Overview of the global smart card market in the government sector
Technavio’s market research analyst predicts that the global smart card market in the government sector will grow at a CAGR of more than 10% by 2020. Due to rising incidences of identity fraud and forgery, government authorities have been compelled to introduce smart cards to reduce instances of duplication or imitation of an individual’s identity. The data stored on smart cards are secured through a PIN; hence, it is difficult to forge any information from these cards. Several government organizations are adopting the use of smart cards in passports and driving licenses as they offer high security and reliability. With the growing need to prevent fraudulent activities in government documents, the growth prospects for this market will have a positive outlook until the end of 2020.
An important trend gaining traction in this market is the emergence of multi-application smart cards. These cards are a combination of contactless and contact interfaces in a single card. Since these cards include benefits like shared storage and information processing, it eliminates the need to carry multiple cards for different applications. Technavio’s market research analysts estimate that the Indian government will implement the use of multi-application smart cards for national IDs and e-purses by 2020. The integration of several biometric technologies in these cards will increase their usage, which, in turn, will foster market growth during the forecast period.
Geographical segmentation and analysis of the smart card market in the government sector
APAC is the largest market for smart cards in the government sector and accounted for around 49% of the overall market share during 2015. Some of the major APAC countries contributing to the market growth are Australia, China, Japan, and India as they face a high risk of fraudulent activities. Factors such as the high adoption of contactless smart cards for near-field communication (NFC) payments will drive the demand for smart cards in the region.
Competitive landscape and key vendors
The market is fragmented with the presence of many multinational vendors and some small regional players. In this market, the key players are acquiring smaller vendors, and differentiating their product and service offerings through a unique selling proposition as it will help them to augment their hold over the market. The level of competition in this market is expected to intensify during the forecast period with the increase in solution extensions, technological innovations, and M&A activities. The market will also witness new product launches with the emergence of new technologies over the next four years.
Key vendors in this market include -
- Gemalto NV
- Giesecke & Devrient GmbH
- Oberthur Technologies
- Safran SA
- Watchdata Technologies
Other prominent vendors in the smart card market in the government sector include Advanced Card Systems, CardLogix, Entrust DataCard and Infineon Technologies.
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 smart card market in the government sector?
- What are the key market trends impacting the growth of the global smart card market in the government sector?
- What are the challenges to market growth?
- Who are the key vendors in the global smart card market in the government sector?
- What are the market opportunities and threats faced by the vendors in the global smart card market in the government sector?
- Trending factors influencing the market shares of the Americas, APAC, and EMEA.
- What are the key outcomes of the five forces analysis of the global smart card market in the government sector?
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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
PART 05: Market landscape
- Market overview
- Working flow of smart cards
- Smart card memory
- Types of smart cards
- Smart card applications
- Advantages of smart cards
- Disadvantages of smart cards
- Smart card applications in government sector
- Global smart card market
- Smart cards in government sector in global smart card market
- Global smart card market in government sector
PART 06: Life cycle analysis
PART 07: Geographical segmentation
- Segmentation of global smart card market in government sector by geography
PART 08: Market attractiveness
- Market attractiveness by geography
PART 09: Buying criteria
PART 10: Market drivers
- Increased adoption of smart cards in defense and other government programs
- Increased need to reduce identity duplication
- Need to comply with government regulations
PART 11: Impact of drivers
PART 12: Market challenges
- High total cost of ownership
- Increase in price wars
- Growing complexity of smart card chips
- Lack of awareness among government organizations
PART 13: Impact of drivers and challenges
PART 14: Market trends
- Emergence of multi-application smart cards
- Adoption of NFC-based mobile payments
- Integration of biometric technologies into smart cards
- Increased adoption of contactless 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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
- Manufacturers and suppliers
- Channel partners
- Industry experts
- Strategic decision makers
Secondary sources
- Industry journals and periodicals
- Government data
- Financial reports of key industry players
- Historical data
- Press releases
DATA ANALYSIS
Data Synthesis
- Collation of data
- Estimation of key figures
- Analysis of derived insights
Data Validation
- Triangulation with data models
- Reference against proprietary databases
- Corroboration with industry experts
REPORT WRITING
Qualitative
- Market drivers
- Market challenges
- Market trends
- Five forces analysis
Quantitative
- Market size and forecast
- Market segmentation
- Geographical insights
- Competitive landscape