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TABLE OF CONTENTS
Introduction and Overview of AIDC Market in India ......................................
Outlook ........................................................................................................... 10
Annexure ........................................................................................................ 11
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leading to a faster rate of adoption amongst industry peers. AIDC technologies are
anticipated to garner momentum between 2010 and 2020, when India is foreseen to
witness massive government spend to help transform the Indian economy.
EMERGING TRENDS FOR AIDC TECHNOLOGIES IN INDIA
A vast majority of Indias 1.2 billion population resides in villages. The central and
state Governments formulate numerous welfare schemes for the benefit of the vast
rural population. However, challenges in their implementation result in a major
proportion of the beneficiaries not availing the benefits of welfare schemes. This
calls for use of technology to check pilferage in the distribution system and also to
ensure better transparency by maintaining end-user identity data onto a central
government database. AIDC technologies in the form of smart cards and biometrics
are coming to the rescue of various Government projects ranging from Unique
Identification Authority of India (UIDAI) to Mahatma Gandhi National Rural
Employment Guarantee Act (MGNREGA) to various Financial Inclusion Schemes.
Indias telecom penetration is witnessing new highs in the form of Mobile SIM
adoptability in rural areas. Assuming that India will not pass a regulation to remove
inactive SIM cards, the SIM card volumes are to reach 1.5 billion by 2015 from 640
million in 2010, which is almost 2-3 times the subscriber base in the U.S.
The Indian Government would embark on a massive infrastructure spend to help
build world-class roads, airports, railways and ports all of which would lead to an
enhanced transportation and logistics infrastructure (for example, a freight
corridor), which would propel faster adoption of AIDC technologies such as RFID.
Chart 1: Mega Trend Impact on AIDC Industry in India, 2010-2020
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For Smart Cards, Mobile SIM card application garners the lions share with the
most phenomenal growth coming in from multiple SIM card usage per subscriber
For RFID, primary consumers and the early movers have been the supply chain
management applications followed by Government procurement
For Biometrics, Government and Law Enforcement agencies have been the
primary users of this technology
FROST & SULLIVANS KEY FINDINGS ON AIDC MARKET
The AIDC Market in India is expected to grow from the current US $ 581 million
to nearly US $ 1.3 billion by 2014 at a Compound Annual Growth Rate (CAGR) of
22.37 percent. Of all the AIDC technologies, Smart Cards takes the lions share
with 2010 revenues pegged at US $ 510 million and expected to reach US $ 903
million by 2014.
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