Contactless Smart Cards

Table of Contents

I. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITION

• Study Reliability and Reporting Limitations
• Disclaimers
• Data Interpretation & Reporting Level
• Quantitative Techniques & Analytics
• Product Definitions and Scope of Study

II. EXECUTIVE SUMMARY

1. INDUSTRY OVERVIEW

• Current and Future Analysis
• Regional Market Analysis
• Segment Perspective

2. MARKET DRIVERS & CHALLENGES

• Market Drivers
• Micro-Payment and Government Applications Spur Contactless Smart Card Market
• Need for Secure IT Applications Drives Contactless Access Control Smart Cards Market
• Consumer Acceptance Imperative for Growth of Contactless Smart Cards Market
• Emergence of Transit Operators from Card Issuers to Card Acceptors
• Political & Government Regulations - Key for Contactless Smart Card Participants
• Interoperability - An Essential Factor
• Rising Security Concerns to Foster Identity & Security Markets
• Challenges for Contactless Smart Cards
• Lack of Compatible and Interoperable Standards
• Existing Technologies Prevent Adoption of Contactless Technology
• Privacy Issues and Threat of Failure Haunt Contactless Smart Cards
• Consumer Concerns on Data Security and Privacy
• Rapidly Changing Technological Environment
• Weak Economic Conditions

3. KEY TRENDS

• CVM Limits - the Major Driver of Contactless Smart Cards in Payments
• Contactless Cards Gain Popularity
• Growing Confidence in Contactless Smart Card Technology
• Financial Institutions Move Towards More Secure and Convenient Cards
• Hybrid Cards on the Rise
• Access Control Application to Benefit from Near Field Communication
• Multi-Application Cards Gain Momentum
• ICAO Compliance Boosts e-Passports Program
• Consolidation - Growth Through Shrinkage
• High Security Java Cards Gain Popularity
• Biometrics Offer Significant Growth Potential for Security Applications

4. INTRODUCTION TO SMART CARDS

• Smart Cards - An Introduction
• Concept & Functional Definition
• A Historical Perspective
• Smart Cards Vs Magnetic Stripe Cards
• Constituents of a Smart Card Chip
• Central Processing Unit (CPU)
• Read-Only Memory (ROM)
• Random-Access Memory (RAM)
• Application Memory (EEPROM)
• Card Operating System (COS)
• Multos
• Microsoft Smart Cards for Windows
• Java Card
• Types of Smart Cards
• Based on Type of Integrated Circuit (IC) Technology Used
• Integrated Circuit (IC) Microprocessor Cards
• Integrated Circuit (IC) Memory Cards
• Optical Memory Cards
• Based on Interface
• Contact Card
• Contactless Card
• Combi-Card or Dual-Interface Card
• Based on Number of Applications Supported By Card
• Single Application Cards
• Multi-Application Cards
• Standards
• Hardware Standards
• Application Standards
• Local Standards
• Network Computing Standards
• Electronic Purse Standards
• Payment Standards
• Mobile Communications
• Standards Governing Smart Cards & Their Applications
• ISO/IEC Standards
• ISO/IEC 7816
• ISO/IEC 10536
• ISO/IEC 14443
• ISO/IEC 15693
• ISO/IEC 7501
• Personal Computer/Smart Card (PC/SC) Workgroup Specifications
• EMV (Europay, MasterCard, VISA) Specifications
• Comite Europeen de Normalisation (CEN) Standards
• GSM - SIM / UIM Standard
• STK
• WIM (WAP Identification Module)
• S@T
• GSC-IS Version 2.1 Specifications
• SEIWG Specification
• Federal Information Processing Standards (FIPS)
• Global Platform (GP)
• International Airline and Transportation Association (IATA)
• G-8 Health Standards
• Technology Used in Smart Cards
• Java Card Technology Supports Multiple Applications
• Biometric Technology - A Boon for Identification Markets
• Prominent Features/Capabilities
• Internal Memory
• Multiple Function Capability
• Bi-Directional Identification and Authentication
• Benefits
• Enhanced Storage Capacity
• Security
• Convenience
• Economic Benefits
• Customization
• The Technology Evolution
• Increased Windows Compatibility
• Multiple Applications
• Availability of Smart Card Readers as Standard Equipment
• Increased Memory Requirements
• Generation of Asymmetric Keys on Card
• Shorter Delivery Turn-around and Lead-times
• USB Interfaces, Higher I/O Speeds
• Dual Interface
• Faster Processor Speeds and Improved Battery Capabilities
• Price Competitiveness
• New Specifications To Become Standard Requirements

