The global magnetic stripe readers market is estimated to expand at a remarkable CAGR during the forecast period 2022-2032. Growing emphasis on contactless interfaces and enhanced security of personal identification cards has resulted in increasing the adoption of magnetic stripe embedded smartcards, which is in turn, bolstering the demand for magnetic stripe readers in the market.
Magnetic stripe readers, also called magstripe readers or magnetic card readers, are hardware devices that are able to read the information encoded in the magnetic stripe. It can also be used to access, validate, authenticate, and retrieve data or information stored in these stripes. As the deployment of magnetic stripe increases convenience and assist in enhancing identity management, it is extensively being used credit cards, identity cards, debit cards, loyalty cards, gift cards, and others.
In addition, increasing incidence of corporate data thefts and mischiefs, these magnetic stripes are also being utilized in access cards to prevent the intrusion of unauthorized identity in secured premises such as banking institution, airports, and others. These cards are finding a wide range of applications across sectors such as banking, financial services, insurance, transportation, and retail sectors for usage in the execution of any transaction or any identity-based activities as well.
Thus, cards embedded with magnetic stripes are gaining enormous traction across all professional and commercial fronts by individuals and enterprises alike. As magnetic stripe readers are used to read, access, and authenticate the information encoded in the card, increasing adoption of these cards is projected to augment the sales in the global market.
A swift rise in trend of cashless payments is being experienced across the world, owing to rising incidence of cash theft, inconvenience in carrying, and shifting preference towards bank transactions. The trend registered immense growth during the COVID-19 pandemic, as the people across the infected countries were avoiding cash transactions due to the fear of getting infected.
Citing this trend, numerous banking and financial firms are aiming at launching novel contactless monetary transaction enabled cards to capitalize on the existing opportunity. For instance, IDFC First Bank, an Indian private sector bank, announced launching a new contactless debit card, SafePay, for increasing the convenience of use for day-to-day transactions simply by waving the card against the near field communication (NFC) enabled point of sales (PoS) terminals.
These cards are also embedded with magnetic stripes for being able to make monetary transactions in absence of a PoS terminal. A multiplicity of such developments and new product launches are estimated to augment the demand for magnetic stripes readers in the market.
Although magnetic stripe embedded card offers numerous benefits, relatively high cost of these cards, risk of getting the data encoded damaging presence of strong magnetic fields, and less durability are discouraging the use of magnetic stripe card, which is in turn, hindering the sales of magnetic stripe readers.
Also, increasing customer inclination towards using magnetic stripe embedded card alternatives such as biometric and smart cards, high initiation cost, and limited data storage capacity of magnetic stripe readers are other factors restraining the growth in the market.
Future Market Insights states that Asia Pacific excluding Japan is anticipated to exhibit the fastest growth in the global magnetic stripe readers market between 2022 and 2032.
With rising digitalization and growing need for secured financial transactions and authentication for data access across corporate enterprises, a swift rise in the demand for cards with magnetic stripes such as smart cards, excess cards, credit cards, and debit cards are being witnessed in Asia Pacific. Hence, several industry players are aiming at launches new cards with innovative features to cater to the growing demand.
For instance, ICICI Bank, an Indian multinational bank and financial services company announced launching a new co-branded credit card HPCL, which enables the user to get benefits and rewards points on everyday spending. In addition to this, rapidly increasing point of sales activities across retail stores and expanding e-commerce sector is further bolstering the demand for magnetic stripe readers in the Asia Pacific excluding Japan market.
As per FMI, Western Europe is anticipated to register robust growth in the global magnetic stripe readers market over the forecast period 2022-2032.
As the use of magnetic strips continues to grow at a rapid pace, owing to their enhanced level of security against precision, duplication, and reliability, leading players are increasingly launching novel magnetic strips readers with advanced features to address the surging demand advanced readers.
For instance, in 2021, Azkoyen Group, a Spanish multinational automatic vending machines company announced launching novel contactless card readers under its Coges brand which enables access to the data and allows the transaction just by waving the card from above the machine. A slew of such new product launches is projected to spur the sales of magnetic strips readers in the Western Europe market.
Some of the leading players in the global magnetic strips readers market are Brush Industries, ID Tech, Jadak, Unitech, Xico Inc., Ingenico Group, Azkoyen Group, Posiflex, Magtek Inc., MUTEK Ltd, Verifone, Honeywell, Motorola, Neuron Electronics Inc., and Square Reader.
Attributed to the presence of such high number of participants and increasing product launches with advanced features, the market is highly competitive.
| Report Attribute | Details |
| Base Year for Estimation | 2021 |
| Historical Data | 2015-2020 |
| Forecast Period | 2022-2032 |
| Quantitative Units | Revenue in USD Billion, Volume in Kilotons and CAGR from 2022-2032 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis |
| Segments Covered |
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| Countries Covered |
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| Key Companies Profiled |
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| Customization | Available Upon Request |
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FMI projects the global magnetic stripe readers market to expand at an exponential value CAGR over the forecast period 2022-2032
The magnetic stripe readers market is dominated by Asia Pacific excluding Japan, and this trend is projected to continue between 2022 and 2032.
Brush Industries, ID Tech, Jadak, Unitech, Xico Inc., Ingenico Group, Azkoyen Group, Posiflex, Magtek Inc., MUTEK Ltd, Verifone, Honeywell, Motorola, Neuron Electronics Inc., and Square Reader are some leading magnetic stripe readers manufacturer
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Magnetic Stripe Readers Market
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