In 2022, the global contactless payment market size is worth $11 billion. The market is projected to reach a value of $ 20.7 billion by 2030, growing at a CAGR of 11% between 2023 and 2030. Contactless payments have increased as a result of the proliferation of affordable mobile devices and the growth of internet connectivity, which has also transformed traditional banking processes completely.
Industry Overview:
In Contactless Payment, consumers can use their debit or credit cards with RFID technology—also known as chip cards—or other payment devices to pay for products and services without having to swipe, enter a personal identification number (PIN), or sign for a transaction. It can be also done using NFC technology. NFC transactions use a specific radio frequency to allow a card or smartphone to connect with a payment scanner when they're close enough. Consumers currently have several transaction choices to select from, compared to a few decades ago: digital wallets, UPI, net banking, QR code scanning, contactless payment cards, and so on are making contactless payments much easier.
The COVID-19 pandemic is predicted to have a positive impact on the market. Users and businesses are adjusting their payment habits as a result of the COVID-19 epidemic since the World Health Organization (WHO) has advised customers to avoid handling cash and instead use contactless payments. As a consequence, this is poised to generate growth prospects for the contactless payments market. However, in today's atmosphere, contactless payments have risen to the forefront of all-things-payments.
The Reserve Bank of India's November 2018 directive to replace all magnetic stripe-only cards with EMV chip cards by December 31, 2018, sent the appropriate message to consumers and companies about the banking regulator's intention to protect digital payment modalities. The COVID-19 pandemic has prompted merchants all around the world to resort to technology to help them boost efficiency, plan better, and better serve their consumers. As a result, the retail industry is projected to see increased demand for contactless payment systems.
Market Drivers:
COVID-19 Pandemic is poised to drive the contactless payment demand :
The emergence of the coronavirus (Covid-19) pandemic has increased the demand for contactless payment solutions that need minimal physical interactions, which is also driving market expansion. Contactless payment has made the payment process safe and secure making it the most reliable method of payment, thus boosting its market demand.
Rising Acceptance by Merchants to Boost Market Growth:
Contactless payments have provided an easy, convenient, and safe way to pay for customers and to accept payments for merchants. Retailers are also seeing the advantages of contactless payments, such as faster transactions, more revenue, higher operational efficiency, and lower operating costs which in turn is driving the market growth. Consumers favor merchants who offer digital, contactless payment methods, according to 57% of respondents. Consumers are seeking contactless payments at a higher rate than before, according to six out of ten merchants.
Increasing Adoption of Advanced Technologies set to drive the market growth:
Early adoption of sophisticated technology among end-users and an increase in government initiatives to drive the use of wearable and contactless payment are contributing to the growth of the contactless payment market around the globe.
Market Restraints:
Concerns of Payment Security impeding market growth:
The adoption of contactless payment has been hampered by a lack of trust caused by concerns about security, data theft, and misuse of contactless payment methods by people who aren't authorized.
High deployment Cost is dragging the rise of the Contactless Payments Market:
When a PIN is not used, contactless transactions are considerably more expensive because they are often processed across networks like Visa and MasterCard. Merchants pay the same 2.5 percent cost for contactless transactions as they do for credit card purchases, and the fee rises to 2.8 percent if the card is used online or over the phone.
Market Insights And Developments
CONTACTLESS PAYMENTS MARKET REPORT COVERAGE:
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REPORT METRIC |
DETAILS |
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Market Size Available |
2022 - 2030 |
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Base Year |
2022 |
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Forecast Period |
2023 - 2030 |
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CAGR |
11% |
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Segments Covered |
By Hardware, Technology, End User, and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regional Scope |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Key Companies Profiled |
Ingenico Group, Verifone Systems, Inc., Inside Secure, Proxama PLC., Wirecard AG, Giesecke & Devrient GmbH, Heartland Payment Systems, Inc., Mobeewave , Paycare, Infineon |
Market Segments
This research report on the global cashless payment market has been segmented based on hardware, technology, and end-user.
