Smart Card Materials Market– Statistics And Analysis & Forecast To 2025

Posted by Mrudula Anil Karmarkar on April 8th, 2021

The global smart card materials market size is expected to reach USD 1.29 billion by 2025, according to a new report by Grand View Research, Inc., progressing at a CAGR of 3.7% during the forecast period. Increasing demand for secure and reliable payment transactions is one of the primary growth stimulants for the market. In addition, cost saving schemes for merchants of payment brands and growing inclinations towards cashless payments are further stimulating the growth of the market.

The global COVID-19 pandemic has led to a sudden pause to manufacturing activities across the globe, affecting the demand for plastics and also production & processing of them. The most critically impacted end-use segments of the plastics industry include automotive & transportation, consumer goods, industrial equipment, construction, and electronics. The report will account for Covid19 as a key market contributor.

Several materials, such as polyvinyl chloride (PVC), polycarbonate (PC), acrylonitrile butadiene styrene (ABS), polyethylene terephthalate glycol (PETG), paper, PVC & ABS blends, holographic foil, teslin, and biopolymers such as polylactic acid (PLA), are used for manufacture of card body. In early days, the smart card industry used paper as one of the preferred materials for production. However, in the past few years, plastic materials have almost made paper materials obsolete.

Significant technological advancements, IT revolution, e-governance, and digitization happening across the world are leading to an increase in adoption of smart cards in various end-use sectors. These sectors include banking, financial services and insurance (BFSI), healthcare, government, retail, telecommunication, and hospitality. A broad range of smart cards, including membership cards, government ID cards, gift cards, loyalty cards, access cards, and debit/credit cards, is used in the aforementioned sectors.

Several factors such as personalization, selection of material, operational accuracy, data integrity, easy implementation, and top-level security are taken into consideration while manufacturing smart cards in order to fulfill requirements of end users. Manufacturing of smart cards can be distinguished based on application and technical/physical properties required.

Further key findings from the report suggest:

  • Polycarbonate is projected to emerge as the fastest growing material segment and is expected to register a CAGR of 4.4% between 2018 and 2025
  • The polyvinyl carbonate (PVC) segment will continue to be the largest material segment over the forecast period
  • The Asia Pacific market is projected to experience the fastest growth over the same period owing to rising demand from various application sectors, especially from telecommunication and BFSI.
  • Key players include SK Chemicals, KEM One, SABIC Innovative Plastics, 3A Composites GmbH, LG Chemicals, and Formosa Plastics Group.

Smart card materials are likely to witness a substantial rise in demand over the forecast period, thanks to widening the scope of applications of these cards in the telecommunication industry. It is used in the production of universal integrated circuit cards (UICC) in mobile phones and subscriber identity module (SIM). Additionally, NFC-enabled mobile applications and payphones are further fueling the demand for these materials in the telecommunication sector.

The U.S. market was valued at USD 125.9 million in 2017. It is poised to progress at a CAGR of 3.4% over the forecast period. Rising micropayment transactions, the subsequent need for a secure IT environment, increasing consumer acceptance, and security concerns are some of the key factors triggering the demand for the materials in the U.S. Furthermore, rapid advancements in the U.S. payment industry are boosting the demand for contactless cards.

The BFSI sector has undergone major changes in recent times. Conventionally, smart cards were used for pay-phone applications to prevent theft. However, they are now being used across multiple applications, such as payment cards, ticketing, and ID recognition, in the form of embedded chips. This is estimated to augment the market over the forecast period.

Uncertainty in prices of ethylene is increasing the cost of production and distribution, which in turn, is affecting the prices of vinyl chloride monomer (VCM). VCM is the immediate raw material required for the production of PVC. Fluctuating VCM prices are negatively influencing the final cost of PVC. Such volatility in ethylene prices may consequently affect the profit margins of market participants. Hence, protean prices of ethylene are limiting the market from realizing its utmost potential.

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With the presence of a raft of key players accounting for the majority of market share, competition in the global arena is high. Some of the prominent components operating in the market are Eastman Chemical Company, SK Chemicals, PetroChina Company Limited, Solvay S.A., Axiall Corporation, KEM One, SABIC Innovative Plastics, 3A Composites GmbH, Teijin Ltd., LG Chemicals, Formosa Plastics Group, and BASF SE.

This report forecasts revenue growth at global, regional, & country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global smart card materials market report based on material, type, application:

  • Material Outlook (Revenue, USD Million, 2014 - 2025)
    • Polyvinyl Chloride (PVC)
    • Polycarbonate (PC)
    • Acrylonitrile Butadiene Styrene (ABS)
    • Polyethylene Terephthalate-Glycol (PETG)
    • Others
  • Type Outlook (Revenue, USD Million, 2014 - 2025)
    • Contact Cards
    • Contactless Cards
    • Multi-Component Cards
  • Application Outlook (Revenue, USD Million, 2014 - 2025)
    • BFSI
    • Government
    • Telecommunication
    • Retail
    • Healthcare
    • Hospitality
    • Others

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

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Mrudula Anil Karmarkar

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Mrudula Anil Karmarkar
Joined: July 2nd, 2020
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