As per a research report published by Transparency Market Research, the global smart cards market is forecast to achieve a CAGR of 9.0% for the 2014-2020 period. At this growth rate, the global smart cards market is expected to grow from a valuation of US$6.6 billion in 2013 to US$11.9 billion by 2020.
The report, titled ‘Smart Cards Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 – 2020’, states that the smart cards market in Asia Pacific is expected to grow at a CAGR of 10.1% over the report’s forecast period. Smart cards are IC-based cards that assist end users to cost-effectively store, maintain, and manage their credentials. The report also focuses on different market segments such as the types of smart cards available in the market, key end-use applications, and key regional markets. Value chain analysis, market attractiveness analysis, and Porter’s five forces analysis are presented in the report in order to better understand the market conditions.
The global smart cards market is studied on the basis of Porter’s Five Forces Analysis by considering factors such as suppliers’ bargaining power, buyers’ bargaining power, threat from new entrants, threat from substitutes, and competition.The report states that the demand for reliable and secure payment transactions throughout the BFSI and retail industries has resulted in the growth of the smart cards market.
Innovations in smart card technology are driven by cost-saving schemes from brands such as MasterCard, Europay, and Visa. Two of the major challenges that the smart cards market faces are technology challenges and price pressures. However, technological advancements, introduction of SIMs, and a dip in prices will generate potential opportunities for the smart cards market to grow.
For the purpose of this study, TMR analysts have segmented the market based on various criteria. Along with the current scenario, the report also predicts the future of the global smart cards market. The market is segmented on the basis of card components, card type, geography, and application. Contact smart cards, dual interface, hybrid, and contactless are the main kinds of smart cards. The report provides information about the size of the market and its forecast for the period from 2014 to 2020, on the basis of revenue for every segment.The report states that the recent growth of the global smart cards market is due to an increase in demand from Asia Pacific countries such as India, China, Japan, and South Korea.
With major contribution from these countries, Asia Pacific accounted for almost 50% of the total revenue in the global smart cards market in 2013. Use of smart cards for applications such as toll collection, telecommunication, driver’s license, ticketing, cross-border identification, and national identification has led to increasing acceptance of smart cards in Asia Pacific. Leading players such as Giesecke & Devrient (G&D), Oberthur Technologies, and Gemalto NV together accounted for around 66% of the revenue in the global smart cards market in 2013. Asia Pacific, being the fastest expanding market, is all set to retain its position of being a dominant contributor to the global smart cards market over the report’s forecast period. The CAGR of the Asia Pacific smart cards market is expected to be 9.0% for the period 2013-2020.