Contactless smart cards store and transfer data wirelessly without the need for physical touch. These cards, which contain a small chip and an antenna, are extensively used for access control, payment systems, transit, and other applications. They are intended to interact with compatible devices by simply holding or waving them close to a scanner, allowing convenient and secure transactions or access without the card being inserted or swiped. Furthermore, contactless smart cards have advantages in terms of speed, better security, and durability, however, obstacles such as infrastructure setup and security must be controlled. As digital transactions and accessibility have gained significance, the market has developed, and it is characterized by continuous innovation and efforts to balance convenience with strict security
The contactless smart cards market is influenced by several important factors. The surge in digital payment ecosystem greatly helps the expansion of the contactless smart card business. This expansion is attributed to many fundamental factors that have changed the way individuals and organizations conduct financial transactions. Furthermore, the surge in use of smartphones, combined with the availability of strong mobile banking apps and digital wallets, has opened the road for contactless payments to become a mainstream preference. These applications enable users to link their bank accounts or credit cards, making it simple to conduct safe payments using NFC (Near Field Communication) technology, which is at the heart of contactless smart cards. Moreover, the rise of IoT and connected devices drive the contactless smart cards market growth. However, limited compatibility and infrastructure constraints restrain the expansion of the contactless smart cards market. The requirement for a well-established infrastructure to allow contactless payments is one of the key hurdles. While large urban locations and developed regions frequently have the necessary infrastructure, many communities still lack the essential technology and connectivity, impeding widespread use of contactless smart cards. In addition, high infrastructure cost, along with security and data theft concerns hamper the growth of contactless smart cards market. On the contrary, integration with IoT and mobile devices provides significant potential for the contactless smart cards market by enabling smooth, safe, and convenient transactions in a variety of linked environments, including smart homes, transportation, and healthcare. This convergence improves the user experience and increases the market's reach.
The contactless smart cards market is segmented on the basis of type, functionality, industry vertical, and region. On the basis of type, the market is classified into memory, and MPU microprocessor. By functionality, the market is categorized into transaction and security access control. By industry vertical, it is divided into BFSI, retail, healthcare, hospitality, transport and logistics, media and entertainment, and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the contactless smart cards market such as CardLogix Corporation, CPI Card Group Inc., Giesecke+Devrient GmbH, HID Global Corporation, IDEMIA, Infineon Technologies AG, NXP Semiconductors, Sony Corporation, Thales, and Watchdata. These players have adopted various strategies to increase their market penetration and strengthen their position in the contactless smart cards market.
The contactless smart cards market is influenced by several important factors. The surge in digital payment ecosystem greatly helps the expansion of the contactless smart card business. This expansion is attributed to many fundamental factors that have changed the way individuals and organizations conduct financial transactions. Furthermore, the surge in use of smartphones, combined with the availability of strong mobile banking apps and digital wallets, has opened the road for contactless payments to become a mainstream preference. These applications enable users to link their bank accounts or credit cards, making it simple to conduct safe payments using NFC (Near Field Communication) technology, which is at the heart of contactless smart cards. Moreover, the rise of IoT and connected devices drive the contactless smart cards market growth. However, limited compatibility and infrastructure constraints restrain the expansion of the contactless smart cards market. The requirement for a well-established infrastructure to allow contactless payments is one of the key hurdles. While large urban locations and developed regions frequently have the necessary infrastructure, many communities still lack the essential technology and connectivity, impeding widespread use of contactless smart cards. In addition, high infrastructure cost, along with security and data theft concerns hamper the growth of contactless smart cards market. On the contrary, integration with IoT and mobile devices provides significant potential for the contactless smart cards market by enabling smooth, safe, and convenient transactions in a variety of linked environments, including smart homes, transportation, and healthcare. This convergence improves the user experience and increases the market's reach.
The contactless smart cards market is segmented on the basis of type, functionality, industry vertical, and region. On the basis of type, the market is classified into memory, and MPU microprocessor. By functionality, the market is categorized into transaction and security access control. By industry vertical, it is divided into BFSI, retail, healthcare, hospitality, transport and logistics, media and entertainment, and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the contactless smart cards market such as CardLogix Corporation, CPI Card Group Inc., Giesecke+Devrient GmbH, HID Global Corporation, IDEMIA, Infineon Technologies AG, NXP Semiconductors, Sony Corporation, Thales, and Watchdata. These players have adopted various strategies to increase their market penetration and strengthen their position in the contactless smart cards market.
Key Benefits For Stakeholders
- The study provides in-depth analysis of the global contactless smart cards market along with the current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the global contactless smart cards market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the global contactless smart cards market from 2022 to 2032 is provided to determine the market potential.
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Key Market Segments
By Functionality
- Transaction
- Security and Access control
By Type
- Memory
- MPU Microprocessor
By Industry Vertical
- BFSI
- Retail
- Healthcare
- Hospitality
- Transportation and Logistics
- Media and Entertainment
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- Key Market Players
- Giesecke+Devrient GmbH.
- IDEMIA
- Infineon Technologies AG
- Sony Corporation
- Thales
- CPI Card Group Inc.
