Published on : May 16, 2016
Smart cards are chip-cards that integrate an embedded chip to store information in the digital form. Smart cards offer functionalities such as security, convenience, speed, and ease of use. Contact-based smart cards are used as sim cards and dual interface smart cards are used in government and banking applications due to their reliability. Hybrid cards, which have more than one smart cards inside it, with no interface between each other, are multifunction cards used for several applications. The global smart cards market is expected to expand at a CAGR of 7.4% from 2016 to 2023, rising from US$7.25 bn in 2014 to US$14.17 bn by 2023, states a research report by Transparency Market Research (TMR), a market intelligent company.
Decreasing Cost of Sim Cards Boosts Market
The decreasing cost of sim cards is one of the prime factors boosting the global smart cards market.
Moreover, the increased penetration of smartphones, is also benefiting the market for smart cards. The rising trend of online transactions and payments, and thus an increase in the security concern has surged the demand for secure and reliable payment transactions. Europay, MasterCard, and Visa (EMV) chip technologies have become global standards for debit and credit card payments. This in turn is boosting the smart cards market across the globe.
Asia Pacific Dominated the Global Smart Cards Market in 2014
Geographically, Asia Pacific led the global smart cards market in 2014, characterized by the rising number of mobile subscribers, propelling the demand for smart cards. On the basis of type, the market is segmented into contact smart cards, contactless smart cards, dual interface smart crads, and hybrid smart cards. Of these, contact smart cards are expected to lose market shares. The contactless smart cards segment accounted for 18.6% of the total market revenue in 2014.