Contact smart cards are expected to hold the largest share of the smart card market throughout the forecast period. Currently, contact smart cards account for more than three-fourth of the smart card market and are widely used in BFSI, government and healthcare, and retail applications.

The major applications of contactless smart cards are in BFSI, government and healthcare and transportation applications.

Hardware is expected to hold the largest share of the smart card market, by component, during the forecast period. Currently, hardware accounts for more than three-fourth of the smart card market, which comprises smart cards and readers. The smart card market for software comprises management system software and databases. Management system software is used to match information of a person with the saved data in a particular database. Consulting, support, and maintenance services play a vital role in implementing smart card systems.

The smart card market for transportation applications is predicted to grow at the highest CAGR during the forecast period. Smartcards are used for parking fee payment as well as for transit fare payment in the transportation sector. Transit ticketing systems are transforming into open-payment systems owing to the introduction and widespread adoption of debit and credit cards. The transportation sector is operating in compliance with EMV, which is an open-standard specification for smart card payments. EMV-based solutions are deployed in parking infrastructure to avoid fraud and complications.

In terms of geography, the Asia Pacific region is expected to hold the largest share of the smart card market during the forecast period owing to the increasing demand specifically in the transportation, BFSI, retail, government, and healthcare sectors. Companies in developing countries such as India, China, Malaysia, and Thailand are implementing smart cards to make the process of payments and other documentations easy for consumers. Smart cards are used to purchase tickets in metros, buses, and ferries, among others, in several countries in APAC.

The report also profiles the most promising players in the smart card market. The competitive landscape of the market presents an interesting picture of the strategies adopted by a large number of market players. Some of the key players in this market as cited by the analysts include Gemalto, Giesecke & Devrient, Idemia, Infineon, NXP, Sony, Samsung, HID, Identiv, Fingerprint Cards, Cardlogix and Zwipe.