WELLESLEY, Mass., Sept. 06, 2017 (GLOBE NEWSWIRE) —
New applications, devices and adoption trends are driving an increasing global market for smart card technologies, which is expected to reach $11.0 billion in 2022, up from nearly $7.3 billion in 2017, according to BCC Research’s Smart Card Technologies and Global Markets. Continued waves of new smart phones that include emerging 5G device technology, Internet of Things deployments, and the continued adoption by corporate and government agencies to improve security and flexibility should push the market at an 8.7% CAGR.
The new BCC Research report also notes agreement on standards and increased use of smart card technology for mobile payment are also driving adoption. Smart card technologies now comprise an integral part of the economy, as evidenced that the average end-user—consumer, business or government—utilizes smart card technologies several times per day for financial transactions, authentication to services or access control.
Driven by different forces, all regions are adopting smart card technologies at a healthy rate. In North America, plastic cards remain the chief means of smart card technology adoption, with financial services firms and service providers reaching agreements regarding standards to facilitate their utility. Nearly every mobile device is receiving Near Field Communications (NFC) technology, resulting in the rapid growth of mobile devices substituting for plastic cards. Meanwhile, widespread projects are being planned in the Asia-Pacific region (i.e., India and China) in the areas of national ID cards and the healthcare sector. The region’s increasing demand for SIM-card-based smart phones will further spur demand. As a result, this region is expected to lead the industry with more than $4.5 billion in revenue by 2022, thanks to an estimated 9.9% CAGR, the highest among all regions.
- Because smart card distribution increases with population, Europe is expected to lose its leading market position to the Asia-Pacific region by the end of the forecast period.
- Smaller form factor and low-power smart cards will play key roles in adding value to IoT and M2M services.
- Subscriber identify modules (SIM), embedded SIM (eSIM), universal integrated circuit cards (UICC) and embedded UICC (eUICC) growth will outpace standard smart card growth for the foreseeable future.
“The factors driving the growing interest in smart cards include their declining cost and the growing concern that magnetic stripe cards cannot provide the protection necessary to prevent fraud and security breaches. This security issue alone is propelling smart card technology to the forefront of business transactions,” says BCC Research senior editor Michael Sullivan, who authored the report.
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.