Biometric Card Market: Growing Need for Secure and Convenient Authentication Drives Market Growth
The Biometric Card Market is estimated to be valued at US$ 15.55 million in 2021 and is expected to exhibit a CAGR of 77.3% over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.
Biometric cards are innovative solutions that combine the security of biometric authentication with the convenience of payment cards. These cards use biometric technologies such as fingerprint recognition, iris scanning, or facial recognition to verify the identity of the cardholder, ensuring secure and fraud-proof transactions. The increasing need for secure and convenient authentication methods in various sectors such as banking, healthcare, and government is driving the demand for biometric cards.
Market Key Trends: Rising Adoption of Biometric Cards for Payment Applications
One key trend in the biometric card market is the rising adoption of these cards for payment applications. With the increasing digitalization of payments and the growing concern for security, biometric cards are emerging as a reliable solution for secure and convenient transactions. Biometric payment cards eliminate the need for PINs or signatures, reducing the risk of fraud and providing a seamless payment experience for users. Major payment providers, such as Visa and Mastercard, are partnering with biometric card manufacturers to launch biometric payment solutions. 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 low due to the high barriers to entry. This includes the need for substantial investment in research and development, as well as the establishment of manufacturing facilities. Additionally, existing players in the market have strong brand recognition and patents, 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 a variety of options to choose from, the limited number of players in the market gives them less negotiating power. However, as the market grows and more players enter, buyers may gain more leverage in terms of pricing and contractual terms.
Bargaining Power of Suppliers: The bargaining power of suppliers in the biometric card market is low. This is due to the fact that there are several suppliers for the components and technologies used in biometric cards, giving buyers the ability to switch suppliers easily. Additionally, suppliers face competition from substitute technologies, further reducing their bargaining power.
Threat of New Substitutes: The threat of new substitutes in the biometric card market is low. Biometric cards offer a high level of security and convenience, making them difficult to replace with alternative solutions. While there are other forms of biometric authentication, such as fingerprint scanners and facial recognition, these technologies are often used in conjunction with biometric cards, rather than as direct substitutes.
Competitive Rivalry: The competitive rivalry in the biometric card market is high. The market is dominated by a few key players who compete on factors such as technology, price, and brand recognition. Additionally, as the market grows, more companies are entering the space, intensifying the competition further.
Key Takeaways
The global Biometric Card Market Scope is expected to witness high growth, exhibiting a CAGR of 77.3% over the forecast period. This growth is primarily driven by increasing concerns regarding data security and the need for advanced authentication solutions. Biometric cards offer a high level of security and convenience, making them a preferred choice in various industries such as finance, healthcare, and government.
In terms of regional analysis, Asia Pacific is expected to be the fastest-growing and dominating region in the biometric card market. This is due to the increasing adoption of biometric technology in countries like China and India, as well as the presence of key market players in the region. The growing population and rising disposable incomes are also contributing to the market growth in Asia Pacific.
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 companies are actively engaged in research and development activities to offer advanced biometric card solutions and gain a competitive edge in the market.
