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The smart card IC market size is forecast to increase by USD 1.45 billion at a CAGR of 5.15% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. Among these, the growing demand for electronic ID cards is a major catalyst. As governments and organizations increasingly prioritize security and convenience, the adoption of electronic ID cards is on the rise. Another trend is the demand for dual-interface cards, which offer both contact and contactless functionality. This flexibility caters to a wider range of applications and user preferences. Furthermore, the growing use of mobile wallets is fueling the market, as smart cards are increasingly being integrated into these systems for secure and convenient transactions. These trends are shaping the market, presenting both opportunities and challenges for market participants.
The market is experiencing significant growth due to the digitalization of various sectors, including Payment processes and ID systems. RFID technology and near-field communication (NFC) are key enablers of this trend, enabling contactless payments and the integration of eSIM cards into smart devices. The adoption of smart payment systems is expanding beyond traditional retail applications to include smart homes, connected cars, and healthcare technologies. Personal data security is a major concern in these applications, leading to the increased use of finger-print security IC and other advanced security measures.
Further, the government sector is also embracing digitalization, with the implementation of eID cards and national cards based on smart card IC technology. The Internet of Things (IoT) and micro-embedded electronics are further driving the demand for smart cards in various industries, including healthcare, hospitality, and telemedicine. Overall, the market is poised for continued growth as these technologies become increasingly integrated into our daily lives.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The 16 bit segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth, driven by the integration of advanced technologies such as point-of-sale (POS) systems, RFID technology, and near-field communication (NFC) in various applications. The adoption of smart card ICs is widespread in sectors like telecommunication and transportation, where less data is required for ID cards, eSIM cards, and other forms of smart payment systems. However, with the increasing volumes and complexity of data, there is a growing demand for more advanced smart card ICs, such as 32-bit and 64-bit, in smart homes, connected cars, and e-government documents. Smart card ICs are integral to various industries, including healthcare, hospitality, and financial services, where data security and processing efficiency are paramount.
Further, these ICs offer security features such as biometric authentication, finger-print security IC, and contactless payments, making them essential for ePassports, eHealth cards, and other e-government documents. The digitalization of payment processes and personal data storage has further fueled the growth of the market. The Internet of Things (IoT) and micro-embedded electronics have expanded the potential applications of smart card ICs, enabling innovation in areas like telemedicine, healthcare technologies, and smart city initiatives. The evolution of technology and the growing need for secure and efficient data processing have created numerous growth opportunities in the market.
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The 16 bit segment was valued at USD 2.37 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 50% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in the Asia Pacific (APAC) region is experiencing significant growth, driven by the adoption of contactless technology, biometric integration, and Internet of Things (IoT) integration. These advancements are particularly prominent in end-user industries such as retail, government, telecommunication, finance, and transportation. South Korea, Malaysia, Singapore, China, Australia, India, Thailand, and Japan are leading the way in deploying smart card technology, with sectoral maturity and the emergence of small and medium-sized enterprises (SMEs) contributing to the market's expansion. The integration of contactless technology enables faster and more convenient transactions, while biometric integration enhances security and privacy. IoT integration allows for seamless connectivity and data exchange between various devices and systems, further expanding the potential applications of smart card ICs in APAC.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand for electronic ID cards is the key driver of the market. Electronic ID cards, also known as eID cards or national smart cards, are issued by governments to citizens, integrating advanced design, functionalities, and communication interfaces. These cards serve as identification documents in some countries, while others incorporate additional features such as e-tax, e-voting, e-health, and public transport ticketing. By integrating these services, governments aim to reduce fraud, counter identity theft, and offer eGovernment services. The market encompasses various applications, including point-of-sale (POS) systems, RFID technology, near-field communication (NFC), eSIM cards, and smart payment systems. These cards are also used in smart homes, connected cars, and various e-government documents, such as ID cards, drivers' licenses, ePassports, eHealth cards, and social security numbers.
Further, the digitalization of identification processes has led to the evolution of smart cards, incorporating advanced technology such as finger-print security IC, biometric authentication, and contactless payments. Integrated circuits and smart cards offer data storage, processing, and financial transaction capabilities, making them essential components in various industries, including healthcare, hospitality, and technology evolution. The growth opportunities in the market are vast, with the integration of IoT, micro-embedded electronics, and healthcare technologies. Smart cities initiatives and the need for secure identity authentication and security features further drive the market's growth. Contactless payments and biometric authentication are becoming increasingly popular, offering convenience and enhanced security.