In 2020, the smartphone and wearable sector dominated the contactless payment market, and this trend is poised to continue throughout the forecast period. The rise in smartphone and wearable device use among the youth of various countries is propelling the market in this category forward. In 2020, 92.3 million Americans aged 14 and above used smartphones for payments at least once in six months, it is estimated to rise to 101.2 million in 2021. Smartphone usage for contactless payment will reach 50% of all smartphone users by 2025.
A point-of-sale (POS) system is a mix of hardware and software that allows you to receive and process various types of digital payments. The software handles the remaining payment methods, processing, and other peripheral value-added services, while the hardware comprises a card acceptance machine.
The radio waves from the NFC chip create a connection and exchange encrypted data, allowing for quick and secure transactions. To make a payment or perform a transaction, a card or smartphone equipped with NFC can be held within 10 cm of the scanner. 2 Billion NFC-enabled devices in the world across the major mobile operating system. NFC market is poised to grow 17.9% over the next decade. The NFC market is estimated to be worth $49.5 Billion by 2025.
Radiofrequency identification (RFID) or near-field communication (NFC) technology are used to enable contactless transactions. When you make a purchase, these radio waves provide information to the merchant's payment reader about your bank account, contactless card, or phone app. Near field communication, or NFC is the technology that enables contactless payments. It's an improved version of the existing RFID (Radio Frequency Identification) technology. RFID technology has only lately begun to be used for contactless payments. For it to work, the two components - the scanner or POS terminal and the consumer's payment device - must be nearby.
Contactless payment systems are becoming increasingly popular in the hospitality industry. They incorporate some of the most cutting-edge technology while giving a more user-friendly experience for your visitors. Contactless payments are expected to grow in popularity rapidly, according to 94 percent of businesses. Touchless retail transactions are becoming increasingly common, with mobile wallets, app payments, and NFC cards among the most popular options.
North America has been slow to accept contactless payments. In North America, the much-anticipated "death of the wallet" never came to pass. According to research by global management consulting company A.T. Kearney, only 3% of cards in use in the United States were contactless in 2018, compared to roughly 64% in the United Kingdom and up to 96 percent in South Korea.
In terms of market size, the European contactless payment market is the largest in 2021, but it is highly fragmented due to the usage of numerous currencies and languages. The region includes a wide spectrum of countries, from economically and technologically advanced nations like the United Kingdom and Germany too heavily indebted nations like Greece and Austria. The leading countries in the European contactless payment market are the United Kingdom, Poland, Spain, and Germany. In the UK, there were 1.6 billion debit and credit card transactions, according to UK Finance. Contactless cards were used in nearly a third of all card transactions in the UK. There were 642 million contactless card transactions, up from 537 million a year before by 19.5 percent.
Owing to the improved service offered by contactless payments, rising adoption of new emergent systems, technological advancements in digital platforms and mobile devices, and increasing penetration due to the COVID-19 pandemic, the Asia Pacific contactless payment market will grow by xx% annually with a total addressable market cap of $xxxx billion between 2022 and 2027.
In between 2014 and 2019, the number of consumer digital payments transactions in the Middle Eastern countries like the United Arab Emirates (UAE) increased at a rate of more than 9% each year, compared to Europe's average yearly growth rate of 4 to 5%. In between February 2019 and January 2020, Saudi Arabia saw a 70 percent increase in card payments.
Key Players in the Market
Global automotive lighting refers to all vehicle lighting systems, from headlamps that illuminate the road to taillights that communicate movements. They guarantee motorists and other road users alike safety, visibility, and style. While taillights frequently use LEDs for improved visibility, headlights are available in a variety of technologies, including LED and laser. Interior illumination, DRLs, and signal lights all have a role to play. This market, which was estimated to be worth $33.64 billion in 2022, is anticipated to rise to $67.39 billion by 2030 because of laws, luxury tastes, safety concerns, and technological developments like OLED taillights and adaptive headlights. Anticipate a future dominated by intelligent, connected, personalized, and sustainable lighting systems that enhance the safety, efficiency, and aesthetic appeal of automobiles.
