Smart Card IC Market To Generate $4,929.8 Million Revenue by 2030

The smart card IC market size is expected to advance at a CAGR of 7.1% during 2022–2030, to reach USD 4,929.8 million by 2030.

The market is driven by the rising adoption of credit and debit cards and the increasing demand for secure and fast payment solutions. The increasing adoption of smart solutions by various institutions, including schools & colleges and other public & private corporations, to offer secure access to physical facilities and computer systems and networks is also driving the demand for integrated circuits in smart cards.

The rising demand for financial cards is one of the biggest drivers for the demand for integrated circuits in smart cards. These circuits are used to store information on smart cards themselves, so it can be accessed when the card is tapped on or inserted into a card reader and the PIN or password is entered. These smart cards are also used as an electronic wallet as it can be loaded with information on funds, to pay at parking meters, vending machines, and merchants.

Growing Use of Smart Cards in Various Institutions

The growing use of smart cards in various institutions is, thus, one of the major drivers for the market. They are used as access control devices to make personal and business data secure and available to only authenticated users. National eID card, smart health card, residence permit, driver’s license, or electronic passport gateway are some of the applications that require effective identification and authentication tools for both the authorities and citizens' benefits.

Various companies are using smart cards to readily provide information to people who need it, while protecting individuals’ privacy and keeping their information safe from hacking and other cybercrimes.

ID Cards Category Projected To Grow at High Rate

Upon segmenting by application, the ID cards category is expected to grow at a high rate in the forecast period. This is due to the increasing number of corporations, educational institutions, and governments using smart cards as a tool to identify and authenticate persons and give access to personal and business data or entrance to any building to only the appropriate user. For example, the Finnish identity card (FINEID) comes with an integrated circuit, which enables logging-in to certain services on the Internet and local computers and adding digital signatures into LibreOffice ODF documents or creating DigiDoc formatted containers, which also allow for encryption during content transfer. They are also used in ID cards to track students’ attendance at the school and ensure access control for admittance to restricted buildings, dormitories, and other facilities.

The USIM/eSIM category also holds a significant share of the market revenue. This is due to the rising number of smartphones being used globally, which is why the number of SIMs is also increasing. These SIMs have an advantage over the normal SIMs as they are compatible with mobile payment systems and video calls, can store thousands of contacts with additional information, such as email addresses, and can also work as a contactless e-purse.

The biggest smart card IC market players are Infineon Technologies AG, NXP Semiconductors N.V., Samsung Electronics Co. Ltd., STMicroelectronics N.V., Microchip Technology Incorporated, CEC Huada Electronic Design Co. Ltd., Analog Devices Inc., Sony Group Corporation, and Toshiba Corporation.