The global smart card IC market will touch USD 4,929.8 million, propelling at a 7.1% compound annual growth rate, by 2030. This is mainly because of the growing utilization of financial cards and other safe payment solutions. Moreover, the acceptance of smart IDs in educational organizations and e-governance projects are propelling growth.
The growing need for safe payment solutions is one of the major reasons because of why the industry is rising at a high pace. As the count of e-commerce payments is growing, so is the count of scams and frauds. To dodge being a victim of such scams, more-safe solutions are needed, and smart cards are one such solution, as they provide more safety and privacy than other financial data storage or payment solutions.
In 2022, based on end users, the telecommunications category dominated the industry with the largest share. This is mainly because of the use of integrated circuits in subscriber identity modules, boosted by the increasing smartphone acceptance.
Businesses are not only offering postpaid and prepaid SIMs but also pay-as-you-go variants with minimal paperwork, which makes it simpler for customers to use such cards.
Additionally, numerous steps are being taken by the government of several nations to connect individuals in rural areas with the internet or smartphones.
Based on the interface segment, the contactless category is rising at a high pace. This is because of the growing utilization of such cards in several establishments and educational organizations as an access control device.
They are utilized in biometric arrangements as they convey information in only one way and do not need the Internet to process. Furthermore, because of the COVID-19 epidemic, several establishments shifted to contactless smart cards, as they are a more-sterile choice over touch-based biometric technologies, like fingerprint and palm geometry recognition.
During the forecast period, the APAC region is projected to grow at a high rate, mainly because of the rapid industrialization and urbanization in the region. Moreover, the fast acceptance of novel technologies in the healthcare, telecommunications, and BFSI industries is boosting the addition of integrated circuits in smart cards. Furthermore, the count of SIMs being utilized in the region is growing at a high rate, which will drive the industry’s development.
Based on type, in 2022, the microcontroller category led the market with the largest share, and the category is also projected to dominate the market in the future as well, as such chips provide better memory storage and safety to information compared to the old-style magnetic-stripe cards.
Hence, the growing utilization of financial cards and other safe payment solutions. Moreover, the acceptance of smart IDs in educational organizations and e-governance projects are the major factors propelling the market.
