[September 15, 2014] |
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Government ID, Payment and SIM Applications Account for 87% of All Smart Card Shipments, Says ABI Research
LONDON --(Business Wire)--
Smart card shipments totaled 8 billion units in 2013, with government
ID, SIM, and payment and banking applications accounting for 87% of all
shipments, according to ABI Research (News - Alert). Of these three market verticals,
Gemalto, Oberthur Technologies, G&D, and Morpho led the way with a
combined 2013 market share of 66%. It is expected that these three
applications will spurn market growth and account for 89% of all smart
card shipments in 2019. The expectations and drivers for each of the
three vertical markets are as follows:
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Government ID: Shipment volumes are expected to increase over
twofold between 2013 and 2019. Opportunities in the continued
migration to e-passports will be further boosted by the introduction
of the SAC specification alongside migration to second generation
credentials by those countries that wish to utilize and integrate
contactless functionality alongside existing contact applications.
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Payment & Banking: EMV and smart card adoption is forecast
to increase from 1.67 billion units in 2013 to 3.33 billion in 2019.
As of 3Q 2014, the year has been prosperous with the United States
beginning widescale EMV card issuance, alongside China, ramping up its
PBOC migration. Moving forward other growth countries including
Indonesia and India will add additional volumes.
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SIM: The biggest question mark resides in the SIM card market.
SIM card shipments decreased in 2013, down to 4.9 billion units from a
previous 5.1 billion. A difficult 2013 has raised questions around the
ability for the SIM market to bounce back.
Senior analyst Phil Sealy comments, "Despite YoY SIM shipments
decreasing by near 220 million units in 2013, SIM cards still accounted
for 61% of all smart card shipments. The fear is SIM card shipments will
continue to decline steadily over the next few years and given its
penetration rate, it is a scenario which could prove extremely damaging.
Despite these concerns, ABI Research strongly believes SIM card growth
will return this year. We are already seeing greater SIM penetration
into other connected CE devices, driving a new wave of growth.
Additionally, embedded SIMs could trigger greater adoption into M2M
applications and likely reduce the cost barriers for inclusion into CE
devices. The message is not to write off the SIM card market just yet,
as new opportunities are on the horizon."
These findings are part of ABI Research's Smart
Card and Secure ICs Market Research (https://www.abiresearch.com/market-research/service/smart-card/).
ABI Research provides in-depth analysis and quantitative forecasting of
trends in global connectivity and other emerging technologies. From
offices in North America, Europe and Asia, ABI Research's worldwide team
of experts advises thousands of decision makers through 70+ research and
advisory services. Est. 1990. For more information visit www.abiresearch.com,
or call +1.516.624.2500.
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