The smart card market was valued at USD 13.18 billion in 2017 and is expected to reach USD 21.57 billion by 2023, at a CAGR of 8.7% during the forecast period.

Smart Card Market by Component, the software segment is expected to grow at the highest growth rate during the forecast period,

The smart card market for software was valued at USD 1,891.9 million in 2017 and is expected to reach USD 3,604.2 million by 2023, at the highest CAGR of 11.5% between 2018 and 2023. Using relevant software, it is possible to configure an entire smart card system with smart cards and readers. Considering this, it is expected that the market for software would grow at the highest CAGR during the forecast period.

Download PDF Brochure:
https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=285

Smart Card Market by Application, BFSI accounted for the largest share during the forecast period

BFSI applications accounted for the largest share of 44.8% the smart card market in 2017. The market for BFSI applications was valued at USD 5,912.3 million in 2017 and is expected to reach USD 8,850.1 million by 2023, at a CAGR of 6.9% between 2017 and 2023. The market for transportation applications is expected to grow at the highest CAGR of 11.7% during the forecast period.

Smart Card Market in Asia Pacific to account for the largest market size during the forecast period.

Asia Pacific is expected to hold the largest market size in the smart card market during the forecast period. Asia Pacific is the largest and fastest-growing market because of the fact that several countries in the region are likely to adopt smart card solutions owing to the increasing demand specifically in the transportation, BFSI, retail, government, and healthcare sectors.

Market Dynamics: Smart Card Market

Opportunity: Blockchain technology enhancing security features

Blockchain can be used to generate and store cryptographic keys in smart cards; this would help users authenticate financial transactions by swiping smart cards. A smart card acts as a vault where the cryptographic key can be stored. When the smart card is connected to the Internet via a POS reader, the key stored in the card can be matched with the key stored in the online library, and the authentication of the user would be done. This would help banks and other ecosystem players secure and authenticate user identity in an improved way, thereby reducing cyber theft practices. In 2016, SETL and Metro Bank demonstrated a blockchain-enabled contactless smart card system to help users utilize cash transaction for shopping applications. MarketsandMarkets believes that the use of blockchain technology by smart card providers will increase in the coming years.

Request Free Sample Pages:
https://www.marketsandmarkets.com/requestsampleNew.asp?id=285

Challenge: Security related to contactless technology

Interrupted operations, service denials, covert transactions, and communication links and dual modes are a few security issues facing the contactless smart card market, potentially restricting market growth. The NFC technology and the development of applications to store credit card information could result in privacy issues—theft, regulatory compliance, etc. Failure to protect decrypted data at the contactless payment gateway increases the vulnerability of PSP databases to intruder attacks, potentially resulting in large payment data compromise. These factors have prompted the governments of several countries to cap the maximum limit of contactless payment.