Implementation of a smart card project requires a significant investment in setting up and upgradation of the current infrastructure. The cost of implementing a smart card based system is very high compared to the cost of smart cards.

1. Infrastructure Constraints Hampering the Growth of the Indian Smart
Cards Market
Implementation of a smart card project requires a significant investment in setting up and upgradation of
the current infrastructure. The cost of implementing a smart card based system is very high compared to
the cost of smart cards.
A new study published by IMARC Group, one of the world’s leading research and advisory firms, finds
that the Indian smart cards market is currently at the threshold of a revolution. Smart cards are not only
rapidly replacing paper and magnetic stripe cards wherever they are in use but have also started
penetrating into sectors that had remained untapped so far.
Despite its strong growth, however, findings from the report suggested that the development of the Indian
smart cards market is currently being hampered by a number of infrastructure constraints. According to
the report, implementation of smart cards in a government organization or business establishment
requires a significant investment in setting up and upgradation of the current infrastructure. The cost of
implementing a smart card based system is very high compared to the cost of smart cards.
Since most organizations in India are still paper based and not IT enabled, it makes
implementation of smart cards even more expensive.
In the banking sector, currently around 99% of the total cards issued are based on magnetic
strips and implementation of EMV based bank cards has been slow. This is mainly due to the fact
that only 50% of the current ATMs with nominal software and hardware upgrades can accept
EMV chip cards. The remaining ATMs would require significant hardware upgrades, or even
replacement, to enable EMV chip card acceptance.
Apart from setting up a smart card infrastructure, its efficient management is also critical to run a
smart cards project successfully. The failure of the “Go Mumbai” smart cards project is a perfect
example of this fact. The Go Mumbai card was first introduced in 2007 by BEST and later on
extended to central and western railways local train services. But the project crashed after Kaizen
Limited, the company involved in the project, failed to supply enough number of hand-held
devices to check the cards validity. Apart from this, inappropriate maintenance of the
infrastructure also led to the machines having technical problems and some even getting shut
down.
IMARC’s new report entitled “Indian Smart Cards Industry Market Report & Forecast 2011-2016”
gives a deep insight into the Indian smart cards market. The research study serves as an analytical as
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2. well as a statistical tool to understand the market trends, structure, drivers, restraints and the outlook of
the market till 2016. This report can serve as an excellent guide for investors, researchers, consultants,
marketing strategists, and all those who are planning to foray into Indian smart cards market in some form
or the other.
What We Have Achieved in this Report
Comprehensive situation analysis of the Indian smart cards market and its dynamics.
Identified all application segments/sub-segments and quantified their current and future market
potential.
Provided a robust long range value and volume forecast for all segments and sub-segments.
Provided an understanding of key drivers and restraints and their impact on current and future
market performance.
Smart Card Application Segments and Sub-segments Covered in this Report
Telecommunication
National Population Registry Project
Financial Services
Credit & Debit Cards
Financial Inclusion
PAN Cards
Travel Identity
Driving License
Registration certificates
Passports
Automatic Fare Collection
Metro Rail Projects
Bus projects
Indian Railways
Healthcare
Rashtriya Swasthya Bima Yojna
Ex-servicemen Contributory Health Scheme
Public Distribution System
Focus of the Analysis for Each Segment & Sub-segment
Segment/Sub-segment Overview
Smart Card Implementation Scenario
Historical and Future Smart Card Volume Demand
Historical and Future Smart Card Value Demand
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3. Focus of the Analysis for Each Segment & Sub-segment
Segment/Sub-segment Overview
Smart Card Implementation Scenario
Historical and Future Smart Card Volume Demand
Historical and Future Smart Card Value Demand
Methodology
Initial Exploration of the Indian Smart Cards Market: Conducted secondary and primary market
research to complement/enhance our current knowledge and define key market segments and sub-
segments.
Qualitative Market Research: Interviewed various industry stakeholders to gain a comprehensive insight
on all major segments and sub segments. This included understanding key metrics and events such as
smart card requirements, current and future demand, implementation timelines, success and risk factors,
costs, etc.
Quantifying the Current &Future Market Potential: Consolidated our results to quantify the value and
volume potential of smart cards in each segment and sub-segment.
Validating Our Results: Collaborated with industry stakeholders to validate our results and findings.
Information Sources
Information has been sourced from both primary and secondary sources:
Primary sources include industry surveys and face to face/telephone interviews with industry
experts.
Secondary sources include proprietary databases and search engines. These sources include
company websites and reports, books, trade journals, magazines, white papers, industry portals,
government sources and access to more than 4000 paid databases.
To buy the complete report or to get a free sample, please contact:
IMARC Group Asia
Email: apac@imarcgroup.com
Phone: +91-120-425-6531
IMARC Group North America
Email: america@imarcgroup.com
Phone: +1-631-791-1145
To know more please visit: http://www.imarcgroup.com
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