Magnetic Card Market

The article discusses the declining demand for magnetic cards globally, with a forecasted contraction in market performance and anticipated negative CAGR. It covers consumption trends, production figures, import and export patterns, market value, and volume projections. The market is expected to continue its downward trend, impacting key countries like China, the US, and India. The analysis provides insights into price fluctuations, growth rates, and market dynamics in the magnetic card industry.

Market Forecast

Depressed by shrinking demand for magnetic card worldwide, the market is expected to continue its downward consumption trend over the next eight years. The performance of the market is forecast to contract with an anticipated CAGR of -1.1% for the period from 2022 to 2030, which is projected to depress the market volume to 8.3B units by the end of 2030.

In value terms, the market is forecast to contract with an anticipated CAGR of -6.1% for the period from 2022 to 2030, which is projected to bring the market value to $8.8B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Cards Incorporating A Magnetic Stripe

In 2022, approx. 9.1B units of cards incorporating a magnetic stripe were consumed worldwide; with a decrease of -7% compared with the previous year. Overall, consumption showed a abrupt slump. The growth pace was the most rapid in 2021 with an increase of 9.1%. Global consumption peaked at 18B units in 2012; however, from 2013 to 2022, consumption stood at a somewhat lower figure.

The global magnetic card market size fell rapidly to $14.7B in 2022, shrinking by -18.3% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption showed a abrupt shrinkage. Over the period under review, the global market hit record highs at $27.8B in 2018; however, from 2019 to 2022, consumption stood at a somewhat lower figure.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were China (2.5B units), the United States (1.6B units) and India (951M units), with a combined 56% share of global consumption. Spain, Japan, the UK, Germany, France, Mexico and South Korea lagged somewhat behind, together comprising a further 19%.

From 2012 to 2022, the biggest increases were recorded for Spain (with a CAGR of +17.5%), while consumption for the other global leaders experienced a decline in the consumption figures.

In value terms, the United States ($3.1B) led the market, alone. The second position in the ranking was held by China ($300M). It was followed by India.

In the United States, the magnetic card market declined by an average annual rate of -10.0% over the period from 2012-2022. In the other countries, the average annual rates were as follows: China (-2.7% per year) and India (+9.5% per year).

The countries with the highest levels of magnetic card per capita consumption in 2022 were Spain (7.4 units per person), the United States (4.7 units per person) and the UK (4.3 units per person).

From 2012 to 2022, the biggest increases were recorded for Spain (with a CAGR of +17.4%), while consumption for the other global leaders experienced a decline in the per capita consumption figures.

Production

World Production of Cards Incorporating A Magnetic Stripe

In 2022, approx. 8.8B units of cards incorporating a magnetic stripe were produced worldwide; shrinking by -3% compared with 2021 figures. In general, production saw a abrupt descent. The most prominent rate of growth was recorded in 2021 when the production volume increased by 7.9%. Global production peaked at 18B units in 2012; however, from 2013 to 2022, production remained at a lower figure.

In value terms, magnetic card production fell to $6.3B in 2022 estimated in export price. Overall, production continues to indicate a deep downturn. The pace of growth was the most pronounced in 2021 with an increase of 16%. Over the period under review, global production reached the peak level at $19.8B in 2012; however, from 2013 to 2022, production failed to regain momentum.

Production By Country

The countries with the highest volumes of production in 2022 were China (2.7B units), the United States (1.5B units) and India (939M units), with a combined 59% share of global production. Spain, Japan, the UK, Germany, France, Mexico and South Korea lagged somewhat behind, together accounting for a further 20%.

From 2012 to 2022, the biggest increases were recorded for Spain (with a CAGR of +13.8%), while production for the other global leaders experienced a decline in the production figures.

Imports

World Imports of Cards Incorporating A Magnetic Stripe

In 2022, overseas purchases of cards incorporating a magnetic stripe decreased by -31.1% to 837M units, falling for the third consecutive year after three years of growth. Over the period under review, imports showed a deep contraction. The growth pace was the most rapid in 2018 when imports increased by 20% against the previous year. Over the period under review, global imports reached the maximum at 2.2B units in 2019; however, from 2020 to 2022, imports remained at a lower figure.

