According to the Market Statsville Group (MSG), the global ePassports and eID Cards market size is expected to grow from USD 58,752.52 million in 2022 to USD 518,880.40 million by 2033, growing at a CAGR of 21.9% from 2023 to 2033. The major factors such as the development of government initiatives, such as smart infrastructure, digital identity-based driver’s license and increasing integration of various technologies industry across the world. Moreover, various governments have expanded IT spending to support public welfare and CRM activities. Governments all over the world are working to equip residents with digital tools to make data management easier. This has created a lot of opportunities in the market over the forecasting period. On the other hand, lack of awareness and data security has hindered the market growth over the forecasting period.
Any type of proof of identity must be shown in order to complete any legal formality or verification process. Regardless of the industry in which a client wants to participate, whether it is banking, insurance, healthcare, technology, travel, education, or any other online service, the consumer is required to show an Identity proof to prove that they are who they claim to be. The risk of identity theft can be reduced by verifying customer identities with the use of eID cards and ePassport.
The businesses have endured a period of fast digitalization in recent years, notably in the last several months. Customers are being verified, KYC is being conducted, and compliance is being ensured by automated techniques in almost every sector. The regulatory sector's introduction of eGate authentication verification for securities intermediaries, travelling and others. The increasing pace of digitization has also revealed flaws in certain verification processes, one of which is the creation of electronic passport and electronic identification document (eID)—an identity document with an electronic layer—was to avoid forgery. The issue is that strict visual security solutions have limitations. The introduction of the electrical layer drastically altered the situation.
The emergence of COVID-19 had both positive and negative impacts on the e-passport and eID card market growth. With the emergence of COVID-19 the market had witnessed a sharp decline of 9.8%. All governments across the globe announced a lockdown to prevent the spread of the coronavirus and canceled international traveling service, which has hindered the e-passport market during the COVID-19 outbreak.
The crisis has led to a de facto shutdown of international and domestic aviation. Revenue passenger kilometers (RPKs) fell by more than 94% year-on-year in April. The contraction builds on the massive 55% year-on-year decline seen in March, stated by the data of the International Air Transport Association (IATA). Furthermore, as per the IATA, all regions recorded year-on-year contractions close to 100%. International aviation shrank by 98.4% year-on-year, about 10ppts faster rate of decline than domestic markets (-86.9%yoy). This faster contraction was a result of border closures introduced to limit the international spread of the virus. In April 2020, 75% of the countries had a complete ban of entry, putting all international flights to a halt. An additional 19% of the countries had either a ban of entry for some nationalities arriving from a specific country or an overall ban. This resulted in a sharp decline in the demand for e-passports during the pandemic.
Illegal immigrants and those with numerous identities and passports are becoming more common. Digital passport is essential for reducing crime and the number of illegal immigrants. Countries having the strongest passports include Singapore, Japan, South Korea, Spain, Germany, Finland, Italy, and Luxembourg. Traveling using false identities has also become a serious issue, necessitating the digitization of biometric and travel data. Moreover, ten million undocumented immigrants live in the United States, most of whom came from India, El Salvador, Mexico, and Guatemala.
Giving increased assurance about the bearer's identity, aiding to combat creation of fraudulent documents and ID theft Facilitating a more efficient border-crossing process. For data integrity and secrecy, cryptographic data protection is used. Furthermore, numerous governments are enacting strict laws and policies for the allocation of VISAs to nations with poor passports. As a result, all countries are now attempting to meet international norms. This, in turn, is expected to increase the usage of e passports, propelling the market down growth paths. Moreover, the emerging trends and shifting demographics related to global social and economic transformations, such as migration, will enhance the market growth.
Although there are various benefits to using ePassports, there are also a few drawbacks. For instance, if the owner of an ePassport loses it, anyone can obtain unfettered access to the chip. Fake chips can also be easily installed, making these passports insecure as well. One of the biggest disadvantages of ePassports is that biometric and chip-based information can be stolen and used for illicit purposes.
Moreover, the general public has a limited understanding of the electronic data and functionalities that ePassports contain, and they frequently lack a clear view on the numerous potential applications for ePassports and related personal data. Nonetheless, the public expects ePassports to increase document forgery prevention, person identification accuracy and reliability, and identity theft protection. The public's biggest concerns about ePassports include the possibility of personal information being used for purposes other than those specified, as well as covert surveillance. These factors may hamper the market’s growth in the forecast period.
Various governments have expanded IT spending to support public welfare and CRM activities. Governments all over the world are working to equip residents with digital tools to make data management easier. Recognizes that eGovernment infrastructure is used all around the world. Every country has its own passport solution requirements, which are determined by a variety of factors, including the level of threat, existing data availability, infrastructure, and volume requirements. The digitization of the travel system allows for the administration of traveler data. According to ICAO guidelines, governments must comply with the Machine-Readable Passport (MRP) standard as a minimum baseline to ensure global document compatibility.
Moreover, electronic national ID cards (aka eID cards) have been introduced in numerous countries worldwide. Furthermore, they are being utilized with ever-growing enthusiasm by their citizens. For instance, With the new Civil ID in Kuwait, any citizen can access electronic social security services, using their eID as the primary authentication tool at a new network self-service kiosk. Further, the Using the online service provided by the Ministry of Justice, lawyers can now access the government portal using their national eID and sign and upload lawsuits digitally.
The study categorizes the ePassports and eID Cards market based on type, and application area at the regional and global levels.
Based on the type, the market is divided into ordinary e-passport, service & diplomatic e-passport and eID cards. The eID cards segment is expected to dominate the market share in 2022 in the global ePassports and eID Cards market. The eID cards segment currently dominates the market share in the ePassports and eID Cards market. The shift toward digital transformation by various industries, increasing need to fight against data breach and fraud, surging government support toward data protection laws and regulations, and easy on boarding of customers as well as employees are the factors driving the market’s segment.
Based on the regions, the global ePassports and eID Cards market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. North America is projected to account for the highest market share in 2022. Due to major technological breakthroughs and rise in security measures at country borders and airports for improvement in the security of people in the area. The increasing frequency of incidents of cross-border terrorism and terrorist acts in Asia Pacific countries is expected to drive demand for e-passports in the area throughout the forecast period.
The ePassports and eID Cards market is a significant competitor, and extremely cutthroat in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
Frequently Asked Questions
The global ePassports and eID Cards market is expected to register a CAGR of 21.9%, during the forecast period (2023 to 2033).
On the basis of type, the eID cards segment has the highest growing rate during the forecast period (2023-2033).
In 2022, North America held the largest share in the global ePassports and eID Cards market, followed by Europe.
In the global market of ePassports and eID Cards manufacturers are Thales Group (Gemalto), Veridos, Idemia (Morpho), India Security Press, Bundesdruckerei, Japan National Printing Bureau, Goznak, Masktech, Casa da Moeda do Brasil, Canadian Bank Note, Royal Mint of Spain, Polish Security Printing Works, Istituto Poligrafico e Zecca dello Stato, Iris Corporation Berhad and Semlex Group.
The major factors such as the development of government initiatives, such as smart infrastructure, digital identity-based driver’s license and increasing integration of various technologies industry across the world.
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