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Last Updated: Apr 26, 2025 | Study Period: 2023-2030
A contactless smart card is a credential with credit card-sized contactless dimensions. Its inbuilt integrated circuits can interface through NFC with a terminal and store (and occasionally process) data. Passports, bank cards, and transportation tickets are examples of common uses.
Contactless smart cards can be divided into two major groups. Non-volatile memory storage elements and maybe specialised security logic are present on memory cards.
Both a rewritable smart card microchip and a read-only RFID chip known as CSN (Card Serial Number) or UID are found in contactless smart cards. Since then, contactless smart cards have grown in popularity for use in public transit and other ticketing and payment systems.
Radiofrequency (RF) technology is used by contactless smart cards to communicate with readers. Each card contains an internal antenna that allows for non-contact communication with the reader.
Due to clear advantages including simplicity, speed, and adaptability, the use of these cards is expanding quickly. The ability to source these products via Universal Smart Cards will open up new business prospects for issuers.
Access control, cashless vending, parking, loyalty, e-purses, gaming, road tolls, student IDs, employee IDs in government and corporate organisations, e-passports and other secure travel documents, and cards for cashless payment are just a few examples of popular applications.
The Global Contactless Smart Card market accountedfor $XX Billion in 2022 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2023 to 2030.
Loop EMV contactless smart cards have been introduced by Axis Bank. The card was launched in collaboration with the Metro Rail Corporation and the Metropolitan Transport Corporation. Smartcards are designed for computers.
The card offers a variety of other services to commuters, including convenient recharging via conductors on buses, Axis Bank ATMs, the web, or Axis Bank merchant terminals, shopping facilities at merchant outlets, and interoperability as the card can be used at any merchant terminal in the nation for a purchase transaction.
The card offers integrated benefits of cashless travel and payments at about million merchant outlets.When high throughput, rapid validation, and secure systems are required, contactless technology is a must. It can be used for supply chain, inventory, and item tracking, financial applications, secure access control, secure ID credentials, and documents, AFC systems.
Radio frequency identification (RFID) technology is used by contactless smart cards to wirelessly communicate with a card reader. An integrated circuit (chip) is attached to a copper or aluminum antenna, which is then tightly laminated inside the plastic card body at a high temperature and pressure.
From straightforward memory cards with minimal security and non-volatile memory structure to high-security crypto-processor cards and Java / Native operating system (OS) cards, contactless smart cards come in a variety of forms.
Numerous applications, including physical security, tracking, payment systems, and many more, utilise contactless smart card technology.
The world pioneer in secure identity and communication solutions, NXP Semiconductors, created the well-known contactless smart card technology known as MIFARE Classic. The MIFARE Classic technology is widely used in many different applications, such as electronic payment systems, access control, and public transit.
The MIFARE Classic card uses the RFID (radio frequency identification) method of operation.It adheres to the ISO/IEC 14443 Type A standard and operates in the 13.56 MHz frequency band. In order to connect wirelessly with compatible card readers, the cards have an antenna and a tiny integrated chip.
The memory structure of MIFARE Classic is one of its important characteristics. The MIFARE Classic employs a number of security measures to guarantee data confidentiality and integrity.
These include the Card Serial Number (CSN), a distinct 32-bit identifier, and the NUID, a 48-bit manufacturer-assigned identifier. The usage of secure encrypted communication between the card and reader is made possible by these identifiers, which also prevent card cloning. MIFARE Classic secures communication between the card and reader using a custom cryptographic method called CRYPTO1.
Although CRYPTO1 has offered sufficient security for a variety of applications, it has encountered some security flaws throughout time. To solve these issues, NXP has released more sophisticated technologies like MIFARE DESFire and MIFARE Plus. MIFARE Classic has become a target for security experts and hackers due to its widespread use.
The necessity for more robust security measures in contemporary smart card applications has been highlighted by the discovery of several security flaws and vulnerabilities throughout time.
In order to improve security against potential assaults, NXP has advised customers to switch to newer, more secure MIFARE technologies. Despite these issues, MIFARE Classic is still frequently used in dated systems and applications where security standards are laxer or upgrading to newer technologies would be prohibitively expensive.
For some businesses and applications, its ability to work with current infrastructure makes it a viable option.A renowned semiconductor company called STMicroelectronics produced the ST25TV series of contactless smart card products.
To enable safe and practical communication with compatible devices, these smart cards make use of Near Field Communication (NFC) and Radio Frequency Identification (RFID) technology.
Access control, transportation, identity, and Internet of Things (IoT) solutions are just a few of the industries that have seen a rise in the need for contactless applications.
These smart cards are perfect for a variety of applications because to their vast range of features and capabilities. The ST25TV series' adherence to international norms, such as ISO/IEC 14443 Type A and Type B, ISO/IEC 15693, and NFC Forum Type 5, is one of its standout characteristics.
