What Has Driven the Growth of the Smart Card IC Market in Recent Years?
The smart card ic market has seen considerable growth due to a variety of factors.
• The size of the smart card IC market has experienced significant growth in the past few years. It is projected to increase from $2.96 billion in 2024 to $3.14 billion in 2025, with a compound annual growth rate (CAGR) of 6.2%. The expansion during the historical period can be linked to the surge in cashless transactions, heightened attention on data security, global shift towards emv standards, the broadening of healthcare id solutions, and governmental efforts promoting e-governance.
How Will the Smart Card IC Market?
The Smart Card IC market is expected to maintain its strong growth trajectory in upcoming years.
• Projected advancements in the smart card IC market are anticipated to lead to a substantial increase in market size, potentially reaching a value of $4.37 billion by 2029, registering a compound annual growth rate (CAGR) of 8.6%.
Factors contributing to this growth during the forecast period include rising use of wearable technology, development of smart city initiatives, the spread of contactless access control systems, increased mobile payments, and incorporation into national identification schemes. Notable trends during this period are expected to include advancements in payment technologies, adoption of contactless technology, integration with Internet of Things (IoT), the use of multi-application cards, and the increasing popularity of cryptocurrency hardware wallets.
Which Factors Are Boosting Growth In The Smart Card IC Market?
The trend of contactless payments is anticipated to spur the expansion of the smart card IC market in the future. Contactless payment, a method in which there is no physical contact with a card reader or terminal during the use of a credit card, debit card, or any other type of payment card, involves the wireless communication between the payment card or device and the payment terminal through radio frequency (RF) signals. Smart cards are plastic cards containing an integrated circuit (IC) chip that stores and processes data, and they serve diverse applications such as identity verification, payment, and access control. The IC of a smart card is integral to contactless transactions, storing and processing payment data such as the cardholder's account details and the transaction value. As an example, Barclays, a bank based in the UK, reported in February 2023 that in 2022, an average UK contactless user performed 220 'touch and go' transactions, up from 180 transactions in 2021. Therefore, the surge in contactless payment is propelling the smart card IC market.
What Key Areas Define The Segmentation Of The Global Smart Card IC Market?
The smart card ic market covered in this report is segmented –
1) By Type: Microcontroller, Memory
2) By Architecture: 16-bit, 32-bit
3) By Interface: Contact, Contactless, Dual Interface
4) By Application: USIMs Or e-SIMs, Id Cards, Financial Cards, IoT Devices
5) By Industry: Telecommunications, BFSI, Government And Healthcare, Transportation, Education, Retail, Other Industries
Subsegments:
1) By Microcontroller: Secure Microcontrollers, General-Purpose Microcontrollers
2) By Memory: EEPROM (Electrically Erasable Programmable Read-Only Memory), Flash Memory, RAM (Random Access Memory)
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How Are Emerging Trends Reshaping The Dynamics Of The Smart Card IC Market?
The intelligent card IC market is witnessing an upsurge in product innovation. Companies prominent in the smart card IC market are focusing on the advancement of creative products to reinforce their market stand. For example, ST Microelectronics NV, a Swiss enterprises that specializes in the creation of an extensive range of electronic and electromechanical devices, unveiled the ST4SIM-201 eSIM, a compact, highly secure and adaptable SIM card tailored for machine-to-machine (M2M) communication, in June 2022. The ST4SIM-201 eSIM serves to facilitate M2M interaction across various uses like smart meters, industrial automation and connected cars. It employs the ST33J2M0 secure microcontroller which incorporates hardware-level security characteristics to guard against cybersecurity threats and prevent unauthorized access. Additionally, the eSIM supports over-the-air (OTA) updates, thus allowing remote reconfiguration and updating with no requirement for physical interaction.
Who Are the Key Players In The Smart Card IC Market?
Major companies operating in the smart card ic market include:
• Infineon Technologies AG
• NXP Semiconductors N.V
• Samsung Group
• STMicroelectronics N.V.
• CEC Huada Electronic Design Co Ltd.
• Eastcompeace Technology Co Ltd.
• Valid S.A.
• Microchip Technology Incorporated
• EM Microelectronic
• Watchdata Technologies Ptd Ltd.
• CardLogix Corporation
• Thales Group
• Renesas Electronics
• Maxim Integrated
• Shanghai Huahong Integrated Circuit Co. Ltd.
• Taiwan Semiconductor Manufacturing Company
• Infineon Technologies
• Winbond Electronics
• Melexis
• Beijing Watchdata
• Giesecke+Devrient
• Zwipe AS
• Identiv
• IDEMIA
• Beijing Tongfang Microelectronics
• Cardtek
• Kona I Co.Ltd.
What Is The Most Dominant Region In The Smart Card IC Market?
Asia-Pacific was the largest region in the smart card IC market in 2024. The regions covered in the smart card ic market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
