The Smart Card Integrated Circuit Ecosystem in the
      Americas – Ready for a Turnaround?



           Peter Finalle, R...
Agenda

Smart Card Market Overview (as it applies to integrated circuits)
         -Current State of the integrated circui...
Economic Effects on the Smart Card Integrated Circuit
Market


•Limited IT budgets will hinder current and near-term futur...
Smart Card Trends as they relate to Integrated Circuits


            Smart Cards                           Integrated Cir...
North and Latin American Emphasis on Features




     Power Consumption   Low Cost   Contactless Support Security Capabil...
Smart Card Integrated Circuit Ecosystem Demand
  <<<




                                        Vendors

                ...
Average Smart Card System Lifecycle

                                                           Average Lifecycle for the ...
The Integrated Circuit Market




                                8
Competitive Landscape




                        9
Drivers and Restraints for the NA and LA Regions


                                    Frost & Sullivan. 2009 Smart Cards ...
Shift from Memory to Microcontroller Integrated Circuits


              Frost & Sullivan. 2009 Smart Cards Integrated Chi...
Average Chip Size and EEPROM size

                                       Chip size correlation with EEPROM size, by
     ...
Limitations with Current Smart Card Memory: the
Eventual Replacement of EEPROM as the Standard
 <<<




                  ...
Memory Standards: Breakdown


             Strengths                                                     Weaknesses

• The...
Crypto-Processor Popularity

                                   90%    Approximate percentage of cards
                   ...
Conclusions




Smart Card integrated circuits are in a state of growth in the North and Latin
American regions

Microproc...
Next Steps


 Request a proposal for a Growth Partnership Service to support you and your
 team to accelerate the growth o...
Your Feedback is Important to Us


          What would you like to see from Frost & Sullivan?

Growth Forecasts?

Competi...
For Additional Information



                             Craig Hays
Jake Wengroff                Sales Manager
Corporate...
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The Smart Card Integrated Circuit Ecosystem in the Americas – Ready for a Turnaround?

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A presentation on the smart card market, including a detailed analysis of the integrated circuit market.

Publié dans : Business, Technologie

The Smart Card Integrated Circuit Ecosystem in the Americas – Ready for a Turnaround?