5. CONTACTLESS SMART CARDS - AN OVERVIEW

• Introduction
• Current Scenario
• Product Overview
• Constituents and Special Characteristics of Contactless Smart Cards
• Contactless Smart Card Technology
• Better than Contact Smart Card Technology
• Compatibility with Other Technologies
• Data Privacy & Security Crucial for Contactless Smart Cards
• Difference Between Contactless Smart Card and RFID Technology
• Need for Compatibility Among Standards
• Benefits
• Technical Breakthroughs in Contactless Technology
• HID' s iCLASS(r) Contactless Smart Card Technology
• MIFARE Contactless Smart Card from Philips

6. SMART CARDS - COMPETITIVE SCENARIO

• Potential Favors Growth in the Intensely Competitive Market
• Table 1: Leading Players in the World Smart Card Market (2007): Percentage Breakdown of Shipments for Gemalto NV, Giesecke & Devrient GmbH, Oberthur Card Systems, Sagem Orga, Incard SpA, and Others (includes corresponding Graph/Chart)
• Leading Smart Card Players - An Analysis of Competitor Strategies

7. END-USE MARKETS

• Mass Transit/Public Transportation Sector
• Transit Applications Gaining Acceptance
• Smart Card-Based Transit Applications Implemented in Various Regions
• Payment Applications
• Banking on Smart Technology
• Current Financial Sector Scenario
• Factors Favoring Adoption of Smart Cards in Finance / Banking Applications
• Multi-Application Cards to Drive Penetration in Financial Sector
• Impact of EMV Compliance
• Electronic Payments Simplify Cash Transactions
• Benefits of Using Payment Cards
• High Implementation Costs & Legacy Infrastructure Obstruct Growth
• Access Control Applications
• Contactless Technology Drives Security Applications
• Rising Security Concerns Aid Smart Card Growth in Various Sectors
• Biometrics Technology Boosts Identification & Security Markets
• Network Security Offers Immense Potential for Growth
• Countering Hacker Attacks
• Government/ Institutional Applications
• Governments as Users
• Institutional Applications Gaining Prominence
• Factors Driving Government Applications
• Government Sector in India Boosts Smart Card Implementation
• Lack of Smart Card Infrastructure in India Hinders Growth
• Security: Role of Government ID Programs
• Multifunctional Identification Cards to Enhance Inland Security
• Smart Cards Replace Conventional Paper-Based Institutional Systems in India
• Healthcare Sector
• Smart Cards Facilitate Efficient Healthcare System
• Global Healthcare Card Scenario
• Benefits of Using Smart Cards in Healthcare Industry
• Key Applications of Healthcare Smart cards
• Storage of Patient' s Medical Information
• Patient Identification and Monitoring
• Prescription Management
• HIPAA Compliance Drives Healthcare Sector
• Health Insurance Portability and Accountability Act (HIPAA) of 1996

8. PRODUCT LAUNCHES/INNOVATIONS

• Toppan Develops World' s Smallest Felica type IC Card, ' SMARTICS-cFe'
• Honeywell Introduces OmniAssure Biometric Reader
• Athena Releases ASEDrive IIIe CL
• HID Global Unveils bioCLASS RKLB57 Smart Card Field Enroller
• Texas Instruments Introduces RF-HCT-WRC5-KP221 Chips
• HID to Extend Access Control Product Line with Logical Access Control Products
• LEGIC Unveils Latest Products and Applications
• Sagem Launches Biometric Reader to Comply with MorphoAccess 521 TWIC
• LEGIC Unveils New All-in-One Contactless Smart Cards
• HID Global Introduces New Crescendo Line of Smart Cards
• Sagem Launches New GSA-Approved PIV Reader for FIPS 201
• LEGIC Expands Contactless Smart Card Technology Capability
• HID Extends multiCLASS(tm) Reader Line
• HID Global Introduces HID Identity

