BIOMETRIC CARD MARKET ANALYSIS

Biometric Card Market Size and Trends

The Biometric Card Market is estimated to be valued at US$ 0.57 billion in 2024 and is expected to reach US$ 34.81 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 79.9% from 2024 to 2031. Increasing demand for secure and reliable identification solutions is driving the growth of the biometric card market. Biometric cards offer two-factor authentication by verifying fingerprints, face, iris, or voice along with security chips. This provides robust security for identification and access to buildings, computer networks, and IT systems.

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The market is witnessing high demand from government organizations as biometric cards help in identifying individuals easily and securely. Governments across countries are undertaking digital identity programs and issuing biometric enabled ID cards and passports to citizens. With growing security breaches and increasing instances of document fraud, organizations across industries are adopting biometric cards to authenticate employees and customers, which is further propelling the demand for biometric cards.

Increasing adoption of digital payments

Biometric cards are expected to see greater adoption as digital payments continue to grow in popularity globally. Over the past decade, there has been a significant shift away from cash payments towards contactless payments using cards, mobile wallets, and other digital means. This trend was further accelerated during the COVID-19 pandemic as consumers sought safer payment options that minimize physical contact.

The growing market for contactless payments and rise of new technologies like mobile wallets have compelled retailers to upgrade their point-of-sale systems as well. Modern payment terminals now support tap-and-pay along with card authentication modes beyond chip-and-PIN. This interoperable infrastructure allows biometric cards to be accepted across merchants smoothy. Major banking institutions believe biometric verification presents a logical next step in the evolution of secure and seamless digital transactions. Wider distribution of biometric payment cards depends on overcoming technology challenges and gaining user confidence in handling biometric data securely. But with digital becoming the default choice for most consumers, biometric cards are well-positioned for significant pick up in coming years.

For instance, Fingerprint Cards AB a biometrics company, predicts that by 2026, approximately 6 billion payment devices will be shipped annually, with nearly all of them being contactless. Additionally, the company estimates the potential Total Addressable Market (TAM) for biometric sensor modules and software in the payment sector to be about 3 billion units per year.

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Increasing demand for multifactor authentication

As financial fraud and digital criminal activities become more sophisticated, the need for robust authentication solutions goes beyond simple passwords and PINs. Traditional methods are vulnerable to hacking techniques like phishing, keylogging, and brute force attacks. Criminals develop elaborate schemes to trick users into revealing login credentials or circumvent security measures entirely. This has led to significant financial losses and reputational damage for both individuals and organizations.

In response to these evolving security threats, the biometric card market is experiencing a surge in demand for multi-factor authentication (MFA).

For instance, in May 2022, IDEX and Verisoft collaborated to bring biometric card solutions to the market at reduced prices for issuers and personalization bureaus, enhancing their position in the ecosystem. IDEX expressed enthusiasm about partnering with Verisoft to deliver a comprehensive and agile approach to biometric solution standards, ensuring seamless customer payment experiences.