the POS solutions are further encouraging key retail players to modify their traditional payment & billing solutions, thereby leading to an immense product demand in the retail & gas segment.

Multifunctional microprocessor-based smart cards that incorporate identity with access privileges and can also store value for use in various locations, such as stores and cafeterias, are being majorly preferred by organizations in the access control segment.

Smart cards are used as a stored value in loyalty programs & gift cards that track and provide convenient & safer incentives to repeat customers. Such factors help store owners to improve customer retention, encourage spending, and strengthen relationships with customers, thereby leading to market growth in the loyalty application segment.

A smart card reader is another aspect of the overall card payment environment. A card reader can be defined as a device that can connect to the smart card indirectly or directly through RF based communication technology. The reader is connected to a computer and transfers the data it reads from the card onto the computer for further processing.

The smart-card reader market is further categorized in terms of component, product, application, and regional landscape.

With respect to component, the smart card reader market is bifurcated into services, hardware, and software. Under the software segment, the increasing development of software tools to offer secure payment options and an effective order management platform is expected to drive the adoption of innovative solutions in the smart card reader.

Under the services component segment, maintenance & support services are expected to witness a high demand owing to the growing implementation of modern solutions to improve IT performance.

Based on product, the smart card reader market is divided into contact and contactless. Among these, contact based smart card readers are widely used in debit card & credit card transaction systems. They require a manual insertion into the reader by the user. This segment is likely to witness growth in the coming years.

The contactless readers offer added convenience and speed by eliminating the need to insert the card into a reader. The common applications of contactless card readers include identification and asset control, E-passports, parking, vending, and tollbooth fares.

From a regional frame of reference, the technological advancements in the U.S. such as USB-enabled cards, RFID cards, integrated SIM cards, NFC authentication, and biometric to enhance safety & security functions will increase the adoption of smart card in the North America region over the forecast timespan.

The rise in the adoption of electronic payment methods across the Saudi Arabia, UAE, Qatar, and South Africa will increase the demand for smart cards throughout MEA in the coming years. The introduction of SADAD payment system by the Saudi Arabian Monetary Agency (SAMA) has revolutionized the E-payment system in the country. The system is highly adopted by banking customers since it enables E-commerce transactions from local as well as international vendors on a 24/7 basis.