9. RECENT INDUSTRY ACTIVITY

• VDV-Kernapplikations Selects NXP' s SmartMx for German transport Ticketing
• Gemalto Completes Acquisition of Keycorp' s Smart Cards Business
• HID Teams up with MAXxess
• LEGIC Inks Partnership Agreement with APK-ID
• LEGIC Signs Deals with Electronica Meysh and Inplastor
• SmartMetric Adopts MULTOS for Fingerprint Activated Cards
• LEGIC Identsystems and Nortech Control Systems Enter into Licensing Agreement
• NEOWAVE Strikes Distribution Agreement with ASK
• Garanti Bank Selects Gemalto' s EMV Contactless Credit Cards for Deployment in Turkey
• Watchdata Executes Major Supply Contract with Shenzhen Tong Ltd
• SCM and Sony Sign MoU
• Sony and NXP Enter Into a Joint Venture to Form Moversa
• HID Global Completes Acquisition of Integrated Engineering
• Intrepid Global Imaging to Take Over Versacard
• Soliton and AAIT Form Partnership for Contactless Security Smart Card Solutions
• LEGIC Enters into an Agreement with G4S Security Systems Microraab
• ASK and MasterCard to Work on Contactless Cards

10. FOCUS ON SELECT KEY PLAYERS

• ActivIdentity Corporation (US)
• Advanced Card Systems Ltd (Hong Kong)
• American Microdevice Manufacturing, Inc. (US)
• ASK (France)
• Austria Card GmbH (Austria)
• CardLogix Corporation (US)
• CPI Card Group (US)
• Eastcompeace Smart Card Co., Ltd (China)
• FNMT-RCM (Spain)
• Fujitsu Microelectronics Limited (Japan)
• Gemalto N.V. (The Netherlands)
• General Information Systems Ltd (UK)
• Giesecke & Devrient GmbH (Germany)
• HID Global Corporation (US)
• Infineon Technologies AG (Germany)
• Inside Contactless (France)
• International Business Machines Corporation (US)
• IRIS Corporation Berhad (Malaysia)
• Micromodule Pte Ltd (Singapore)
• NBS Technologies (Canada)
• NedCard B.V. (The Netherlands)
• NOVACARD INFORMATIONSSYSTEME GmbH (Germany)
• NXP Semiconductors (The Netherlands)
• Oberthur Card Systems SA (France)
• On Track Innovations Ltd (Israel)
• Sagem Orga GmbH (Germany)
• Samsung Electronics Co., Ltd (South Korea)
• Silicon Storage Technology, Inc (US)
• Sitronics JSC (Russia)
• Sony Corporation (Japan)
• STMicroelectronics (Switzerland)
• Incard SpA (Part of STMicroelectronics) (Italy)
• Toppan Printing Co., Ltd. (Japan)
• Watchdata System Co. Ltd (China)
• Zetes Industries (Belgium)

11. GLOBAL MARKET PERSPECTIVE

• Table 2: World Recent Past, Current & Future Analysis for Contactless Smart Cards by Geographic Region - North America, Europe Middle East & Africa (EMEA), Asia-Pacific and Latin American Markets Independently Analyzed with Annual Unit Shipments in Millions for Years 2006 through 2015 (includes corresponding Graph/Chart)
• Table 3: World 10-Year Perspective for Contactless Smart Cards by Geographic Region - Percentage Breakdown of Annual Unit Shipments for North America, Europe Middle East & Africa (EMEA), Asia-Pacific and Latin American Markets for Years 2006, 2009 & 2015 (includes corresponding Graph/Chart)
• Table 4: World Recent Past, Current & Future Analysis for Contactless Smart Cards by Geographic Region - North America, Europe Middle East & Africa (EMEA), Asia-Pacific and Latin American Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2006 through 2015 (includes corresponding Graph/Chart)
• Table 5: World 10-Year Perspective for Contactless Smart Cards by Geographic Region - Percentage Breakdown of Annual Revenues for North America, Europe Middle East & Africa (EMEA), Asia-Pacific and Latin American Markets for Years 2006, 2009 & 2015 (includes corresponding Graph/Chart)
• Table 6: World Recent Past, Current & Future Analysis for Contactless Smart Cards by End-Use Application - Mass Transit, Access Control, Payment and Government ID Markets Independently Analyzed with Annual Unit Shipments in Millions for Years 2006 through 2015 (includes corresponding Graph/Chart)
• Table 7: World 10-Year Perspective for Contactless Smart Cards by End-Use Application - Percentage Breakdown of Annual Unit Shipments for Mass Transit, Access Control, Payment and Government ID Markets for Years 2006, 2009 & 2015 (includes corresponding Graph/Chart)
• Table 8: World Recent Past, Current & Future Analysis for Contactless Smart Cards by End-Use Application - Mass Transit, Access Control, Payment and Government ID Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2006 through 2015 (includes corresponding Graph/Chart)
• Table 9: World 10-Year Perspective for Contactless Smart Cards by End-Use Application - Percentage Breakdown of Annual Revenues for Mass Transit, Access Control, Payment and Government ID Markets for Years 2006, 2009 & 2015 (includes corresponding Graph/Chart)

