Smart Card IC Market Worth $3.9 billion USD by 2027

The Smart Card IC Market is projected to reach USD 3.9 billion by 2027 from an estimated USD 2.9 billion in 2022, at a CAGR of 6.3% from 2022 to 2027, according to a new report by MarketsandMarkets.

The growth of the smart card IC market can be attributed to rising usage of SIMs and eSIMs in smartphones and government agencies promoting digitalization.            

The 32-bit segment is projected to register the highest CAGR during the forecast period. The growth of the segment can be attributed to the increased focus on data security and rising use of connected devices as well as the increasing penetration of 5G, which are fueling the demand for communication networks. In addition, they are specially used for applications that demand high efficiency

The growth of ID cards application can be attributed to rising focus of government of different countries on transforming paper-based ID cards into chip-based ID cards to avoid illegal activities and protect citizens from identity theft.

Governments of several European countries have rolled out circulars for mandating the integration of chips in ID cards. In response to this, there were over 9 million university students using student smart cards across 279 universities in Spain, Portugal, and Latin America.