About the Transit Cards Market
The increase in population and urbanization has resulted in the growing need for mobility. Public transportation has become the most preferred mode of transportation for people to avoid problems such as air pollution and traffic congestion. Traveling by buses, trains, and metros is often more comfortable, convenient, and cost-effective. To make traveling for people more convenient and comfortable, public transport systems use modern ticketing systems such as contactless ticketing, which allows high passenger throughput.
A smart card is a pocket-sized card with either an embedded integrated circuit called a microcontroller chip, which has an internal memory, or a secured memory chip. Smart cards are used mainly for security purposes for authentication, identification, data storage, and application processing. With an embedded microcontroller chip, smart cards store large amounts of data; carry out their own on-card functions such as decryption, data storage and management, digital signature calculations, and encryption; and interact quickly with a smart card reader.
Technavio’s analysts forecast the global transit cards market to grow at a CAGR of 8.06% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global transit cards market for 2016-2020. To calculate the market size, the report considers the revenue generated from the sales of contactless and contact-based smart cards in the transportation sector, especially public transportation. However, it does not consider the revenue generated from contactless POS validators and near-field communication (NFC) payments in the transportation sector.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Transit Cards Market 2016-2020
Technavio recognizes the following companies as the key players in the global transit cards market: Datacard, Gemalto, Giesecke & Devrient, and Watcdata.
Other Prominent Vendors in the market are: Athena, CardLogix, Eastcompeace Technology, 4G Identity Solutions, and Infineon Technologies.
Commenting on the report, an analyst from Technavio’s team said: “A trend that is positively impacting the market is the emergence and use of contactless smart cards in transportation. Contactless cards are convenient and easy to use compared to contact-based cards. The transportation sector is increasingly deploying contactless e-ticket cards to improve security in billing and payment processes. Contactless smart cards are becoming the preferred choice for the transportation sector because they enable fast identity and fare payment transactions allowing high passenger throughput in less time at border crossings. The card does not have to be inserted, swiped, or scanned by the reader.”
According to the report, a key driver boosting market growth is the need to reduce identity duplication. The number of fraudulent activities and forgeries are increasing along with the advances in technology. New payment methods such as EMV chips, PIN cards, and mobile wallets are gaining prominence in the transportation sector. There is a growing demand for more secure solutions because of the increasing incidences of fraudulent activities. Information stored on smart cards can be accessed using a PIN. PINs are extremely difficult to decode and make transactions more secure.
Further, the report states that one challenge that could restrict market growth is the high cost of implementation. The market is being controlled by a small set of vendors because of limited vendor penetration. The consequent low competition is resulting in high initial deployment and replacement costs.
Datacard, Gemalto, Giesecke & Devrient, Watcdata, Athena, CardLogix, Eastcompeace Technology, 4G Identity Solutions, Infineon Technologies.