Smart Card Market Size, Share, Growth Analysis, By Type(Contact, Component, Dual, Hybrid), By Access Type(Physical and Logical), By Region - Industry Forecast 2024-2031

Global Smart Card Market size was valued at USD 1.37 Billion in 2022 and is poised to grow from USD 1.55 Billion in 2023 to USD 4.23 Billion by 2031, at a CAGR of 13.34% during the forecast period (2024-2031).

Due to the increased use of mobile phones and IoT (Internet of Things) technologies in SIM cards, the smart card industry is expanding. Demand for smart cards is also significantly influenced by the urgent requirement to assure transaction security and ease.

For instance, the Centres for Medicare & Medicaid Services predict that by 2027, US health spending will amount to around USD 6 trillion. A biometric "hard wallet" smart card that uses fingerprint authentication to verify payments made using the central bank's digital currency has been piloted by China Construction Bank, according to the bank. Customers can store digital yuan on the card. 

Moreover, it is propelled by increasing digitalization and the demand for secure payment solutions. Smart cards, equipped with embedded chips, find extensive applications in payment systems, identification, and access control. The ongoing transition towards contactless payment methods further drives market expansion. 

Over the projected period, the market is expected to rise as a result of the expanding use of smart cards across a number of industrial sectors, including healthcare, banking, information technology, retail, and transportation. 

For instance, the Rashtriya Swasthya Bima Yojana, the Public Distribution System, and the National Rural Employment Guarantee Act are all Indian government initiatives that have increased demand for smart card technology in the country.