LONDON--(BUSINESS WIRE)--According to the latest market study released by Technavio, the global contactless smart cards market is predicted to reach USD 8.55 billion by 2020, growing at a CAGR of close to 33%.
This research report titled ‘Global Contactless Smart Cards Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.
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The report classifies the global contactless smart cards market into the following four applications segments: access control, payment, transit, and government ID. Of these four segments the top three market share holders are:
- Government ID
- Transit
- Payment
Global contactless smart cards market by government ID
In 2015, the government ID application had the largest market share with 46.8%. Although Technavio predicts the market share of this segment to decline by 2020, they will continue to dominate the over the next five years. Due to the growing need for contactless smart cards in government organizations for individual identification and authentication, revenue of the market will increase. This will help prevent fraudulent activities in the future.
“User-friendliness and declining ASP of contactless smart cards are expected to propel its demand among government organizations during the projected period,” says Amrita Choudhury, a lead analyst at Technavio for automatic identification system research.
Thanks to the increasing demand for contactless smart cards in government organizations, in terms of unit shipment, the global contactless smart cards market for government ID application will increase to 3.84 billion units by 2020, growing at a CAGR of 32.06%.
Global contactless smart cards market by transit
The need for contactless smart cards will grow for transit application due to the growing need for improved travel options and convenient payment options. Revenue of the market will increase by 2020 because of the rise in the integration of biometric technologies in smart cards that can be used at airports in for individual identification and authentication.
Furthermore, contactless smart cards can also be used for fare collection via tolls and mobile ticketing. By 2020, it is expected that NFC-based payments will be used for mobile payments for tickets. In terms of unit shipment, Technavio predicts the global contactless smart cards market for transit application to proliferate from 570.2 million units in 2015 to 2.2 billion units by 2020.
Gemalto provides its dual-interface smart cards to the Metro system in Paris, which include extensive bus lines and commuter rail service. Also, Gemalto provides NFC-based payments for Madrid transport system in order to reduce transaction times for customers.
Global contactless smart cards market by payment
The global contactless smart cards market by payment was valued at USD 356.1 million in 2015 and is projected to reach USD 1.95 billion by 2020. The revenue of the market will increase due to the growing adoption of contactless smart cards for payment application. The increased adoption of NFC payment systems is expected to foster the demand for contactless smart cards during the forecast period.
“Given the increase in the use of mobile devices, adoption of contactless smart cards for e-commerce payments have increased. This provides a number of advantages to retailers and customers as retailers can use loyalty programs to entice customers to shop with them. Contactless smart cards can be used in restaurants, gas stations, and entertainment venues,” says Amrita.
The top vendors highlighted by Technavio’s research analysts in this report are:
- Gemalto
- Giesecke & Devrient
- Oberthur Technologies
- Safran
- Watchdata
Browse Related Reports:
- Smart Card Market in Europe 2015-2019
- Smart Card Market in Latin America 2015-2019
- Global Banking and Financial Smart Cards Market 2016-2020
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About Technavio
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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