The main factor driving the growth of smart card modules market is growing popularity and demand for smart cards. Smart cards are increasingly being used for various purposes as they are convenient to use due to contactless payments, access into offices and various other such functions can be carried out using a smart card. Contactless technology such as smart card modules have become the need of an hour on account of the ongoing COVID-19 pandemic. Most of the industries as well as governments are encouraging the use of smart cards as they provide continence and reduce contact within the company. Individuals are also opting for contactless options due to the rapid spread of COVID-19 as well as for easy access to payments as well as other processes. These factors are expected to provide future growth opportunities for the market as well as are increasing the market growth at present. Security, data theft concerns and high infrastructure costs are some of the factors restraining the growth of the market.
The global smart card modules market is categorized on the basis of types namely, sim cards, payment cards, access cards, transport card, health card, government ID, etc. Among these types, payment cards have the maximum share in the market. Payment card is a part of the payment system distributed by financial organizations, that include bank, to a customer that allows its owner to access the funds in the customer's selected bank accounts, or from a credit account and make payments by electronic funds transfer and ATM. Large number of population is using these cards for payment for easy to use and fast process, thus, driving the demand of payment cards segment. Along with this, the smart card modules market is also categorized based on the interface, that include contactless, contact, and dual interface. Among the interface segment, contact based interface has maximum share in the market. Contact-based smart cards are primarily used in various sim and payment card applications and thereby, account for the largest share in the overall market based on interface. Over the years, contact-based smart cards have played a critical role in offering secured access and identification in the telecommunication and BFSI industries. Moreover, the smart card modules market is also categorized based on end-use industry, that include telecommunications, BFSI, government and healthcare, retail, transportation, etc. In an age of growing technology hacks as well as security challenges, smart cards offer users and organizations extra protection for transactions and account data. Due to its advantages, it is widely used in BFSI industry and driving the segment.
On the basis of region, categorization of smart card modules market includes North America, Europe, Asia Pacific, Latin America, Middle East and Africa. Asia Pacific holds the largest share of the smart card modules market. The strong financial system that is being progressively digitized as well as government agencies incorporating smart chip-based systems for better monitoring of processes are driving Asia Pacific countries to adopt smart card solutions due to increasing demand, specifically in the transportation, BFSI, and healthcare sectors. Large number of smart card manufacturers are present in Asia Pacific region. Thus, Asia Pacific region is expected to see the fastest development during the forecast period from 2021 to 2028.
COVID-19 has affected every aspect of life globally and hence most of the business have been halted and hampered. The smart card modules market has shown a substantial dip in the year 2020 due to COVID-19 owing to shutting down of module manufacturing plants. Shortage of raw materials and lack of transportation has hampered the market at large. However, as the services are resuming the smart cards module market will mark its position like that before COVID-19 pandemic.
Some of the key players from the smart card modules market include Samsung Electronics Co., Ltd., KONA I Co., Ltd., Koninklijke Philips N.V., NXP Semiconductors N.V., Infineon Technologies AG, Linxens Holding SAS, Shanghai Fudan Microelectronics Group Co., Ltd., Smartflex Technology Pte Ltd., Dynacard Co., Ltd., HENGHUI Technology Corporation limited, Johnson Controls, Inc. among others. Numerous companies operating in the smart card modules market are using numerous strategies that include partnerships as well as development of product, in order to stay ahead of their competitors.
Recent News and Development:
- In June 2020, NXP Announced MIFARE, Ushers in New Era of Security as well as Connectivity for Contactless Smart City Facilities
- In November 2019, Linxens Holding SAS announced its partnership with Folienwerk Wolfen
- In February 2017, HID Global partnered with Infineon Technologies AG to join safe microcontroller chips in new HID Global ultra-thin Polycarbonate (PC) ePrelaminate inset solution.
