LONDON--(BUSINESS WIRE)--Just over 2.1 billion EMV cards were issued worldwide in 2014, up 27.5% from 2014. The exponential year-on-year (YoY) growth rate was driven by significant EMV issuance into the United States and China. EMV card issuance in the United States in 2014 was up 187 million units when compared to 2013 and China continued its steep EMV issuance path deploying approximately 685 million cards in the same year. If China and the United States were excluded from the forecast analysis, 2014 global YoY shipment growth would have totaled a mere 6.6%, highlighting the important impact these two nations are having on the global scene.
Despite the positive global outlook because of China and the United States, double-digit YoY shipment growth in excess of 20% will prove a short-term phenomenon. As the United States and China reach their respective saturation points, localized growth within each country will slow, with annual shipments forecast to settle in the 500 million and 700 million range, respectively. With a limited number of countries still to commit to EMV migration, vendor focus is turning to what limited opportunity remains.
ABI Research’s Senior Analyst Phil Sealy comments, “Although future growth for EMV card volumes may be limited, other revenue avenues are opening. All the major players including Gemalto, Oberthur Technologies, Giesecke & Devrient, and Morpho are balancing strategies in a bid to address next-generation opportunities. From a payments card perspective, contact to contactless migration is a natural step in next-generation EMV migration. But to ensure continued volume growth, vendors have to balance next-generation strategies with one targeting new green field opportunities in cost sensitive regions including India, the Philippines, and Indonesia. Although there may be an overriding trend in contactless and higher end DDA and / or CDA adoption, it’s important to maintain a broad product portfolio to ensure vendors can address both the emerging and established opportunities.”
This Payment and Banking Card Technologies market data is comprised of data points across all major regions and 30 individual countries with smart / EMV and mag-stripe data splits across ATM only, credit, debit and open loop pre-paid cards. These findings are part of ABI Research’s Smart Card Technologies Market Research (https://www.abiresearch.com/market-research/service/smart-card-technologies/).
ABI Research provides technology market research and technology intelligence for industry innovators. 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.