Contactless Smartcard Market Growing in Response to Demand for More Stringent Security

LONDON - April 21, 2014 - PRLog -- TechNavio, the independent tech-focused global research firm, is projecting a CAGR of 33.5 percent from 2013-2018 in the Global Contactless Smartcard Market.

Contactless smartcards are mainly used for identification, authentication, data storage, and application processing. They currently make up about 17 percent of the revenue for the global smartcard 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 smartcards 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.

If you are interested in more information on this topic and our upcoming research on Global Contactless Smartcard Market (http://www.technavio.com/report/global-contactless-smart-...) please send an e-mail to media@TechNavio.com.

About TechNavio

TechNavio is a leading technology research and advisory company with a global coverage. We focus on emerging technology trends that can shape the market. We identify and explain these trends to our customers to help them take better decisions.

TechNavio models the trends using a mix of quantitative and qualitative tools in its proprietary research methodologies. We build forecasts across market segments and geographies based on the trends identified. 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 changing 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 the bottom-up and top-down approaches, besides using in-house market modeling tools. 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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