Contactless smart cards: Key market research findings
- Emergence of multi-application smart cards
- User-friendly transaction solutions
Technavio has released a new market research report on the global contactless smart cards market, which is expected to generate revenues of $9 billion between 2016 and 2020. Contactless smart cards use radio frequency (RF) technology for communication between a contactless smart card and the card reader. The adoption of contactless smart cards is growing for access control and better authentication. Government organizations are using contactless smart cards more now in order to address their rising need for security. APAC dominates the contactless smart cards market, accounting for 40% of the total market share. Much of this region’s growth comes from increase in criminal activities such as identity duplication, forced intrusions, and increased cases of forgery.
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 vendors in this market are providing multi-application smart cards, which are a combination of contactless and contact interfaces on a single card. These smart cards reduce the use of multiple cards for different applications as these cards have shared storage and information processing. For instance, Santander Universities has provided multi-application smart cards to its students to gain access to a number of applications, including transit tickets, parking access, access to computers, and electronic purses for vending machines,” says Amrita Choudhury, Lead Analyst, ICT, Technavio Research
Contactless smart cards are generally deployed with pre-installed data codes, which facilitate unique identification. Therefore, it is easy for end-users to use these cards; all they have to do is swipe the card against the card reader. The card reader will then immediately retrieve the code and send it to the system to provide the information to end-users. Hence, contactless smart cards provide a user-friendly environment for end-users. Also, they are easy to maintain and store, which in turn increases their longevity.
The leading vendors in the global contactless smart cards market include Gemalto, Giesecke & Devrient, Oberthur Technologies, Safran and Watchdata. The market is fragmented with the presence of many multinational vendors and small regional players. Competition in this market is expected to intensify with an increase in solution extensions, technological innovations, and M&A. Large vendors are acquiring small vendors to expand their product portfolio and market share.
A more detailed analysis is available in the Technavio report Global Contactless Smart cards Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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