Biometric cards facilitate secure access to personal bank accounts and financial information through fingerprint or other biometric authentication. The integration of fingerprint sensors, microprocessors and memory into smart cards enables convenient verification of cardholders’ identities. The growing need for contactless and secure payment solutions is driving the adoption of biometric cards across banking, government ID programs and other applications. Financial institutions and payment companies are actively collaborating with card manufacturers to launch biometric payment cards and expand EMV chip technology compatibility.
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 3.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing Adoption for Secure Financial Transactions: As highlighted in the market heading, the growing demand for contactless and secure payment solutions is a major factor augmenting the demand for biometric cards globally. Financial institutions and payment service providers are promoting biometric cards as a convenient alternative to passwords and PINs for authenticating transactions. For instance, biometric payment cards launched by the likes of Gemalto and Fingerprint Cards offer secure EMV-compliant payments through fingerprint verification.
Fingerprint Technology Driving Biometric Authentication: Among different biometric modalities, fingerprint-based authentication remains the most widely adopted technology for biometric cards due to its reliability and user familiarity. Longstanding integration of fingerprint sensors into smartphones and other consumer devices has made the technology a de facto standard for contactless biometric verification. Compared to alternatives like iris recognition or facial biometrics, fingerprint technology offers a simple and cost-effective solution for user authentication on payment and ID cards.
Segment Analysis
The Biometric Card Market is segmented based on type and application. Based on type, the market is sub-segmented into contact biometric cards and contactless biometric cards. Among these, the contactless biometric cards segment dominated the market in 2022 owing to its higher authentication speeds and ease of use. Based on application, the market is classified into access control, driver’s licenses, national ID cards, secure passports, voter ID cards, and others. The national ID cards sub-segment accounted for the largest share in 2022 due to rising government initiatives for creating nationwide identification systems in developing countries.
PEST Analysis
Political: Governments across major economies are implementing regulations to mandate biometric identification for official documents like passports and IDs. This is driving market growth.
Economic: The growing economy is allowing individuals and organizations to invest more in advanced biometric identification systems for security purposes. This is fueling market expansion.
Social: There is increasing awareness about identity theft and security breaches. This is propelling the adoption of biometric cards for verification and authentication.
Technological: Advancements in biometric technologies like fingerprint sensors, facial recognition, and iris scanning are making cards more accurate and user-friendly. This is facilitating the incorporation of biometrics in identification cards.
Key Takeaways
The global biometric card market share is expected to witness high growth. 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 3.3% over the forecast period 2023 to 2030.
Regional analysis related content comprises The Asia Pacific region dominated the global market in 2022 and is projected to maintain its leading position during the forecast years. Countries like India, China and Indonesia are driving the regional market owing to large populations and rising government spending on digitizing identification systems.
Key players related content comprises Key players operating in the biometric card market are Idex Biometrics, Fingerprint Cards, CPI Card Group, Watchdata Technologies, Jinco Universal, Biovex, and others
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
