China Smart Card Market 2009
This new Smart Insights Report analyzes all market segments for the Chinese Smart Card Market:
• Mobile Communication: China hosts the largest mobile network operator by the number of subscribers, and is expected to pass the one billion subscribers bar by 2012,
• Payment, with 1.8 billion magstripe cards on the field ready to be converted to smart cards,
• Transport, with contactless card applications in every large Chinese city,
• Government ID, where the government has already equipped each Chinese citizen with a smart ID card, and is in the process of distributing healthcare cards,
• Mobile Payment services, with NFC trials under way to develop proximity mobile payments,
• Pay TV, with a digital TV market adding 2 million new users every month.
It includes qualitative and quantitative research covering all market segments.
And a detailed analysis about Chinese smart card vendors:
• Aerospace Golden Card
• Beijing Huahong IC Design
• Datang Microelectronics Technology
• Huada Electronic Design
• Jiangsu Hengbao
• Shanghai Huahong Integrated Circuit
• Tongfang Microelectronic
• Wuhan Tianyu Information Industry
• … and more …
This report (120 pages) provides answers to the following questions:
• What is the Chinese smart card market volume?
• What is the impact of the ongoing crisis on the Chinese smart card market?
• What is the impact of the telecom reshuffling on SIM cards demand?
• How do the different 3G networks affect mobile communication demand?
• How will mobile subscriptions and handset sales grow until 2013?
• How many mobile communication cards (SIM, UIM, USIM) will be shipped in 2013?
• What are the role and projects of China UnionPay?
• How will the 1.8 billion Chinese bank cards evolve towards smart cards?
• What is the evolution path between transport cards and electronic purses?
• What is the 2nd generation ID card?
• How will social security cards change the day-to-day life of more then a billion Chinese?
• What is the evolution of remote mobile payemt?
• And how will NFC pilots influence deployment?
• Who are the major Chinese smart card vendors?
• How do they develop their product roadmaps?
• What are their strategies?
If you need answers to these questions, … and a lot more… you need your copy of China Smart Card Market 2009, a just published Smart Insights Report.
“China Smart Card Market 2009”, a Smart Insights Report is a must for everyone interested in the smart card industry or in its markets: telecoms, payment, transport, government ID, mobile payment, pay TV and in the huge opportunity for development brought by the Chinese markets.
Chinese smart card market has become one of the leading markets in the industry.
Since 1993, the Chinese government has established smart card projects as a priority under the “Golden Card Project” program. The government’s objective is to support the development of the smart card industry thanks to major projects, such as telecom development, national ID card, social security card, etc….
The leading market for the smart card industry is and will remain SIM cards. China Mobile is the largest mobile network operator worldwide by the number of subscribers. China Telecom and China Unicom also have sizeable market presence. Thus the Chinese SIM card market represents one of the most attractive in the world, along with one of the most competitive, as a growing number of domestic vendors compete with internationally recognized brands. Mobile phone penetration is still at an average level, so more growth is in sight. Moreover, the development of the third generation of mobile communication opens new highways for market growth. SIM card is to remain the main smart card application in volume for the Chinese smart card market, as subscriptions will soon pass the 1 billion mark in 2012.
With an increasing bancarization and financial inclusion of the population, China is one of the largest bank card markets in the world, with more than 1.8 billion magstripe cards already distributed. However, for the time being, smart cards have been used only as a subject of pilots and trials. People’s Bank of China and China UnionPay play a major role in the standardization and spread of banking cards. Options remain open whether China will engage in the way of EMV contact or contactless banking cards. When this development happens, it will have huge market implications for smart cards, terminals, and payment infrastructure market developments.
The Chinese government has launched several national identity projects. Distribution is under way to equip each Chinese citizen with and ID card. Then, with the launch of a national health insurance program, Chinese citizens are to be equipped with a healthcare card, which will bring a faster growth to this market.
Mobile payment services are already present in the day-to-day life of Chinese citizens. Extensive presence of mobile communication, along with the need for an improved payment infrastructure will lead to the convergence between mobile communication and payment with NFC (Near Field Communication) technology. Trials are already under way in Chongqing, as well as in other locations.
The transportation segment plays an essential role in the development of Chinese smart card markets. Following Hong Kong example, China main cities transport networks use smart cards as a means for payment, representing high volumes of contactless cards, for instance 50 million cards and tickets are in use in the City of Shanghai.
