Smart Card Market Report 2026

The smart card market size has grown strongly in recent years. It will grow from $24.71 billion in 2025 to $27.12 billion in 2026 at a compound annual growth rate (CAGR) of 9.8%. The growth in the historic period can be attributed to expansion of banking and financial services digitization, growth of government identification programs, increasing adoption of sim cards, rising demand for secure access solutions, improvements in chip manufacturing technology.

The smart card market size is expected to see strong growth in the next few years. It will grow to $39.47 billion in 2030 at a compound annual growth rate (CAGR) of 9.8%. The growth in the forecast period can be attributed to increasing adoption of digital identity systems, rising demand for cashless payment solutions, expansion of smart transportation infrastructure, growing focus on data security and privacy, increasing integration of smart cards with mobile ecosystems. Major trends in the forecast period include increasing adoption of contactless payment cards, rising use of smart cards for identity verification, growing integration of multi-application smart cards, expansion of nfc and rfid-based solutions, enhanced focus on secure authentication technologies.

The increasing usage in telecommunications is expected to drive the growth of the smart card market in the future. The telecom industry is experiencing rapid growth due to the rising demand for high-speed internet, mobile services, and IoT connectivity. Smart cards, such as SIM cards, are essential in the telecom sector as they support subscriber identity, enhance mobile security, and provide data storage. As mobile devices and the Internet of Things (IoT) continue to expand, the utilization of smart cards in telecommunications is also growing quickly. For instance, in December 2023, CEIC Data, a China-based data and analytics provider, reported that the number of mobile subscribers in the United States reached 386 million, up from 373 million in December 2022. Therefore, the rising use in telecommunications is fueling the growth of the smart card market.

Leading companies in the smart card market are concentrating on offering technologically advanced products to strengthen their market position. These companies are incorporating next-generation smart card technologies into their offerings, including memory technology, RFID, NFC, integrated circuits, Bluetooth tags, Wi-Fi RTLS, and more. These features enhance security, confidentiality, and convenience for users. For example, in January 2024, Advanced Card Systems Ltd. (ACS), a Hong Kong-based technology company specializing in smart card solutions, launched the ACR40U Standard Contact Smart Card Reader and the ACR40U Premium Contact Smart Card Reader for secure digital transactions and user authentication across various applications. The ACR40U Standard Reader is particularly suited for financial transactions, enabling secure processing at ATMs and point-of-sale terminals. Additionally, it supports secure identification across sectors such as banking and government and is used in access control systems to verify users.

In July 2025, IN Groupe, a France-based provider of secure identity, physical and digital identity solutions, and trust services, acquired IDEMIA Smart Identity from IDEMIA Group for an undisclosed amount. Through this acquisition, IN Groupe aims to expand and strengthen its capabilities across the entire identity value chain, enhancing its geographic reach, commercial portfolio, and technological expertise to become a global leader in secure identity solutions and trust services. IDEMIA Group is a France-based company that provides advanced secure identity technologies, products, and solutions enabling end-to-end physical and digital identity verification and trust services.

Major companies operating in the smart card market are CardLogix Corporation, CPI Card Group - Colorado Inc., Giesecke & Devrient GmbH, IDEMIA, Infineon Technologies AG, ABCorp Corporation, Bartronics India Limited, Bundesdruckerei GmbH, Eastcompeace Smart Card Co. Ltd., HID Global Corporation, Identiv Inc., Intelcav Cartões Ltda., Kona M Co. Ltd., NXP Semiconductors Austria GmbH Co. & KG, Samsung Electronics Co. Ltd., Sony Corporation, Thales Group, Valid S. A., VeriFone Inc., Watchdata Technologies Ltd., Cardzgroup Ltd.

Asia-Pacific was the largest region in the smart card market in 2025. The regions covered in the smart card market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart card market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The smart card market consists of sales of CPU/MPU microprocessor multifunction cards, memory cards, multi-mode communication cards and multi-component cards. 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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