Smart cards market in Italy

Earlier Report Observations

The Italian smart card market exhibited significant volatility in both volume and value from 2018 to 2024. Market volume, measured in units, rose from 631.4 million units in 2018 to a peak of 856.9 million in 2022, before declining in 2023 and partially recovering to 677.2 million in 2024. The market value followed a different trajectory, reaching its highest point of 1.37 billion USD in 2019 and then generally trending downward to 1.05 billion USD by the end of the period.

Production and trade flows mirrored this instability. Domestic production saw a sharp drop to 393.9 million units in 2020, followed by a strong rebound to 692.2 million in 2022. Imports grew consistently over the period, while exports expanded substantially, rising from 95.4 million units in 2018 to 318.2 million in 2024, indicating a shift in the market's structure.

The recovery in market volume during 2024 was influenced by several regulatory and technological drivers. The phased implementation of the EU's eIDAS 2 regulation, which mandates interoperable digital wallets, created new demand for smart cards supporting digital identity. Concurrently, the revised Payment Services Directive (PSD3) and Payment Services Regulation (PSR) updated the framework for digital payments, boosting demand for secure contactless payment cards. Underpinning this demand were technological advancements in NAND flash memory and interface standards, alongside the growing adoption of biometric smart cards and the continued digitalization of Italian businesses.

Production smart cards in Italy

In value, 2017-2020, M $ US

Italy's smart card production value reached $1 199 million in 2020, representing an 8.1% decrease from 2019. Over the 2017-2020 period, production declined by 5.4%, with a compound annual growth rate of 1.8%. The peak value was recorded in 2019 at $1 305 million, which also saw the largest increase of 4.2%.

Annual dynamics of production in Italy in value, 2017-2020, M $ US

In kind, 2017-2020, M unit

Following two years of growth, Italy's smart card production volume declined. In 2020, production stood at 393.9 million units, marking a significant 33.0% year-over-year decrease. Between 2017 and 2020, overall production increased by 8%, translating to an annualized growth rate of 2.6%. The highest volume was achieved in 2019 with 587.7 million units, while the largest increase occurred in 2018 at 37.4%.

Annual dynamics of production in Italy in kind, 2017-2020, M unit

Exports smart cards from Italy

Exports in kind, M unit

After two years of improvement, Italy's smart card exports declined. In 2020, exports totaled 87.0 million units, which is 10.1% lower than in 2019. Over the 2017-2020 period, exports grew by 18.8%, with a compound annual growth rate of 5.9%. The peak export volume was recorded in 2019 at 96.8 million units, and the largest increase occurred in 2018 at 30.2%.

Annual dynamics of product's exports from Italy in kind, 2017-2020, M unit

From 2017 to 2020, Italy's smart card export destinations remained highly fragmented. Hong Kong accounted for 12.7% of exports in kind, Germany for 8.4%, and Singapore for 7.9%. Together, these three markets represented just 29.0% of total export flows, with no single country achieving a dominant share.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Italy in kind, 2017-2020

Exports in value, M $ US

Following two years of decline, Italy's smart card export value increased. In 2020, exports reached $59.6 million, which is 0.6% higher than the previous year. Over the 2017-2020 period, export value decreased by 36.7%, with a compound annual decline rate of 14.2%. The lowest value was recorded in 2019 at $59.2 million, while the largest decline occurred in 2018 at 29.6%.

Annual dynamics of product's exports from Italy in value, 2017-2020, M $ US

Between 2017 and 2020, Italy's smart card export markets were broadly diversified. France accounted for 12.0% of export value, Germany for 11.6%, and Singapore for 11.3%. Together, these three countries contributed only 34.8% of total export value, with numerous other countries holding smaller but meaningful shares.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Italy in value, 2017-2020

Imports smart cards to Italy

Imports in kind, M unit

Italy's smart card import volume increased for the third consecutive year. In 2020, imports totaled 258.8 million units, representing a 2.3% increase compared to 2019. Between 2017 and 2020, imports grew by 46.6%, equating to an annualized growth rate of 13.6%.

Annual dynamics of product's imports to Italy in kind, 2017-2020, M unit

From 2017 to 2020, China remained Italy's primary supplier of smart cards in kind, accounting for 48.2% of imports. France followed with 10.1%, and Germany with 6.5%. Together, these three countries supplied 64.7% of Italy's total smart card imports in kind.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Italy in kind, 2017-2020

Imports in value, M $ US

Italy's smart card import value declined for the second consecutive year. In 2020, imports reached $111.9 million, reflecting a 9.6% decrease compared to 2019. The peak import value was recorded in 2018 at $126.3 million, which also saw the largest increase of 13.9%.

Annual dynamics of product's imports to Italy in value, 2017-2020, M $ US

Between 2017 and 2020, Romania was Italy's largest supplier of smart cards in value terms, accounting for 20.5% of imports. China followed with 18.9%, and France with 11.8%. Together, these three countries formed 51.2% of Italy's total smart card import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Italy in value, 2017-2020