GSM Mobiles and Government Projects to catapult the Indian Smart Card Industry

Mumbai, Maharashtra, India , 2007-02-20

The continued boom in the Indian mobile telephony market and the paradigm shift in the Government’s documentation process has opened up the horizon for greater usage of Smart Cards.

According to Frost & Sullivan’s recent study “Indian Smart Cards Market”, the total market for Smart Cards was estimated at $44.7 million, during 2005-2006. The Indian Smart Cards Market is forecast to reach $148.7 million by 2010-11 thus registering a CAGR of 22.7%.This research service provides market size estimates for SIM cards and the Non-SIM cards in the Indian market.

If you are interested in a virtual brochure that provides an overview of the Indian Market for Smart Cards, then send an e-mail to Nimisha Iyer/ Ravinder Kaur, Corporate Communications, at [email protected]/ [email protected] with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

This comprehensive study, which is the first of its kind in India, provides market analysis for Smart Cards along the applications segments of SIM and the Non-SIM applications. This research service offers insights into the tremendous potential that exists for different applications for smart cards in the Indian market.

The Indian Smart Card market is dominated by the SIM application. Phenomenal growth in GSM mobile telephony and implementation of driving license and vehicle registration projects are acting as key drivers. GSM telephony, the early mover, holds the key as the usage of SIM in its mobile phones provides the much needed flexibility to subscribers.

Though SIM card applications are expected to continue their domination of the smart card market, impending Non-SIM applications are also anticipated to create strong demand. Non-SIM applications of government projects, payment and loyalty cards are some of key drivers for greater penetration of smart cards during the forecast period. Growth in fraudulent activities has encouraged government bodies to adopt smart cards for critical citizen transaction and verifications.

The usage of credit /debit cards in India was low in the initial years. The growth of ATMs and acceptance of debit cards has led to a big leap in card penetration. Usage of smart cards in payment applications is negligible but is expected to witness a steep increase once the Euro Master Visa compliance target date approaches. Introduction of ‘petro’ cards has helped popularize the use of smart cards in the loyalty cards segment.

“The smart cards market is set for a quantum jump in the near future and is also moving higher in terms of quality of usage. Smart card vendors are moving towards an era where they will have to intelligently upgrade their users towards higher memory while balancing a decline in prices. Time over runs in projects and Government’s tight cost control are also expected to challenge smart vendors’ business ingenuity”, adds V. Niju, Program Manager, Automation and Electronics, Frost & Sullivan

The Indian Market for Smart Cards is part of the Automation and Electronics subscription, which provides an extensive analysis of the market for various product groups with in-depth insights into the different end-user industries. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated based on extensive interviews with major market participants.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 45 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

Contact

Nimisha Iyer, Corporate Communications, Frost & Sullivan, +91 (022) 4001 3431
[email protected]