Contactless Smart Card Market Growing in Response to Demand for More Stringent Security

TechNavio, the independent tech-focused global research firm, is projecting a CAGR of 33.5 percent from 2013-2018 in the Global Contactless Smart Card Market.

Contactless smart cards are mainly used for identification, authentication, data storage, and application processing. They currently make up about 17 percent of the revenue for the global smart card market, with revenue being mainly derived from government and financial sectors.

According to Faisal Ghaus, TechNavio Vice President, the major drivers for growth in this market are security related. Notably, the need to reduce identity theft and fraud and a push to develop tamper-resistant systems.

“The number of frauds and forgeries is increasing with enhancements in technology. As a result, there is an increased need for a difficult to imitate solution. Contactless smart cards help reduce imitation or duplication of identity as the data stored in them can be accessed only by using a code, which is difficult to decipher, as the information is stored in the parent system. Therefore, even when the card is stolen or lost, the chances of data theft or identity duplication are very low,” says Ghaus.

He goes on to say that generally, cards embedded with magnetic tapes only store information about end-users' accounts. These cards can be easily tampered with, resulting in loss of information or data. This also increases the chances of identity theft. However, contactless smart cards are tamper-free as information stored in them can only be accessed with a pin code that is difficult to decode. This increases the safety of card holders' accounts, providing better security.

To determine the scenario for these vendors in the next 3-4 years, TechNavio analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.

About TechNavio

TechNavio is a leading global technology research and advisory company. Founded in 2003, TechNavio has about 200 analysts globally and develops over 2000 pieces of research every year. We cover more than 500 technologies across 80 countries.

We focus on emerging trends that can shape a market, and model these trends using a mix of quantitative and qualitative tools in our proprietary research methodologies in order to build forecasts across market segments and geographies. These forecasts and analysis are used to help our customers identify new and existing opportunities in their markets. We also help customers assess their competitive position in a constantly changing technology market scenario.

TechNavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Our analysts obtain the 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.

Our large and growing base of happy customers include technology suppliers, end users, consulting companies, investment firms, research institutes and media worldwide.

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Media Contact:

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This release was published on openPR.