Smartcard IC market on course for steady growth
6 September 2006
News
With surging growth across various application sectors, the future of the steadily expanding smartcard IC market looks promising. Short term growth will be observed in applications such as SIM and EMV, with e-passports revealing some unit penetration at the end of 2006. Growth pockets will also be visible in the form of other ID projects and contactless technologies.
"SIM cards, identification projects as well as payment will be at the forefront across all regions," says Frost & Sullivan (www.smartcards.frost.com) smartcards global programme manager, Anoop Ubhey. "SIM cards remain a dominant force in the smartcard market, and with the promise of mega SIM cards, the future looks bright."
"As mobile operators look to boost their average revenue per user (ARPU), and data traffic set to grow considerably more than in the past, SIM usage is poised to soar. The increasing memory on the SIM card will allow users of mobile phones to store and download more applications (ring tones, movie/video clips and so on) onto their phone, thereby driving uptake.
"Demand for smartcards is also set to escalate due to demand from increasingly security conscious government and enterprises, especially after 9/11 (United States) and 7/7 (United Kingdom)," adds Ubhey. "Security related projects ranging from e-government projects, access control (physical and logical), to large scale national ID projects are all on the smartcard spectrum.
"At the same time, the introduction of e-passports will fuel growth both over the short - as well as long-term. Compliance by 27 visa waiver countries with the United States's requirements for e-passports will add impetus to market growth. Despite the optimistic scenario, semiconductor manufacturers will still need to overcome several challenges, most seriously that of pricing, in order to remain competitive. Intense pricing pressure last year saw a dramatic decrease in prices, especially in the SIM market. Continued price declines will further push semiconductor manufacturers to the brink.
Comments Ubhey, "Timing, as well as meeting customer requirements through product innovation and improved time to market, has become imperative for a company to remain competitive.
For more information contact Magdalena Oberland, Frost & Sullivan, [email protected]
Further reading:
Engineering in a world that cannot assume connectivity
Technews Publishing
Editor's Choice News
Across industrial automation, networking, and defence systems, engineers are rediscovering the importance of resilience and autonomy in an increasingly connected world.
Read more...
IOT secures major industry partnership
IOT Electronics
News
IOT Electronics has announced a new strategic partnership with Powell Electronics, becoming an Official Authorised Reseller in South Africa.
Read more...
Successful Proteus training conference
Dizzy Enterprises
News
Dizzy Enterprises recently hosted two hands-on Proteus Training Conferences, bringing together electronics professionals, designers, and enthusiasts to explore the latest capabilities of the Proteus Design Suite from Labcenter Electronics.
Read more...
Hitachi reinvents asset management solution
News
Hitachi Energy, in collaboration with Microsoft, is accelerating the digital transformation of essential infrastructure - from electricity networks and transportation corridors to heavy industrial operations - by reinventing how critical assets are managed and maintained.
Read more...
Mycronic releases mixed Q4 results
News
Mycronic reported mixed Q4 results for the year ended January to December 2025, while delivering record full year order intake and net sales.
Read more...
AGOA: Businesses should diversify or face significant exposure
News
Cross-border payments platform Verto has called on South African and African businesses to accelerate their transition toward a “post-AGOA” trade strategy following President Donald Trump’s signing of a one-year extension to the African Growth and Opportunity Act (AGOA).
Read more...
European components distribution growing
News
European electronic components distribution returned to growth in the fourth quarter of 2025, according to newly released figures from DMASS Europe.
Read more...
Silicon Labs reports strong growth
News
Silicon Labs has reported robust financial results for the fourth quarter and full year 2025, with significant YoY revenue gains and shifting market dynamics.
Read more...
Siemens acquires Canopus AI
ASIC Design Services
News
The acquisition extends Siemens’ comprehensive EDA software portfolio with computational metrology and inspection to help chipmakers solve critical technical challenges in semiconductor manufacturing.
Read more...
Micron breaks ground on new wafer fabs
News
Micron Technology has advanced two major semiconductor manufacturing initiatives that together reflect the company’s strategic response to sustained global demand for memory solutions.
Read more...
printer friendly version