Smart card IC: Key market research findings
- APAC dominates the market geographically
- Telecom segment accounts for a majority of the market revenue
- Key vendors – Infineon Technologies, NXP Semiconductors, Samsung Semiconductor, and STMicroelectronics
The market research analysts at Technavio predict the global smart card IC market to grow at a CAGR of more than 8% between 2016 and 2020. The growth of this market is fueled by the rise in the demand for contactless EMV cards globally. Vendors in the market are increasingly incorporating NFC compatibility in EMV cards owing to the increased number of NFC transactions. Contactless EMV cards are becoming fast popular as they are capable of making transactions that are almost 25% faster. During 2015, the global market for smart IC cards was dominated by APAC with a market share of almost 58%. The growth of the market in this region during the forecast period will be fueled by the high growth in the e-commerce and m-commerce sectors.
The new market research report from Technavio presents a breakdown and analysis of the smart card IC segments based on the application.
“The demand for EMV smart cards is on a rise across the globe. This trend is spurred by the increasing preference for making payments using mobile phones and tablets. Almost 50% of the online shoppers globally make use of cashless transactions to pay for their purchases. While many companies are making digital sales, some are converting their physical stores to digital sales channels,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.
Currently, the telecom segment dominates the global market by accounting for more than 60% of the overall market revenue. The growth of this market segment works in tandem with the increase in the number of SIM subscriptions, which is currently on an upsurge owing to the rising smartphone penetration globally. The high penetration of 4G network and the emergence of 5G network are some of the factors that will encourage SIM subscription sales and subsequently lead to the growth of the smart card IC market for the telecom sector.
The key vendors in the global smart card IC market include Infineon Technologies, NXP Semiconductors, Samsung Semiconductor, and STMicroelectronics. The global market is categorized by price wars. Vendors in the market are providing similar products at competitive prices to strengthen their foothold in the market and increase the bargaining power of buyers. Majority of vendors in the global smart card IC market hail from the EMEA and APAC regions.
A more detailed analysis is available in the Technavio report, Global Smart Card IC Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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