The Smart Card Market in Government Sector Expected to Grow to $9.93 Billion by 2030 at a 9.7% CAGR

The Business Research Company

The Business Research Company's Smart Card In Government Market Report 2026 – Market Size, Trends, And Global Forecast 2026-2035

LONDON, GREATER LONDON, UNITED KINGDOM, January 31, 2026 /EINPresswire.com/ -- "The government sector is increasingly turning to smart card technology to enhance security and streamline public services. As digital governance evolves, the demand for secure and efficient identity solutions is rising sharply. Let’s explore the current market size, key factors driving growth, regional dynamics, and future trends shaping the smart card in government market.

Rapid Expansion of the Smart Card in Government Market
The smart card in government market has experienced significant growth in recent years. It is projected to rise from $6.25 billion in 2025 to $6.87 billion in 2026, reflecting a compound annual growth rate (CAGR) of 9.9%. This historical growth is largely driven by increasing needs for secure identity verification, the push towards digital governance, wider adoption of electronic services, the rollout of government digitization initiatives, and a stronger emphasis on fraud mitigation.

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Future Growth Outlook for the Smart Card in Government Market
Looking ahead, the smart card in government market is expected to maintain robust expansion. By 2030, the market size is forecasted to reach $9.93 billion with a CAGR of 9.7%. This anticipated growth will be fueled by rising investments in cybersecurity, heightened expectations from citizens for convenient digital services, the proliferation of smart city projects, the broadening use of contactless transaction systems, and increased utilization of multi-application smartcards. Emerging trends during this period include advancements in smartcard security technology, biometric-enabled card innovations, cloud-based credential management solutions, blockchain-based identity verification research, and the development of environmentally sustainable card materials.

Understanding the Role of Smart Cards in Government Operations
Smart cards used by governments are secure, tamper-resistant cards embedded with microprocessors or memory chips that store and process data for official purposes. These cards play a crucial role in strengthening authentication, identity verification, and controlled access to government services and systems. They contribute to improving operational efficiency, reducing fraudulent activities, and enhancing the overall security of governmental transactions and processes.

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Digitalization as a Key Growth Driver for Smart Cards in Government
One of the main forces propelling the smart card market in government is the rapid digitalization of public services. This transformation involves shifting traditional government workflows and citizen interactions onto digital platforms to provide faster, more efficient services that meet modern expectations. Governments are increasingly adopting automation and online channels to deliver these services, and smart cards serve as secure physical tokens that enable safe digital identity verification and access to e-government platforms.

Increasing Citizen Use of Digital Government Services Supports Market Growth
For example, in February 2025, Eurostat reported that 70.0 percent of people aged 16 to 74 in the European Union accessed public authority websites or applications in 2024, up from 69.3 percent in 2023. This growing engagement with digital government services illustrates the rising demand for secure authentication tools like smart cards, which in turn drives the market’s expansion.

Regional Landscape of the Smart Card in Government Market
In 2025, North America held the largest share of the smart card in government market. However, Asia-Pacific is projected to be the fastest-growing region during the forecast period. The market analysis spans key geographical areas including Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa, providing a comprehensive overview of global developments.

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