Forecast Period
|
2024-2028
|
Market Size (2022)
|
USD 612.35 million
|
CAGR (2023-2028)
|
6.33%
|
Fastest Growing Segment
|
Polyvinyl Chloride (PVC)
|
Largest Market
|
Asia Pacific
|
Market Overview
Global Plastic Card Materials Market has valued at USD 612.35 million in
2022 and is anticipated to project robust growth in the forecast period with a
CAGR of 6.33% through 2028. Plastic cards, commonly used across various sectors
such as government, banking, transportation, financial services, and
healthcare, play a crucial role in authentication and identification. These
cards provide authorized access to secure premises, ensuring data security and
confidentiality. The plastic card market is experiencing significant growth,
driven by the increasing use of plastic cards in banks and SIM cards among the
global population.
The growing acceptance of cashless payment options, coupled with the
widespread adoption of modern banking operations, commercial transactions, and
other payments worldwide, further accelerates the market growth. Moreover, the
penetration of smartphones, which make technological applications more
accessible to users, and the surge in government initiatives to promote
digitization, contribute to the market expansion. In addition, the expanding
banking sector, the rise in secure and reliable payment transactions across
various industries, and the increasing focus on e-payments positively impact
the plastic cards market. Furthermore, advancements in smart cards present
lucrative opportunities for market players in the forecast period, ensuring
continued growth and innovation in this evolving industry.
Key Market Drivers
Expansion in Financial Services and Banking Sector
The financial services and banking sector, as a key player in the
payment landscape, holds a pivotal role in shaping the way we make
transactions. With the increasing reliance on electronic payments, plastic
cards have emerged as a favored method of payment among consumers. To
facilitate seamless and secure transactions, banks, and financial institutions
issue millions of plastic cards worldwide. The demand for plastic card
materials is driven by the expanding financial services sector and the growing
consumer preference for digital payments.
Furthermore, the expansion of the banking sector, particularly in
emerging economies, has led to a significant increase in bank account
penetration. As more individuals gain access to banking services, the demand
for plastic cards, including debit and prepaid cards, continues to rise. These
cards offer customers the convenience of withdrawing cash, making purchases,
and accessing various financial services. The surge in bank account penetration
directly contributes to the growth of the plastic card materials market.
To enhance customer experiences and drive operational efficiency, the
financial services and banking sector consistently embraces technological
advancements. This includes the introduction of contactless payment options,
biometric authentication, and mobile payment solutions. These innovations require
materials that meet stringent security standards while providing durability and
functionality. As a result, the demand for advanced plastic card materials
capable of supporting these technological developments is fueled by the
expansion of the financial services sector. In response to evolving consumer
demands, the banking industry strives to offer various card options with added
benefits, rewards programs, and enhanced security features.
Consumers now expect convenience and flexibility in their financial transactions,
further driving the adoption of plastic cards. Financial institutions
understand the importance of meeting these expectations and continue to cater
to the evolving needs of consumers. As a result, the demand for plastic card
materials, such as PVC plastics, continues to grow. In summary, the financial
services and banking sector significantly influences the payment landscape. The
growing preference for electronic transactions and the expansion of banking
services worldwide have led to an increased demand for plastic card materials.
Technological advancements and evolving consumer expectations further
contribute to the growth of the plastic card materials market. The convenience,
security, and flexibility offered by plastic cards make them a popular choice
among consumers, driving the continuous demand for advanced plastic card
materials.
Rise of E-Commerce and Cashless Transactions
The proliferation of e-commerce platforms has brought about a revolution
in the retail industry, completely transforming the way consumers shop. With
the convenience of online shopping, people can now browse and purchase products
from the comfort of their own homes, eliminating the need to visit physical
stores. This shift in consumer behavior has paved the way for the rise of
online retailers, marketplaces, and digital payment providers. In the digital
realm of e-commerce, plastic cards have become indispensable tools for seamless
and secure transactions. Whether it's debit cards, credit cards, or prepaid
cards, these plastic payment methods have become the primary choice for online
shoppers. As the demand for e-commerce continues to surge, so does the demand
for plastic card materials.
