The future of the smart card integrated circuit (IC) market looks attractive with opportunities in telecommunication, payment and banking, transportation, e-government, and others, disclosed a recent market report published by Lucintel.
The report further states that the global smart card IC market is expected to reach an estimated $4.3 billion by 2023 with a CAGR of 4.0% from 2018 to 2023. The major drivers for the growth of this market are increasing usage of Subscriber Identification Module (SIM) cards for mobile phones, growing adoption of electronic identification cards for various e-governance projects, and increasing usage of smart cards in payment and banking industries.
Microcontroller based smart card IC (out of the two types in the market, microcontroller based and memory based) is forecasted to remain the largest type and is expected to witness the highest growth during the forecast period as it enables secure payment facilities, authentication, and information storage for consumers.
The smart card IC market is categorized into three interface types: contact, contactless, and others. The contactless interface will be the largest interface type, as it provides more storage, speed, convenience, and secure reading and writing of data.
The global smart card IC market is being used in various end-use industries, such as e-government, telecommunication, transportation, payment and banking, and others. Telecommunication will remain the largest application noted the report supported by the rising adoption of subscriber identity modules (SIM) cards for mobile phones.
The Asia Pacific is expected to be the largest region over the forecast period supported by increasing demand for smartphones in China and India. The government of various Asian countries mandates smart card IC in national ID cards, driving licenses, and other government identification cards, which is expected to drive the Asian smart card IC market during the forecast period.
The emerging trends, which have a direct impact on the dynamics of the industry, include the development of smart card IC that can provide more security and integration of smart cards with biometrics.
Infineon Technologies, NXP Semiconductor, Samsung Electronics, STMicroelectronics, and CEC Huada Electronic Design Co. Ltd are among the major smart card IC providers.
The study includes a forecast for the global smart card IC by card type, type of interface, end-use industry, and region as follows:
By Card Type [$M shipment analysis from 2012 to 2023]
By Type of Interface [$M shipment analysis from 2012 to 2023]
By End-Use Industry [$M shipment analysis from 2012 to 2023]
- Payment and Banking
By Region [$M shipment analysis for 2012 – 2023]
- North America
- United States
- United Kingdom
- Asia Pacific
- The Rest of the World
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