Smart Card Reader Global Market Report 2024

The smart card reader market size has grown steadily in recent years. It will grow from $15.69 billion in 2023 to $16.47 billion in 2024 at a compound annual growth rate (CAGR) of 4.9%. The increase in the historical period can be attributed to factors such as the rise in the use of access cards, electronic identification cards, debit cards, and credit cards. Additionally, there has been a surge in the adoption of digital payment modes, an increase in digital transactions, a growing adoption of contactless smart cards, and an expanding penetration of IoT devices.

The smart card reader market size is expected to see steady growth in the next few years. It will grow to $19.78 billion in 2028 at a compound annual growth rate (CAGR) of 4.7%. The anticipated growth in the forecast period can be attributed to factors such as the increasing adoption for identity management, rising requirements for financial security leading to the increased adoption of smart cards, the growing adoption of IoT, escalating cybersecurity concerns, and a rising demand from the healthcare sector. Key trends expected in the forecast period include technological advancements, the integration of contactless technology for enhanced security and convenience, government initiatives for secure identification systems, regulatory compliance requirements across various industries, and the integration of smart card readers in smart home systems.

The increasing adoption of digital payment methods is set to drive the growth of the smart card reader market in the future. Digital payment methods encompass a variety of electronically conducted value transfers, eliminating the need for physical cash. These methods include mobile point-of-sale (mPOS) systems, contactless payments, digital wallet transactions, peer-to-peer digital payments, social media payments, cryptocurrency transactions, and cross-border or FX payments. The proliferation of smartphones and internet connectivity is the primary driver behind the rising popularity of digital payments. Smart card readers play a vital role in facilitating digital payment methods, particularly through contactless payments utilizing near-field communication (NFC) technology. For instance, in August 2022, UK Finance reported a 36% surge in contactless payments in the UK in 2021 compared to 2020, reaching a total of 13.1 billion payments. Contactless transactions constituted approximately one-third (32%) of all payments during the year. Consequently, the increasing adoption of digital payment modes is steering the growth of the smart card reader market.

Prominent companies in the smart card reader market are actively developing innovative products such as biometric sensor payment cards to enhance security and convenience for users. Biometric sensor payment cards are equipped with biometric technology, specifically fingerprint sensors, to heighten security and convenience in credit, debit, and prepaid card transactions. These cards utilize fingerprint-matching technology, securely storing the user's fingerprint template on the card's chip. This ensures that only authorized individuals can conduct transactions, authenticating themselves physically with their fingerprint. In July 2021, Thales Group launched the Biometric Sensor Payment Card (BSPC), an EMV (Europay, Mastercard, and Visa) card featuring a biometric sensor. This innovative card integrates a fingerprint scanner for increased security and user convenience, ensuring that the fingerprint data is securely stored on the card's chip and used solely for local authentication during contactless payments, preserving privacy and security.

In June 2022, Nayax Ltd., an Israel-based fintech company providing commerce enablement and payments platforms, acquired On Track Innovations Ltd. (OTI) for $4.5 million. Nayax aims to expedite its growth opportunities by incorporating new products and services from OTI, expanding its presence in targeted markets, particularly in territories such as Japan. On Track Innovations Ltd. (OTI) is an Israel-based payment system company specializing in smart card readers and contactless payment solutions.

Major companies operating in the smart card reader market are Samsung Electronics Co. Ltd., HP Inc., Lenovo Group Limited, FUJITSU Ltd., Canon Camera Co. Inc., PayPal Holdings Inc., Thales Group, NXP Semiconductors N.V, Gemalto NV, Ingenico Group, ARM Holdings PLC, Giesecke & Divrient GmbH, ATMEL Corporation, Linear Technology, Winpak, PAX Global Technology Limited, Datacard Corporation, Verifone Systems Inc., Nayax Ltd, PNY Technologies, Fingerprint Cards AB, ID Tech Camps, iDeals Solutions, TX RX Systems, Advanced Card Systems Ltd., Shenzhen Rocketek Electronics Co. Ltd., IOGEAR Stanley Global LLC.

North America was the largest region in the smart card reader market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart card reader market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart card reader market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A smart card reader is a device designed to access data stored on smart cards, featuring a slot or interface for smart card insertion, along with both hardware and software components for reading and interacting with the card. Commonly used for user authentication, smart card readers facilitate secure transactions in various applications such as banking, payment systems, and electronic commerce.

The primary types of smart card readers include contact-based, contactless-based, and dual-interface-based. Contact-based readers involve physical contact between the smart card and the reader's contact points for data transmission and authentication. Various technologies, such as near-field communication (NFC) and the Europay MasterCard Visa (EMV) chip, are employed for applications including payment transactions, communication, identity management, ticketing, security and access control, among others. These smart card readers find application across diverse end-users, including enterprises, institutions, and individuals.

The smart card reader market research report is one of a series of new reports that provides smart card reader market statistics, including smart card reader industry global market size, regional shares, competitors with a smart card reader market share, detailed smart card reader market segments, market trends and opportunities, and any further data you may need to thrive in the smart card reader industry. This smart card reader market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The smart card reader market consists of sales of USB (Universal Serial Bus) smart card readers, SIM (Subscriber Identity Module) card readers, and hybrid smart card readers. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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