Global Market for Smart Cards to Reach US$26.9 Billion by 2015, According to New Report by Global Industry Analysts, Inc.
GIA announces the release of a comprehensive global report on Smart Cards market. Although current growth remains moderated by the recent world economic recession, the world smart card market is nevertheless forecast to recover poise in the short-to-medium term period to reach US$26.3 billion by the year 2015. Growth during this period will be driven by post recession resurgence in planned infrastructure and security projects, the ongoing efforts to replace traditional magnetic-stripe cards in banking/financial institutions with latest chip-and-pin payment technology, increase in adoption of contactless smart cards, and the ever increasing need for greater security, processing and storage capacities. Sturdy demand from financial/banking and security industries also augurs well for the market.
San Jose, CA (Vocus) October 28, 2010
As enterprises and government institutions continue to embrace Internet and networks for storage and dissemination of critical information, smart cards play a crucial role in securing such data. With its exceptional processing capabilities and enhanced memory, smart card has found widespread use across a gamut of applications. As businesses continue to evolve in a dynamic global market, smart card usage has also expanded to cover various applications across varied markets. With rising concerns related to security, fraud, and data privacy, applications based on information technology and wireless communications will fast transition towards smart cards to address such issues. Smart cards have embraced several rapid technological developments over the years, which led to its greater adoption in the marketplace.
However, in this current climate of economic weakness, the global smart cards market stands tested, as many companies have delayed capital expenditure, and put their major security projects on hold. The IC market especially took a significant hit, as caution reigned among distribution channels, who remained on the sidelines due to lack of credit and fear of building up excess inventory. At the time of replenishing inventories by late 2009, most card manufacturers and issuers had pruned down their production output and thus there was inadequate supply in the market. Also, cost pressures were high as IC manufacturers grappled to maintain orders and operate plants at full capacity. As a result, the smart card industry missed an opportunity to hail higher volume and revenue growth in 2009-2010 due to overcautious inventory as well as production policies.
Whilst 2009 and 2010 proves to be soft years for smart card manufacturers, the long-term outlook for the market still remains very positive. With the recession at its tail’s end, a quick resurgence in planned security and infrastructure projects will come on stream, that promises to drive the market for smart cards, post recession. Another noteworthy factor that promises to drive growth is the ongoing shift to replace traditional magnetic-stripe cards in banking/financial institutions with latest chip-and-pin payment technology, which is still in the early stages for many regional markets. A strong political thrust has surfaced in the form of EMV (Europay-MasterCard-Visa), which will accelerate this shift from magnetic cards to chip based smart cards. Also, increasing concern for safety and security will fuel migration of the bank debit/credit card population to the chip &pin card format, as sponsors and card issuers seek to curtail frauds associated with magnetic stripe cards. Contactless smart cards especially will be a key spark for smart card industry revenue, having gained traction in payment and ticketing applications around the world. Growing awareness over the benefits of adopting smart card technology among business enterprises will additionally fuel the market for smart cards in the years to come.
As stated by the new market research report on smart cards, Europe continues to remain the largest regional market for smart cards, by value. Japan is the fastest growing regional market, waxing at a CAGR of about 11.5% over the analysis period. Growth in this market will be especially driven by demand from market segments such as mobile phones, electronic payments, public transit systems, set-top boxes for satellite television segment and from road toll collection programs, and government ID schemes. By product, microprocessor cards represents the most prominent segment, growing at a CAGR of about 9.8% over the analysis period, driven by growth in major developments in the micro-payment and e-passport segments. On the other hand, memory cards market will continue to decline steadily, and account for a miniscule portion of the smart card industry bearing no sizeable impact on global revenues and volumes.
Major players in the marketplace include ASK, Austria Card GmbH, Gemalto N. V., Giesecke & Devrient GmbH, Oberthur Technologies Card Systems, Morpho e-Documents, STMicroelectronics, ST Incard S. r.l., among others.
The research report titled “Smart Cards: A Global Strategic Business Report”, announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in value (US$ million) and volume (million units) for major geographic markets including the United States, Canada, Japan, Europe Asia-Pacific, Latin America and Rest of World. Product segments analyzed include Memory Cards and Microprocessor Cards. Market estimates and projections are also provided in terms of end-use sectors - Telecommunications, Financial/Banking, Government/Healthcare, Security, Public Transportation, and Others (Pay TV & Educational/Campus Solutions).
For more details about this comprehensive market research report, please visit –
Http://www. strategyr. com/Smart_Cards_Market_Report. asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
Global Industry Analysts, Inc.
Telephone 408-528-9966
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Web Site http://www. StrategyR. com/
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