Asia Pacific was the largest revenue contributor in the global smart card market of 2013, accounting for nearly a 50% share of global revenue. China, India, South Korea, and Japan are expected to be the major contributors to the market in the near term.
According to a new market report published by Transparency Market Research, “Smart Cards Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 – 2020,” the smart cards market is now valued at USD 8.2 billion and is expected to reach USD 11.9 billion by 2020, growing at a CAGR of 9.0% from 2014 to 2020.
The Asia Pacific smart cards market is estimated to grow at a CAGR of 10.1% from 2014 to 2020. Asia Pacific is expected to retain its dominant position and is analyzed to be the fastest growing market for smart cards during the forecast period.
Smart cards are classified based on components as memory based smart cards and microcontrollers based smart cards. Memory based smart cards are powered by card readers and are mainly used in low-end and mid-end SIM cards. Microcontrollers based card usage is driven by the added functionality such as security and intellectual data processing capabilities. Based on incorporation of the components, different smart card types are available in the market, which include contact smart cards, contactless smart cards, dual interface smart cards and hybrid smart cards.
Of these smart card types, contact smart cards are expected lose market share to contactless and other card types. Contactless smart cards provide a technology platform for adding new applications to access control systems and facilitate more secure identity verification for both physical and logical access.
Additional security features provided by contactless and dual interface smart cards is driving their adoption in ATM/credit/debit cards and eIDs, and transportation IDs among others. Contactless smart cards accounted for 16.5% of the total smart cards market revenue in 2013.
Smart Card Revenue
2015: US$8.2 billion
2016: US$8.9 billion
2017: US$9.7 billion
2018: US$10.6 billion
2019: US$11.1 billion
2020: US$11.9 billion
Source: Transparency Market Research & CardData
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