Some 560m NFC secure elements will be shipped worldwide in 2017, representing a 12% increase from 2016, smart security industry association Eurosmart predicts. A total of 495m NFC secure elements were shipped in 2015, which increased by 1% in 2016 to reach 500m units.
Eurosmart’s forecast for NFC SIM and embedded secure elements includes “NFC UICC secure element, embedded secure element and embedded UICC”.
“The overall growth trend remained unchanged in 2016 and Eurosmart forecasts place the total volume of secure elements to be shipped in 2017 at close to 10bn,” the association says. “Mobility and contactless transactions ensure customer convenience and are driving forces in the market.
“In the payment sector, the chip payment card migration phase is nearing completion in China and is at a very advanced stage in the US, accounting for 2.9bn secure elements shipped in 2016.”
“The move to contactless cards in many established payment markets continues to be a growth driver (+7% in 2016),” says Eurosmart president Didier Sérodon. “On the other hand, increased mobile connectivity due to the ongoing migration to 4G networks across most regions has boosted demand for SIM cards, with approximately 5.45bn shipments in 2016.
“Migration from unsecure magnetic stripe payment cards towards EMV chip cards in regions such as Africa, Southeast Asia and Latin America has boosted market demand. In India, EMV adoption, backed by government initiatives, has also contributed to this upward trend.”
“In 2016, Eurosmart can once again report remarkable growth (+12%) in the government and healthcare sectors and 2017 forecasts consolidate these positive results with an estimated growth of 11%,” Sérodon adds.