The SIMalliance membership, which represents approximately 86% of the global SIM market, has reported SIM shipment volumes totalling 4.2 billion units for 2013, compared to 4.6 billion in 2012. The estimated total available market in 2013 was 4.85 billion units, compared to 5.1 billion in 2012 – but strong growth in NFC SIM cards continues.
The 5% reduction in the estimated total available market results from a decline in low-end SIM shipments across Asia – particularly in India – following the introduction of regulation which requires prepaid SIM customers to be formally identified and registered. While the regulation had a notable impact on the market in 2013, the region has adapted swiftly to the new requirements and recovery was evident even in the most affected countries towards the end of the year. The outlook is therefore that the market will return to normal and further growth is anticipated.
Elsewhere around the globe, there has been significant year-on-year growth in SIM shipment volumes:
- Japan/Korea (+19%)
- Americas (+11%)
- MEA (+10%)
- CIS Republics (+6%)
The primary growth factor in Japan/Korea and the Americas has been a surge in demand for high-end NFC and LTE SIMs, while subscriber acquisition is still fuelling growth in some African markets, particularly in sub-Saharan countries.
Globally, year-on-year NFC-enabled SIM shipments, as reported by SIMalliance members, have risen by 159% to 78m. The strongest NFC market was Japan/Korea (37m shipments), while North America (24m shipments) superseded Western Europe as the second largest NFC market in 2013. Market growth for NFC-enabled SIMs was reported across North America, Greater China, Pacific Asia, Japan/Korea and Europe.
2013 was the third consecutive year that significant shipments of NFC-enabled SIMs have been reported by the SIMalliance membership and each year has brought rapid growth across multiple markets; in 2011, there were 16m shipments of NFC-enabled SIMs, with a further 30m in 2012. This exponential growth trend is likely to continue in 2014.
With a cumulative total of 124m NFC-enabled SIM shipments in the past three years, and a growing base of NFC-enabled phones and NFC-ready Point of Sale (POS) terminals, there is now a far-reaching and stable infrastructure in place for the continued roll-out of NFC services globally. IHS Technology recently reported 275m global shipments of NFC-enabled mobile phones in 2013, with a further 416m – indicating growth of 50% – forecast to be shipped in 2014, while Berg Insights has estimated that 53% of the world’s POS terminals will be NFC ready by 2017.
“The most positive trend observed globally is the sharp increase in demand for high-end SIM products, particularly against a backdrop of the continuing momentum for NFC service deployments worldwide,” says Frédéric Vasnier, SIMalliance Chairman.
“With 124m NFC-enabled SIMs shipped in the past three years; the expectation that NFC SIM shipments will continue to rise in all advanced markets in 2014; and a critical mass of NFC-enabled handsets and NFC-ready POS terminals gaining ground, the signal is loud and clear: the infrastructure has been laid for the future mass roll-out of secure SIM-based NFC services. A strong foundation is now in place worldwide and is ready to be utilised by NFC service providers.”