This growth rate compares very favourably to the estimated 5 percent growth seen in 2009 during the recession. 5 percent was the slowest unit shipments had increased year on year since 2002 and the second worst growth rate on record. “This 19 percent growth rate compares very favorably with the long term trends for the market.” stated Alex Green, one of the report authors. “Over the last 10 years the average annual growth rate for this market has been around the 20 percent level, within only 2002 and 2009 dipping significantly below this level,” continued Green. Unfortunately this high level of growth is not forecast to be maintained. “Although the market is not forecast to drop back down to the lows seen in 2009 and 2002, and is still forecast to have double digit annual growth, it will struggle to stay at the 20 percent level,” continues Green. This is largely attributed to that fact that the cellular handset installed base is projected to grow at lower rates than those seen during the last decade and hence the SIM card market will grow at lower levels. “The SIM card market is responsible for the majority of smart cards shipped and so the wider market is very much influenced by trends in SIM card shipments,” stressed Green. That being said, other applications are forecast to “take up the slack” to some extent. Growth for payment and banking cards is projected to remain at the same historically high levels and M2M is forecast to inject additional growth. http://imsresearch.com