Increasing Instances Of Digital Identity Theft Projected To Boost The Growth Of Biometric Card Market

 

 Biometric Card Market 

The global Biometric Card Market is estimated to be valued at US$ 48.88 Mn in 2023 and is expected to exhibit a CAGR of 77% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Biometric cards work on the combination of biometrics and chip card technology to provide secure identity authentication and access to digital services. These cards employ fingerprint recognition, iris scans, facial recognition or vein pattern recognition as the biometric identifier integrated within the card microchip. They offer advantages like strong authentication with increased security against fraud or identity theft compared to traditional cards. With widespread digitization and growing need for convenient yet secure digital transactions, biometric cards are gaining adoption across various end-use industries like banking, government IDs, enterprise security, and healthcare.

Market key trends:

The biometric card market is witnessing strong growth driven by factors like increasing instances of digital identity theft and growing implementation of digital ID programs by governments worldwide. For instance, the Indian government's UIDAI program has issued over 1.3 billion biometric Aadhaar cards to Indian residents for authenticating identities and facilitating service delivery. In the banking sector, major players are exploring biometric payment cards as a step ahead from EMV chip cards for enhanced security during payment transactions. Furthermore, the onset of 5G and growing presence of Internet of Things is augmenting the need for fool-proof identity verification across various connected devices and services, thus favoring the adoption of biometric cards. Also, ongoing technological advancements are making biometric cards more compact, accurate and cost-effective, increasing their viability for mass adoption across mainstream applications over the forecast period.

Porter’s Analysis

Threat of new entrants: The biometric card market requires high initial investments in R&D and production facilities which increases the entry barriers for new players.

Bargaining power of buyers: Individual buyers have low bargaining power due to standardized biometric cards offered by vendors. However, large organizations have relatively higher bargaining power due to bulk purchasing abilities.

Bargaining power of suppliers: The suppliers of card components and biometric sensors have moderate bargaining power due to the differentiated nature of technology and intellectual property involved.

Threat of new substitutes: Alternatives such as mobile payments and digital identification provide some substitution threat. However, cards remain indispensable for certain financial and access control applications.

Competitive rivalry: Being a specialized market, competition is concentrated among a few technology vendors and card manufacturers.

Key Takeaways

The Global Biometric Card Market Demand is expected to witness high growth, exhibiting CAGR of 77% over the forecast period, due to increasing need for secured identification and financial transactions.

Regional analysis: Asia Pacific dominates the biometric card market and is expected to maintain its lead over the forecast period, owing to rapid digitalization in countries like India and China. North America and Europe hold significant shares due to strict security regulations for critical infrastructure and financial systems.

Key players: Key players operating in the biometric card market are Shanghai Fudan Microelectronics Group Co. Ltd., Zwipe AS, Thales Group, Ethernom Inc., IDEX Biometrics ASA, Visa Inc., Goldpac Fintech, Mastercard Incorporated, Fingerprint Cards AB, ST Microelectronics NV, Seshaasai Business Forms (P) Ltd., and IDEMIA Group. Major players are focused on developing advanced biometric technologies and partnerships with financial institutions for use in payment cards and identification cards.

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