Market Overview
According to the latest market research study published by P&S Intelligence, the Saudi Arabian smart card market is projected to grow
from an estimated USD 439.0 million in 2024 to USD 676.7 million by 2030,
reflecting a compound annual growth rate (CAGR) of 7.5%. This growth is largely
attributed to the country's rapid digitization across sectors and an increase
in digital transactions and online shopping. Heightened focus on advanced
access control systems further propels market expansion.
Additionally, government initiatives aimed at streamlining
essential documentation and promoting contactless payments are fostering
widespread adoption. Smart cards are increasingly utilized in banking,
financial services, public transportation, and hospitality, highlighting their
versatility and importance in supporting the nation’s digital transformation
goals.
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Key Insights
Product Segmentation
Contactless smart cards are anticipated to dominate the
market, accounting for approximately 45% of the revenue in 2024. Their
popularity stems from extensive use in the BFSI sector and for access control
in secure facilities. Dual-interface cards, which support both contact and
contactless interactions, are expected to be the fastest-growing segment, with
a CAGR of 7.7%. This growth is attributed to their versatility and widespread
use in debit and credit card applications.
Component Analysis
Microprocessor-based smart cards are projected to hold the
largest market share, contributing 60% of the revenue in 2024. These
microprocessors function as compact computers, executing data processing tasks
that include encryption and decryption, ensuring secure transactions and
communications.
Application Areas
The BFSI sector is expected to be the largest application
area in 2024, driven by the extensive use of debit and credit cards. These
smart cards facilitate secure and swift payments through technologies like
near-field communication (NFC) and radio-frequency identification (RFID). The
government and security segment is anticipated to experience significant
growth, propelled by the increasing issuance of digital identification
documents, such as civil affairs cards and birth certificates. Notably, the Ministry
of Hajj and Umrah's introduction of the Hajj smart card, Shaaer, exemplifies
efforts to enhance digital services for pilgrims.
Regional Outlook
Al-Riyadh province is poised to lead the market, both in
size and growth rate, with a projected CAGR of 35% during the forecast period.
This leadership is attributed to a growing population, rising demand for
banking cards, government-issued identities, and advanced access control
systems. Ongoing infrastructure projects, including the development of metro
lines and bus networks that utilize rechargeable smart card systems, further
bolster the market in this region.
Competitive Landscape
The Saudi Arabian smart card market is characterized by
consolidation, with prominent players such as Inkript, IDEMIA Group, GoldenChip
Company (GCC), Thales Group, and Advance Card Technology Factory leading the
industry. These companies are continually advancing their technologies to
enhance security and authentication, thereby maintaining a competitive edge.
For instance, in June 2023, Inkript produced its first biometric payment card
based on Zwipe’s platform in the Middle East and Africa, highlighting ongoing
innovation within the market.