III. MARKET

1. NORTH AMERICA

• A. Market Analysis
• Current and Future Analysis
• Overview
• Key Trends and Issues
• Adoption of Contactless Payment System Finds Greater Acceptance
• Increased Interoperability and Standardization in Contactless Payment Platforms
• Government Programs Continue to Offer Opportunities for Contactless Smart Cards
• Delays in Rollout Plague Employee Card Implementation in the US
• Proprietary and Sporadic Ticketing Systems Hinder Smart Card Adoption in Mass Transit
• The US Perspective
• Smart Card Industry Evolution
• Smart Cards & the US - A Lackluster Affair
• Contactless Smart Cards - Current Scenario
• Contactless Leads the Charge in the US
• Trends and Issues
• US Market Moves Towards Contactless Technology
• Contactless Smart Cards Making Headway into Payments Market
• US Lags Behind in Adopting EMV Specifications
• HSPD-12 Directive Fosters Smart Card-Based Security Sector
• ICAO Compliance Boosts e-Passports Program
• US Airport Authorities Use Smart Cards Based on Biometric Technology
• Cyber Fraud & Identity Theft Crimes Provide Impetus for Smart Card Usage
• FIPS Federal ID Standard & ANSI INCITS Standard for ID Sector
• Healthcare Sector & Smart Cards
• Product Launches
• Strategic Corporate Developments
• Key Players
• B. Market Analytics
• Table 10: North American Recent Past, Current & Future Analysis for Contactless Smart Cards Market with Annual Unit Shipments in Millions for Years 2006 through 2015 (includes corresponding Graph/Chart)
• Table 11: North American Recent Past, Current & Future Analysis for Contactless Smart Cards Market with Annual Revenues in US$ Million for Years 2006 through 2015 (includes corresponding Graph/Chart)

2. EUROPE, MIDDLE EAST & AFRICA

• A. Market Analysis
• Current and Future Analysis
• Contactless Smart Cards - A European Perspective
• Contactless Payments Market Scenario in Europe
• CVM Limits - the Major Driver of Contactless Smart Cards in Payments
• Contactless Smart Cards - Unlimited Solutions
• Standards
• New Form Factors
• Pilots and Rollouts
• Outlook
• Trends & Issues
• Improved Revenues and Customer Loyalty Attract Retailers to Contactless Payments
• Secure Access Control Capabilities Generate Demand for Contactless Smart Cards in EMEA
• Multiple Applications Offer Greater Prospects for Contactless Smart Cards
• High Speed Capability Spurs Adoption of Contactless Technology in New Applications
• Introduction of Contactless Payments in US and Japan Drives European Market
• Faster Payment Transactions Generate Interest on Contactless Technology
• Europe Adopts Contactless Ticketing System to Minimize Costs
• Electronic Identity Cards to Drive European Identity Market
• Overview of Select Regional Markets
• France
• Electronic Passport Project Enhances Demand for Smart Cards
• Belgium
• Italy
• United Kingdom
• UK Smart Cards Market Holds Immense Potential for Growth
• Convergence of Transport and Financial Applications in UK - A Key Implementation
• Middle East & Africa
• Security Market Gaining Prominence in Middle East
• Product Launches
• Strategic Corporate Developments
• Key Players
• B. Market Analytics
• Table 12: Europe Middle East & Africa (EMEA) Recent Past, Current & Future Analysis for Contactless Smart Cards Market with Annual Unit Shipments in Millions for Years 2006 through 2015 (includes corresponding Graph/Chart)
• Table 13: Europe Middle East & Africa (EMEA) Recent Past, Current & Future Analysis for Contactless Smart Cards Market with Annual Revenues in US$ Million for Years 2006 through 2015 (includes corresponding Graph/Chart)

