Smart Card IC Market Insights, Leading Players and Forecast Report, 2024-2030

NEW YORK - July 30, 2024 - PRLog -- The smart card IC market is expected to grow at a compound annual rate of 8.7%, reaching USD 4,929.8 million by 2030. This growth is driven by the increasing use of financial cards and secure payment solutions. Additionally, the adoption of smart IDs in educational institutions and e-governance projects is contributing to market expansion.

The telecom sector currently dominates the industry due to the use of ICs in subscriber identity modules (SIMs), driven by the rising adoption of smartphones. Companies are providing not only postpaid and prepaid SIMs but also pay-as-you-go options with minimal paperwork, making it easier for consumers to access these cards. Furthermore, various government initiatives in different countries aim to connect rural populations with mobile and internet services.

In the interface segment, the contactless category is experiencing rapid growth due to its increasing use in organizations and educational institutions as an access control device. These cards are utilized in biometric systems as they transmit data in one direction and do not require internet connectivity for processing.

The pandemic has also led numerous organizations to switch to contactless smart cards, as they offer a more hygienic alternative compared to touch-based biometric technologies like fingerprint recognition and palm geometry.

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Historically, the contact-based category has led the smart card IC market due to the growing use of ICs in smart SIMs, financial cards, and similar devices. These technologies facilitate user identification and verification through contact-based methods that read encrypted data on the cards.

Contact-based credit and debit cards are already widely popular, with major BFSI companies such as Mastercard, Visa, American Express, and UnionPay offering them for secure and fast transactions.

In terms of type, the microcontroller category has dominated the industry and is expected to continue leading due to its superior memory storage and data security compared to traditional magnetic stripe cards. These chips provide enhanced cryptographic security and prolonged usability. The increasing global use of biometric and financial ID cards further supports the leading position of the microcontroller category in the industry.

The global demand for smart card IC solutions is driven by the rising use of financial cards, a trend that is expected to continue in the coming years.