Global Biometric Card Market Extends at a Healthy CAGR of 77.3% by 2030

Introduction

Biometric payment cards are a type of identification that analyzes and recognizes people based on their physical and behavioral characteristics. Body movement, voice recognition, fingerprints, iris, facial patterns, and voice recognition are a few. Biometric cards also contain smart cards with various security features, such as an optical stripe or barcode, a holographic security image, and an embedded chip. The biometric sensors on these cards offer customers the safest means of payment, propelling the industry forward.

Market Dynamics

Transition To Multi-Factor Authentication Drives the Global Market

Due to the sharp rise in cyber threats worldwide, the authorities are working harder to expand the authentication process. An additional layer of security and authentication must be passed through by hackers looking for sensitive data. IaaS includes MFA (Multi-Factor Authentication) (IDaaS). It guarantees that only people with the proper authorization can access resources. The global rise in cyberattacks is creating a pressing need for authentication procedures, such as fingerprint scans or text messages, to access accounts and protect businesses from data breaches. Due to the user's biometric information, the contactless card has an additional security layer. Growing initiatives to prevent card misuse and provide users with a seamless experience are anticipated to boost market growth throughout the forecast period.

Adoption of Integrated Smart Technologies for Adequate Security Creates Tremendous Opportunities

Contactless smartcard transactions are positioned to drive market growth by integrating facial recognition and fingerprint touch sensors into smartcard technologies. Fingerprint and facial recognition provide sufficient security for various transactions and identification requirements. The demand for a safe and secure framework for different payment methods has grown due to the expanding use of cryptocurrencies in many regions. As a result, it is anticipated that demand for contactless and other biometric tap smart cards will rise over the predicted period. Already, many companies are expanding this aspect of their product offerings.

Regional Analysis

North America is the most significant revenue contributor and is anticipated to grow at a CAGR of 153.53% during the forecast period. North America has a sizable market for biometric cards, with the United States accounting for a sizable share of that market. The enormous demand can be attributed to the country's numerous small and large market players. Several end-user industries, including BFSI, retail, and others, are fueling the surge in activity, which primarily helps to grow the biometric card market in the United States. In addition to the government sectors, emerging financial smartcard companies actively seek to incorporate fingerprint sensors with their products. Partnerships have improved the company's position in the biometric card market and completed its product line to support contactless payments' convenience and security.

Europe is anticipated to grow at a CAGR of 155.98% during the forecast period. One of the largest markets, with many vendors present, is Europe. Most demand generators are in the retail, public, and healthcare sectors. The region is also expanding with numerous accelerator programs supporting the start-up ecosystem. Cards equipped with contactless technology are promoting market growth. The use of biometric payment cards in the region's BFSI sector has also increased significantly. The increase in demand has been advantageous for companies that provide biometric payment cards. Market vendors actively pursue various certifications and bolster operations to ensure consumer privacy and maximum security.

Key Highlights

• The global biometric card market was valued at USD 16.58 million in 2022. It is expected to reach USD 4,345.8 million by 2031, growing at a CAGR of 77.3% during the forecast period (2023–2031).
• Based on the application, the global biometric card market is bifurcated into payments, access control, and government id and financial inclusion. The payments segment is the highest contributor to the market and is expected to grow at a CAGR of 158.54% during the forecast period.
• Based on end-user verticals, the global biometric card market is bifurcated into BFSI, retail, government, healthcare, and commercial entities. The BFSI segment is the highest contributor to the market and is expected to grow at a CAGR of 158.54% during the forecast period.
• North America is the most significant revenue contributor and is expected to grow at a CAGR of 153.53% during the forecast period.

Competitive Players

Competitive Players

The global biometric card market’s major key players are Thales Group, IDEX Biometrics ASA, Goldpac Fintech, FINGERPRINT CARDS AB, Seshaasai Business Forms (P) Ltd, IDEMIA Group, ST Microelectronics, Mastercard, Visa, Ethernom, Samsung’s System LSI Business, and Shanghai Fudan Microelectronics Group Co. Ltd.

Recent Developments

Market News

• In November 2022, Tag Systems and Fingerprints collaborated to provide contactless biometric payment cards worldwide.

Segmentation

Global Biometric Card Market: Segmentation

By Applications

• Payments

• Access Control

• Government ID and Financial Inclusion

By End-User Vertical

• BFSI

• Retail

• Government

• Healthcare

• Commercial Entities

By Regions

• North America

• Europe

• Asia-Pacific
• Rest of the World