The market for multifunctional smartcards will experience significant growth in brown- and green-field applications over the next five years, predict analysts at Venture Development Corp. (VDC) in Natick, Mass.
In 2006, the global market for contactless smartcards approached $473 million and exceeded 583 million units. VDC expects global contactless smartcard revenues to grow nearly 25 percent annually (CAGR) through 2011, exceeding $1.4 billion.
“Smartcards are positioned for growth over the next five years as new applications emerge, mandates and initiatives continue, and end-user comfort levels rise,” says Louis Bianchin, senior RFID analyst for VDC. “With all this activity, expect convergence of functionality and the emergence of multiapplication offerings.”
As smartcards continue to penetrate applications such as contactless payment, ticketing, security/access control, and e-government, the need to simplify interactions by reducing the overall number of smartcards used by an individual will increase.
Similar to how cell phones continue to morph into “Smartphones” by integrating new applications and convergent technologies, so too will smartcards change into a single platform capable of supporting multiple uses. The days of the traditional, single-function smartcard may be numbered.
For more information, visit VDC online at www.vdc-corp.com.