Market Size of Middle East Smart Card Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | 5.10 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Middle-East Smart Card Market Analysis
The Middle East Smart Card Market is expected to register a CAGR of 5.1% during the forecast period (2022-2027). One of the significant factors driving the smart card market in the region is the adoption of smart ticketing. Numerous people nowadays are adopting smart card technology while traveling to save time and improve convenience. The smart card technology eliminates the queue system and crowing while collecting tickets.
- The region is witnessing several smart card solutions to enhance the functioning of several departments and people. For instance, the Community Development Authority (CDA) has issued the Sanad smart card in accordance with His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai's initiative "My Community... A City for Everyone," which aims to transform Dubai into a disability-friendly city in accordance with Law No. 3 of 2022 concerning the Protection of the Rights of Persons with Disabilities in the Emirate of Dubai.
- In April 2022, the plan to distribute smart identity cards entered the implementation phase to facilitate service requirements and honor Iranian ex-pats. The candidates can register for the identity cards at the consulates in Frankfurt, Kuala Lumpur, and Vienna, and they would be accessible in more countries soon, he added. According to the Secretariat of the High Council of Iranians Abroad's 2020 report, 4,37,258 Iranians are living abroad, with 76% of them living in the Americas and European countries. President has placed the issue of facilitating the return of Iranians living abroad to their home country high on its agenda, with government officials constantly reiterating the need to pave the way for the expatriates to return.
- The opportunities in the Smart Cards Market in the region are anticipated to rise due to Blockchain's enhanced security characteristics. Blockchain is a technology that many businesses may benefit from. Blockchain allows for the development of quick and secure apps. Blockchain transactions are possible with smart cards. They can better manage cryptographic payments more efficiently and safely. Synchronization is effective while connected to the internet. Smart cards will aid the market's rise in Blockchain. Smart cards can help to reduce cyber dangers and improve Blockchain truncation. These smart card applications may result in increased growth. Another factor driving market expansion is smartcards in smart government IDs and e-passports.
- During the COVID-19 pandemic, the business for smart cards specific to telecommunications and healthcare was less affected than other verticals. The upsurge of healthcare data brings new challenges in providing efficient patient care and privacy. Smart cards solved both challenges by providing secure storage (dramatically more than 150 bytes stored on a magnetic stripe card) and easy data distribution. Increasing healthcare expenditure in the region is anticipated to propel smart cards in the healthcare segment.
- Further, for the past two years, due to the coronavirus pandemic, Saudi Arabia limited the number of attendees allowed to perform Hajj to only 60,000 citizens and residents to prevent the virus from spreading. In June 2022, the Saudi Minister of Hajj and Umrah, Dr. TawfiqAl-Rabiah, announced that the Hajj smart card would be implemented in 2022, noting that digital technologies will help organize this year's Hajj efficiently. Dr. TawfiqAl-Rabiahrevealed in a press conference that the launch of an electronic service to apply for Umrah away from campaigns could be submitted from outside Saudi Arabia. The Saudi minister added that the visit visa for Umrah is issued within 24 hours now. Dr. TawfiqAl-Rabiahconfirmed that the year 2022 Hajj season would accommodate one million pilgrims while working to ensure the health of pilgrims. He added that "Vision 2030" aims to facilitate the reception of pilgrims in larger numbers. The Hajj cards aim to ensure the safety and health of pilgrims and the safety of personnel working in the service of pilgrims.
- However, high set-up costs and, data theft & security concerns are significant major restraints to the global smart card industry.
Middle-East Smart Card Industry Segmentation
A smart card is a pocket-sized card made from plastic and embedded with integrated circuits known as microchips. The applications of smart cards are for security purposes such as authentication, identification, data storage, and application processing. Contactless smart cards are made by deploying a radio frequency between the card and any reader that requires no physical insertion. Contactless smart cards are expected to have wider applications and, on account of being user-friendly, are expected to be accepted much faster than contact-based smart cards.
The Middle East Smart Card Market is Segmented by Type (Contact-Based, Contact Less), End-User (BFSI, IT and Telecommunication, Government, Transportation), and country.
Middle East Smart Card Market Size Summary
The Middle East Smart Card Market is experiencing a steady growth trajectory, driven by the increasing adoption of smart ticketing and the integration of smart card technology across various sectors. This technology is enhancing convenience and efficiency, particularly in transportation and government services, by streamlining processes and reducing the need for physical queues. Initiatives such as Dubai's Sanad smart card and Iran's smart identity card distribution exemplify the region's commitment to leveraging smart card solutions for community development and expatriate engagement. The market is also benefiting from advancements in blockchain technology, which offers enhanced security features for smart card applications, thereby addressing concerns related to data security and cyber threats. The healthcare sector, in particular, is witnessing a rise in smart card usage due to increased healthcare expenditure and the need for secure data storage and distribution.
The smart card market in the Middle East is moderately competitive, with key players focusing on innovation and strategic partnerships to expand their market presence. The banking and financial sectors are significant contributors to market growth, driven by the need for secure payment solutions and the increasing frequency of data security threats. The introduction of biometric payment cards and collaborations with fintech companies are notable trends in this segment. Additionally, the COVID-19 pandemic has accelerated the adoption of smart cards in telecommunications and healthcare, highlighting their role in facilitating secure and efficient services. Despite challenges such as high setup costs and data security concerns, the market is poised for continued expansion, supported by ongoing technological advancements and strategic initiatives across the region.
Middle East Smart Card Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power Of Suppliers
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1.2.2 Bargaining Power Of Buyers
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1.2.3 Threat Of New Entrants
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1.2.4 Threat Of Substitutes
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1.2.5 Intensity Of Competitive Rivalry
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1.3 Value Chain Analysis
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1.4 Assessment of the Impact of Covid-19 on the Market
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Middle East Smart Card Market Size FAQs
What is the current Middle East Smart Card Market size?
The Middle East Smart Card Market is projected to register a CAGR of 5.10% during the forecast period (2024-2029)
Who are the key players in Middle East Smart Card Market?
Thales Group, Atos Se, IDEMIA (Advent International), Infineon Technologies AG and HID Global Corporation are the major companies operating in the Middle East Smart Card Market.