3. ASIA-PACIFIC

• A. Market Analysis
• A Combination of Unique Regional Markets
• Current and Future Analysis
• Contactless Smart Card Market in Asia-Pacific
• Select Applications of Contactless Smart Cards in Asia-Pacific (2008)
• Government Applications
• e-Passport
• Outlook
• Media Coverage
• National ID
• Select Countries to Implement the Project
• Growth to Decline, Volume Generation to Continue
• Driving License
• Other Government Services
• Other Types of Smart Cards
• Contactless Payment, and Loyalty Cards
• Contactless Payment Cards
• New Projects Fail to Initialize
• Loss of Momentum
• Contactless Payments Not a Priority in Some Countries
• Loyalty Cards
• Other Applications
• Education
• Tourism/Travel
• Theme Parks/Entertainment
• Contactless SIM
• Japan - the Most Advanced Market for Contactless Smart Cards
• Japanese Smart Cards Market Gains Prominence
• Evolution of Electronic Payment in Japan
• Trends & Issues
• Asia-Pacific Region Witnesses Growth in Contactless Smart Card Use
• Mass Transit Applications Migrate Towards Contactless Mobile Devices
• Taiwan Leads in Promotion of Contactless Payments Technology in Asia-Pacific Region
• Smart Cards Integrate with Biometrics
• Integration of Technologies Becomes Key Factor in Smart Card Business
• Campus Smart Cards Rise in Popularity
• Leisure Facilities Witness Early Stage of Adoption
• Strong Government Control Fosters Growth
• Identification Applications Provide Impetus for Government & Institutional Market
• Smart Card - An Ideal Solution for Cyber Security Concerns
• Data Privacy & Security Hinder Multi-Application Cards Implementation in Australia
• Market Drivers
• Interoperability to Fetch New Opportunities for Contactless Payment Programs
• Government ID Projects to Drive Volume for Contactless Smart Cards in Asia-Pacific
• Contactless Payments in Asia-Pacific to Thrive on Foray of Tier II Nations
• Contactless Mobile Applications Expand in Asia
• Market Restraints
• Consumer Apprehension Deters Contactless Payment Programs
• Merchant Apprehension Reduces the Number of Transactions
• Infrastructure Barriers to Migration
• Competing Technologies Vs Smart Cards Technology
• Challenges in Integrating with Existing Processes and Systems
• Cost Concerns
• Security Concerns
• Outlook
• More Focus on Physical Access Control
• Government Usage Drives Private Usage of Smart Cards
• Product Launches
• Strategic Corporate Developments
• Key Players
• B. Market Analytics
• Table 14: Asia-Pacific Recent Past, Current & Future Analysis for Contactless Smart Cards Market with Annual Unit Shipments in Millions for Years 2006 through 2015 (includes corresponding Graph/Chart)
• Table 15: Asia-Pacific Recent Past, Current & Future Analysis for Contactless Smart Cards Market with Annual Revenues in US$ Million for Years 2006 through 2015 (includes corresponding Graph/Chart)

4. LATIN AMERICA

• A. Market Analysis
• Current and Future Analysis
• An Emerging Smart Cards Market
• Low-cost Contactless MIFARE Cards
• Market Drivers
• Adoption in Key Cities Boosts Awareness on Contactless Smart Cards
• Value-Added Services Drive the Adoption of Inexpensive Contactless Smart Cards
• Entry of Major Financial Institutions and Brands Boosts Contactless Smart Cards
• Market Restraints
• Availability of Alternative Technologies Mars Access Control Market
• Lack of Standards Restricts ROI
• Unfavorable Political Scenario for Government Projects
• B. Market Analytics
• Table 16: Latin American Recent Past, Current & Future Analysis for Contactless Smart Cards Market with Annual Unit Shipments in Millions for Years 2006 through 2015 (includes corresponding Graph/Chart)
• Table 17: Latin American Recent Past, Current & Future Analysis for Contactless Smart Cards Market with Annual Revenues in US$ Million for Years 2006 through 2015 (includes corresponding Graph/Chart)

IV. COMPETITIVE LANDSCAPE