Transit cards: Key market research findings
- Introduction of hybrid smart cards
- Strong demand for tamper-resistant cards
Technavio has released a new market research report on the global transit cards market, which is expected to grow at a CAGR of 8% between 2016 and 2020. Transit cards are used for identification, authentication, data storage, toll collection, fare payment, and ticketing in metros, buses, and trains. These cards ensure secure and convenient transactions. These cards are accepted at ticket windows, ticket vending machines, and online sites. APAC leads the global market for transit cards, accounting for 46% of the total market share. Much of the region’s growth comes from the acceptance of contactless smart card in the transportation sector due to the growing need for improved travel options and convenient payment options
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Of late, the vendor in the market have come up with hybrid smart cards, which is a combination of contactless and contact interfaces, on a single card. These smart cards have dual interface and shared storage and processing of information. Hybrid smart card authentication requires smart card middleware, a smart card, a smart card reader, and a smart card PIN. It is easy to use because the data and information is consolidated in one smart card,” says Amrita Chaudury, Lead Analyst, ICT, Technavio Research
Transit cards are tamper-resistant and the information stored in them can only be accessed with a personal identification number (PIN) code, which makes it difficult to decode and forge, thereby reducing security risks. They are used for secure storage of confidential information and provide better security. Transit cards provide protection against a full range of security threats ranging from misuse of user passwords to sophisticated card hacking.
The key players in the global transit cards market are Datacard, Gemalto, Giesecke & Devrient and Watchdata. This market is fragmented with the presence of many small regional vendors and large multinational vendors. Key transit card vendors are expected to acquire smaller vendors to expand their product portfolio and boost their market share. The competition in the market is expected to intensify during the forecast period with the increase in service and product extensions, technological innovations, and mergers and acquisitions.
A more detailed analysis is available in the Technavio report, Global Transit Cards Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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