Plastic Cards Market: Past, Present and Future Scenario
The chip enabled cards segment has an estimated revenue share of almost 80% of the global plastic cards market by technology in 2018, but what does the future hold?
Article first published 18 February 2019, www.digitaldailynews.com
The chip enabled cards segment has an estimated revenue share of almost 80% of the global plastic cards market by technology in 2018, and is predicted to remain the key technology segment throughout the duration of the forecast period.
In an era filled with digital electronics, it would seem as if working with an actual plastic card would be a waste of a time. But modern technology has taken the use of plastic cards to the next level. Increased technological developments in plastic cards, such as smart cards and chip cards, are gaining traction among consumers.
Demand for Plastic Cards in the APAC Region
The APAC region is estimated to account for a 36.2% market share in terms of revenue in the global plastic cards market in 2018, and this share is expected to grow by a massive rate of 300 basis points, causing the APAC market to grab a 38.8% market share by the end of 2026. The growth in the APAC market is spearheaded by enhanced spending power and the retail penetration of luxury consumer goods in China, India, and ASEAN countries, and consumers in these countries are likely to continue to demand the highest quality plastic cards. An estimated volume of more than 14,092 Mn units and a value of over US$ 14,887.8 Mn in 2026 makes APAC the behemoth in the global plastic cards market.
Growing Demand for Secure & Reliable Payment Transactions across Various Industries
Access to the Internet has become convenient, and its usage has increased substantially due to the increasing demand for online banking & shopping and access to e-Government services. Due to the increasing adoption of e-Commerce services and cashless payments, online payments have witnessed exponential growth, globally. Along with increasing online payments, the security risks associated with them have also increased significantly. Smart cards help enhance security, reduce fraud, and enable the utilization of value-added services for end-user industries, which includes sectors such as banking, telecommunication, healthcare, transportation, and governments.
Increased Usage of Mobile Phones
In this generation, there is an increased usage of mobile phones among people. Especially in tier II and tier III places, the growth of the mobile phones sector is high. In developed regions such as North America, the mobile phones market is mature, owing to high purchasing power. Due to the increased usage of mobile phones, there will be an increased purchase of SIM cards. This helps in the growth of the plastic cards market.
Competitive Pricing from Local Players – a Major Impact on the Plastic Cards Market
One of the major challenges for the growth of the plastic cards market in Asia Pacific is the lower commodity price of manufacturing plastic cards. This has resulted in a number of companies decreasing the prices of their products and focusing more towards volume growth.
In addition, the increasing number of small and unorganized players in the market due to easy manufacturing processes, low commodity prices, and demand for branded plastic card products are also hampering the growth of the plastic cards market.
Source: Digital Daily News