A smart card is nothing but a chip card also called microprocessor plastic card or ICC (Integrated Circuit Card) which is usually used to make financial as well as non-financial transactions. However, the huge number of smart cards are consists of metal contact patterns to integrate them electrically in the internal chip. Likewise, smart cards also offer several features such as personal identification, application processing, authentication, and data storage. Thus, smart cards are generally used for mobile phones (SIM), public transit, financial transactions, computer security, identification, school applications, as well as healthcare.
The growing demand for electronic payment processes is highly replacing cash transactions owing to its reliability as well as security operations. However, the huge demand for smart cards in several sectors such as hotels, retail, hospital, and financials are increasing, due to it helps in storing data with loyalty cards, such factors driving the rapid growth of smart cards market across the globe. In addition, the smart card method enables faster transactions and it also saves time. Such benefits will drive the global market over the forecast period. On the other hand, the huge cost of smart cards shifting, risks related to losing contactless cards, and several technical challenges faced by business or retailers may hamper the growth of the global smart cards market.
In addition, owing to the fewer fees, several smart card companies are witnessing the huge growth in terms of increased revenues. To gain market position, the huge numbers of smart card providers are launching high-speed SIMs along with NFC as well as LTE technology; it will increase the demand for smart cards over the forecast period.
However, the smart card usage is rising across the number of industries such as telecommunication, BFSI, retail, e-commerce, and healthcare. Out of these, the telecommunication sector is expected to witness high demand for smart cards. In addition to this, the increasing penetration of smartphones and exponential growth of mobile phone subscribers in emerging economies will boost the demand of global smart cards market over the prediction period.
However, there are huge numbers of factors responsible for the high growth of the smart cards market. High security offered by smart cards is one of the major factors contributing to the increasing demand for smart cards. In addition, nowadays, the smart cards are embedded with EMV chip which offers an additional security level as well as defends information of the consumer. Likewise, the growing use of net banking, NFC (Near Field Communication), e-commerce, and Internet of Things have grown the smart cards demand at a rapid pace across the world.
Thus, such factors are likely to boost the demand for smart cards during the prediction period. According to the geography, in the Asia-Pacific region, South Africa, Australia, Hong Kong, and Japan are the major locations which are hugely preferred by global as well as regional global smart cards service providers. The growing demand for greater security is the main factors boosting the growth of SIM cards. Likewise, Latin America region held for the lowest market share for smart cards in the year 2018.
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