Smart card use in Middle East, North Africa expected to rise

According to new research by Frost and Sullivan, the smart card market value in the Middle East and North Africa is expected to reach $328.5 million by 2014, with the telecommunications industry representing more than 64 percent of the market.

Between 2011 and 2013, the research firm projects the global smart card market to increase at an annual compound growth rate of 12 percent, while the MENA region's CAGR will be nearly 11 percent during this time. According to V. Gopalakrishnan, regional director of Digital Identification Solutions, the demand for smart cards is a result of the need for secure identification and credential solutions.

To promote the use of smart cards in the region even further, officials are preparing for the upcoming Gulf Information Technology Exhibition, which will be held in Dubai during October.

"Smart cards have become a part of our daily lives and the reliance on such technology is growing," said Trixee Loh, senior vice president of World Trade Center and organizer of the event. "As smart card technology continues to evolve and grow at such a rapid pace across the MENA region, exhibitors will appreciate the new platform that GITEX is providing the industry."

Loh also said the event will offer insight on the widespread use of smart cards in the financial services sector, national IDs, hospital records and other advancements.

Additionally, the Cardz Middle East Trading company plans to showcase its smart card technology at GITEX and, according to managing director Nitin Shabbir, the demand for the technology is unique to businesses in the region.

"Companies need a common platform to show the market what solutions the industry can offer," said Shabbir. "For regional companies like us, GITEX allows us to showcase our technology to a wider regional and global audience."

As organizations worldwide adopt smart cards, a new study by the Aberdeen Group points to industry leaders turning to the technology for greater security measures. After witnessing the attacks against Lockheed Martin and L-3, companies plan to utilize smart cards to protect against such data breaches.

"The RSA breach and other related news headlines are raising industry awareness of the risks associated with failure to use the most up-to-date two-factor authentication methods at the very least," said Derek Brink, vice president and research fellow for IT Security at Aberdeen Group.

Overall, RNCOS expects worldwide shipments of smart cards to increase at a compound annual growth rate of approximately 24 percent from 2011 to 2013.