Palo Alto, Calif. (PRWEB) September 9, 2006
The growing demand for smart cards in Brazil is mainly sustained by the global system for mobile communications (GSM) and the transport segment. The ability of smart cards to respond to different needs of end users highlights the flexibility of this advanced technology, while opening new business opportunities for industry participants.
New analysis from Frost & Sullivan Strategic Analysis on the Brazilian Smart Card Market, reveals that revenue in this industry totaled $ 125.9 million in 2005 estimates to reach $ 314.9 million in 2011.
If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants an overview of the latest analysis of the Brazilian Smart Card Market, then send an email to Tori Foster, Corporate Communications, at [email protected] with your full name, company name, title, telephone number, fax number and email. Upon receipt of the above information, an overview will be sent to you by e-mail.
Key markets promoting this development in Brazil are the GSM and transit markets accounting for over 85 percent of the total smart card unit shipments, explains Frost & Sullivan Research Analyst Alejandra Etcharran. The subscriber identity module (SIM) cards account for over 60 percent of the total smart card market revenues.
Smart card adoption continues gaining ground on the transport market in the main cities in Brazil, mainly through MIFARE technology. Microcontrollers accounted for 70 percent of the total units shipped, as payphone cards are not utilized in the country. Major banks, institutions for employee benefits and e-commerce initiatives are driving migration to smart card technology and Europay, Mastercard, Visa (EMV) standards in the financial segment.
The smart cards market in Brazil is strongly price oriented with usually lower prices than the rest of Latin America, given the countrys high volumes. High costs of smart card technology implementation compared to other alternative automatic identification data captures technologies that are the main barrier to the massive adoption of the product across all markets.
EMV continues to develop at a slow pace, as growth rate of chip-enabled banking cards are lower than first anticipated, necessitating the increase of EMV platform awareness, notes Etcharran. The lack of standards and the interoperability across banking, government and other systems within the country contribute to a slow uptake of smart cards compared to the countrys giant mass of consumers.
Smart card market participants need to identify value-added products and services for addressing a dual market with different end users. The development of multi-application smart cards will allow penetration at lower cost for end users. In addition, strategic partnership with local market participants is likely to open channels for new markets.
Strategic Analysis on the Brazilian Smart Card Market is part of the Global Smart Card GPS subscription and it evaluates the key drivers for mobile operators, banks, retailers, transport operators and government agencies increasingly adopting smart card technology in the region. The study analyzes the market and its impact on the main industry segments and discusses the current conditions and future expectations of the total smart card market, as well as its development in the SIM, banking, government, transport and access control markets. Interviews with the press are available.
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company’s industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.
Strategic Analysis on the Brazilian Smart Card Market