According to 6Wresearch, the Indian smart card market shipped 38.96 million units of smart cards in CY Q1, 2013. Increasing number of mobile subscribers, demand in advanced transportation system, government initiatives and demand for plastic money is driving the growth of the Indian smart card market.
Contact smart card leads the Indian smart card market, occupying a market share of 92.6% in the total smart card unit shipments; followed by hybrid smart cards and contactless smart cards. The dominance of contact smart card is primarily on account of telecommunication, broadcasting and banking vertical.
The smart card market in India witnessed a major shift towards hybrid and contactless smart cards and this trend is expected to continue over the coming years. Verticals such as security and transportation are expected to spur their market. Amongst all verticals, Indian smart card market is dominated by telecommunication vertical, on account of growing number of mobile subscribers. Telecommunication vertical occupied more than 80% of the total India smart card market shipments.
Future demand and growth is expected to be significantly dependent on broadcasting, security and transportation verticals. Digitization of pay TV segment, increasing security related issues and deployment of advanced transportation networks such as metros, mono rails, BRTs and tolls are expected to drive growth of smart card market in these verticals.
Most of the smart cards in India are imported however, over the coming years domestic manufacturing of smart cards is expected to gain momentum. The government is also taking initiatives to encourage local manufacturing of smart cards in India.
The Indian smart card market is witnessing new developments as a result of rise in consumer spending and increasing in the number of middle class segment. Further, increasing the number of internet users and rising online transaction are further expected to drive growth of the Indian smart card market.