BAKU, Azerbaijan, January 24. The smart card market is expected to reach $29.6 billion by 2033, up from $16.7 billion in 2023, Trend reports.
According to consultancy company Market, it will expand at a compound annual growth rate (CAGR) of 5.9 percent between 2024 and 2033.
A smart card is a portable device with an integrated circuit chip that allows data to be securely stored and processed. These cards are widely utilized in a variety of fields, including identification, payment systems, access control, transportation, and healthcare. Smart cards provide greater security than standard magnetic stripe cards because they can encrypt and secure critical information contained on the card.
Meanwhile, the smart card industry is expanding rapidly due to increased usage across a wide range of industries.
"The market expansion is attributed to the growing demand for safe and secure payment transactions, the rising use of cell phones requiring secure SIM cards, and increased security requirements, which have led to widespread adoption of government identification and access control systems. The financial sector, especially banking and retail, has a significant impact on market dynamics due to the widespread adoption of credit and debit cards. Technological advancements such as integration of near-field communications (NFC) and biometric technologies are driving market growth," the information says.
The smart card market is projected to be around $17.7 billion in 2024, $18.7 billion in 2025, $19.8 billion in 2026, $21 billion in 2027, $22.2 billion in 2028, $23.6 billion in 2029, $24.9 billion in 2030, $26.4 billion in 2031, and $28 billion in 2032.
The smart card market is reported to be an increasingly important component in various industries. This trend is a reflection of the evolving technology landscape and growing demand for enhanced security and efficient data management. The integration of smart cards in industries such as banking, telecom, healthcare, and government services emphasizes their growing importance. The banking sector, in particular, demonstrates significant dependence on smart cards for securing transactions.
To note, the contactless smart card segment dominated the market in 2023, capturing more than 56 percent of the global smart card market share. Asia Pacific dominated this market in 2023 with a share of 38 percent. Rapid technological advancements, high adoption rates in sectors such as banking, telecommunication, and government services, and a growing middle-class population contributed to this leadership.
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