Published By : 10 Nov 2016 | Published By : QYRESEARCH
The growing demand for a reliable and secure payment transaction method across the BFSI and retail sector is driving the demand for smart cards. The cost saving schemes from payment brands such as Visa, MasterCard and Europay have led to higher adoption of smart cards and fueled their penetration in the market. Another factor driving the global smart cards market is the high use of smartphones and rising number of mobile phone subscribers worldwide. The increasing commoditization and the price pressure are some more reasons that have helped the smart cards market to grow across the globe. However, the initial cost to migrate to smartcard compatible readers affects the adoption of smartcards.
Growth of E-commerce Industry to Drive Smart Cards Market
According to a report published by a Transparency Market Research, the global smart cards market is expected to rise from US$7,245.1 mn in 2014 to US$14,171.5 mn by 2023. The global smart cards market is driven by the penetration of Internet of Things and connected devices. The availability of high speed internet and convenience offered is growing owing to the high demand for online banking and shopping. The growth of the e-commerce industry is another factor driving the growth of the market. Decrease in tariff rates is also encouraging the users to adopt more than one SIM card which in turn is aiding the growth of the market. Various geographies are witnessing price wars over tariff rates and this rigorous competition is anticipated to increase the market penetration. Government norms across emerging nations of Asia Pacific and the Rest of the World are impelling the telecom operators to reduce SIM card price and are boosting the adoption of SIM cards.
Embedded SIMs for Mobile Communications to Commercialize
To overcome the increasing price pressure in the low end and mid end SIM cards segments, smart card vendors are expected to focus on the high-end SIM cards segment. The smart card vendors are expected to face challenges in sustaining their profits amidst price pressure. Technological evolution from 3G to 4G or LTE has resulted in the development of various high-end SIM cards in the market. Embedded SIMs for mobile communications are anticipated to get commercialized over the forecast period.