1 4 · d e t e k t o r i n t e r n a t i o n a l
security
technology market
The 2014 Global Smart Card
Forecaster from Frost & Sullivan
finds that the market earned
revenues of 5.37 billion in 2013
and estimates this to reach 7.16
billion in 2019. The SIM card
segment will account for 42.6
percent of the total revenue while
the banking and payment vertical
will make up 33.5 percent. The
smart card government ID and
transportation sectors will consti-
tute the rest.
"In addition to the shift to
EMV, financial institutions across
the globe will migrate to con-
Banking verticals offer
opportunities to smartcard market
In a recent report Frost & Sullivan analysts have
found that the global smart card market will see
steady growth due to the increasing emphasis on
the europay, Mastercard and Visa (eMV) standard in
the payment and banking vertical. In 2015, multiple
financial institutions in the US are expected to make
their payment cards eMV-compliant. The research
company predicts that countries in the Middle east,
Africa and Asia-Pacific will follow suit.
tactless cards, opening up new
opportunities for the smart card
industry," said Frost & Sullivan
Information & Communication
Technologies Global Program Di-
rector Jean-Noël Georges. "China
and Europe, in particular, will lead
the way in terms of employment
of contactless technologies.
He continues. "However, this
rapid shift to EMV contactless
solutions and the associated large
volume of shipments will cause
pricing pressures in the smart card
market, mainly in Asia-Pacific.
A similar case is also expected
in the US, where the uptake of
EMV and contactless solutions
has been considerably delayed.
With many companies in the US
having already invested in EMV in
anticipation of a possible migra-
tion, it is uncertain whether these
firms will have a positive return on
investment.
To sustain growth pace, smart
card vendors can leverage estab-
lished relationships with govern-
ment agencies and transport
authorities to upgrade to high-end
e-documents and e-ticketing
cards, respectively. Building robust
partnerships will be especially
crucial as the government and ID
smart card segment will provide
additional avenues for revenue
generation through the enhanced
driver license (e-DL) and e-ID
programmes."
"The most prominent e-ID
initiatives will take place in
India, Turkey and Nigeria,"
observed Georges. "Meanwhile,
the implementation of the e-DL
programme in the European
Union will accelerate the demand
for smart card documents in the
public sector.
Overall, it is imperative for
smart card vendors to switch their
core business from physical smart
cards to software and services,
since the physical smart card
market will offer limited growth
potential in the long term. This
is particularly true since the an-
nouncement of a software alterna-
tive named Host Card Emulation
(HCE) that could threat the well
established hardware embedded
security for mobile."
The 2014 Global
Smart Card Forecaster
from Frost & Sullivan
finds that the market
earned revenues of
5.37 billion
in 2013 and esti mates
this to reach
7.16 billion
in 2019.