A particular area for expansion is in government-led identification systems such as electronically tagged passports.
Research analyst Reuben Foong explains that these must be renewed every five to ten years; this indicates a sustainable demand for the chips and the semiconductors that power them.
Meanwhile, alleviated security concerns relating to the use of contactless credit and debit cards is expected to see more use of near-field communications for banking.
Mr Foong suggests that, as more mobile devices become equipped with the technology to support near-field communications, its use in contactless banking services is likely to grow as a result.
The report is issued by Frost's smart cards growth partnership service, which tracks trends in the market in order to provide insight to operators and enable them to build towards future growth.