Education smart cards in high schools is considered as another great market segment in China. As its huge student base number develops rapidly, a more secure and easy way using smart card technology is needed to satisfy all their campus applications.
Founded in 2004, China’s payTV market has been increasing rapidly during the past few years. Covering more than 30 cities in China in 2009, the pay TV market is quickly developing from major cities to the medium and small-sized cities, which makes it one great potential segment of smart cards.
Thanks to these market developments on every market segment of the smart cards industry, and with a will to develop the Chinese industry, many Chinese smart card industrialists have appeared in recent years. They cover now all steps in the smart card value chain. Chinese smart card companies play a strong role on domestic markets and develop fast on foreign markets. For the time being, as Chinese smart card industrialists are still struggling for international recognition, they conquer markets mainly in Asia, Middle East and Africa, where they play a growing role.
1. Overview 11
2. Telecom 17
2.1 - Chinese mobile market profile, current situation and prospects 19
2.2 - China Mobile, China Unicom and China Telecom restructuring 22
2.2.1 Major telecom operators 22
2.2.2 2008 telecom industry restructuring 23
2.3 - 3G in China 25
2.3.1 3G licenses issues 26
2.3.2 Heavy investment in 3G 27
2.3.3 TD-SCDMA in the global market 28
2.4 - Handsets and smart phones 29
2.4.1 Xiaolingtong (PHS) goes to its end 29
2.4.2 Forecasts 30
2.5 - Mobile communication cards 32
2.5.1 Forecasts 33
2.6 - IC telephone card 34
3. Payment 35
3.1 - Background 37
3.1.1 EMV standard and its implementations 37
3.1.2 China UnionPay 38
3.1.3 First IC bank card 40
3.1.4 Chinese cards spending habit 40
3.2 - Chinese banking industry and EMV migration 41
3.2.1 Global Drivers for EMV Migration 41
3.2.2 Migration strategies and Chinese EMV standard 41
3.2.3 Government support for EMV migration 42
3.2.4 Barriers to EMV migration in China 43
3.2.5 EMV migration market value 44
3.2.6 Impact on stake holders 45
3.2.7 EMV migration by 2011? 46
4. Transport 47
4.1 - Overview 49
4.1.1 Multi-application 49
4.1.2 Inter-city transport network 49
4.2 - Chips for major transport cards 49
4.2.1 ISO/IEC 14443 & ISO 15693 49
4.2.2 Volume and chip type of major card projects 51
4.2.3 Octopus cards in Hong kong 51
5. Government ID 53
5.1 - ID Card 55
5.1.1 1st generation 55
5.1.2 2nd generation 55
5.2 - Social security card 57
5.2.1 Companies awarded COS certificates 58
6. Mobile Payment Services 59
6.1 - Overview 61
6.2 - Remote mobile payment 61
6.2.1 UMPay 61
6.2.2 Alipay 62
6.2.3 99Bill 63
6.3 - Prepaid top-up 63
6.4 - Proximity payment: NFC 64
6.4.1 Introduction 64
6.4.2 Nokia’s NFC handset 64
6.4.3 Market Chances 64
6.4.4 NFC trials in China 65
7. Pay TV 67
7.1 - Market overview 69
7.2 - China Digital TV Holding 69
8. Education 71
8.1 - Market overview 73
8.2 - Synjones group 73
9. Smart card vendors 75
9.1 - Overview and top 10 smart card vendors in China 77
9.2 - Datang Microelectronics Technology 79
9.2.1 Profile 79
9.2.2 Smart card value chain positioning 80
9.2.3 Products 80
9.2.4 Research & development 82
9.3 - Eastcompeace 83
9.3.1 Company profile 83
9.3.2 Smart card value chain positioning 83
9.3.3 Products 84
9.4 - Huada Electronic Design 86
9.4.1 Company Profile 86
9.4.2 Smart card value chain positioning 86
9.4.3 Products 87
9.5 - Watchdata 89
9.5.1 Company profile 89
9.5.2 Smart card value chain positioning 89
9.5.3 Products 90
9.6 - WuhanTianyu Information Industry 91
9.6.1 Company profile 91
9.6.2 Smart card value chain positioning 92
9.6.3 Clients 92
