New analysis from Frost & Sullivan finds that the smart card management systems (SCMS) market earned more than $105 million in 2009, and is expected to pull in $218.7 million by 2015.
These systems bridge the divide between hardware and application, providing a higher level of integration for card management.
According to Frost & Sullivan, large-scale, high-end government and public projects, which require high levels of security, are spearheading growth in the SCMS market. Such projects typically exceed 500,000 cards and therefore gain the most value from greater visibility and control.
“The value of these advanced solutions is directly correlated to the size of the card solution and the data that needs to be protected – with the more sensitive information benefiting more from an SCMS system,” says Frost & Sullivan Research Analyst Pete Finalle. “The growing capabilities and performance enhancements in modern smart cards is largely driving the success of SCMS, vastly expanding the capabilities of the entire card system.”
The report also explains how older installed card management systems are creating stiff opposition for smart card-specific management systems. These systems generally lack much of the functionality of a smart card management system, but provide the more basic features. These solutions are most common in smaller solutions or systems which have been in use for an extended period of time and have not been upgraded to SCMS.
In order to stay on top, SCMS vendors will need to successfully portray an added value over existing solutions, particularly in the current adverse economic conditions and tight IT budgets, says Frost & Sullivan.
Along with vendors, SCMS issuing organizations need to ramp up customer awareness levels while emphasizing additional value-added features and multi-application support.