Financial institutions are issuing millions of plastic cards to customers,
ensuring their active participation in the cashless economy. Furthermore, the
global adoption of cashless transactions has gained widespread acceptance due
to the remarkable convenience, security, and speed they offer. Plastic cards,
including debit, credit, and prepaid cards, play a critical role in enabling
these digital payment methods. As consumers increasingly embrace the ease and
security of digital payments, the demand for plastic cards continues to rise.
The growth of the plastic card materials market has been further accelerated by
the advent of contactless payment technology and mobile wallets. Contactless
payment options, such as near field communication (NFC) technology, allow users
to make quick and secure transactions by simply tapping their cards or
smartphones at point-of-sale terminals. This seamless experience has led to an
increase in the issuance of plastic cards embedded with contactless chips,
driving the demand for advanced plastic card materials.
To address concerns about security, plastic card materials have evolved
to incorporate advanced features like EMV (Europay, Mastercard, and Visa) chips
and biometric authentication. These security measures provide an added layer of
protection, reducing the risk of fraud and unauthorized transactions. As
consumers demand more secure payment methods, financial institutions are
issuing plastic cards equipped with these advanced security features, thus
boosting the demand for plastic card materials that can accommodate these
technological advancements.
Growing Demand of Plastic Card Materials Market in Tourism and
Hospitality Industry
Plastic cards have become the primary choice for hotel key cards,
offering guests a secure and convenient way to access their rooms. These cards
have gradually replaced the traditional metal keys, ensuring both guest safety
and ease of use. With millions of plastic key cards issued by hotels annually,
the demand for plastic card materials has skyrocketed. This surge in demand is
fueled by the continuous growth of the tourism and hospitality industry, which
shows no signs of slowing down.
In addition to their use as hotel key cards, plastic cards find
widespread application in loyalty and rewards programs offered by tourism and
hospitality companies. These programs allow guests to accumulate points,
receive special discounts, and enjoy exclusive benefits during their stays.
Plastic card materials, embedded with magnetic stripes or smart chips,
facilitate the seamless operation of these programs. As the industry
increasingly adopts these loyalty and rewards programs, the demand for plastic
card materials continues to rise, supporting their market growth.
Another emerging trend in the tourism industry is the growing popularity
of prepaid travel cards. These cards function similarly to debit or credit
cards and enable travelers to load funds in various currencies. This not only
offers convenience but also enhances security when making purchases abroad.
Plastic card materials are used in the production of these prepaid travel
cards, catering to the needs of international tourists and business travelers.
The rising demand for prepaid travel cards further drives the growth of the
plastic card materials market in the tourism industry.
Furthermore, the integration of contactless payment solutions has
revolutionized the way transactions are conducted in the tourism and
hospitality industry. Plastic card materials with embedded contactless chips
enable guests to make quick and secure transactions at various points of sale
within hotels, restaurants, and other establishments. This shift towards
contactless payment solutions not only enhances guest convenience but also
reduces transactional friction. As a result, there is a growing demand for
advanced plastic card materials that support contactless payments, further
expanding the market for plastic cards in the tourism industry. With these
various applications and the continuous evolution of the tourism and
hospitality industry, the demand for plastic card materials is expected to
witness significant growth in the foreseeable future. The versatility and
reliability of plastic cards make them an indispensable part of the industry,
ensuring seamless experiences for both guests and businesses alike.
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Key Market Challenges
Security and Fraud Prevention
Counterfeiting remains a significant concern in the plastic card
materials market. Fraudsters strive to produce counterfeit cards that closely
resemble genuine ones, posing challenges in detecting fraudulent activities.
Effective authentication features, such as holograms, security inks,
microprinting, and UV-visible elements, play a crucial role in thwarting
counterfeiting attempts. It is imperative to continuously develop innovative
security features to stay one step ahead of counterfeiters.
