New analysis from Frost & Sullivan shows that current smart card-based transit projects in growing European and world cities will lead to an 11% Compound Annual Growth Rate (CAGR) in smart card shipment from 2009 to 2015.
Europe and megacities are hot spots for future smart card-based transit projects, says the consultancy. “Technology and social factors now make it essential that transit authorities deploy smart ticketing solutions as a result of ubiquitous connectivity and mobile devices,” notes F&S Analyst Yiru Zhong.
“The future of convergence lies in the union of form, function and connectivity, much like Hong Kong’s experience,” states Zhong. “Europe fulfills these three critical factors.”
Furthermore, the use of smart cards has matured in Europe, setting the scene for more collaborative efforts with stakeholders in other industries, according to F&S. For instance, Europe is at a more advanced stage of NFC trials for m-payment purposes, including the use of NFC technology for mobile ticketing.
The report, “World Smart Cards in the Transportation Market,” urges smart card vendors to “recognize the gaps” left by disruptive new players such as telcos or retailers to better act on an end-to-end vendor solution. They can fulfill the role of a system integrator, having understood the complexity of secure transactions, while operating within the context of the transportation and mobile sector, according to F&S.
“Different payment platforms and methods have allowed different technology players in industries,” explains Zhong. “For instance, there are players, such as telecoms operators, and established payment infrastructure plans, as set up by banks which have their own innovative payment methods.”
According to F&S, trends indicate that the number of people holding a transit smart card will rise. This, together with the increasing sophistication in smart card usage, represents a step towards a connected or “smart city”.
“The smart card industry should exploit opportunities to enable this vision,” advises Zhong. “Initially, there will be a need to establish credibility in managing large scale projects combining security, services and solutions.”