Market Trends of Smart Card Industry
Growing Deployment in Personal Identification and Access Control Applications to Drive the Market Growth
- The smart card market is experiencing significant growth, primarily driven by the expanding deployment of smart cards in personal identification and access control applications. Robust security measures have become paramount in the increasingly digital and interconnected world. Smart cards with advanced microprocessors and secure elements offer an ideal solution for verifying identities and controlling access to sensitive areas or data.
- With the integration of biometric technologies, such as fingerprint scanning, iris recognition, and facial recognition, smart cards provide an added layer of authentication, enhancing security and ensuring user identification accuracy. As a result, various industries, including government, healthcare, finance, and transportation, are increasingly adopting smart cards to secure their identification systems and access control protocols.
- One of the key drivers behind the growing deployment of smart cards in personal identification and access control is the integration of biometric technology. Biometric authentication methods, such as fingerprint scanning, iris recognition, and facial recognition, are gaining prominence due to their accuracy and uniqueness. Smart cards with embedded biometric capabilities add an extra layer of security by binding the cardholder's biometric data to their identification, making it virtually impossible for imposters to gain access.
- Moreover, according to the Biometrics Institute, in 2022, most respondents considered that face recognition was the biometric technology likely to deliver the most significant increase in usage over the next few years. By contrast, only three percent of respondents believed that fingerprint identification would significantly increase usage, as it is already the most used and developed biometric technology. This trend will likely drive the smart card market's growth as businesses and organizations increasingly adopt smart cards with face recognition capabilities to bolster access control and personal identification systems.
- The convenience, reliability, and scalability of smart cards in such applications make them essential tools for organizations seeking to safeguard their operations and protect their users' privacy. This growing deployment in personal identification and access control applications is expected to drive the smart card market's growth further in the coming years as businesses and institutions continue to prioritize security and efficiency in their operations.
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Asia Pacific to Witness a Significant Growth Rate
- Since smart cards are more widely used in the Asia Pacific area, demand from the BFSI, healthcare, retail, and government sectors is likely to dominate the market. Additionally, the growth of IoT applications, smart city projects, and connected devices in the region are creating a demand for secure and scalable authentication solutions, where smart cards play a crucial role. Moreover, the growing awareness of data security and privacy concerns is encouraging enterprises and organizations to adopt smart cards for access control and secure data storage.
- A big consumer base and the presence of major smart card manufacturers in China are expected to result in a strong demand for smart cards in the region. Smart cards were adopted by a number of banking institutions, which helped the market expand.
- For instance, China Construction Bank (CCB) declared last year that they are testing a biometric 'hard wallet' smart card that enables users to store digital yuan and confirm payments made using the central bank's digital currency with their fingerprints. With the help of cutting-edge fingerprint authentication and recognition, the stored value on the card is further protected.
- To establish various types of smart cards in the nation, several banks operating in the region have partnered with smart card creators. Axis Bank, ICICI Bank, and SBM Bank are a few Indian banks that released smart cards in the latter or first quarter of the previous year.
- In addition, MoriX Co., a Tokyo-based electronics company, collaborated with Fingerprint Cards AB last year to develop and introduce biometric payment cards using the T-Shape module from Fingerprints. These cards are anticipated to be integrated with payment cards using conventional automated manufacturing techniques.
- To support market expansion, new initiatives, and developments are encouraging other end users to use smart cards. Transit cards were recently offered for users of public transportation in more than 300 Chinese cities by Octopus, one of the smart card operators in Hong Kong. Users of Octopus transit cards will be able to pay for public transportation in mainland China's buses, trains, and ferries as part of the company's offshore development plan. The maximum top-up amount for the Octopus card will initially be HKD 3,000 (USD 386), with the option to convert to digital Octopus cards in a phase two launch.
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