Car lighting works its magic to provide safety, visibility, and style. Headlights cut through the night, taillights express intent, and interiors shine with comfort. The billion-dollar global business is expected to rise due to consumer demand for high-end experiences, safer roads, and cutting-edge technology. Imagine dynamic messages being painted by taillights, headlights that adjust to the road, and interiors that customize their atmosphere. Driven by technological advancements like linked systems and laser beams, this future is calling. Anticipate even more visually attractive, environmentally friendly, and intelligent lighting to illuminate the way ahead, making cars safer, more efficient, and unquestionably cooler.
In the market for automobile lighting, safety is the driving force behind demand from the public and laws. While automated high beams smoothly react to traffic, adaptive headlights modify their beams so as not to blind other people. With visually striking displays, dynamic taillights convey intentions for braking and turning. Beyond these developments, integrated pedestrian identification and lane departure alerts will soon make roads safer and brighter for everyone.
Luxurious automobile lighting creates a distinct visual identity that goes beyond simple illumination. Personalized interior lighting customizes the driving experience by setting the mood with a range of colours and intensities, while intricate designs and distinctive DRLs modify exteriors. As you approach your automobile at night, welcoming lights lead the way, resulting in an interior that is perfectly lit. Not only is this symphony of light aesthetically pleasing, but it also stands as a tribute to luxury. Upcoming developments like gesture-controlled lighting and holographic displays promise to further enhance the experience.
The worldwide automotive lighting market is undergoing a significant transition towards energy-efficient solutions, as environmental concerns gain prominence. LED technology is leading the way, providing a ray of hope for the environment and drivers alike. LED lights beam brighter and use a lot less energy than conventional halogen lamps. There are some tangible advantages to this. For drivers, this translates to increased fuel economy, which lowers petrol prices and lessens reliance on fossil fuels. Greater air quality and a reduction in the transport sector's contribution to climate change are the results of reduced overall emissions.
Although the global automotive lighting business is booming, there are still unknowns. Difficulties impede growth even as innovation propels it with eye catching features like laser beams and adaptable headlights. These technologies are luxury items due to their high cost and difficult integration, which puts producers' abilities to the test. The worldwide patchwork created by unclear legislation limits the potential of innovation. Durability issues persist, particularly when complex systems are subjected to challenging conditions. Ultimately, a lot of drivers still don't fully understand how these improvements can help them. Together, we can overcome these obstacles. The keys to reducing costs are improved production, more seamless integration, and unified regulations. Their full potential can be realized by educating customers about the safety, efficiency, and aesthetic value of these lighting wonders. By working together, we can pave the way for an even brighter and safer future for vehicle lighting.
It is made possible by advanced LED technology, which gives drivers the ability to customize their illumination for the highest level of comfort and flair. Consumers that care about the environment want greener products, and vehicle lighting complies. While solar- and self-powered lighting technologies offer a future powered by clean energy, energy-efficient LEDs lower pollution. The advent of connected lighting systems heralds a new age. Envision automobiles interacting with infrastructure and one another to minimize accidents and enhance traffic efficiency. Integrated headlights with pedestrian recognition provide unmatched safety, while dramatic taillights with eye-catching displays alert onlookers to your intentions. The possibilities are endless in the future. Gesture-controlled interior illumination, holographic displays projected onto the road, and even light fixtures with self-healing capabilities.
Due to laws requiring safety features like headlights, taillights, and brake lights, exterior lighting presently holds the most market share in the vehicle lighting industry. The dominance of this market is partly attributed to advancements in safety-focused technologies such as adaptive headlights and daytime running lights. The market value of external lighting is increased by the quick adoption of technology like LED bulbs and laser lights, which improve performance and aesthetics. Conversely, the interior lighting market is expected to increase at the fastest rate in the upcoming years. Innovations like ambient lighting and technology breakthroughs like LED and OLED displays, driven by consumer demand for comfort and personalisation, open new possibilities. The spread of sophisticated interior lighting systems is further driven by the growing emphasis on safety and the expansion of the luxury car market.
