Despite the current economic climate; the future remains
bright for the RFID Smartcards market. According to recently published research by VDC Research
Group, RFID smartcards revenues approached $700 million in 2008 and are predicted to grow more than
26% (CAGR) through 2013. ISO 14443 will continue to account for the vast majority of current and future
global smartcard revenues and unit shipments because it not only supports the blockbuster applications,
but it is also able to support emerging applications with increased complexity.
"Overall, demand for RFID smartcards will remain stable and not be significantly affected by the current
recession," cited Drew Nathanson, VDCs Director of Research Operations. "Although growth rates
associated with established applications (i.e., security/access control) are slowing, several emerging
applications (i.e., contactless payment, ticketing) are quickly approaching their tipping points. These
emerging applications will also drive product development as more diverse and complex applications are
introduced that will require increased functionality."
This increased demand will also drastically impact distribution models. As the market continues to mature
and commoditize, it is expected that there will be a fundamental shift toward an indirect consumablesbased
distribution model, meaning increased and more aggressive competition, higher price sensitivity,
and enhanced consumer barging/purchasing power.
