Smart cards play a vital role across diverse domains, including credit cards and various payment cards. They are especially employed in scenarios necessitating not only secure and rapid transactions but also safeguarding personal data. This encompasses credit cards, different payment card types, government IDs, corporate identification cards, and transit fare payment cards. Moreover, these cards extend their utility to serve as legal documentation in instances, such as e-passports and visas. Several key factors significantly influence the growth of the market.

BFSI sector is a primary driver

One of the primary drivers is the increasing product adoption within the BFSI sector, where their usage is becoming more prevalent. In addition, there's a notable surge in demand for contactless smart cards, propelling market expansion. The ongoing technological advancements, including the expansion of blockchain and the Internet of Things (IoT), play a key role in boosting market growth by introducing innovative possibilities. For instance, the analysts at Grand View found that in September 2021, Standard Chartered Bank unveiled a cutting-edge smart credit card designed to cater to the evolving digital preferences of clients. This distinctive card is poised to provide everyday advantages tailored to the digital-first way of life. The new smart card brings hassle-free borrowing and a suite of digital rewards and self-service functionalities.

Telemedicine also a strong driver

Rapid development in telemedicine and other healthcare technologies is expected to drive the market growth. Patients use smart cards to receive medical care remotely through telemedicine platforms. In addition, the product demand is rising as healthcare providers and patients seek more secure and convenient ways to access medical treatments. For instance, in Belgium, patients are equipped with dedicated smart cards. These cards serve as repositories for the patient's personal health records and medication details. They empower healthcare professionals to conveniently and securely access patients' health information. This innovation emphasises the substantial advantages of smart cards to modern healthcare practices, streamlining the process of obtaining and sharing critical health-related data.

The contactless segment led the market in 2022, accounting for over 53% share of the global revenue. Contactless smart cards, such as RFID-based cards, allow for quick and convenient transactions without physically inserting the card into a reader or terminal. This speed and ease of use make them highly appealing to consumers and businesses, leading to increased adoption.

Digital payment platforms on the increase

The rise of e-commerce and digital payment platforms has increased the need for secure and reliable communication channels to facilitate online transactions.  As a result the communication segment held the largest revenue share of 40% in 2022, and the telecommunications segment held the largest revenue share of over 40% in 2022, owing to the continued growth in the number of mobile subscribers and the expansion of mobile networks.

Block, Inc.; Cardlogix Corporation; CPI Card Group Inc.; Giesecke+Devrient GmbH; HID Global Corporation; Idemia; Inteligensa, Samsung Electronics Co Ltd; Sony Corporation and Thales, are the companies named by the research as main players in this sector.