Dual interface shipments to exceed the 1 billion mark in 2015.
The number of dual interface and pure contactless smart cards is expected to make up 30% of all smart card shipments in 2018, rising from 16% of the 8.6 billion smart cards shipped in 2013.
According to a report by ABI research, the adoption of contactless cards will rise over the coming five years, driven by by government ID, transportation, ticketing, and payment cards.
SWP SIM card volumes are expected to cross the 500 million by 2018, the report added.
ABI research analyst, Phil Sealy, said that the increase in adoption of contactless cards is not limited to a selection of markets, although banking and government verticals are adopting contactless technology at a quicker rate, followed by the SIM market.
"ABI Research tracks new services and credentials regionally, including governments issuing new national ID and social welfare cards, MNOs with SIM-based NFC payment services and wallets, and banks jumping to next-generation dual interface EMV cards," Sealy said.
"As a result ABI Research forecasts that dual interface shipments will exceed the 1billion mark in 2015."
In 2013, 59% of all contactless deployments will use a contactless interface and that is expected to decrease to 38% by 2018.
The rise in dual interface adoption will increase margins benefiting IC and smart card vendors, the report added.
According to the report, IC vendors like NXP, Infineon, and STMicroelectronics will offer a combination of convenience and high-end security over multiple applications.