In its latest smart card and smart card IC dataset, IMS Research has concluded that the market for smart cards ICs is forecast to reach 5.8 billion units in 2010.
“2009 was particularly tough trading conditions for smart card IC suppliers with total revenues actually declining 9.2 percent to US$1.85 billion, despite their being growth in terms of units. The economic downturn, destocking by card manufacturers and price erosion all had a negative impact on revenues. This situation is projected to improve during 2010,” said Don Tait, Senior Market Analyst and Report Author.
“The first half of 2010 has seen a marked improvement in the financial performance of the majority of IC suppliers. Moreover, smart card manufacturers have also seen an upturn in demand for their products. Confidence is returning to the sector and re-stocking by smart card manufacturers is gathering pace,” Tait said.
“Key end-user sectors such as SIM cards, payment & banking and health & government are projected to grow in shipment and revenue terms during 2010. The migration towards EMV in the payment and banking sector, an increase in the demand for contactless / dual interface cards and a much healthier mobile device market are all projected to help boost demand. This will help to grow the market for smart card ICs to this 5.8 billion unit level in 2010.”