Prospects for the Chip Card Market in Canada 2007

Abstract

Prospects for the Chip Card Market in Canada: 2007 is the most comprehensive and authoritative strategic market analysis and forecast available on the Canadian smart card market. Based on interviews with more than 85 key executives in the industry as well as extensive secondary research, the report provides subscribers with the essential information that they need to succeed in this rapidly developing market. The Canadian smart card market is unique, both in the way in which the market is developing, and in how the supply structure is adapting to meet expected surge in demand for smart cards, terminals and related systems. This report positions the Canadian market in the context of global smart card market developments, examines important technology trends influencing the Canadian market, and provides subscribers with an in-depth assessment of the opportunities for smart cards in Canada in different applications sectors, together with insightful analysis of the challenges facing the deployment of smart card systems in these areas. Published by Technology Surveys International Inc. (TSI), this detailed 209 page report is a complete update of the 2000 edition of the study.

Why buy this report:

Subscribers will have access to essential information needed to tailor their strategies to the needs of the rapidly changing Canadian market. They will gain insight into market needs, market prospects, important trends, key drivers and critical issues affecting market development. The report includes an in-depth assessment of which smart card applications are most likely to succeed, how the market will evolve and which segments to target or invest in. Subscribers will be in a unique position to avoid costly and misguided marketing initiatives based on hype and conjecture. Subscribers will be able to make well-founded, research-based, strategic decisions about how best to steer their business in the highly dynamic Canadian smart card market.

Companies wishing to succeed in the Canadian market need to understand the key growth drivers and opportunities in the market, as well as some of the dramatic changes taking place in order to position themselves for success. Companies that purchase this report will be able to identify the most realistic opportunities in the Canadian market and avoid costly marketing programs associated with targeting clients that are unlikely to adopt smart cards over the next five years Card issuers, acquirers and merchants will be in a unique position to understand the opportunities for convergence that are unfurling in the Canadian market, and how to address the considerable challenges associated with implementing smart card programs in their application sectors.

Who should buy this report?

• Suppliers of contact and contactless smart cards, point-of-sale terminals and card acceptance devices, ABMs and automatic fuel dispensers, NFC devices, transit solutions and high-security solutions
• Professional services and consulting firms hoping to leverage their international experience base in smart card systems through providing services to the lucrative Canadian market, a market that is suffering from a severe skills shortage for the implementation of smart card systems
• Card issuers, transaction acquirers, merchants and white-label ATM owners

Market summary

• The Canadian market is on the eve of dramatic expansion, with the number of cards in circulation forecast to grow at a rate of more than 50% per year for the next five years.
• By 2011, more than 110 million smart cards will be in circulation in Canada.
• The surge in demand for smart cards is being led by Canada' s EMV migration program, implementation of automatic fare collection systems by a number of transit authorities, and the use of smart cards for secure electronic travel documents (e-passports)
• The number of payment cards in Canada will exceed 132 million units by 2011 (including smart cards and magstripe cards)
• GSM SIM cards and smart cards used for conditional access for satellite television will remain important market segments
• Demand for terminals and card acceptance devices will accompany the proliferation of cards in Canada, as large scale card issuance programs are rolled out
• Wireless payments is an important growth area that may overtake the planned rollout of EMV contact smart cards
• There are a number of important opportunities for convergence with EMV-based payment applications emerging on the Canadian market
• Suppliers are gearing up for the surge in Canadian smart card demand with new entrants emerging at all levels in the value chain

Application sectors covered in this report:

• Financial (debit, credit and stored value)
• Loyalty, gift cards and closed payments
• Mobile communications
• Satellite TV
• Transit
• Campus
• Government
• Other

Technologies:

• Contact and contactless microprocessor and memory cards
• SIM cards, including high capacity SIM cards
• EMV-compliant cards
• EMV standards and processes
• Card materials
• New magstripe card technologies
• NFC (Near Field Communications)
• Converged appliances
• Biometrics
• Card Acceptance Devices and terminals (including ATMs, point-of-sale terminals and automatic fuel dispensers)

Research Methodology

The report is based on interviews with more than 85 key-decision-makers and experts from Canada and globally, supported by extensive desk research, TSI' s own internal databases on the Canadian and global smart card markets, and TSI' s expert analyst insight.

Number of Interviews by Sector

• Sector: Financial Services(20)
• Sector:Retail(15)
• Sector:Telecommunications and Broadcast (5)
• Sector:Transit(5)
• Sector:Colleges and Universities(6)
• Sector:Government(5)
• Sector:Suppliers(10)
• Sector:Associations, Consultants and Industry Experts(7)
• Sector:International Experts(6)
• Sector:Other(8)