July 23, 2024
Biometric Card Market

Biometric Card Market is Estimated To Witness High Growth Owing To Increased Adoption Of Contactless Biometric Payment Cards

Market Overview:

Biometric card is a smartcard integrated with fingerprint sensors, facial recognition or iris scanners. It captures the biometric data and stores it securely in an embedded chip. The biometric data is then matched against stored templates during authentication. Biometric cards provide secure, convenient and contactless payment method. They eliminate the need for PINs, signatures or passwords. This significantly enhances security and reduces identity theft.

Market key trends:

Growing concerns about security of financial transactions are boosting adoption of biometric payment cards. Contactless biometric cards authenticate users through unique biometric characteristics like fingerprint, face or iris every time a transaction is made. This offers two-factor authentication and prevents fraudulent activities like card cloning and card skimming. Rising online payments and growing e-commerce industry are also favoring biometric cards market. Government initiatives to promote digital payment methods coupled with urbanization are further expected to drive the demand. Major card manufacturers and payment networks are actively collaborating with biometric technology providers to develop and roll-out biometric cards at large scale.

Porter’s Analysis

Threat of new entrants: Low capital requirements and established technology barriers make threat of new entrants low in the biometric card market.

Bargaining power of buyers: Buyers have high bargaining power in the biometric card market due to availability of substitutes and undifferentiated products.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to differentiated components and established suppliers.

Threat of new substitutes: Emerging fintech solutions pose threat of substitution to traditional biometric cards.

Competitive rivalry: Intense due to presence of large number of players offering similar products.

SWOT Analysis

Strength: High security features of biometric cards make fraudulent activities difficult. Growing demand for contactless payments drives market growth.

Weakness: High production costs compared to traditional cards and reliability issues affect commercial adoption. Large investments needed to develop biometric sensor technologies.

Opportunity: Rising digital identity thefts and secure authentication requirements from financial sectors and governments boost the market. Growing smartphone usage facilitates deployment of fingerprint sensor technologies.

Threats: Privacy and data security concerns limits widespread adoption. Technological disruptions from emerging technologies like blockchain can replace biometric cards.

Key Takeaways

The global Biometric Card Market is expected to witness high growth, exhibiting CAGR of 77% over the forecast period, due to increasing demand for secure identification and authentication solutions. Europe dominates the biometric card market currently due to stringent data protection laws and rising electronic payments in the region. Asia Pacific is expected to grow at the fastest rate owing to technological advancements and supportive government regulations for digital identity systems in countries like India, China and Japan.

Regional analysis

Europe dominates the biometric card market currently accounting for over 30% of the global market share in 2023. Countries in the region have stringent data protection laws and rising adoption of contactless payments drives the demand. Asia Pacific region is expected to grow at the fastest rate during the forecast period due to increasing adoption of digital identity systems in developing countries of India and China attributed to initiatives by the governments.

Key players

Key players operating in the biometric card market are Shanghai Fudan Microelectronics Group Co. Ltd., Zwipe AS, Samsung’s System LSI Business, 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. These players are focusing on new product launches and partnerships with technology providers to strengthen their market position.

Note:

  1. Source: Coherent Market Insights, Public sources, Desk research

  2. We have leveraged AI tools to mine information and compile it