Outlook of the contactless smart card market in the banking sector
Technavio’s market research analyst predicts the global contactless smart card market in the banking sector to grow at a phenomenal CAGR of more than 33% over the forecast period. Most contactless smart cards are issued with preinstalled data codes for unique identification purposes. This makes it easy for end users to use these cards by swiping it against the card reader. The card reader immediately retrieves the code and sends it to the system to provide the information to end users. Since contactless smart cards provide a user-friendly environment for consumers and are easy to maintain and store, its adoption is envisaged to increase significantly in the coming years.
In this industry research report, the analysts have estimated factors such as the emergence of multi-application smart cards to propel the growth prospects of this market over the predicted period. Rapid technological advancements have led to several vendors, such as Gemalto, providing multi-application smart cards. These smart cards are a combination of contactless and contact interfaces on a single card. Moreover, these cards have shared storage and information processing, preventing the need for individuals to carry multiple cards for different applications. For instance, Blue from American Express is a multi-application smart card that provides additional security while online shopping and ticketing.
Geographical segmentation and analysis of the contactless smart cards market in the banking sector
- APAC
- Europe
- MEA
- North America
- South America
During 2015, APAC dominated the global contactless smart card market in the banking sector and is expected to reach more than USD 695 million by 2020. The major revenue contributing areas in the region include China, Japan, South Korea, Malaysia, and Australia. Factors such as the transition of payment cards from magnetic stripe to Europay, MasterCard, and Visa and the increasing acceptance of contactless banking and financial smart cards among end users is envisaged to contribute to the growth of this market in the region.
Competitive landscape and key vendors
The contactless smart card market in the banking sector is highly fragmented due to the presence of several regional and international vendors. The competition is expected to intensify with large vendors interested in acquiring small vendors to expand their product portfolio and market shares. The level of competition is expected to intensify further with an increase in solution extensions, technological innovations, and M&A activities.
Key vendors in this market are -
- Gemalto
- Giesecke & Devrient
- Safran
- Oberthur Technologies
Other prominent vendors in the market are American Express, ARM, Bell ID, CardLogix, DataCard, HID Global, Infineon Technologies, MasterCard, NXP Semiconductors, Smart Card IT Solutions, Visa.
Key questions answered in the report include
- What will the contactless smart cards market size and growth rate be in 2020?
- What are the key factors driving the global contactless smart cards market in the banking sector?
- What are the key market trends impacting the growth of the global contactless smart cards market in the banking sector?
- What are the challenges to market growth?
- Who are the key vendors in the global contactless smart cards market in the banking sector?
- What are the market opportunities and threats faced by the vendors in the global contactless smart cards market in the banking sector?
- Trending factors influencing the market shares of the APAC, Europe, MEA, North America, and South America.
- What are the key outcomes of the five forces analysis of the global contactless smart cards market in the banking sector?
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Contactless smart cards are pocket-sized cards, which are embedded with integrated circuits. These smart cards can be used by organizations across various sectors like BFSI, transportation, government, and healthcare for an individual’s identification and authentication. These cards can also be used for passports, driver's licenses, IDs, and voter IDs.
The report, global contactless smart cards market in the banking sector, is part of Technavio’s ICT research portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as automatic identification system, cloud computing, data center, enterprise application, IT security, ITO and BPO, and product lifecycle management. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into the changing competitive landscape and a detailed profiling and market analysis of the vendors. Also covered in the research are the key regions or countries that would have an impact on the market during the assessment years.