As a result, a wide variety of NFC-enabled devices, including smartphones, tablets, and contactless card readers, will work together seamlessly. To safeguard sensitive information and guarantee secure connection, the ST25TV smart cards include cutting-edge security measures.
They support cryptographic techniques that are extensively used to protect data during transmission and storage, like AES (Advanced Encryption Standard). In addition, the smart cards have built-in security measures including data encryption and mutual authentication that assist thwart possible assaults and prevent illegal access.
| S No | Product Name | Development |
| 1 | White Label Alliance (WLA) | To provide smart card and online payment companies with an independent contactless payment standard, IDEMIA, G+D, and NXP launched WLA. The desire for independent, cutting-edge payment solutions has grown significantly around the world, prompting the creation of the White Label Alliance (WLA). |
| 2 | Arcontia | The Nautiz eTicket Pro II PDA now has an inbuilt contactless smart card reader from ARCONTIA INTERNATIONAL AB. |
TheWLAunifies and establishes independent standards for the acceptance of contact and contactless cards, mobile devices and other form factors, and payment terminals.
The White Label Alliance (WLA),was created in response to the rising demand for next-generation, independent payment solutions for domestic and private-label payment brands on a worldwide scale.
A ready-to-deploy dual interface payment system covering contact and contactless payment cards, mobile devices, and payment terminal acceptance is made possible by the WLA, which establishes and updates an open and complete payment standard.WLA, which builds on the EMV standard, makes it easier to switch to contactless solutions and guarantees system interoperability.
The WLA has made a commitment to adapt to any new developments as requested by its members. To increase the usage of contactless payments, WLA members are free to employ this technology and its certification system.
It is crucial that the interoperable contactless capability is made more widely available as support for contactless payments gains momentum on a worldwide basis so that more people can take advantage of the increased security and convenience.
By providing our technology to WLA, they are happy to collaborate with local networks, manufacturers, and banks to make contactless deployment easier.
The newNautiz eTicket Pro II PDAfrom Handheld features a fully integrated Arcontia reader, providing a portable and ergonomic ticketing solution for a variety of public transportation applications.
Customers can use the contactless smart card reader and PDA together to create a thin, robust mobile device for workflow assistance, ticket control, and trip information.
Arcontia's increasing line of contactless smart card solutions, aimed for the e-ticketing and e-payment markets, now includes the ISO/IEC 14443 A/B reader.
The reader supports all MIFARE cards, including MIFARE Plus, MIFARE DESFire EV1, and MIFARE UltraLight C, in addition to Smart MX and a number of other smart cards used in applications for cashless ticketing and payments.
The reader features two high-speed SAM (Secure Access Module) slots for this, and the reader software is compatible with the most recent NXP MIFARE AV1 and MIFARE AV2 SAMs.
Arcontia and Handheld have collaborated extensively to deliver ruggedized PDAs with integrated ISO/IEC 14443 A/B contactless smart card readers to the public transportation sector.
AFC (Automatic Fare Collection) systems around the world have implemented their combined mobile solutions in a number of applications.
The North American market, particularly the USA, will be one of the prime markets for Contactless Smart Card Market due to the nature of industrial automation in the region, high consumer spending compared to other regions, and the growth of various industries, mainly AI, along with constant technological advancements. The GDP of the USA is one of the largest in the world, and it is home to various industries such as Pharmaceuticals, Aerospace, and Technology.
The average consumer spending in the region was $72K in 2023, and this is set to increase over the forecast period. Industries are focused on industrial automation and increasing efficiency in the region. This will be facilitated by the growth in IoT and AI across the board. Due to tensions in geopolitics, much manufacturing is set to shift towards the USA and Mexico, away from China. This shift will include industries such as semiconductors and automotive.
The European market, particularly Western Europe, is another prime market for Contactless Smart Card Market due to the strong economic conditions in the region, bolstered by robust systems that support sustained growth. This includes research and development of new technologies, constant innovation, and developments across various industries that promote regional growth. Investments are being made to develop and improve existing infrastructure, enabling various industries to thrive.
In Western Europe, the margins forContactless Smart Card Market are higher than in other parts of the world due to regional supply and demand dynamics. Average consumer spending in the region was lower than in the USA in 2023, but it is expected to increase over the forecast period.
Eastern Europe is anticipated to experience a higher growth rate compared to Western Europe, as significant shifts in manufacturing and development are taking place in countries like Poland and Hungary. However, the Russia-Ukraine war is currently disrupting growth in this region, with the lack of an immediate resolution negatively impacting growth and creating instability in neighboring areas. Despite these challenges, technological hubs are emerging in Eastern Europe, driven by lower labor costs and a strong supply of technological capabilities compared to Western Europe.
There is a significant boom in manufacturing within Europe, especially in the semiconductor industry, which is expected to influence other industries. Major improvements in the development of sectors such as renewable energy, industrial automation, automotive manufacturing, battery manufacturing and recycling, and AI are poised to promote the growth ofContactless Smart Card Market in the region.
