Global E-Passport Market Report and Forecast 2024-2032

Global E-Passport Market Size

The global e-passport market reached a value of nearly USD 39.82 billion in 2023. The industry is expected to grow at a CAGR of about 23% in the forecast period of 2024-2032 to reach a value of approximately USD 256.61 billion by 2032.

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E-Passport Market Growth

The market is being significantly driven by the rising urbanisation and globalisation across all the major regions. The growing urbanisation and globalisation have led to an increased number of passengers travelling by air, especially in developing countries like India, China, and Indonesia. The Asia Pacific region is likely to emerge as one of the leading s by the end of 2026. This rise in the number of passengers has significantly aided the e-passport demand. Multiple countries are planning to introduce e-passport smart gates at airports, which can simplify the identification of passengers and, thus, the immigration process. With e-passports expected to be introduced in countries like Bangladesh and India, the industry is expected to be further propelled forward in the Asia Pacific region.

E-Passport Market Trends

Due to the technological advancements taking place in biometrics, the segment is growing at a faster rate as compared to radio frequency identification. One crucial trend in e-passport market is radiofrequency identification, which is still expected to grow at a positive rate in the coming years with the adoption of e-passports by many emerging markets. Leisure travel is one of the leading application sectors for e-passports.

Recent Developments

As per the e-passport market analysis, Digi Yatra Foundation, a non-profit organisation, which aims to offer a biometric face recognition system at airports announced that its facial recognition services will be available to international travellers by 2025. Firstly, it aims to offer digital passports that can be automated with the app for the facial recognition process.

Industry Outlook

As per the e-passport industry analysis, the rising identity thefts and frauds are driving the global market. The rising demand for increased security is driving the demand for e-passports further. The rising cases of visa and passport fraud is another factor, which is driving the demand for e-passports. These e-passports will eventually help in reducing transborder crimes and illegal immigration. Illegal immigration increases the threat to the security of the nation and the citizens; thus, the security at the border needs to be tightened. The e-passports will help ease the identification process and lower fraud rates.

Long hours of waiting at the security checkpoint have led to an increased need for e-passports which can contribute to e-passport industry revenue. Thus, the demand for e-passports is also being aided by the need for faster and easier security checks at airports. The demand for e-passports is also being supported by their cost-effectiveness, as they would be cheaper alternatives to printed passports and any changes can be made easily. These are also the preferred alternatives over regular passports because they would not get old and cannot be lost or spoiled. The renewal process of these e-passports would also be much easier than the regular passports, making them a preferred alternative among prospective consumers.

The advanced and developed infrastructure of the airports also demands a better and advanced security check-up system, which is expected to drive the growth of the e-passport industry in the coming years. The growing air traffic is another factor driving the growth forward.

Additionally, Google Wallet announced that it aims to offer digital services supporting e-passports, through which travellers can support their passport information such as personal details of a person electronically. This can allow the users to have the information with them all the time without carrying a physical passport around.

The Growth of the Global Market Driven by Technological Advancements and Enhanced Security

• Technological Advancements: Innovations in RFID and biometric technology improve the functionality and security features of E-passports, driving their adoption globally and aiding e-passport demand growth

• Enhanced Security: E-passports offer higher security against identity theft and fraud through embedded chips containing biometric data, leading to increased demand from governments and travellers.

• Government Initiatives: Many governments are mandating the transition from traditional passports to E-passports to enhance border security and streamline immigration processes.

• Global Travel Increase: The rise in international travel and tourism boosts the need for secure and efficient travel documents like E-passports.

Challenges Impacting the Growth of the Global Market Include High Costs and Privacy Concerns

• High Implementation Costs: The production and issuance of E-passports involve significant costs, which can be a barrier to adoption, especially in developing countries and can negatively influence e-passport demand forecast.

• Privacy Concerns: The storage of biometric data raises concerns about data privacy and the potential misuse of personal information.

• Technical Issues: Technical glitches, such as chip malfunctions or data reading errors, can impact the reliability of E-passports.

• Regulatory Compliance: Ensuring compliance with international standards and regulations can be complex and requires continuous updates.

Opportunities in the Global Market Driven by Emerging Markets and Technological Integration

• Emerging Markets: As per the e-passport market dynamics and trends, growing economies with increasing travel demands present opportunities for the adoption of E-passports as part of modernizing their travel infrastructure.

