E-passport Market Overview:
An e-passport contains an electronic chip, which holds the same information that is printed on the passport's data page such as the holder's name, date of birth, and other biographical information. Rise in advanced verification processes to detect identity frauds has necessitated the emergence of e-passport to satisfy high need for enhanced security. Further, presence of advanced airport infrastructure facilitates and increase in the number of people traveling to cross-border destinations provide the marketers immense scope to target their customers and enhance the user experience.
E-passports are mainly used to authenticate the identity of a traveler during international travels. This technology stores data about the traveler on a smart chip, which bears a unique identification number and a digital signature. Its use is more secure than traditional paper technology, as it reduces the risk of data duplication and alteration. The data stored electronically on the chip is authenticated by public key infrastructure (PKI), which helps eliminate forgeries. Fingerprint, facial, and iris recognition are the major biometric modalities used in this technology. Increase in thefts, illegal immigration, and transborder crimes fuels e-passport market. Moreover, ability of e-passport to provide faster security checks and verification of individuals at airports and international borders; and rise in adoption by many countries to enhance the safety of citizens, lower the rate of passport, and visa fraud boost the demand for e-passport market.
Radio frequency identification (RFID) is expected to grow at a significant pace during the forecast period. The leisure travel segment led the market in 2016, and is expected to continue to this trend in the near future. Furthermore, the European region is expected to dominate overall market during the forecast period, as it deploys e-passports on a larger scale.
The global e-passport market is driven by increase in number of identity frauds, supportive regulatory structure, presence of advanced airport infrastructure, and growth in air traffic. However, high costs associated with initial deployment and replacement as well as availability of cost-effective e-passports are expected to impede the market growth.
The report focuses on the growth prospects and restraints of the market based on the analysis of regional trends. The study provides Porters Five Forces analysis of the industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the growth of the market.
The global e-passport market is segmented based on technology, application, and geography. Technologies covered in this study include radio frequency identification (RFID) and biometric. On the basis of application, the market is bifurcated into leisure travel and business travel. Geographically, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA, including country-level analysis for each region.
The key players operating in the global e-passport market are Gemalto N.V., Mhlbauer Group, Entrust Datacard Corporation , HID Global Corporation , Infineon Technologies AG, Safran S.A. , Eastcompeace Technology Co., CardLogix Corporation, 4G Identity Solutions, ASK.
Top Impacting Factors
The market is expected to be driven by rise in advanced verification means to detect identity frauds, presence of advanced airport infrastructure facilitates, and rise in the number of people travelling in the cross-border destinations, and increasing adoption of e-passport by developing nations. However, high costs associated with initial deployment and replacement are expected to hamper the market growth during the forecast period.
Increase in Advanced Verification Means to Detect Identity Frauds
Development of novel advanced verification systems favors the e-passport market growth. For instance, Cuba is issuing new ID cards embedded with biometric technology such as iris scans and voice prints technology, which is expected to assist in better identification of persons traveling within the country.
Presence of Advanced Airport Infrastructure
The presence of advanced airport infrastructure facilitates easy passenger identification.
For instance, to reduce the waiting time of passengers, Japanese airports in 2017 will be using facial recognition machines to identify passengers. The London Gatwick Airport has invested 45 million in its South Terminal security area for use of smarter scanning technology to reduce passengers waiting time.
Increase in Travelers to Cross-border Destinations
Continuous growth in the number of people traveling to cross-border destinations propels the market growth. For instance, according to U.S. Travel and Tourism Association, U.S. domestic travel increased 1.2% from 2015 to a total of more than 2.2 billion person-trips in 2016.
Increase in Adoption of E-passport By Developing Nations
Real-time e-passport provides users a detailed representation of the real-world. Different key players in the market have adopted real-time e-passport over traditional e-passport. For instance, Google Maps announced a new real-time location sharing feature, which is available for both Android and iOS users.
Key Benefits for Stakeholders
- This study includes the analytical depiction of the global e-passport market along with current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities.
- The current market is quantitatively analyzed from 2016 to 2023 to highlight the financial competency of the industry.
- Porters Five Forces analysis illustrates the potency of buyers & suppliers operating in the global e-passport industry.
E-passport Market Key Segments:
- Radio Frequency Identification (RFID)
- Leisure Travel
- Business Travel
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Middle East
Key Market Players
- Gemalto N.V.
- Mhlbauer Group
- Entrust Datacard Corporation
- HID Global Corporation
- Infineon Technologies AG
- Safran S.A.
- Eastcompeace Technology Co.
- CardLogix Corporation
- 4G Identity Solutions