Differentiation is Key in the Smart Card IC Market

Wednesday 30 June 2004 00:13 CET | News

Manufacturers of smart card ICs are focusing on offering increasingly advanced ICs. To differentiate themselves from competitors, smart card IC manufacturers will have to focus on vital competitive parameters of price, technology performance, and time-to-market.

Research and development investment toward improved chips is also needed, which proves to be difficult in a shrinking profit margin environment. New analysis from Frost & Sullivan, World Smart Card IC Market, reveals that this market generated revenue totaling $1.40 billion in 2003. Total market revenue is expected to reach $2.38 billion in 2007. Global system for mobile communications (GSM) penetration of less saturated markets in Asia and the Americas is rising, and telecom operators are promoting higher-memory SIM cards to provide value-added services. Increasing demand for high-memory 64k and 128k SIM cards as well as for Java cards in particular are improving the GSM product mix. The use of contactless technology by retailers and in various transit projects worldwide is also spurring high uptake of smart cards. In addition, the retail and payment application have shown tremendous potential for contactless smart cards. Government interest in ID security applications post 9/11 brings further potential into the chip-based market. The launch of high volume national ID projects such as the China national ID project has generated enormous opportunities for this industry. Nonetheless, major smart card projects that require expensive infrastructure upgrades can create cost issues for the implementer and lead to delayed projects. World Smart Card IC Market, part of the Global Smart Card Subscription, offers insights into the global markets for ICs. The study offers key market drivers and restraints, in-depth market analysis, competitive analysis, and strategies employed by participants in the memory and microcontroller smart card ICs market. It covers detailed market shares across geographic regions including Americas, Europe Middle East Africa, and Asia Pacific. Executive summaries and interviews are available to the press.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: ,
Categories: Payments & Commerce | Cards
Countries: World
This article is part of category

Payments & Commerce