9.6.4 Main Business 93
9.6.5 Products 93
9.6.6 Identity and Security Solutions 93
9.7 - Shanghai Huahong Integrated Circuit 95
9.7.1 Profile 95
9.7.2 Smart card value chain positioning 95
9.7.3 Clients 96
9.7.4 Products 96
9.8 - Beijing Huahong IC Design 98
9.8.1 Profile 98
9.8.2 Smart card value chain positioning 98
9.8.3 Clients 99
9.8.4 Products 99
9.9 - Jiangsu Hengbao (Hungbao) 100
9.9.1 Company profile 100
9.9.2 Smart card value chain positioning 100
9.9.3 Clients 101
9.9.4 Products 101
9.10 - Tongfang Microelectronic 102
9.10.1 Company profile 102
9.10.2 Smart card value chain positioning 102
9.10.3 Products 103
9.11 - Aerospace Golden Card (ASGCC) 104
9.11.1 Company profile 104
9.11.2 Smart card value chain positioning 104
9.11.3 Production capacity 105
9.11.4 Products 106
9.12 - Shanghai ChangFeng Smart Card 108
9.12.1 Company profile 108
9.12.2 Smart card value chain positioning 108
9.12.3 Major clients 109
9.12.4 Products 109
9.13 - Shandong Shanlv Electronic 110
9.13.1 Company profile 110
9.13.2 Smart card value chain positioning 110
9.13.3 Major Clients 111
9.13.4 Products 111
10. Glossary of terms 113
10.1 - Abbreviations 115
10.2 - Organizations 119
Table of figures
|China smart card sales market volume 2004-2013||13|
|China smart card market by segments||15|
|Mobile subscriptions net additions in 2008||19|
|Subs penetration rate, 2008- 2013||20|
|Telecommunication industry restructuring and 3G licenses||23|
|Restructuring among the major telecom operators||25|
|Chinese mobile operators connections, Q4/2008- Q4/2009||27|
|Handsets life expectancy in 2008||29|
|Mobile subs & handsets sales, 2008-2013||30|
|Growth rate comparison||31|
|Mobile communication cards market, Q4/2008||32|
|Mobile communication cards forecasts, 2008-2013||33|
|Mobile communication cards forecasts, 2008-2013, graphic||33|
|Global geographic coverage of China UnionPay in 2009||39|
|Chinese payment cards spending habits in 2008||40|
|Global transport cards by type||50|
|Volume and chip type of major transport card projects||51|
|Second generation ID cards manufacturers||56|
|Second generation ID cards||57|
|Companies awarded COS certificates of social security cards||58|
|NFC transaction volume forecasts||65|
|Smart card vendors market share, Q1/2008||77|
|Sales and annual production of the smart card vendors in China, 2008||78|
|Datang smart card value chain positioning||80|
|Datang smart card chips||81|
|Eastcompeace smart card value chain positioning||84|
|Eastcompeace smart card chips||85|
|Huada smart card value chain positioning||86|
|Huada smart card chips||87|
|Watchdata smart card value chain positioning||89|
|Watchdata smart card chips 1||90|
|Watchdata smart card chips 2||90|
|Wuhan Tianyu smart card value chain positioning||92|
|Wuhan Tianyu clients||92|
|Wuhan Tianyu smart card chips||93|
|Shanghai Huahong smart card value chain positioning||95|
|Shanghai Huahong smart card chips 1||96|
|Shanghai Huahong smart card chips 2||96|
|Shanghai Huahong smart card chips 3||96|
|Beijing Huahong smart card value chain positioning||98|
|Beijing Huahong smart card chips 1||99|
|Beijing Huahong smart card chips 2||99|
|Beijing Huahong smart card chips 3||99|
|Jiangsu Hengbao smart card value chain positioning||100|
|Jiangsu Hengbao smart card chips||101|
|Tongfang smart card value chain positioning||102|
|Tongfang Microelectronics smart card chips||103|
|Aerospace Golden Card smart card value chain positioning||104|
|Aerospace Golden Card smart card chips||106|
|Shanghai ChangFeng smart card value chain positioning||108|
|Shanghai ChangFeng micromodules||109|
|Shandong Shanlv smart card value chain positioning||110|
|Shandong Shanlv micromodules||111|