by The global Biometric Card Market is estimated to be valued at US$ 15.55 million in 2021 with a CAGR of 77.3% over the forecast period (2022-2030), as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Biometric cards are advanced payment cards that incorporate biometric technology, such as fingerprint recognition, to provide secure and convenient payment solutions. These cards eliminate the need for PIN codes or signatures, offering enhanced security and ease of use for consumers. Biometric cards are gaining popularity in various sectors, including banking, finance, healthcare, and government, due to their ability to ensure accurate identification and reduce the risk of fraud. The growing need for secure financial transactions and the increasing adoption of biometric technology are driving the demand for biometric cards in the market.
Market Key Trends:
One key trend in the biometric card market is the integration of contactless payment technology. With the increasing popularity of contactless payments, biometric cards are being equipped with Near Field Communication (NFC) technology, allowing users to make secure transactions simply by tapping their cards on payment terminals. This technology offers speed and convenience, making it a preferred choice for consumers. Additionally, the integration of contactless payment technology enhances the overall security of biometric cards, as it eliminates the need for physical contact, reducing the risk of card cloning or tampering. This trend is expected to drive the growth of the biometric card market in the coming years.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the biometric card market is relatively low. This is due to the high barriers to entry, such as the need for significant investment in research and development, intellectual property rights, and manufacturing capabilities. Additionally, established players in the market have a strong brand reputation and customer loyalty, making it difficult for new entrants to gain market share.
Bargaining power of buyers: The bargaining power of buyers in the biometric card market is moderate. While buyers have options to choose from a variety of suppliers, the uniqueness of biometric card technology limits their bargaining power. Moreover, the switching costs associated with changing suppliers can be high. However, as the market grows and competition intensifies, buyers are likely to gain more bargaining power.
Bargaining power of suppliers: The bargaining power of suppliers in the biometric card market is relatively high. This is primarily due to the limited number of suppliers with advanced biometric card technology, as well as their control over the key components and materials required for production. Suppliers can dictate the terms and prices, leading to increased costs for manufacturers.
Threat of new substitutes: The threat of new substitutes for biometric cards is low. Biometric cards offer a high level of security and convenience, making them difficult to replace with alternative solutions. While there may be other forms of biometric authentication available, such as facial recognition or fingerprint scanning, the integration of these technologies into cards provides added convenience for users.
Competitive rivalry: The competitive rivalry in the biometric card market is high. The market is dominated by a few key players, who are continuously innovating and investing in research and development to gain a competitive edge. The intense competition leads to price wars and aggressive marketing strategies to capture market share.
Key Takeaways
The Biometric Card Market Size is expected to witness high growth, exhibiting a CAGR of 77.3% over the forecast period of 2022 to 2030. This growth can be attributed to the increasing demand for secure and convenient authentication solutions across various industries, such as banking, government, healthcare, and transportation. Biometric cards offer enhanced security and eliminate the need for traditional passwords or PINs.
In terms of regional analysis, Asia Pacific is expected to be the fastest-growing and dominating region in the biometric card market. The region has a large population and an increasing adoption of digital payment systems, which is driving the demand for secure authentication solutions. Furthermore, governments in countries like China and India are actively promoting digitalization, providing opportunities for biometric card manufacturers.
Key players operating in the biometric card market include 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 investing in research and development activities to develop advanced biometric card solutions and expand their market presence.
Overall, the biometric card market is poised for significant growth in the coming years, driven by increasing concerns over security and the need for convenient authentication solutions. The market is highly competitive, with key players focusing on innovation and strategic partnerships to gain a competitive advantage.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