• Technological Integration: Integration with digital identity systems and other smart travel technologies can enhance the functionality and convenience of E-passports.

• Cross-Border Cooperation: Collaborations between countries to standardize E-passport technologies can streamline international travel and enhance security.

• Sustainable Practices: Developing eco-friendly E-passport production methods and materials can appeal to environmentally conscious governments and travellers.

Setbacks Faced by the Global E-passport Market Share Due to Cybersecurity Risks and Economic Constraints

• Cybersecurity Risks: The potential for cyber-attacks on systems storing biometric data can undermine trust in E-passport security and hinder the growth of the e-passport market.

• Economic Constraints: Economic downturns can limit government budgets for upgrading to E-passport systems, especially in low-income regions.

• Public Acceptance: Resistance from the public due to concerns over privacy and data security can slow down the adoption of E-passports.

Factors Impacting the Prices and Costs of E-Passports:

• Technological Components: The inclusion of advanced technological components, such as RFID chips, biometric sensors, and secure encryption technologies, increases production costs and offers lucrative e-passport market opportunities.

• Raw Material Costs: The price of materials used in manufacturing e-passports, including high-quality paper, security inks, and embedded electronic components, affects overall costs.

• Security Features: Enhanced security features, such as holograms, watermarks, and tamper-resistant elements, add to the complexity and cost of producing e-passports.

• Research and Development: Investments in R&D for developing new security features, improving biometric technology, and ensuring compliance with international standards contribute to higher costs.

• Regulatory Compliance: Meeting international standards and regulatory requirements, such as those set by the International Civil Aviation Organization (ICAO), requires additional compliance costs.

• Labor Costs: The cost of skilled labour required for the production and quality control of e-passports impacts the overall price and e-passport market revenue.

• Software Development and Maintenance: Costs associated with developing, implementing, and maintaining software systems for managing e-passport issuance and verification are significant.

• Government Policies: Government decisions regarding the issuance, pricing, and subsidization of e-passports directly impact their cost to consumers.

• Exchange Rates: Currency fluctuations affect the cost of imported materials and components, influencing the overall cost structure.

• Maintenance and Upgrades: The need for regular updates to security features and technology, as well as maintenance of production equipment, contributes to ongoing costs and hinders demand of e-passport market.

• Public Perception and Acceptance: Efforts to educate the public and promote the adoption of e-passports can involve marketing and communication costs, impacting overall expenses.

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E-Passport Industry Segmentations

The e-passport features an electronic chip, which includes the same information that is written on the passport data page: the name of the applicant, the date of birth, and other biographical information. The e-passport also includes a biometric identifier.

The two types of e-passport are:

• Radio Frequency Identification

• Biometrics

The application sector for the e-passport market can be divided into the following:

• Leisure Travel

• Business Travel

The regional markets include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

Competitive Landscape

April 2018- Gemalto N.V. (OTCMKTS: GTOMY), one of the leading digital security companies, was awarded the contract of designing and manufacturing the United Kingdom passport by the passport office.

The report gives a detailed analysis of the following key players in the global e-passport industry, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• CardLogix Corporation

• Eastcompeace Technology Co., Ltd.

• Entrust Corporation

• Thales Group

• HID Global Corporation

• Others

The comprehensive EMR report provides an in-depth assessment of the market based on Porter's five forces model along with giving a SWOT analysis.

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E-Passport Market Regional Analysis

Europe is a leading e-passport market as the region deploys e-passports on a larger scale. The rising acceptance of e-passports in countries like the United Kingdom is expected to drive the industry in the coming years. Recently, the United Kingdom enabled visitors from countries like Australia, Japan, New Zealand, Singapore, South Korea, Canada, and the United States to use the e-passport gates for swifter entry into the country. The e-passport market in Europe is expected to be aided by the rising adoption of multimodal biometric identification. The use of multiple biometric identifiers, including fingerprints, iris, and face, to confirm authentication is called multimodal biometric identification. As a result, multimodal biometrics can provide enhanced security layers and help to overcome the error rates of normal biometrics.

Key Highlights of the Report

E-Passport Market Report Snapshots

E-Passport Market Size

E-Passport Market Growth

E-Passport Market Trends

E-Passport Companies

E-Passport Market Regional Analysis