According to a recent report published by Allied Market Research, titled, E-Passport Market by Technology and Application: Global Opportunity Analysis and Industry Forecast, 2021–2028,” the global e-passport market size was valued at $24.57 billion in 2019, and is projected to reach $125.13 billion by 2028, growing at a CAGR of 27.5% from 2021 to 2028. E-passport is a biometric passport integrated with an electronic chip, which contains all information of a user. It is advanced form of traditional documents to enhance security of personal details of travelers and to reduce fraudulent activities on airports. In addition, e-passport is used to verify identity of a traveler through digital technology with the use of unique identification number and digital signature, which enhances growth of the market.
The key factor driving the growth of e-passport market trends include rise in advanced verification technology to detect identity frauds and increase in number of people traveling to cross-border destinations are some the important factors that boost the e-passport market across the globe. In addition, presence of advanced airport infrastructure among developing nations such as China, Japan, and India propels the global e-passport market growth. However, high implementation cost and availability of cost-effective e-passport restricts growth of the market. On the contrary, increase in adoption of wireless communication technology among the travelling industry is expected to offer remunerative opportunities for expansion of the global market during the forecast period.
The leisure travel segment is expected to garner a significant share during the forecast period. This is attributed to increase in economic growth across the globe, which has led to rise in spending on leisure travel and surge in disposable income of the individual which drives the growth of the market in this segment. Moreover, business travel segment is expected to witness significant growth rate during the forecast period, owing to increase in internet communication and universal access to travel and accommodation among businesses. In addition, surge in demand among digital document storage equipment in business tours is expected to fuel the e-passport market growth in the future.
Region wise, the e-passport market was dominated by Europe in 2019, and is expected to retain its position during the forecast period. This is attributed to rise in need to eliminate passport frauds and to address concerns associated with international business and personal security. However, Asia-Pacific is expected to witness significant growth rate during the forecast period, owing to rise in adoption of advance technology such as biometric and facial recognition across various developing nations and presence of advanced airport infrastructure in some part of the region.
The outbreak of COVID-19 is anticipated to have a negative impact on growth of the e-passport market. This is attributed to increase in number of COVID- 19 patients in the UK, India, and the U.S., owing to arrival of international flights from foreign countries and governments across these countries have implemented strict regulations on international travelling, which is negatively impacting growth of the e-passport market. In addition, all governments across the globe announced lockdown to prevent spread of corona virus and cancelled international travelling services, which hinder the e-passport market in the COVID-19 outbreak. Furthermore, several countries have banned foreigners from entering their countries, increased restrictions on freedom of movement, and border closings, which have negatively impacted the travel industry.
The report focuses on growth prospects, restraints, and trends of the global e-passport market analysis. The study provides Porter’s five forces analysis 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 global e-passport market.
Key Findings Of The Study
- By technology, the radio frequency identification (RFID) segment accounted for the highest e-passport market share in 2019.
- By application, the leisure travel segment generated the highest revenue in 2019.
- By region, Europe generated the highest revenue in 2019.
The key players operating in the global e-passport market include 4G Identity Solutions, Ask Media Group, LLC, CardLogix Corporation, Eastcompeace Technology Co., Ltd., Entrust Corporation, HID Global Corporation, Infineon Technologies AG, Muhlbauer Group, Safran and Thales Group. These players have adopted various strategies to increase their market penetration and strengthen their foothold in the e-passport market industry.