Northbrook, IL 60062 -- (SBWire) -- 09/08/2023 --The global smart card IC market is projected to reach USD 3.9 billion by 2027 from an estimated USD 2.9 billion in 2022, at a CAGR of 6.3% from 2022 to 2027. The growth of the smart card IC market can be attributed to rise in the contactless payments post COVID-19 outbreak and adoption of ID cards across various organizations and educational institutions.

Contactless payment refers to a no-touch form of payment using a credit, debit, or gift card on a point-of-sale (POS) system equipped with adequate technology. Also, they are transactions made by tapping a contactless chip card, payment-enabled mobile device, QR code, or wearable device over a contactless-enabled payment terminal.

Download PDF Brochure:
https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=29374723

The ID cards application is projected to register the highest CAGR 2022 to 2027

The ID cards application is projected to register the highest CAGR during the forecast period. The growth can be attributed to rising focus of government of different countries on transforming paper-based ID cards into chip-based ID cards to avoid illegal activities and protect citizens from identity theft. Governments of several European countries have rolled out circulars for mandating the integration of chips in ID cards. In response to this, there were over 9 million university students using student smart cards across 279 universities in Spain, Portugal, and Latin America.

Government and healthcare segment is projected to register the highest CAGR during the forecast period

The government and healthcare segment is projected to grow at the highest CAGR during the forecast period. The growth of the segment can be attributed to an increase in the adoption of eID cards, including national cards, drivers' license, ePassports, ID cards, eHealth cards, and other vital government documents. The COVID-19 pandemic fueled the need to regulate the use of e-government documents as they can help in tracking citizen details. Further, e-health cards have the potential to improve the patient experience by storing key medical data and medication history and by serving as an electronic prescription. These cards can also be used to securely store social security numbers.

Asia Pacific is expected to register the highest growth in the smart card IC market during the forecast period

The smart card IC market in the Asia Pacific is expected to register the highest growth during the forecast period due to the ongoing technological innovations in the telecommunications, BFSI, government and healthcare, and transportation verticals, the increasing adoption of digital technologies, and rapid urbanization and industrialization. Other prominent drivers are the rising adoption of IoT devices, increasing deployment of digital technologies in retail, corporate, education, and entertainment industries, and growing electrification in the transportation industry.

Key Market Players

Some of the smart card IC companies are Infineon Technologies AG (Germany), NXP Semiconductors N.V. (Netherland), Samsung Electronics Co., Ltd. (South Korea), STMicroelectronics N.V. (Switzerland), Microchip Technology Incorporated (US), CEC Huada Electronic Design Co., Ltd. (China), Analog Devices, Inc. (US), Sony Group Corporation (Japan), Toshiba Corporation (Japan), and ON Semiconductor Corporation (US).