Market Insight

Smart Card IC Shipments to Reach 12.7 Billion in 2019

July 30, 2015

Don Tait Don Tait Principal Analyst, Cybersecurity & Digital ID

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Shipments of smart card integrated circuits (ICs) are projected to increase from 9.6 billion in 2014 to 10.4 billion in 2015 and to 12.7 billion in 2019, according to latest research titled “Smart Cards Semiconductors Report – 2015”, a component of the Digital Security Intelligence Service from IHS Technology (NYSE:IHS).

Smart Card IC Key Research Findings:

  • The key end-user sectors that will drive growth over the next five years include payment and banking, e-government and healthcare, subscriber identity modules (SIM) and transportation. In 2014 these four sectors accounted for approximately 89 percent of IC unit shipments. In 2019 unit shipments are expected to fall slightly to 87 percent of IC volume shipments.
  • The SIM card ICs market is projected to increase from 5.2 billion units in 2014 to 6.0 billion in 2019. The payment and banking sector is projected to remain the second largest sector for smart card IC unit shipments, from 2014 to 2019.
  • In 2014 and 2015, Europay, MasterCard and Visa (EMV) cards have grown significantly in the United States. More than 220 million smart payment and banking cards were shipped to the United States last year, and volumes are expected increase to around 500 million smart payment cards in 2015.
  • 2014 has been an interesting year in the development of the e-government industry. There have been disappointments and successes that give a mixed outlook for the whole market. The success of some of the more risky projects, such as the Nigerian identity card and the Ukrainian passport projects, which have struggled with extremely turbulent domestic situations, boosts momentum across the entire sector. There have been some setbacks as well, especially in the European Union, as France has dropped the chip from its driving license and Poland has cancelled the chip in its new identity card.
  • Asia has a key part to play in driving growth in the overall smart card ICs market. Countries like China, India and Indonesia will undoubtedly be crucial to the overall health of the smart cards ICs market, over the next five years.

In summary, smart card ICs are projected to have a reasonable growth profile. Trends in IC shipments are closely linked to the trends happening in smart cards themselves.  

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