- HID Global Corporation
- NXP Semiconductors.
- Watchdata Co., Ltd.
- CARDLOGIX CORPORATION
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: CONTACTLESS SMART CARDS MARKET, BY TYPE
CHAPTER 5: CONTACTLESS SMART CARDS MARKET, BY FUNCTIONALITY
CHAPTER 6: CONTACTLESS SMART CARDS MARKET, BY INDUSTRY VERTICAL
CHAPTER 7: CONTACTLESS SMART CARDS MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the contactless smart cards market was valued at $9.4 billion in 2022, and is estimated to reach $21 billion by 2032, growing at a CAGR of 8.7% from 2023 to 2032.The Contactless Smart Card market is likely to experience a significant growth rate of 8.7% from 2022-2032 owing to increasing market demand from media and entertainment sectors
The contactless smart card market is experiencing significant growth driven by several key trends such as the increasing demand for secure and convenient payment methods is propelling the adoption of contactless smart cards. These cards allow users to make swift and secure transactions by simply tapping or waving the card near a compatible reader, reducing the need for physical cash and traditional card swiping. Furthermore, the COVID-19 pandemic has accelerated the trend toward contactless payments as people seek touchless alternatives to minimize the risk of virus transmission. This has not only boosted the use of contactless payment cards but also expanded their applications to access control, public transportation, and more. Moreover, the integration of contactless technology into smartphones and wearable devices has expanded the market's scope. Many consumers now have the option to store their contactless cards digitally and use them through their devices, adding to the convenience and versatility of these cards.The rise of the Internet of Things (IoT) has accelerated the expansion of the contactless smart card market. As IoT technology continues to spread across numerous industries, the necessity for seamless and secure device connectivity has become critical. With their capacity to wirelessly communicate data and authenticate users, contactless smart cards have emerged as a trustworthy alternative for facilitating safe interactions within IoT ecosystems. Furthermore, by utilizing near-field communication (NFC) and RFID technology, contactless smart cards enable seamless communication between connected devices such as smartphones, wearables, and smart appliances. Thus, raises the demand for contactless smart cards in industries such as transportation, healthcare, retail, and access control, where the ease of frictionless transactions and data transmission matches with changing customer desires. Moreover, the ease of use and convenience for consumers of contactless smart cards are fueling their growth in the market as they offer effortless and efficient transactions and interactions for consumers. However, high infrastructure costs, along with security and data theft concerns, are hindering the expansion of the contactless smart card market. Contactless technology implementation necessitates considerable investments in upgrading or installing new infrastructure, such as card readers and payment terminals, across multiple industries. This financial barrier can hinder adoption of contactless smart card, particularly for enterprises with limited resources. Moreover, limited compatibility and infrastructure are hampering the growth of the contactless smart card market, by limiting the card's usability and acceptance as users struggle to find appropriate terminals and systems in order to fully utilize the card's features.
On the contrary, the integration of contactless smart cards with IoT (Internet of Things) and mobile devices represents an ideal chance for the contactless smart card market. As the world accepts digital technology, such connections are becoming easier, safer, and efficient in a variety of situations. Because of the Internet of Things, contactless smart cards can easily communicate with a wide range of connected gadgets, allowing for innovative uses such as smart home access, automatic attendance tracking in workplaces, and easier inventory control in retail and logistics. By providing real-time data transmission and remote control, this connection simplifies operations and improves user experiences.
The COVID-19 pandemic accelerated the adoption of contactless smart cards significantly. Concerns over physical contact heightened the demand for touchless payment solutions, making contactless smart cards a preferred choice for transactions. Merchants and consumers alike sought safer and more hygienic payment methods, leading to a surge in the use of contactless technology. This trend is expected to continue, with a lasting shift towards contactless payment methods even as the pandemic subsides.
The contactless smart card market is segmented on the basis of type, functionality, industry vertical, and region. On the basis of type, the market is bifurcated into memory, and MPU Microprocessor. Based on functionality, the market is segmented into transaction, communication, and security access control. By industry vertical, it is bifurcated into BFSI, Retail and E-commerce, healthcare, travel and hospitality, transport and logistics, media & entertainment, and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the contactless smart card market such as CardLogix Corporation, CPI Card Group Inc., Giesecke+Devrient GmbH, HID Global Corporation, IDEMIA, Infineon Technologies AG, NXP Semiconductors, Sony Corporation, Thales, and Watchdata. These players have adopted various strategies to increase their market penetration and strengthen their position in the contactless smart card market.
Key Market Insights
By type, the MPU microprocessor segment led the contactless smart card market in terms of revenue in 2022.By functionality, transaction segment accounted for the highest contactless smart card market share in 2022.
By industry verticals, BFSI segment accounted for the highest contactless smart card market share in 2022.
By region, Asia-Pacific generated the highest revenue in 2022.
Companies Mentioned
- Giesecke+Devrient GmbH.
- IDEMIA
- Infineon Technologies AG
- Sony Corporation
- Thales
- CPI Card Group Inc.
- HID Global Corporation
- NXP Semiconductors.
- Watchdata Co., Ltd.
- CARDLOGIX CORPORATION
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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