A smart card or basically a chip card, is a type of plastic card containing an embedded computer chip or IC in it to store and transact data.
The data stored can be either a value or some information or both and can be used for processing later. The card can be connected via a reader either through direct physical contact or contact-less radio frequency interface.
According to the recent report published by TMR, it explains and covers the global market for smart card technologies and regional analysis of North America, Latin America, Europe, the Middle East and Africa, and the Asia-Pacific region.
The report stated that the global market for smart card technologies had reached $6.7 billion in 2016. This market is expected to increase from nearly $7.3 billion in 2017 to $11.0 billion in 2022 at a compound annual growth rate (CAGR) of 8.7% for 2017-2022.
Component segments include major smart card technologies, smart card types, platforms, protocols, standards and applications.
From a definition standpoint, this report includes sizing and forecasting for smart card technologies embedded into mobile devices, including subscriber identify modules (SIM), embedded SIM (eSIM), universal integrated circuit cards (UICC) and embedded UICC (eUICC), as well as traditional smart cards, such as national identity, company or government access control and consumer payment, and store or credit cards.
New applications, devices and adoption trends are driving an increasing global market for smart card technologies.
Continued waves of new smart phones, including 3G, 4G and emerging 5G devices; IoT deployments; and continued adoption by corporate and government agencies to improve security and flexibility are all driving robust growth for smart card technologies.
Agreement on standards and increased use of smart card technology for mobile payment is also driving adoption. Smart card technologies now comprise an integral part of the economy.
The average end user, whether consumer, business or government, utilizes smart card technologies several times per day for financial transactions, authentication to services or access control.
Smart cards thus offer endless possibilities for its application like in electronic commerce, we can use smart card over the Internet, though the business model used in current applications still cannot use the full potential of the electronic medium.
The main benefit of smart cards for electronic commerce is their use of customized services. For example, to provide a customized service, the user needs to share its details like profile to each supplier which is a boring and time-consuming activity.
To overcome this issue, we can customize the smart card with a non-encrypted profile details already stored in the chip.
Driven by different forces, smart card technologies are being adopted at a healthy rate by all regions. In North America, plastic cards remain the chief means of smart card technology adoption, with financial services firms and service providers reaching agreements regarding standards to facilitate their utility.
Near Field Communications (NFC) is being embedded in nearly every mobile device, resulting in the rapid growth of mobile devices substituting for plastic cards. It will nevertheless take the region some time to shift behaviour patterns.
Latin America is also gradually adopting smart technologies, with a combination of cards and phones to drive government and consumer usage.