Smart-Connected Wallets Market

Smart-Connected Wallets Market Outlook (2023 to 2033)

Global demand for smart-connected wallets is anticipated to increase at a CAGR of 6.9% from 2023 to 2033. As a result, the global smart-connected wallets market is set to increase from a valuation of US$ 280 million in 2023 to US$ 550 million by the end of 2033.

Smart-connected wallets are digitally connected wallets that can hold a variety of payment cards and cash. Smart-connected wallets with smartphone connectivity provide several capabilities, such as tracking, detection, and locating wallets via the smartphone application.

These wallets communicate with smartphones and provide multiple payment and warning capabilities by utilizing technologies like global positioning systems (GPS), Bluetooth, cellular networks, and near-field communication (NFC), among others.

Bluetooth technology is used in smart-connected wallets to track the distance between the wallet and the user's smartphone. When the smart-connected wallet is out of reach and loses Bluetooth communication, the smartphone application immediately raises the alarm and notifies the user.

Furthermore, the majority of the most recent smart-connected wallets on the market have bi-directional connectivity, allowing smart wallet tracking via the smartphone and vice versa. Other capabilities available in the most recent smart-connected wallets include the use of a miniature camera to take a picture once the wallet is unlocked in theft mode. The photo taken in this mode is instantly delivered to the user's smartphone, together with the smart wallet's current location.

As a consequence, smart-connected wallets have made it possible for users all around the world to track and find their stolen or lost wallets. Other security features involve RFID blocking, which prevents fraudulent reading of contactless cards stored in the wallet.

Demand for non-metallic smart-connected wallets is increasing significantly. Smart wallet producers have been forced to adopt non-metallic materials due to factors such as the continuous demand for quality leather items and attractive styles. Furthermore, the usage of non-metallic materials leads to a lower weight than their metallic equivalents. As a result, people are increasingly interested in non-metallic smart-connected wallets.

Metallic smart-connected wallets use a variety of materials, including stainless steel and aluminum, among others, to increase the wallet's strength and durability. Furthermore, producers use metals to create enclosed wallets, which provide greater protection against harm from water, heat, and shock, among other things.

Nevertheless, metallic smart-connected wallets are only employed in a few scenarios where the user may be subjecting their wallets to such extreme conditions. Furthermore, when contrasted to wallets made from leather or other materials, metallic wallets have a cold and unnatural sensation, resulting in limited acceptance.

Manufacturers of smart-connected wallets are focusing mainly on boosting usability while keeping the wallets compact in size. For example, manufacturers have included functions such as pen drives, power banks, and other utility tools into the wallet's limited space. Consequently, smart-connected wallets with multiple features have been introduced into the market to persuade consumers to move from standard wallets to smart wallets.

Report Attributes	Details
Market Size in 2023	US$ 280 Million
Projected Market Value (2033)	US$ 550 Million
Global Market Growth Rate (2023 to 2033)	6.9% CAGR
The United States Market Value (2022)	US$ 80 Million
Wi-Fi-enabled Smart-connected Wallets Growth Rate (2023 to 2033)	5.2% CAGR
Key Companies Profiled	Aid Technology Ltd Baggizmo Arista Vault MYKEY Lab Blockchain App Factory Garry17 NXT-ID Inc Neutvault

Why are Smart-Connected Wallets Becoming Mainstream?

“Growing Concerns Regarding Security of Credit & Debit Cards”

One of the important factors driving the growth of the global market is the growing concerns about the security of credit and debit cards. Due to the growing usage of credit and debit cards, advancements in digital and information technology have broadened the reach of smart products. Consumers are becoming worried about the security of these cards, which include all of their personal and financial information in a microchip.

A traditional wallet provides specialized storage for these cards but does not provide safety or security. Personal and bank-related information becomes accessible to unauthorized individuals if these cards are stolen or lost. As a result, the inclusion of smart features such as wallet tracking, biometric authentication, and virtual transactions in smart-connected wallets is projected to attract a vast pool of customers.

Which Aspects Can Limit the Sales Growth of Smart-Connected Wallets?

“High Cost of Smart Wallets”

Smart-connected wallets include Bluetooth, Wi-Fi, RFID, and a built-in portable charger, which raises the price of the product. A typical wallet costs between US$ 5 to US$ 20 in a retail store or online. As a result, compared to a standard wallet, technology-enabled wallets cost between US$ 70 to US$ 150, making them high-priced products. In developing countries where spending capacity is restricted, items like smart-connected wallets are purchased less frequently, limiting sales growth.

