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RFID/GPS/Location Channel / Industry News

NXP maintains pole position within the ticketing market despite increasing competition

August 13, 2012
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Despite competition clearly increasing within the contactless ticketing market, NXP maintains a dominate foothold, through its line of MiFare solutions. NXP achieved a combined market share in excess of 70% for 2011 smart card and RFID ticketing IC shipments.

The OSPT continues its quest in penetrating the market with CiPurse product and has certainly had a successful 2012, completing pilots and trials worldwide, leading to two ongoing commercial deployments of CiPurse cards across two transport authorities believed to be located in Europe and Latin America.

Research analyst Phil Sealy comments: “The CiPurse solution has made good progress in 2012. At ABI Research we strongly believe that a robust and flexible product range will increase its appeal.” Despite the CiPurse contract wins, it is important not to get carried away. The OSPT is certainly in its infancy in terms of its specifications and commercially available solutions. Added competition from the OSPT is healthy for a growing transportation market, but it is not expected to challenge NXP’s market share ranking over the mid-term.

Those that stand to benefit from increased CiPurse adoption include austriamicrosystems, Ecebs, G&D, Infineon, Inside Secure, Oberthur, Samsung, Smartrac, Openticketing, and Watchdata, all of whom are members of the OSPT Alliance. Adding a CiPurse product range to G&D, Watchdata and Oberthur’s portfolios could help them challenge ASK’s dominant position as the leading smart card ticketing provider.

The overall market continues to grow at a YoY double digit rate, enabling the market to sustain business for new entrants, whilst allowing those already active and dominant to maintain a strong position.

Practice director John Devlin comments, “Contactless smart ticketing used to be adopted only by those large “flag ship” cities across the world. We are now starting to see contactless ticketing solutions adopted by smaller towns and cities, who realize the benefits and potential ROI’s contactless technology can achieve. For example, the transport authorities within Newcastle, Bradford, and Manchester in the UK are all looking into contactless ticketing adoption, inspired by the London Oyster card.

ABI Research’s “Transportation Ticketing Technologies” market data provides regional shipment data on smart card and RFID solutions by region and product type. The forecasts provide ABI Research's view of the most likely future market changes and developments. These findings are part of ABI Research’s Transportation Ticketing Technologies Research Service, which includes additional Competitive Analyses, Vendor Matrices, Market Data, and Insights.

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