In 2020, Asia Pacific held the largest share of the global smart card material market. The demand for smart card materials in this region is increasing due to the growing use of smart cards in the telecommunications sector. Additionally, the rising globalization trend; and the proliferating banking, financial services, and insurance (BFSI) industry are key factors favoring the smart card material market growth in the region.
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Smart Card Material Market: Strategic Insights
The ongoing COVID-19 pandemic has drastically altered the status of the chemical and materials sector and impacted the growth of the smart card materials market.The significant decline in the performances of several industrial sectors has impacted the demand for smart card materials. The impact of the pandemic varies across the different application segments. A surge in the data traffic and voice services has benefitted many telecom players, including broadband and mobile data center operators. However, the lockdown measures imposed by governments disturbed the supply chains of raw materials such as PVS, ABS, and PETG required for smart card manufacturing. The disease spread has adversely affected the operations in the government and BFSI sectors. However, as the economies are planning to revive their operations, the demand for smart card materials is expected to rise globally in the coming years.
Smart cards are extensively used in the telecommunications sector. The most prominent use of smart cards in this sector is in the form of subscriber identity module (SIM) cards or universal integrated circuit cards (UICC). These smart cards are manufactured mostly from polyvinyl chloride (PVC) and acrylonitrile butadiene styrene (ABS) materials. The smart card technology used in applications in this sector has undergone continuous advancements in the last several years, which has boosted the consumption of these cards. Further, healthcare organizations across the world are implementing smart health cards with a wide range of features and applications.
The regional trends and factors influencing the Smart Card Material Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Smart Card Material Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2021 | US$ 1.32 Billion |
| Market Size by 2028 | US$ 1.84 Billion |
| Global CAGR (2021 - 2028) | 4.8% |
| Historical Data | 2019-2020 |
| Forecast period | 2022-2028 |
| Segments Covered |
By Material
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Smart Card Material Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Smart Card Material Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
Based on application, the smart card material market is segmented into BFSI, government, telecommunication, retail, healthcare, hospitality, and others. The telecommunications segment held the largest share of the smart card material marketin 2020. Smart card is used as prepaid (stored value memory cards) telephone cards and microprocessor smart card-based SIM cards or UICC in mobile phones. The most selling smart card products in this sector are SIM and UICC, in terms of volume and value.
A few of the players operating in the global smart card material market include Eastman Chemical Company, PetroChina Company Limited, Solvay S.A., KEM ONE, SABIC, 3A Composites GmbH, Teijin Limited, LG Chem, BASF SE, and Westlake Chemical Corporation.
The contactless cards segment is the fastest growing segment in the global smart card material market during the forecasted period. Contactless cards are the smart cards with contactless credentials and have a size like credit cards or debit cards. The market for the contactless cards segment is growing due to its various benefits.
The telecommunication segment held the largest share of the market in 2021. In the telecommunication industry, smart cards are used in two primary applications. Firstly, it is used as prepaid (stored value memory cards) telephone cards and as the microprocessor smart card-based subscriber identity module (SIM) or universal integrated circuit card (UICC) in mobile phones.
The contact cards segment held the largest share of the market in 2021. Contact cards are the smart cards that have a size like conventional debit and credit card. Contact smart card contains a single, embedded, and integrated circuit chip that consists of either memory or memory plus microprocessor.
The polyvinyl chloride segment held the largest share of the global smart card material market in 2021. Polyvinyl chloride is the most common and strong plastic material used for card manufacturing. The material is used for contact and contactless cards.
The major players operating in the global smart card material market are Eastman Chemical Company; PetroChina Company Limited; Solvay S.A.; KEM ONE; SABIC; 3A Composites GmbH; Teijin Limited; LG Chem; BASF SE; and Westlake Chemical Corporation; among others.
In 2021, Asia Pacific held the largest share of the global smart card material market. The major factor driving the smart card materials market in the Asia Pacific region is the increasing use of smart cards in various applications such as government, transportation, retail, and education sectors.