In conclusion, the market is a dynamic and evolving industry, offering various applications and growth opportunities in sectors such as healthcare, hospitality, and technology. The integration of advanced technology and eGovernment services continues to drive the market's growth, providing numerous benefits to governments and citizens alike.
The demand for dual-interface cards is the upcoming trend in the market. The market encompasses a diverse range of applications, including point-of-sale (POS) systems, RFID technology, and near-field communication (NFC) in various sectors. These advanced cards, equipped with integrated circuits, facilitate smart payment systems in industries such as healthcare, hospitality, and telecommunications. The integration of IoT and micro-embedded electronics has expanded the use of smart cards in smart homes, connected cars, and e-government documents. Smart cards are not limited to financial transactions; they also serve as ID cards, eID cards, national cards, drivers' licenses, ePassports, eHealth cards, and e-government documents. These cards offer enhanced security features, including biometric authentication and finger-print security IC, ensuring the protection of personal data.
Moreover, the evolution of technology has led to the development of eSIM cards, contactless payments, and smart city initiatives. Smart cards play a crucial role in digitalization and the streamlining of payment processes. As the world moves towards a more connected and secure future, the growth opportunities in the market are vast and promising. In conclusion, the market is a significant contributor to the advancement of various industries, offering secure and efficient solutions for data storage, processing, and identity authentication. The integration of innovative technologies such as RFID, NFC, and biometric authentication continues to expand the potential applications and use cases for smart cards.
The growing use of mobile wallets is a key challenge affecting the market growth. The market is experiencing significant growth due to the digitalization of various sectors, particularly in payment processes and identity authentication. Point-of-sale (POS) systems are increasingly incorporating RFID technology and near-field communication (NFC) capabilities, enabling contactless payments using smart cards. These advanced payment systems are not limited to financial transactions but are also being adopted in smart homes, connected cars, and various e-government documents such as ID cards, eID cards, national cards, drivers' licenses, ePassports, eHealth cards, and social security numbers. The integration of biometric authentication, such as finger-print security IC, into smart cards enhances security features and provides an additional layer of protection for personal data.
However, the evolution of technology, including IoT and micro-embedded electronics, is expanding the application areas of smart cards in healthcare, hospitality, and telemedicine. Smart city initiatives are also leveraging smart card IC technology to streamline various services and improve efficiency. The growth opportunities in the market are vast, with continuous advancements in healthcare technologies, healthcare services, and financial transactions. The market is expected to witness significant growth as more industries adopt smart payment systems and integrated circuits to improve data storage, processing, and security. The use of eSIM cards and advanced security features, such as biometric authentication, is further driving the demand for smart cards in various sectors.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
dormakaba Holding AG: The company offers a smart card IC, namely Legic MIM256. Through its subsidiary company LEGIC Identsystems Ltd., this product is available as smart system ID cards.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is a significant segment in the global technology industry. This market is driven by the increasing adoption of smart cards in various sectors such as healthcare, transportation, finance, and government. The integration of advanced technologies like NFC, RFID, and contactless payment systems is fueling the growth of this market. The demand for secure and convenient transactions is propelling the market forward. Additionally, the increasing focus on data security and privacy is creating new opportunities for market players. The market is expected to witness substantial growth in the coming years due to the rising need for secure and efficient identification and transaction systems.
In conclusion, the market encompasses the production and sales of integrated circuits used in smart cards. These circuits enable the cards to store and process data, making them an essential component of the smart card ecosystem. The market is competitive, with several key players vying for market share. Companies are investing in research and development to innovate and differentiate their offerings. The market is expected to grow at a steady pace, driven by the increasing demand for smart cards in various applications.
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Market Scope |
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Report Coverage |
Details |
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Page number |
174 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.15% |
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Market growth 2024-2028 |
USD 1.45 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.49 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 50% |
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Key countries |
US, China, Taiwan, Germany, and Switzerland |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alioth, CardLogix Corp., Datasonic Group Berhad, dormakaba Holding AG, Imatric LLC, Infineon Technologies AG, JCB Co. Ltd., KONA I Co. Ltd., Kshitij Polyline Ltd., Microchip Technology Inc., ON Semiconductor Corp., PGP GROUP Ltd., Protolab Electrotechnologies Pvt. Ltd., Samsung Electronics Co. Ltd., Secura Key, Seshaasai Business Forms P Ltd., SKS ELECTRONICS, Smart Card IT Solutions Ltd., The Swatch Group Ltd., and WATCHDATA TECHNOLOGIES Pte. Ltd. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by CPU Architecture
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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