Smart Card Shipments to Rise by 2.1 Billion Units by 2019

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Tuesday, August 26, 2014 9:00 am EDT

"The market will expand despite declines in subscriber identification cards (SIM), which are used in mobile phones. Slowing growth in mobile phones will cause SIM card shipments to flatten or decline."

Smart Card Shipments to Rise by 2.1 Billion Units by 2019

El Segundo, Calif. (Aug. 26, 2014)—Global unit shipments of smart cards are expected to rise by 2.1 billion from 2014 through 2019—about equal to the combined populations of China, the United States, Indonesia and Brazil, according to IHS Technology (NYSE: IHS)

Smart card shipments in 2019 will rise to 10.9 billion units, up from 8.8 billion in 2014, as shown in the attached figure. To put this in perspective, the number of smart cards shipped in 2019 alone will allow each of the world’s 7.6 billion projected inhabitants to obtain 1.4 smart cards during the year.

“The key end-user sectors that will drive growth over the next five years include payment and banking, e-government, and healthcare and transportation,” said Don Tait, senior digital & ID market analyst at IHS. “The market will expand despite declines in subscriber identification cards (SIM), which are used in mobile phones. Slowing growth in mobile phones will cause SIM card shipments to flatten or decline.”

Asia gets smart

Asia plays a key role in driving growth of the overall smart card market. Undoubtedly countries like China, India and Indonesia will be crucial to the overall health of the smart card market over the next five years. Moreover, electronic passports are contributing particularly high volumes for the Asian market. In fact, the Asia-Pacific region accounted for the highest number of ePassport shipments in 2013.

Staying on the growth track

A potential threat to smart card growth within the payment and banking, e-government, and healthcare and transportation sectors is the trend toward multi-application cards and mobile devices.

Multi-application cards combine multiple functions onto a single device, reducing the need for multiple cards and cutting down shipments. Mobile devices such as smartphones increasingly are incorporating devices like Near Field Communication (NFC) chips, which perform electronic commerce and other functions that compete with smart cards.

However, IHS believes that despite the trend toward multi-application cards within the three sectors, enough growth potential exists to offset the drift toward multi-application credentials.

Information in this release is available in the IHS report entitled “Smart Cards and Semiconductors Report – 2014.”

This is the 12th dedicated report on the market for smart cards and smart card ICs from IHS. The report contains detailed market splits in terms of the installed base of smart cards; smart cards shipped annually, card replacement rates, and smart card IC shipments revenues as well as average selling prices. It also identifies key trends and opportunities in fast-developing sectors such as payment and banking, identification and machine-to-machine (M2M).

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About IHS (www.ihs.com)

IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today's business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs more than 8,000 people in 31 countries around the world.

IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. Copyright © 2014 IHS Inc. All rights reserved.

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