Smart Card Market Size - Future Scope and Forecast to 2026

Posted by Tom C on March 6th, 2023

Smart card market is projected to reach USD 16.9 billion by 2026, growing at a CAGR of 4.0% during the forecast period.

Major drivers for the growth of the market are surged demand for contactless card (tap-and-pay) payments amid COVID-19, proliferation of smart cards in healthcare, transportation, and BFSI verticals; increased penetration of smart cards in access control and personal identification applications; and easy access to e-government services and risen demand for online shopping and banking.

Download PDF:

Opportunity: New mode of information security of users enabled by blockchain

Blockchain is a revolutionary technology that helps businesses develop fast and secure applications that fulfill stringent security requirements. Smart cards can effectively manage cryptographic keys, thereby enabling efficient and secure transactions in blockchain applications. They act as vaults for storing cryptographic keys. When smart cards are connected to the Internet through POS readers, the keys stored in them can be matched with keys stored in online libraries. If the match is successful, users are authenticated. This is expected to help banks and other ecosystem players secure and authenticate the identity of users in an improved manner, thereby reducing instances of cyber thefts.

Challenge: Risen proliferation of digital identity cards

Digital identity cards are the electronic equivalent of identity cards. Unlike paper-based identity cards such as driving licenses and passports, digital identity cards can be authenticated remotely over digital channels. This results in unlocking their access to banking services, government schemes, educational facilities, etc. It is expected that in the next three to four years, mobile devices will serve as digital identity cards to access enterprise services and data.

The technology required by digital identity cards is not only easily available but is also more affordable than ever, making it possible for emerging economies to skip paper-based approaches for identification. There is a growing demand for digital identity cards across the world as governments of different countries are adopting this technology to identify their population and cater to their requirements.

Like it? Share it!

Tom C

About the Author

Tom C
Joined: July 2nd, 2020
Articles Posted: 347

More by this author