The worldwide vehicle lighting market is currently dominated by halogen because of its more affordable price, advanced technology, and useful illumination. With its dependable supply chain and affordable option for manufacturers and cost-conscious customers, halogen holds the biggest market share. The fastest-growing market right now is LEDs, which are predicted to shortly overtake halogen. The rapid expansion of LEDs is driven by their higher efficiency, longer lifespan, flexibility in design, and technological breakthroughs including enhanced brightness. Because LEDs use less energy and produce fewer emissions and better fuel economy, they are becoming more and more popular in the changing automotive lighting market.
Passenger automobiles rule the worldwide automotive lighting market. The sheer number of passenger cars produced which surpasses that of business vehicles and fuels the need for lighting systems is the primary cause of this popularity. The growing demand for personal automobiles in developing nations is a result of rising disposable income, which in turn drives the rise of the passenger car market. The importance that consumers place on safety and aesthetics elements helps to drive market expansion. But in the upcoming years, the market for electric and hybrid cars is expected to develop at the quickest rate. The exponential rise of the worldwide electric car market, which is still expanding and shows no signs of slowing down, is what is driving this surge. Specialised lighting solutions are required since electric and hybrid vehicles have different lighting requirements because of their specific functionality and design aesthetics.
Most lighting systems sold nowadays are sold by OEMs (Original Equipment Manufacturers), primarily because manufacturers pre-install lighting systems in new cars. But in the next years, the aftermarket is expected to develop at the quickest rate. This spike in demand for replacement parts, especially lighting systems, can be linked to several variables, one of them being the average age of cars. The industry is expanding because of consumers' growing desire to personalise their cars with aftermarket lighting upgrades such LED upgrades and decorative lighting. The availability and affordability of technologies like adaptive headlights and laser lights in the aftermarket, together with other advancements in lighting technology, are driving demand even more. Moreover, the growing market for electric cars (EVs).
Throughout the forecast period, Asia Pacific is anticipated to be the automotive lighting market with the highest profitability. Over the past few years, Asia Pacific countries like China and India have seen notable increases in automotive manufacturing and sales, primarily in the medium-to premium luxury car segment. Asia Pacific is predicted to see an increase in the manufacturing of passenger cars, with India experiencing the strongest growth rate. Depending on the state of the national economy, the area offers a suitable selection of both high-end and cheap cars. For instance, there is a substantial demand for halogen, Xenon/HID, and LED since China and India produce more economy and mid-range automobiles. On the other hand, luxury car adoption rates are greater in South Korea and Japan, where LED lighting is the norm.
A brief shadow was thrown by COVID-19 over the worldwide automotive lighting market. Production was stopped by lockdowns and supply chain disruptions, while luxury lighting upgrades were shelved by consumers on a tight budget. Resources became scarce, and R&D stagnated. Still, the market is recovering thanks to resurgent demand and rearranged priorities. While energy-efficient LEDs are being pushed towards adoption by sustainability, safety concerns are driving interest in features like pedestrian detection and adaptive headlights. The digital push of the epidemic creates opportunities for intelligent, networked lighting systems that may interact with infrastructure and other cars. Ultimately, the industry is positioned to shine brighter, focused on safety, sustainability, and a connected future, even though the pandemic dimmed its brilliance.
A development collaboration between OSRAM Continental and REHAU aims to incorporate lighting into external components, providing automobile manufacturers with innovative lighting options that improve functionality and design flexibility. For rear combination lamps, Hella unveiled a revolutionary lighting innovation called Hella FlatLight technology. A Memorandum of Understanding (MoU) was signed by Samvardhana Motherson Automotive Systems Group BV (SMRPBV), a division of Motherson Group, and Marelli Automotive Lighting to investigate a technology collaboration focused on intelligently lighted external body components. Valeo debuted their revolutionary 360° lighting system at the Shanghai Auto Show. This technology surrounds the car with a band of light, projecting instantaneous, clear signs that other drivers can see from a distance. Pedestrians, cyclists, and scooter riders are especially susceptible to these signals
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