Asia will continue to be the global manufacturing hub for Contactless Smart Card Market over the forecast period with China dominating the manufacturing. However, there will be a shift in manufacturing towards other Asian countries such as India and Vietnam. The technological developments will come from China, Japan, South Korea, and India for the region.
There is a trend to improve the efficiency as well as the quality of goods and services to keep up with the standards that are present internationally as well as win the fight in terms of pricing in this region. The demand in this region will also be driven by infrastructural developments that will take place over the forecast period to improve the output for various industries in different countries.
There will be higher growth in the Middle East as investments fall into place to improve their standing in various industries away from petroleum. Plans such as Saudi Arabia Vision 2030, Qatar Vision 2030, and Abu Dhabi 2030 will cause developments across multiple industries in the region.
There is a focus on improving the manufacturing sector as well as the knowledge-based services to cater to the needs of the region and the rest of the world. Due to the shifting nature of fossil fuels, the region will be ready with multiple other revenue sources by the time comes, though fossil fuels are not going away any time soon.
Africa is expected to see the largest growth inContactless Smart Card Marketover the forecast period, as the region prepares to advance across multiple fronts. This growth aligns with the surge of investments targeting key sectors such as agriculture, mining, financial services, manufacturing, logistics, automotive, and healthcare. These investments are poised to stimulate overall regional growth, creating ripple effects across other industries as consumer spending increases, access to products improves, and product offerings expand.
This development is supported by both established companies and startups in the region, with assistance from various charitable organizations. Additionally, the presence of a young workforce will address various existing regional challenges. There has been an improvement in political stability, which has attracted and will continue to attract more foreign investments. Initiatives like the African Continental Free Trade Area (AfCFTA) are set to facilitate the easier movement of goods and services within the region, further enhancing the economic landscape.
Latin America and the Oceania region will showcase growth over the forecast period inContactless Smart Card Market). In Latin America, the focus in the forecast period will be to improve their manufacturing capabilities which is supported by foreign investments in the region. This will be across industries mainly automotive and medical devices.
There will also be an increase in mining activities over the forecast period in this region. The area is ripe for industrial automation to enable improvements in manufacturing across different industries and efficiency improvements. This will lead to growth of other industries in the region.
| Margin Comparison (Highest to lowest) | Region | Remarks |
| 1 | Europe | The supply chain demands and the purchasing power in the region enable suppliers to extradite a larger margin from this region than other regions. This is for both locally manufactured as well as imported goods and services in the region. |
| 2 | North America | Due to the high spending power in this region, the margins are higher compared to the rest of the world, but they are lower than Europe as there is higher competition in this region. All the suppliers of goods and services target USA as a main market thereby decreasing their margins compared to Europe |
| 3 | Asia | Lower purchasing power, coupled with higher accessibility of services in this regions doesnât enable suppliers to charge a high margin making it lower than Europe and North America. The quality of goods and services are also affected due to this aspect in the region |
| 4 | Africa and ROW | The margins are the lowest in this region, except for Australia and New Zealand as the countries in this region donât have much spending power and a large portion of the products and services from this area is exported to other parts of the world |
| Sl no | Topic |
| 1 | Market Segmentation |
| 2 | Scope of the report |
| 3 | Abbreviations |
| 4 | Research Methodology |
| 5 | Executive Summary |
| 6 | Introduction |
| 7 | Insights from Industry stakeholders |
| 8 | Cost breakdown of Product by sub-components and average profit margin |
| 9 | Disruptive innovation in the Industry |
| 10 | Technology trends in the Industry |
| 11 | Consumer trends in the industry |
| 12 | Recent Production Milestones |
| 13 | Component Manufacturing in US, EU and China |
| 14 | COVID-19 impact on overall market |
| 15 | COVID-19 impact on Production of components |
| 16 | COVID-19 impact on Point of sale |
| 17 | Market Segmentation, Dynamics and Forecast by Geography, 2023-2030 |
| 18 | Market Segmentation, Dynamics and Forecast by Product Type, 2023-2030 |
| 19 | Market Segmentation, Dynamics and Forecast by Application, 2023-2030 |
| 20 | Market Segmentation, Dynamics and Forecast by End use, 2023-2030 |
| 21 | Product installation rate by OEM, 2023 |
| 22 | Incline/Decline in Average B-2-B selling price in past 5 years |
| 23 | Competition from substitute products |
| 24 | Gross margin and average profitability of suppliers |
| 25 | New product development in past 12 months |
| 26 | M&A in past 12 months |
| 27 | Growth strategy of leading players |
| 28 | Market share of vendors, 2023 |
| 29 | Company Profiles |
| 30 | Unmet needs and opportunity for new suppliers |
| 31 | Conclusion |
| 32 | Appendix |
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