According to ABI Research, the global SIM cards market is expected to witness a growth rate of 4.1 per cent in 2015 and reach 5.4 billion by end of the year.
The transition from 2G to 3G and to 4G is creating potential business opportunities for SIM card vendors. Further, smart card vendors including Gemalto, Giesecke and Devrient, Oberthur Technologies, and Morpho are focusing on long term evolution (4G) SIM card market.
The research firm states that the declining average sales price for the product is leading smart card and integrated circuit vendors to change their selling and marketing strategies. SIM card vendors are moving up the business value chain by shifting their focus from market share gains to higher value product propositions such as single wire protocol SIMs and LTE SIMs.
ABI research underlines that markets such as Europe, North America, and Asia-Pacific are currently in the phase of a smooth technology transition from 2G, 3G to 4G. These markets are witnessing significant investments in network infrastructure, thereby driving the growth in the SIM card market. However, other telecom markets including Latin America and India, are currently facing challenges in terms of infrastructure expansion and network upgrades leading to further delays in LTE rollout.