  1. 1. The Smart Card Integrated Circuit Ecosystem in the Americas – Ready for a Turnaround? Peter Finalle, Research Analyst Smart Cards June 24, 2009
  2. 2. Agenda Smart Card Market Overview (as it applies to integrated circuits) -Current State of the integrated circuit market -Smart Card/Integrated Circuit Comparison -Integrated Circuit Features in Demand -Ecosystem -Life Cycle Overview Integrated Circuit Market Overview -Market Participants -Drivers and Restraints -Microcontroller/Memory chip -Chip and Rom size -Types of memory overview -Types of memory details -Crypto processors Conclusion 2
  3. 3. Economic Effects on the Smart Card Integrated Circuit Market •Limited IT budgets will hinder current and near-term future smart card deployments •New projects in any market will be limited •Many card roll-outs will be delayed or canceled •New or high-end technology will be the least sold (low-cost will be the focus) •Lower cost technologies are highly entrenched in the NA and LA regions •Ubiquity of magnetic strips and readers •Smart card adoption in the United States has been slow •U.S. has not experienced fraud levels of that in other regions •Smart cards will need to make a clear and obvious case for their added value 3
  4. 4. Smart Card Trends as they relate to Integrated Circuits Smart Cards Integrated Circuits Low Cost as a Driver Low cost Integrated Circuits Demand for a Higher Level of Security Advanced Chips have Advanced Security More Advanced Applications Increased Memory Size Smaller Power Draw Smaller Physical Size Contactless Technology Demand Contactless Circuits Large Markets (Government & SIM) Large Integrated Circuit Roll-Outs Overall Smart Card Growth Growing Demand for Integrated Circuits Competing Technologies Lower Integrated Circuit Costs Public Distrust Distrust for Integrated circuits 4
  5. 5. North and Latin American Emphasis on Features Power Consumption Low Cost Contactless Support Security Capabilities 5
  6. 6. Smart Card Integrated Circuit Ecosystem Demand <<< Vendors Competition / Regional Standards Technology Security Consumer Demand >>> <<< Features >>> 6
  7. 7. Average Smart Card System Lifecycle Average Lifecycle for the Entire Smart Card System based on application 14 12 Government Corporate Number of Years for the Total System Life-cycle Payment 10 Transit Retail 08 06 04 02 00 Short Life Cycle Average Life Cycle Long Life Cycle 7
  8. 8. The Integrated Circuit Market 8
  9. 9. Competitive Landscape 9
  10. 10. Drivers and Restraints for the NA and LA Regions Frost & Sullivan. 2009 Smart Cards Integrated Chipsets (North and Latin America) Drivers and Restraints Chart Low Cost Solutions Financial Projects GSM Dominance Drivers Broadband Penetration Government Projects Liability Shift Multi Function Support High Costs Restraints No Local Manufacturing Payphone Decline <<< Severity >>> 10
  11. 11. Shift from Memory to Microcontroller Integrated Circuits Frost & Sullivan. 2009 Smart Cards Integrated Chipsets (North & Latin America) Dynamic Shift from Memory Integrated Circuits to Microcontroller Integrated Circuits Microcontroller Integrated Current Year Circuits Market Shift Memory Integrated Circuits 11
  12. 12. Average Chip Size and EEPROM size Chip size correlation with EEPROM size, by 40% technology level -2008 (Including SIM) 35% Chip Size 30% EEPROM 25% Percentage of cards 20% 15% 10% 05% 00% 250nm + 250nm 250nm 130nm 130nm 90nm 90nm 64nm 8kb-16kb 32kb-64kb 128kb 256kb 512kb 128kb 256kb 512kb EEPROM EEPROM EEPROM EEPROM EEPROM EEPROM EEPROM EEPROM <<<Legacy Technology Advanced Technology>>> 12
  13. 13. Limitations with Current Smart Card Memory: the Eventual Replacement of EEPROM as the Standard <<< EEPROM Maturity In Smart Card Applications Flash FRAM MRAM >>> <<< Practical Transaction Speed >>> 13
  14. 14. Memory Standards: Breakdown Strengths Weaknesses • The current standard • In wide use • Hardware limitations EEPROM • Easy to program for • Slow performance • Significantly faster than EEPROM • Shorter lifecycle • In wide use for other applications Flash RAM • Few smart card deployments with this • Used in some smart card applications technology • Over 20% faster than Flash RAM • Costly technology Ferroelectric RAM • Could have security vulnerabilities • Faster than the other three memory • Costly technology Magnetoresistive RAM technologies • Significant lack of technology maturity 14
  15. 15. Crypto-Processor Popularity 90% Approximate percentage of cards equipped with Crypto-Processors by region 80% 70% 60% Percentage of cards 50% 40% 30% 20% 10% 00% North Latin EMEA APAC America America 15
  16. 16. Conclusions Smart Card integrated circuits are in a state of growth in the North and Latin American regions Microprocessor integrated circuits are on the rise New memory technology is beginning to show up in smart card projects Crypto-processors are not in high demand in the United States Low cost is the current driver in all North and Latin American countries 16
  17. 17. Next Steps Request a proposal for a Growth Partnership Service to support you and your team to accelerate the growth of your company. (myfrost@frost.com) 1-877-GoFrost (1-877-463-7678) Join us at our annual Growth, Innovation, and Leadership 2009: A Frost & Sullivan Global Congress on Corporate Growth, September 13-16 2009, Hyatt Scottsdale Resort & Spa at Gainey Ranch, Scottsdale, AZ (www.gil-global.com) Register for the next Chairman’s Series on Growth: Growth Acceleration System: Leveraging the Growth Diagnostic Blueprint (July 9th) (http://www.frost.com/growth) Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities (www.frost.com/news) 17
  18. 18. Your Feedback is Important to Us What would you like to see from Frost & Sullivan? Growth Forecasts? Competitive Structure? Emerging Trends? Strategic Recommendations? Other? Please inform us by taking our survey. 18
  19. 19. For Additional Information Craig Hays Jake Wengroff Sales Manager Corporate Communications Information & Communication (210) 247-3806 Technologies jake.wengroff@frost.com (210) 348-6420 chays@frost.com Shyam Krishnan Research Manager Smart Cards (210) 348-1018 shyam.krishnan@frost.com 19

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