India Smart Card Market recorded a Total Unit Shipment of 48,423,880 units in CY Q2 2013; an increase of 24% with reference to the previous quarter shipment of 38,960,022 units. Contact Smart Cards yet again lead the market.

According to 6Wresearch, India Smart Card Market registered a Total Unit Shipment of 4, 84, 23,880 units for CY Q2 2013; a 24% increase as compared to the previous quarter. Contact Smart Cards lead the market followed by Hybrid and Contactless Smart Cards.

The Contact Smart Card segment exhibited a substantial growth of 30% with a market share of more than 90% in the Total Unit Shipments for the India Smart Card Market in CY Q2 2013 as opposed to the CY Q1 2013.

Key Highlights (CY Q2 2013)

  1. The India Smart Card market is lead by the Contact Smart Cards, which has also captured more than 90% of the total market share for the CY Q2 2013.
  2. Hybrid Smart Cards hold around 5% market share of the Total Units Shipped.

Table 1. India Smart Card Market (CY Q2 2013)

Players Share in %
Contact Smart Card 94
Hybrid Smart Card 5
Contact Less Smart Card 1

Source: 6Wresearch Quarterly India Smart Card Market, Q2 2013

Telecommunication sector has shipped more than 75% of the Total Unit Shipments of Contact Smart Cards for the India Smart Card Market in CY Q2 2013. The Hybrid Smart Cards with a market share of around 5% in the Total Unit Shipments have experienced a considerable demand in sectors such as Security and Transportation for CY Q2 2013.

However, the Contactless Smart Card Segment has exhibited a static growth in all the sectors for the India Smart Card Market in the present quarter.

Telecommunications sector holds the largest consumption for Smart Cards in India with increasing number of mobile subscribers every day. Further, the government regulated mass digitization of Cable TV networks in India has also fuelled the India Smart Card Market for the Broadcasting sector.

In order to tackle privacy and security issues, Smart Cards have become a distinctive and an integral part of operations in sectors such as banking and security organizations. Moreover, the market has witnessed a reasonable demand for Smart Cards in transportation systems like metros, interstate bus transport systems, monorails and tolls for the India Smart Card Market.

Indian Smart card market shipped 38.96 million units in CY Q1, 2013, dominated by Contact Smart card

July, 2013

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.