Data breaches present a grave security threat to plastic cards.
Cybercriminals target financial institutions, merchants, and payment processors
in their quest for unauthorized access to sensitive cardholder data. These
breaches can lead to the compromise of card information, resulting in
fraudulent transactions and financial losses. Implementing robust data
protection measures, including encryption and secure data storage protocols, is
of utmost importance to prevent data breaches and safeguard cardholder
information.
Key Market Trends
Growing Adoption of Sustainable Material
The increasing awareness of the environmental impact caused by plastic
materials has led to a surge in demand for sustainable alternatives. Plastic
pollution, carbon emissions, and waste management have emerged as significant
concerns for individuals, businesses, and governments alike. As a result, there
is a growing consumer preference for products, including plastic cards, that
are manufactured using sustainable materials. This heightened awareness is
fueling the adoption of alternative materials in the plastic card materials
market.
Advancements in sustainable materials have enabled the development of
alternative options for plastic card production. Materials such as bioplastics,
recycled plastics, plant-based polymers, and other renewable resources are
being actively explored as viable substitutes for traditional PVC plastics.
These sustainable materials offer comparable durability and functionality,
while simultaneously mitigating the environmental impact associated with
plastic card manufacturing.
Segmental Insights
Material Type Insights
Based on the category of material type, the Polyvinyl Chloride (PVC) segment
emerged as the dominant player in the global market for Plastic Card Materials Market
in 2022. Over the last many years, PVC has emerged as the most preferred
material for the production of smart cards. Known as a thermoplastic polymer,
PVC offers a wide range of advantages due to its excellent chemical,
mechanical, and thermal properties. It is commonly used in the form of films to
manufacture various types of cards. However, despite its popularity, PVC does
have some drawbacks that have led to a shift towards polycarbonate (PC)
material. Polycarbonate offers several advantageous properties that surpass
those of PVC. These include high-temperature resistance, low shrinkage, an
excellent printable surface, a lifespan of over ten years, and exceptional
optical properties. This transition from PVC to polycarbonate material not only
addresses the limitations of PVC but also provides enhanced durability,
longevity, and overall performance for smart cards.
Type of Card Insights
The Contact Cards segment is projected to experience rapid growth during
the forecast period. The multi-component type of smart card is capable of
processing complex calculations and storing a vast amount of information that
can be utilized in both contact and contactless cards. This advanced feature
not only enables faster processing speed but also significantly reduces
transaction time, making it highly advantageous for various sectors including
banking, financial services, and insurance (BFSI), telecommunication, retail, and
healthcare. In fact, the multi-component segment of smart cards was valued at
USD 155.8 million in 2017, and its growth is expected to be substantial over
the forecast period. With its remarkable capabilities and potential for
widespread adoption, the multi-component smart card is poised to revolutionize
the way we interact and transact in the digital age.
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Regional Insights
Asia Pacific emerged as the dominant player in the Global Plastic Card
Materials Market in 2022, holding the largest market share in terms of both
value and volume. The growth of the Asia Pacific region can be attributed to
the rising adoption of digital services in emerging economies such as China and
India. In recent times, there has been a significant increase in the use of
various smart card products, including debit/credit cards, gift cards, and ID
recognition cards, in this region. These smart card products are not only
transforming the way financial transactions are conducted but also enhancing
security and convenience for users.
The booming end-use industries of smart cards, driven by the
digitalization of operations and the spiraling use of mobile phones, are
further escalating the growth of the market in the Asia Pacific. As more businesses
and consumers embrace digital payment solutions, the adoption of smart card
products, such as SIM cards, is experiencing a notable surge. This trend is
providing a significant push to the market in the region, as it enables
seamless connectivity and secure access to various services. In summary, the
Asia Pacific region is witnessing a remarkable growth trajectory in the smart
card market, fueled by the increasing adoption of digital services,
advancements in technology, and the growing demand for secure and convenient
payment solutions.
