Explosive growth projected for global biometric card market, reports say

NEW YORK—Financial projections being released for the global biometric card market is showing explosive growth as a variety of industries begin incorporating the technology.

A report on Reportlinker.com has projected that the biometric card market is expected to grow from $15.55 million in 2021 to $2,701.17 million by 2027, a compound annual growth rate (CAGR) of 117.76 percent during the forecast period. Growth of that scale is being driven by an increasing need for stricter security across all relevant markets.

“Biometric ID cards apply to several solutions, especially for companies and individuals requiring greater security,” the report states. “Moreover, companies in highly competitive fields may choose biometric cards as an added security against illegal duplication and theft. Advanced ID cards serve government sectors, research institutions, and some universities and schools.”

The Asia-Pacific market is seeing the largest amount of growth, according to the report, noting that both China and Japan are looking to integrate biometric smart cards to enhance their security in banking with their customer base. The People’s Bank of China projected an increase from 8,954 million bank cards in 2020 to 9,247 million in 2021. Japan Consumer Credit Association similarly stated that the number of credit cards issued totaled 295.31 million in March 2021, a .8 percent increase from 2021.

China also has an expanding fleet of smart cars that rely on biometric access and monitoring systems. Biometric vehicle access systems are projected to grow from $1.5 billion in 2022 to $2.2 billion in 2026, according to a separate report by Research and Markets. In that scenario luxury cars and commercial vehicle fleets are driving demand for the more secure technology. That report also cautions the while ease of use is increasing adoption rates, privacy and safety concerns about hacked user data and biometric information persist.

“While biometrics might not replace physical or digital car keys, it will serve as two-factor authentication (2FA) to access the automobile,” the Research and Markets report stated. “The biometric can be used to re-authenticate a chip or pin. This feature would significantly reduce the instances of car thefts. But keyless vehicle entry could also throw up the additional risks of thieves attacking the system to gain entry.”

Access to both biometric market reports is available at https://www.reportlinker.com and at https://www.researchandmarkets.com, respectively.