Outlook of the global contactless smart cards market
Smart cards are pocket-sized cards that contain integrated circuits and can be used for individual identification and authentication by organizations across various sectors. The prospects for growth in this market will be driven by factors like the high convenience of contactless smart cards and the augmented utilization of contactless smart cards by governments to address their rising need for security. Comprehensive market research carried out by the analysts at Technavio has shown that the global market for contactless smart cards market will grow profoundly at a CAGR of almost 33% by 2020.
The rising need for a tamper-resistant system will be the key driver for the growth of this market. Smart cards with magnetic strips have the capability to store financial information about end users. However, these cards can easily be tampered with, which will result in the loss of personal information or data. Since contactless smart cards with PIN codes are difficult to tamper with, they are increasingly being adopted to bolster the safety of the card holder’s accounts.
Segmentation by application and analysis of the contactless smart cards market
- Access control
- Payment
- Transit
- Government ID
In this market research, analysts have estimated the government ID sector to be the largest market segment during the estimated period. The growing need for contactless smart cards in government organizations for individual identification and authentication will result in this market segment’s impressive CAGR of over 30% until 2020.
Geographical segmentation of the contactless smart cards market
- APAC
- Europe
- Latin America
- MEA
- North America
In terms of geography, the APAC region will be the biggest market for contactless smart cards during the forecast period. In APAC, the countries are at high risk of terrorism and fraud. Consequently, the demand for contactless smart cards will increase steadily over the forecast period. Moreover, factors like the high adoption of contactless smart cards for NFC and transit payments will also aid in the strong growth of this market in APAC until the end of the forecast period.
Competitive landscape and key vendors
The global contactless smart cards market is fragmented due to the presence of many multinational vendors and small regional players. The large providers in this market often acquire small vendors to expand their product portfolio and market share. However, to gain maximum market traction, the vendors have to distinguish their product and service offerings through a clear and unique selling proposition.
Leading vendors in the market are -
- Gemalto, Giesecke & Devrient
- Oberthur Technologies
- Safran
- Watchdata
Other prominent vendors analyzed in this market research report are Advanced Card Systems, CardLogix, DataCard, Infineon Technologies, NXP Semiconductors, Secura Key, Sony FeliCa, and SpringCard.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global contactless smart cards market?
- What are the key market trends impacting the growth of the global contactless smart cards market?
- What are the challenges to market growth?
- Who are the key vendors in the global contactless smart cards market?
- What are the market opportunities and threats faced by the vendors in the global contactless smart cards market?
- Trending factors influencing the market shares of APAC, Europe, Latin America, MEA, and North America.
- What are the key outcomes of the five forces analysis of the global contactless smart cards market?
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Table of Contents
PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
- Research methodology
- Economic indicators
PART 04: Introduction
- Key market highlights
- How contactless smart cards work
- Smart card memory
- Types of smart cards
- Applications of contactless smart cards
- Advantages of smart cards
- Disadvantages of smart cards
PART 05: Market landscape
- Market overview
- Global smart cards market
- Share of contactless smart cards in the global smart cards market
- Global contactless smart cards market
PART 06: Life cycle analysis
PART 07: Market segmentation by application
- Global contactless smart cards market by application segmentation 2015-2020
- Global contactless smart cards market by government ID
- Global contactless smart cards market by transit
- Global contactless smart cards market by payment
- Global contactless smart cards market by access control
PART 08: Geographical segmentation
- Global contactless smart cards market by geographical segmentation 2015-2020
- Global contactless smart cards market by geographical segmentation 2015-2020 (revenue)
PART 09: Buying criteria
PART 10: Market drivers
- Need for tamper-resistant system
- Need to reduce identity duplication
- User-friendly transaction solutions
- Increased use of electronic purses
PART 11: Impact of drivers
PART 12: Market challenges
- High TCO
- Rise in price-based competition
- Increase in smart card chip complexity
- Lack of awareness among end-users regarding contactless smart cards
PART 13: Impact of drivers and challenges
PART 14: Market trends
- Emergence of multi-application smart cards
- Advent of NFC-based mobile phones
- Integration of biometric technologies in smart cards
- Increased adoption of smart cards in developing countries
PART 15: Five forces model
PART 16: Vendor landscape
- Competitive scenario
- Product offerings
- Description of vendors
- Vendor matrix
- Competitive rating
- Other prominent vendors
PART 17: Appendix
PART 18: Explore Technavio