Recent Developments
- In May 2022, Eastman Chemical Company, a global leader in specialty
chemicals, announced an Accelerated Share Repurchase (ASR) deal with Mizuho
Markets Worldwide LLC and Wells Fargo, NA. This strategic move represents a
significant milestone for Eastman as it advances towards its ambitious goal of
repurchasing upwards of $1 billion of shares by 2022. With approximately $750
million already completed in the second period, Eastman's commitment to enhancing
shareholder value is evident.
- In August 2020, Onyx Center Source Company, a prominent player in the
United States hospitality and travel industry, introduced an innovative
solution to optimize payment management. The company unveiled a cutting-edge
virtual smart credit card tailored specifically for its clients in the
hospitality and travel sector. This groundbreaking technology empowers
organizations to closely manage and restrict card usage, bolstering security
measures while ensuring first contact resolution and minimizing customer
complaints. These recent developments highlight the constant drive for
innovation and improvement within these industry leaders, as they strive to
deliver enhanced value and customer satisfaction in their respective domains.
- In 2023, Mastercard, a global leader in payment solutions, embarked on
an ambitious and commendable project aimed at tackling the mounting
environmental issue of credit and debit card waste. With billions of cards in
circulation worldwide, the company recognized the need to prevent these cards
from ending up in landfills. To kickstart this initiative, Mastercard forged a
strategic partnership with HSBC Holdings Plc, a renowned London-based financial
services group. Initially implemented in eight HSBC branches across Britain,
the project gained significant traction and positive reception.
- Building on this success, Mastercard recently announced its plan to
provide state-of-the-art shredding machines to HSBC capable of holding up to
10,000 cards or 50 kilograms (110 pounds) of plastic. Once these machines reach
full capacity, the shredded cards will be efficiently transported to a
dedicated plastic recycling facility. Excitingly, Mastercard is extending an
invitation to banks worldwide to join this groundbreaking program. Recognizing
that several banks have already launched their own local initiatives, the
company aims to foster a global coalition of financial institutions committed
to sustainable card recycling. By taking this bold step, Mastercard and its partners
are not only demonstrating their commitment to environmental stewardship but
also setting an inspiring example for the entire industry. Through concerted
efforts and innovative solutions, they are paving the way for a greener future,
where the circular economy becomes the norm and waste reduction is at the
forefront of business practices.
Key Market Players
- Eastman Chemical Company
- PetroChina Company Limited
- Solvay S.A.
- KEM ONE
- SABIC
- 3A Composites GmbH
- Teijin Limited
- LG Chem
- BASF SE
- Westlake Chemical Corporation.
By Material
Type
|
By Type of Card
|
By Application
|
By Region
|
- Polyvinyl Chloride (PVC)
- Polycarbonate (PC)
- Acrylonitrile Butadiene Styrene (ABS)
- Polyethylene Terephthalate-Glycol (PETG)
- Others
|
- Contact Cards
- Contactless Cards
- Multi-Component Cards
|
- BFSI
- Healthcare
- Retail
- Government
- Others
|
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
|
Report Scope:
In this report, the Global Plastic Card Materials Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
- Plastic Card Materials Market, By Material Type:
o Polyvinyl Chloride (PVC)
o Polycarbonate (PC)
o Acrylonitrile Butadiene Styrene (ABS)
o Polyethylene Terephthalate-Glycol (PETG)
o Others
- Plastic Card Materials Market, By Type
of Card:
o Contact Cards
o Contactless Cards
o Multi-Component Cards
- Plastic Card Materials Market, By
Application:
o BFSI
o Healthcare
o Retail
o Government
o Others
- Plastic Card Materials Market, By
Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
§ Kuwait
§ Turkey
§ Egypt
Competitive Landscape
Company Profiles: Detailed
analysis of the major companies present in the Global Plastic Card Materials
Market.
Available Customizations:
Global Plastic Card Materials Market report with the given market data,
Tech Sci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of
additional market players (up to five).
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the date of release, please contact us at [email protected]