Market Overview:
Biometric cards are payment cards embedded with advanced biometric technologies such as fingerprint sensors, iris scanners, and facial recognition systems for secure authentication and identification purposes. Biometric cards offer enhanced security features by verifying the cardholder’s identity using unique physiological or behavioral characteristics during payment transactions. They help reduce incidences of financial frauds and identify thefts by authenticating the genuine cardholder.
Market key trends:
The increasing digital payment transactions globally is a major factor driving the growth of the biometric card market. According to Worldpay’s Global Payment Report 2020, cash usage has declined significantly in many parts of the world as digital payments have risen. For instance, in China, digital payments account for over 80% of transactions. The growing need for robust security authentications during digital payments has boosted the demand for biometric cards. Moreover, biometric cards provide contactless payment capabilities and can securely store multiple payment applications, credentials, and identities on a single card. They offer convenience to customers by eliminating the need to remember multiple passwords and PINs. Ongoing technological advancements in biometric sensing technologies such as miniaturization of sensors are also fueling the adoptions of biometric cards. Major players are developing advanced biometric cards with enhanced security features and easier enrollments processes to expand their market share.
Porter’s Analysis
Threat of new entrants: The high initial capital requirement and patent portfolio of existing players make it difficult for new players to enter the market.
Bargaining power of buyers: The presence of alternative security solutions like smart cards, tokens, etc. gives buyers leverage in the market.
Bargaining power of suppliers: Established players have high bargaining power due to their expertise and economies of scale.
Threat of new substitutes: Continued innovation in security technology can lead to new substitutes posing a threat.
Competitive rivalry: Intense competition exists among existing players to gain market share.
SWOT Analysis
Strength: Biometric authentication provides highly secure identity verification.
Weakness: High initial costs associated with purchasing equipment and deploying infrastructure.
Opportunity: Growing adoption of biometric technology across multiple industries like BFSI, government, travel and transportation.
Threat: Privacy and security concerns around storage of biometric data.
Key Takeaways
The Global Biometric Card Market Demand is expected to witness high growth, exhibiting CAGR of 77% over the forecast period, due to increasing security concerns and digitalization of payments.
Regionally, Asia Pacific dominated the market in 2023 due to high adoption in countries like India and China. Key regional markets include North America, Europe and Asia Pacific.
Key players operating in the Biometric Card market are Shanghai Fudan Microelectronics Group Co. Ltd., Zwipe AS, 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. The market is fragmented with the presence multiple small and large players. Market participants are focusing on new product launches and partnerships to gain market share.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it