Demand for contactless smart cards in the Asia-Pacific (APAC) region is expected to take off in 2012, according to a new report from Frost & Sullivan. The research firm says completion of several key government-led projects will trigger the growth, including NFC, e-passports and mass transit.
According to the report, shipment of contactless smart cards to the region is expected to grow at a compound annual growth rate (CAGR) of 16.4% from 590 million in 2009 to 1.9 billion units by 2016, generating revenues of approximately $2 billion.
“The world is already prepared to roll out NFC commercial projects with a small number of commercial projects having already begun and more than 200 pilot projects already completed across the globe,” Reuben Fong, research director at Frost & Sullivan. “In Asia-Pacific, we can expect large-scale mobile NFC deployments in the next one to two years.”
According to Fong, these NFC deployments will generate public interest in contactless bank cards, further driving up demand.
Additionally, India, China, the Philippines, Indonesia and Vietnam are all set to implement e-passports within the next five years, and smart card-enabled mass transit projects are on the rise across APAC.
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