“Shorter Lifespan of Smart-connected Wallets”

Smart-connected wallets have a shorter lifespan than traditional wallets. This is due to the ongoing development of the technology employed in smart-connected wallets, which leads to changes and improvements in the quality and construction of these wallets. With the rapid advancement of technology, manufacturers must upgrade their product offerings to embrace innovations or risk product obsolescence.

Country-wise Insights

Why is the United States Holding a Leading Position in North America?

“Increasing Adoption of Technologically Improved Products”

North America is dominating the global market for smart-connected wallets and is expected to maintain its dominance during the forecast period. The United States is leading the regional market. As per Fact.MR, a market research and competitive intelligence provider, the United States market garnered US$ 80 million in 2022.

The high acceptance rate of technologically improved products is boosting the growth of the United States market. Moreover, increasing disposable income levels and higher demand for luxury items are propelling market growth in the country. Furthermore, the majority of the leaders in the global market are based in the United States, which has spurred the acceptance of these products.

What is Japan's and South Korea's Stance in the Asia Pacific Market?

“Japan and South Korea to Play Major in Regional Market Expansion”

The Asia Pacific market is developing at a rapid pace. Moreover, the rising adoption of connected technologies and an increase in wallet theft are bolstering regional market growth. Japan and South Korea play major roles in the regional market. The increased purchasing power, disposable income, high internet penetration, and smartphone use are driving the market growth in these countries.

How are the United Kingdom and Germany Contributing to the Sales Growth of Smart-Connected Wallets in Europe?

“Growing Acceptance of New Technologically Advanced Items”

Demand for smart-connected wallets is growing in Europe. Factors such as increasing smartphone penetration and rising disposable income are fueling the growth of the regional market.

European countries such as the United Kingdom and Germany are hotspots for fashion accessories and utility innovations. These countries are also ideal locations for both large fashion labels and smaller start-up enterprises that combine fashion and utilitarian accessories with technology.

Smart wallet-like items are the main attraction at these countries' exhibits, fashion events, and other venues. The acceptance of these new technologically advanced items is considerable in comparison to other European countries, boosting the market growth.

Category-wise Insights

Why is Demand for Wi-Fi-enabled Smart-Connected Wallets Gaining Traction?

“Increased Smartphone Adoption and Internet Penetration”

Demand for Wi-Fi-enabled smart-connected wallets is anticipated to swell at a CAGR of 5.2% over the next ten years. Due to increased smartphone adoption and Internet penetration, people increasingly prefer Wi-Fi-enabled smart-connected wallets to connect to the Internet and other devices via Wi-Fi utilizing mobile applications.

Smart-connected wallets have a memory bank with an internal capacity of 64 gigabytes that can be utilized for file storage. File completion checks, file transfers, and other operations are significantly faster via Wi-Fi.

Will Online Sales of Smart Wallets Increase as Expected?

“Customers’ Increasing Preference for Online Shopping”

The most popular channel for selling smart wallet-like products is the online store. A smart-connected wallet is a relatively new concept with a small customer base. Thus, online channels are increasingly preferred by market players to maintain profitability by decreasing possible overheads like brick-and-mortar expenses, operational costs, and personnel compensation.

Furthermore, since the pandemic, a substantial customer base has migrated to a digital platform for general purchasing, increasing the sales of smart-connected wallets via online channels.

Competitive Landscape

The global market is extremely consolidated due to the existence of a few prominent international and regional players. Key players in the smart-connected wallets market are competing on product differentiation, pricing, product portfolios, product benefits, and product quality. To remain competitive in the global market, vendors must develop innovative product manufacturing procedures and new products.

Moreover, many start-ups are focusing on new developments in the use of materials as well as product design.

• Alipay+, a digital payments network, partnered with Asian mobile payment providers to launch smart-connected wallets and digital wallets in South Korea in September 2022.
• Tags Mate's released AirTag Smart Wallet in October 2021, which combines Apple's AirTag encryption with the sleek appearance of a credit cardholder.
• Ekster launched the world's first voice-activated smart wallet in March 2021, a wallet with quick card access, Crowd-GPS monitoring, and RFID blocking, all wrapped in environmentally friendly leather.

Smart-Connected Wallets Industry Research Segmentation

• By Type :

  • Wi-Fi
  • Bluetooth

• By Material :

  • Metallic
  • Non-metallic

• By Distribution Channel :

  • Offline
  • Online

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific & China
  • Middle East & Africa