In value terms, magnetic card imports soared to $325M in 2022. Overall, imports continue to indicate a perceptible curtailment. The most prominent rate of growth was recorded in 2017 when imports increased by 26% against the previous year. Global imports peaked at $547M in 2013; however, from 2014 to 2022, imports failed to regain momentum.

Imports By Country

Ethiopia (97M units), the United States (94M units) and Canada (91M units) represented roughly 34% of total imports in 2022. Russia (48M units) ranks next in terms of the total imports with a 5.8% share, followed by Sweden (4.9%). The following importers - Australia (35M units), France (33M units), the UK (30M units), Pakistan (26M units), New Zealand (14M units), India (14M units), Mexico (14M units) and Egypt (13M units) - together made up 21% of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the leading importing countries, was attained by Ethiopia (with a CAGR of +32.6%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, the largest magnetic card importing markets worldwide were Canada ($32M), France ($26M) and Sweden ($23M), with a combined 25% share of global imports. The United States, Ethiopia, the UK, Australia, Mexico, Egypt, Russia, New Zealand, India and Pakistan lagged somewhat behind, together comprising a further 20%.

Among the main importing countries, Ethiopia, with a CAGR of +31.9%, saw the highest growth rate of the value of imports, over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

In 2022, the average magnetic card import price amounted to $0.4 per unit, rising by 71% against the previous year. In general, import price indicated a moderate expansion from 2012 to 2022: its price increased at an average annual rate of +2.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, magnetic card import price increased by +92.6% against 2019 indices. As a result, import price reached the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was France ($0.8 per unit), while Pakistan (less than $0.1 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Sweden (+12.1%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Cards Incorporating A Magnetic Stripe

In 2022, overseas shipments of cards incorporating a magnetic stripe increased by 5.7% to 545M units for the first time since 2017, thus ending a four-year declining trend. In general, exports, however, saw a abrupt decrease. The pace of growth was the most pronounced in 2017 when exports increased by 15% against the previous year. The global exports peaked at 1.2B units in 2012; however, from 2013 to 2022, the exports failed to regain momentum.

In value terms, magnetic card exports fell modestly to $232M in 2022. Overall, exports, however, continue to indicate a deep reduction. The pace of growth was the most pronounced in 2018 when exports increased by 1.2% against the previous year. The global exports peaked at $484M in 2012; however, from 2013 to 2022, the exports failed to regain momentum.

Exports By Country

China represented the major exporting country with an export of about 195M units, which finished at 36% of total exports. The United Arab Emirates (57M units) took the second position in the ranking, followed by the United States (51M units), the UK (49M units), France (34M units) and Germany (29M units). All these countries together held near 41% share of total exports. Italy (20M units), Spain (12M units), Switzerland (11M units) and Poland (8.7M units) followed a long way behind the leaders.

China experienced a relatively flat trend pattern with regard to volume of exports of cards incorporating a magnetic stripe. At the same time, the United Arab Emirates (+16.9%) and the United States (+4.1%) displayed positive paces of growth. Moreover, the United Arab Emirates emerged as the fastest-growing exporter exported in the world, with a CAGR of +16.9% from 2012-2022. Italy experienced a relatively flat trend pattern. By contrast, France (-3.5%), Poland (-8.6%), the UK (-9.9%), Spain (-11.8%), Germany (-12.3%) and Switzerland (-18.6%) illustrated a downward trend over the same period. From 2012 to 2022, the share of China, the United Arab Emirates, the United States, France and Italy increased by +19, +9.5, +6.6, +2.3 and +1.9 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest magnetic card supplying countries worldwide were the United States ($56M), the UK ($34M) and China ($27M), with a combined 50% share of global exports. Italy, France, the United Arab Emirates, Germany, Poland, Spain and Switzerland lagged somewhat behind, together accounting for a further 22%.

Among the main exporting countries, Poland, with a CAGR of +7.1%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

In 2022, the average magnetic card export price amounted to $0.4 per unit, falling by -7.1% against the previous year. Overall, the export price, however, saw a relatively flat trend pattern. The pace of growth appeared the most rapid in 2021 an increase of 31% against the previous year. As a result, the export price reached the peak level of $0.5 per unit, and then contracted in the following year.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was the United States ($1.1 per unit), while Switzerland ($0.1 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Poland (+17.2%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform