Smart Card Market in Latin America 2015-2019
About Smart Card
A smart card is a pocket-sized card, generally made of plastic, and is embedded with integrated circuits, also known as microchips. Smart cards are used for security purposes for authentication, identification, data storage, and application processing. They are widely used in sectors such as BFSI, Government, Transportation, Healthcare, and Defense. These cards are broadly classified into two types: contact-based and contactless. Contact-based smart cards have a contact area of approximately 1 square cm. These cards are used by inserting into a smart card reader. On the other hand, contactless smart cards are used by employing radio frequency between cards and a reader, which needs no physical insertion of the cards. Therefore, contactless smart cards have faster applications and are more user-friendly than contact-based smart cards.
TechNavio's analysts forecast the Smart Card market in Latin America to grow at a CAGR of 8.8 percent over the period 2014-2019.
Covered in this Report
This report covers the present scenario and the growth prospects of the Smart Card market in Latin America for the period 2015-2019. To calculate the market size, the report considers revenue generated from the sales of the following type of smart cards:
TechNavio Announces the Publication of its Research Report – Smart Card Market in Latin America 2015-2019
TechNavio recognizes the following companies as the key players in the Smart Card Market in Latin America: Gemalto N.V., Giesecke & Devrient GmbH, Morpho S.A., Oberthur Technologies and Watchdata System Co. Ltd.
Other Prominent Vendors in the market are: AB Note, Arm Holdings, ASK, Atmel, Crocus Technology, Datacard, Diebold, Infineon Technologies, Ingenico, Inside Contactless and Verifone System.
Commenting on the report, an analyst from TechNavio’s team said: “The increased adoption of near- field communication payments is a major trend emerging in this market. With growing awareness of NFC payment solutions, the adoption of smart cards by the BFSI sector is increasing. NFC-enabled mobile devices operate in card emulation mode for mobile contactless payments. Therefore, they are being widely adopted by some of the emerging sectors.”
According to the report, the entry of prominent global vendors in developing countries is one of the major drivers of growth. As Latin America lacks local players with expertise, it is the global players who control the market in this region. This leads to a high degree of competition among vendors, which forces them to offer smart cards at nominal rates.
Further, the report states that smart cards are priced high in developing countries because of the small number of vendors. However, in regions where there are a large number of vendors, there is intense competition, leading to price wars among vendors, thereby forcing them to reduce the prices of smart cards, and this poses a serious challenge for the Smart Card market in Latin America."
Gemalto, Giesecke & Devrient, Morpho, Oberthur Technologies, Watchdata System, AB Note, Arm Holdings, ASK, Atmel, Crocus Technology, Datacard, Diebold, Infineon Technologies, Ingenico, Inside Contactless, Verifone System