Global Transit Cards Market 2016-2020

Overview of the global transit cards market

Technavio’s market research analyst predicts that the global transit cards market will grow at a modest CAGR of close to 9% during the forecast period. One of the primary drivers for this market is the growing demand for tamper-resistant cards. Magnetic tape cards store customer details and can be altered quite easily. Tampering results in the loss and misuse of valuable information. Tamper-resistant cards are safe as the information stored in them is accessible only with a personal identification number (PIN), making it difficult to forge. Such cards provide more security and also protect against a range of issues such as hacking and misuse of passwords. Increased demand and adoption of such cards will have a significant impact on market growth over the forecast period.

In this industry report, the analysts estimate that among the different trends, the use of contactless smart cards in the transportation section will have a significant impact on the market’s growth potential over the next few years. The transportation sector is deploying contactless cards to improve security in the billing and payment processes. These cards are increasingly preferred as they enable faster identification and speed up fare payment transactions, especially at border crossings. Increased adoption of contactless smart cards will have a positive impact on the market and will also propel market growth during the forecast period.

Geographical segmentation of the transit cards market

• Americas
• APAC
• EMEA

The APAC region was the market leader for transit cards in 2015 with a market share of close to 46%. Factors contributing to the growth in this market are the presence of large transportation companies in this region, greater acceptance of contactless smart cards, and the growing penetration of transit cards in cities like Singapore and Hong Kong, and even in countries like Australia, Japan, and South Korea.

Competitive landscape and key vendors

The global transit cards market is a fragmented one with several small regional vendors and large multinationals.  Established vendors are likely to acquire smaller ones to expand product portfolio and also boost market share.  The market will become intensely competitive with an increase in service and product extensions, M&As, and technological innovations. As international vendors are increasing their footprint in the market, regional providers struggle to hold on to their market share.  Vendors with better resources (financial and technical) can develop products with features like secure access, authentication, strong security, and ease of integration. Such innovations render the competitor’s products obsolete even before their launch.

Key vendors in the market are -

• Datacard
• Gemalto
• Giesecke & Devrient
• Watchdata

Other vendors in the market include Athena, CardLogix, Eastcompeace Technology, 4G Identity Solutions, and Infineon Solutions.

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 transit cards market?
• What are the key market trends impacting the growth of the global transit cards market?
• What are the challenges to market growth?
• Who are the key vendors in the global transit cards market?
• What are the market opportunities and threats faced by the vendors in the global transit 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 transit cards market?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Global Contactless Smart Cards Market 2016-2020
• Global Smart Card Market in the Transportation Sector 2015-2019