Biometric Card Market Estimated To Witness Robust Growth Due To Increasing Identity Theft Issues And Growing Need For Secure Access
The Biometric Card Market is estimated to be valued at USD 0.57 Bn in 2024 and projected to expand at a CAGR of 79.9% during the forecast period of 2024-2031. Biometric cards offer highly secure authentication by integrating fingerprint or iris scanning capabilities at the time of transactions. Furthermore, the market is expected to grow rapidly owing to the rising cases of identity theft and growing need among organizations to implement fool-proof identity verification systems at the time of critical activities.
Market Dynamics:
The biometric card market growth is primarily driven by the increasing instances of identity theft across both personal and corporate domains. Identity theft has emerged as a serious issue compromising individual privacy and leading to financial losses. Biometric cards can prevent identity theft by verifying individuals based on their unique biological characteristics. Additionally, the growing need for secure access amid the spread of digitalization is boosting the deployment of biometric cards across government offices, corporate offices, and other restricted access areas. The real-time identity verification via fingerprint or iris scan ensures only authorized users can access crucial data and systems. The rising use of biometric modalities will continue driving the demand for biometric cards over the forecast period.
Market Drivers:
Growing Demand for Enhanced Security Solutions
The increasing threat of identity theft and security breaches has pushed organizations across various industries to adopt stronger authentication measures. Biometric cards provide a highly secure way to verify users' identities and limit unauthorized access. By storing biometric templates directly on the card chip, these cards allow for fast and accurate one-to-one matching without requiring an external database. This removes the risk of biometric data being stolen and misused. The need for enhanced security is a major factor driving more companies to implement biometric card solutions.
Stringent Government Regulations are Accelerating Adoption of Biometric Technologies
Many governments around the world have introduced new laws requiring stronger identity verification processes. For example, the EU passed a regulation mandating electronic ID cards to incorporate biometric identifiers like fingerprints. Several countries have also launched digital ID programs based on biometric smart cards to enable access to essential services. Compliance with regulatory standards is prompting various sectors dealing with sensitive data and critical infrastructure to adopt biometric cards. The increasing governmental emphasis on security through biometric mandates is propelling the biometric card market growth.
Market Restraints:
Higher Cost of Biometric Cards Compared to Traditional Cards
While biometric cards offer superior security, their production and deployment costs are significantly higher than conventional card technologies. Biometric sensors, matching algorithms, and robust on-card memory modules drive up material and manufacturing expenses. Organizations also need to invest in new card issuance systems, readers, and supporting IT infrastructure to integrate biometric verification. For cost-sensitive applications and markets in the developing regions, the premium pricing of biometric solutions poses an adoption challenge currently.
Concerns Regarding Data Security and Privacy Breaches
Storing and processing biometric data raises serious privacy and data protection issues. There are risks of biometric templates being stolen or leaked, allowing impersonation attacks. Any vulnerability or system breach can severely compromise users' identity security. Compared to passwords, biometric identifiers like fingerprints cannot be changed if compromised. These risks discourage certain user groups and sectors from wholeheartedly embracing biometric card solutions. Strong regulations and standards around biometric data handling must be established to boost user confidence over privacy and security concerns.
Market Opportunities:
Growing Need for Contactless Payments is Creating Opportunities
The COVID-19 pandemic has accelerated the shift towards digital and contactless payment options to reduce virus transmission risks via cash and cards. Biometric payment cards could play a major role by enabling secure one-tap transactions without the need for PIN entries or signatures. Several banks are exploring solutions fusing biometric identification with near-field communication (NFC) for fast and hygienic retail checkouts. As social distancing and clean cash preferences continue in the post-pandemic era, there will be vast opportunities for biometric payment cards to gain broader acceptance.
Rising Demand for Secured Access and Identification Across Industries
Biometric authentication finds myriad applications beyond financial services including government IDs, physical access control, employee time/attendance, and computer/network logins. Sectors like healthcare, transportation, and critical infrastructure increasingly require assured identity verification while onboarding services or granting access. The widespread push for digitization and industrial IoT adoption also raises demands for secured identity management. The diversifying use cases open up new avenues for biometric card providers to capture large untapped market segments beyond existing strongholds.
In conclusion, while costs and privacy issues pose temporary barriers, the biometric card market is set for accelerated growth riding on the powerful drivers of enhanced security needs and regulatory pushes. Emerging opportunities around contactless payments and expanded industrial identity management solutions will further catalyze wider adoption across global markets in the coming years.
Link - https://www.coherentmarketinsights.com/market-insight/biometric-card-market-5443
Key Developments:
- In June 2022, Zwipe a biometric card platform, and Fidor Bank announced plans to pilot biometric payment cards in Germany in the latter half of the year, powered by the Zwipe Pay technology platform. This initiative aligns with Fidor's strategy to offer consumers secure access to digital banking and payment services.
- In the same month, Wisecard Technology, a payment solution provider, and Zwipe AS partnered to introduce biometric payment cards in the Asia Pacific region. They agreed on joint sales and marketing efforts, supported by robust technology collaboration, with Wisecard providing pre-built personalization scripts for Zwipe Pay biometric cards to ensure faster and smoother implementation for banks and card personalization bureaus.
- Additionally, in May 2022, Fingerprint Cards AB a biometric cards solution provider, and Mswipe, an independent mobile POS merchant acquirer and network provider, announced their collaboration to introduce biometric debit and credit cards in India, featuring Fingerprints' T-Shape module and software platform.
Key Market Players:
Key companies covered as a part of this study include Bio-idz, BNP Paribas, Ethernom Inc., Fingerprint Cards AB, Goldpac Fintech, IDEMIA Group, IDEX Biometrics ASA, Infineon Technologies AG, Mastercard Incorporated, NXP Semiconductors, Samsung's System LSI Business, Seshaasai Business Forms (P) Ltd, Shanghai Fudan Microelectronics Group Co. Ltd, ST Microelectronics NV, Thales Group, Visa Inc., and Zwipe AS are the major players.
