The report, “Americas Smart Card Market Analysis,” says that government and access control applications will make up just a portion of what is becoming a rapidly growing market. That said, the analysis finds the percentage of the smart card market for security applications will jump from 5 percent in 2005 to 17 percent of the market by 2010. The report also says smart card shipments will top 132 million units by the end of this year and grow by nearly 28 percent each year through 2010. “The growth of the smart card market is higher than we even anticipated, but when you look at the report, it makes sense,” Smart Card Alliance Executive Director Randy Vanderhoof told Security Sales & Integration. “You’re looking at better than a 10-fold increase.” The largest driver for the market, according to the report, has been demand for subscriber identity module (SIM) cards used for digital phones. However, the report says SIM cards will play a lesser role in the coming years in North America, as payment and security will be the main uses for smart cards. Vanderhoof says the government market is setting the tone for smart card security applications. “Those commercial numbers have been fairly moderate up until now, but I believe developments we’ve seen in the federal government space creates a blueprint for the commercial sector to follow,” says Vanderhoof. “Right now, we’re addressing the immediate customer base, which is the government.”
