Technavio conducted a latest market study in regards to the global smart card IC market and its expectation to grow at CAGR of more than 8% during the forecast period.
The research paper is titled “Global Smart Card IC Market 2016-2020” it gives an in depth analysis of the market as to providing the revenue and the emerging market trends. This paper also includes the updated analysis and forecasts for various segments and all geographical regions.
With the accelerating growth of m-commerce and e-commerce, it has help improve the demand for smart cards and secure payment options. Through purchases, customers can gain points in their loyalty cards, there factors would drive the market during the forecast period.
The lead analyst at Technavio for research on embedded system, Sunil Kumar Singh say “Many of the American users are shifting from magnetic stripe cards to EMV chip-enabled cards because of growth of the m-commerce industry. To remain competitive, vendors need to penetrate unfamiliar markets, meet changing customer needs, and respond to changing market scenarios. These factors are responsible for the rise in e-commerce websites.
With Technavio’s sample of reports being free of charge, and having multiple sections of reports including the market size and forecast, drivers, challenges, trends and more.
Segments such as Telecom, Payment card manufacturers, Government, Transportation, Device manufacturers and others are categories under the global smart card IC market.
With the increasing number of SIM subscriptions, the mobile market is significantly driving the growth of the telecom sector. The global SIM card subscriptions reached 7.1 billion in year 2014. There is an increased number of smartphones globally, With the increasing number of SIM card subscription.
The smartphone user segment is expected to grow at a CAGR of 10.4% during the forecast period. In 2011, only 490 million smartphones were shipped globally. In 2015, a total of 1.4 billion smartphones were shipped globally, against a total of almost 1.3 billion smartphones in 2014.
Payment card manufacturers
Due to migration of the end users from magnetic stripe cards to chip-enabled EMV cards, the payment card manufacturers segment is expected to grow a CAGR of 8.87% during the forecast period.
Why has the adoption of EMV cards increase?
It is because they are more durable than magnetic stripe cards as they are less prone to any damage, they are secure compared with magnetic stripe cards that can be hacked remotely and the chip-enabled EMV cards constitute a major portion of smart card global shipments.
The government is expected to reach USD 0.22 billion by 2020. Due to initiatives taken by governments of different countries, such as China’s national ID project for the adoption of smart card technology in applications such as e-passports, voter IDs, and driving licenses, the segment is likely to grow at a CAGR of 9.73% during the forecast.
Highlighted by Technavio’s research analysts, the top vendors are Infineon Technologies, NXP Semiconductors, Samsung Semiconductor and STMicroelectronics.
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