Transport Smart Card Market size was over USD 6.21 billion in 2023 and is poised to cross USD 13.08 billion by 2036, growing at more than 5.9% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of transport smart card is evaluated at USD 6.5 billion.
The growth of the market can be attributed to the multi-functional nature of the travel smart cards, which are increasingly being used for bill payments, transportation, banking, and others. The increasing popularity of transport cards replacing tokens and cash, is estimated to boost the market growth. Use of these cards by daily boarders in locomotives, such as, subways, in developing and developed nations, is projected to boost the market growth. Moreover, rising innovation in technology is estimated to promote the growth of the market.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
5.9% |
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Base Year Market Size (2023) |
USD 6.21 billion |
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Forecast Year Market Size (2036) |
USD 13.08 billion |
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Regional Scope |
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The global transport smart card market is segmented by card type into contact smart cards, contactless smart cards, hybrid smart cards, and others, out of which, the contactless smart cards segment is anticipated to hold the notable share in the market during the forecast period on account of increasing sanitation and hygiene concerns, post the COVID-19 pandemic, as contactless cards reduce the risks of infections. Further, high investment in innovation and development of new technology in this direction, is expected to boost the segment growth. On the basis of end-user, the market is segmented into telecommunication, government, retail, transport and others, out of which, the transport segment is estimated to garner the leading share over the forecast period, owing to the growing application of transport smart card by daily passengers in metros, subways, and other rapid transits. Additionally, increasing population of daily commuters in developed nations, is estimated to boost the segment growth. For instance, around 10 billion people travelled through MRTs in the United States, in 2019, on a weekly basis.
Our in-depth analysis of the global market includes the following segments
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By Card Type
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By End-User
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North America Market Statistics
Regionally, the global transport smart card market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. North America is estimated to hold largest revenue share by 2036, on the back of higher adoption of advanced technology among the masses. Moreover, countries, such as, the U.S. and Canada, promote cashless economy, which is estimated to further boost the market growth.
APAC Market Analysis
The market in the Asia Pacific region is estimated to witness highest CAGR over the forecast period, owing to the growing transportation sector in nations, such as, Japan, where thousands of people commute to their offices using transport smart cards. In Japan, more than 45% of the working class and 50% of the students travel in subways or buses. Moreover, major steps by governments of developing countries, including, India and Singapore, to develop a cashless economy, is estimated to boost the market growth in the region.
· May 04, 2021: Giesecke+Devrient announced the establishment of sovereign pan-European payment system ‘European Payments Initiative’ (EPI) as a long overdue step towards establishing a cashless economy.
Author Credits: Abhishek Verma
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