Research Overview
Creating a Strong Business Case for Smart Card Payment Remains a Major Challenge
One of the primary challenges facing the global smart cards market is the need to create a convincing business case for smart card payments. The impact of this challenge is particularly evident in North America, where the advantages of chip cards are not as keenly felt as they are in Europe and Asia due to the lower fraud rates and cheaper telecom rates. Therefore, card issuers are expected to identify an alternative and more compelling value proposition for the consumer. Although contactless payment has gained popularity in North America and manufacturers are increasingly launching readers with contactless functionality, it is yet to drive a large-scale migration of banking cards. This lack of a strong value proposition - at least in North America - is likely to restrain the migration towards chip-based terminals.
This Frost & Sullivan research evaluates the potential of the smart card readers and terminals market on a global level. The study provides in-depth regional analysis that helps to identify growth opportunities in the four major geographical markets - North America; Latin America; Europe, Middle East, and Africa (EMEA); and the Asia Pacific region. Key drivers and restraints affecting the market as well as an examination of the competitive landscape have also been provided.
Smart Card Technology Gaining Importance in Physical Access Control
Although contactless cards are not widely prevalent at present, their importance in access control is expected to increase rapidly - creating a strong opportunity for smart card readers. Additionally, the recent recommendations of the International Civil Aviation Organization (ICAO) to move towards smart-card enabled e-passports have played a critical role in driving this technology.
"Following ICAOs recommendation for e-passports, federal agencies in the United States are currently evaluating the different technologies available for such an implementation," notes the analyst of this research service. "When launched, this is likely to become the largest smart card project in the country, involving the embedding of contactless chips into passports that can be accessed by readers at the airports."
Looming EMV Deadlines in Banking Sector Enhance Opportunities for Readers and Terminals
"The smart cards market continues to benefit from the Europay, MasterCard, Visa (EMV) migrations in the banking sector across the world," says the analyst. EMV deadlines for liability shift in various regions - for instance, January 1, 2005 in Western Europe and 2006 for Central and Eastern Europe as well as for Africa - present substantial opportunities for the readers/terminal market. Latin America has also shown tremendous growth in terminal installations with Brazil and Mexico being well on course to accomplish the liability shift in the following year.
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Technologies
The following technologies are covered in this research:
- Smart Card Readers: For the purposes of the study, this term refers to reader devices that are connected to personal computers (PC-link readers) in a desktop environment and also chipsets designed to be integrated with terminals that are smartcard compatible. The term denotes both the contact and the contactless reader units.
- Terminals: For the purposes of the study, this term refers to smart card compatible electronic funds transfer point of sale (EFTPOS) terminals.
Benefits of this Service
Regional Analyses
This study provides exclusive analyses of the four major geographical markets for smart cards - North America; Latin America; Europe, Middle East and Africa (EMEA); and the Asia Pacific region. These in-depth analyses offer deeper market insights and help companies identify expansion opportunities.
Unit Shipment and Revenue Analysis
The study provides a detailed analysis of unit shipments and revenues of the key market segments.
Competitive Analysis
The performance of the top market participants has been extensively analyzed in terms of unit shipments across geographies. The study also presents detailed profiles of regional companies, especially those active in the Asian region. This is anticipated to help in identifying local competition and in understanding the strategies adopted by them.
Segmentation Analysis
The study presents comprehensive analyses of the two prominent smart card reader segments - PC-link readers and terminal chipsets.
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- World smart card reader market
- World PC-link smart card reader market
- World smart card terminals market
- Geographical markets (North America, Latin America, EMEA, Asia Pacific)
Table of Contents
1 EXECUTIVE SUMMARY
2 TOTAL SMART CARDS READERS MARKET
- Total Market Analysis
- Market Overview
- Drivers
- Restraints
- Challenges
- Global Market Analysis and Forecasts
- Geographic Analysis
- Overview
- North America
- Europe Middle East and Africa
- Asia Pacific
- Latin America
- Frost & Sullivan Awards
- Frost & Sullivan Market Leadership Award
- Frost & Sullivan Competitive Strategy Leadership Award
3 TOTAL SMART CARDS TERMINALS MARKET
- Total Market Analysis
- Market Overview
- Drivers
- Restraints
- Challenges
- Global Market Analysis and Forecasts
- Geographic Analysis
- Overview
- North America
- Europe Middle East and Africa
- Asia Pacific
- Latin America
4 TOTAL SMART CARDS READERS AND TERMINALS MARKET SHARE ANALYSIS
- Reader Market Share Analysis
- Global Market
- North America
- Europe Middle East and Africa
- Asia Pacific
- Latin America
- Terminal Market Share Analysis
- Global Market
- North America
- Europe Middle East and Africa
- Asia Pacific
- Latin America
