1. Classification of smart card chips
Smart card chips are generally divided into RFID chips, CPU card chips, and logic encryption card chips, which are widely used in mobile communication, financial payment, identity recognition, public utilities and other fields. Specific applications include telecommunications cards, bank cards, social security cards, ID cards, public transportation cards, access control cards, etc. A smart card chip refers to an integrated circuit chip that includes a microprocessor, input/output device interfaces, and memory, providing functions such as data computation, access control, and storage.
Related report: Beijing Puhua Youce Information Consulting Co., Ltd.'s "2020-2026 China Smart Card Chip Industry Market Special Survey and Investment Prospect Forecast Report"

2. Global market size of smart card chip industry
Benefiting from the increasing application of smart cards in fields such as mobile communication, financial payments, and public utilities, the global shipment of smart card chips increased from 9.019 billion to 15.589 billion from 2014 to 2018, with a compound annual growth rate of 14.66 percentage points. The market size grew from 2.814 billion US dollars to 3.275 billion US dollars, with a compound annual growth rate of 3.91 percentage points. The income ratio in the Asia Pacific region is significant, with China, India, Japan, and South Korea being the main markets. With the advancement of smart card chip technology and the expansion of application fields, it is expected that the revenue of smart card chips will continue to grow in the future. By 2023, the global shipment of smart card chips will reach 27.983 billion, and the market size will reach 3.86 billion US dollars.

According to research, global smart card revenue was approximately $9068.2 million in 2020, and is expected to reach $10930 million by 2026. The compound annual growth rate from 2021 to 2026 is 4.8 percentage points.

Analysis of the Global Smart Card Chip Market Size from 2014 to 2018

Source: PwC Youce Market Research

3. Market size of China's smart card chip industry
From 2014 to 2018, the shipment volume of smart card chips in China increased from 3.671 billion to 6.766 billion, with a compound annual growth rate of 16.52 percentage points, and the market size grew from 7.691 billion yuan to 9.591 billion yuan; The compound annual growth rate is 5.68 points. In recent years, China has gradually increased its production capacity of smart card chips and narrowed the gap with foreign enterprises through policy support, capital investment, coupled with engineer dividends, accumulated technical experience and talent reserves. The trend of localization of smart card chips is evident. It is expected that by 2023, the shipment volume of smart card chips in China will reach 13.936 billion, and the market size will reach 12.982 billion yuan.

4. Development Trends and Prospects of Smart Card Chip Market

In the future, the application fields of smart card chips will gradually expand to national core businesses such as healthcare, wearable devices, and positioning. The 13th Five Year Plan for National Informatization clearly proposes to promote the application of health-related technologies and products such as artificial intelligence, 3D bioprinting, medical robots, wearable devices, and related microsensors in disease prevention, health emergency response, healthcare, and daily care; Promote the comprehensive development of high-precision chip, terminal manufacturing, and location service industries; Promote the application and deployment of the Beidou system in national core business systems, transportation, communication, broadcasting and television, water conservancy, electricity, public security, surveying and mapping, housing and urban-rural development, tourism and other fields.

In 2018, the "Huarui 2" chip independently developed by the 14th Institute of China Electronics Technology Group was first released to the public, with comprehensive processing performance superior to international mainstream DSP chips. It can be applied in civilian fields such as security monitoring and computers, as well as military fields such as radar, communication, and electronic countermeasures. With the continuous improvement of domestic independent research and development level of smart card chips and the support of national development plans, the application fields of smart card chips will become more diversified in the future.