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:
Rooibos heads to space
News
A South African scientific initiative linking agriculture and space research has officially launched today with the Rooibos in Space programme at Parklands College’s Innovation Centre in Cape Town.
Read more...
From the editor's desk: Local can be international
Technews Publishing
Editor's Choice News
Welcome to the July 2026 issue of
Dataweek. As you can see from this introduction,
Dataweek’s regular editor, Peter Howells, is on extended leave and I am filling the void in his editor’s column – hopefully without being too boring.
Read more...
Landis+Gyr EMEA introduces new company name: EYKON
News
EYKON is the new company name of Landis+Gyr EMEA, formerly part of the Landis+Gyr Group. The company supports electricity, gas, water and thermal utilities in managing increasingly complex networks, improving operational efficiency and enabling more sustainable use of resources.
Read more...
Yamaha Robotics will show visitors to EFX
Manufacturing / Production Technology, Hardware & Services News
Yamaha Robotics will show visitors to EFX 2026, the Expo for Electronics Manufacturing, in Stuttgart from 6-8 October 2026, how advanced surface-mount automation helps companies grow their business and increase productivity.
Read more...
From the editor's desk: The art of measuring the truth
Technews Publishing
Editor's Choice News
All electronic measurements are a lie. The trick is making the lie as small as possible.
Read more...
TSE has relocated
News
The Technology Station in Electronics (TSE) has entered a new chapter with its relocation from the CSIR campus to TUT-owned building at Ditsela Place in Hatfield.
Read more...
Innovative MyLegrand app
RS South Africa
News
Legrand SA is set to launch the MyLegrand mobile application, a digital platform designed to strengthen engagement across its professional network.
Read more...
Kulani Energy acquires critical assets from Optipower
News
Kulani Energy preserves engineering, procurement, and construction capability and positions a wholly women-owned firm at the forefront of South Africa’s grid expansion.
Read more...
From Cape Town to Johannesburg
News
Würth Elektronik South Africa has taken a significant step forward with its recent relocation from Cape Town to Johannesburg, marking a new phase of growth and ambition for the company.
Read more...
Lesley Havenga: Building partnerships for Africa’s electronics future
Editor's Choice News
As Würth Electronik expands its footprint across South Africa and the broader sub-Saharan region, Havenga’s blend of manufacturing expertise, supply chain knowledge, and people-centred leadership appears well suited to the task.
Read more...
printer friendly version