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INSIGHTS

1.5-Billion Smart Credentials to be Issued by 2014, Says ABI Research

The increasing use of smart cards and biometric capture has changed the way government and health care citizen ID documentation is viewed, managed and deployed. Many governments are adopting smart, chip-based solutions for several reasons: * To help combat fraudulent and criminal activities * To improve ROI and bundle several applications in one document to create efficiencies for government departments * To make the documents more user-friendly, flexible and secure for citizens
The increasing use of smart cards and biometric capture has changed the way government and health care citizen ID documentation is viewed, managed and deployed. Many governments are adopting smart, chip-based solutions for several reasons:

* To help combat fraudulent and criminal activities
* To improve ROI and bundle several applications in one document to create efficiencies for government departments
* To make the documents more user-friendly, flexible and secure for citizens

Large-scale ID projects have been introduced or virtually completed in the most populated countries in the world. Thus far, adoption rates are strong in developed countries and those with large economies. Now a new wave of adoptions, with upgrades to second- or third-generation documents, is sustaining the market. ABI Research estimates that about 1.5 billion “smart credentials” will be issued through 2014.

“We expect smart card-based government and health care ID products to catch up with and surpass shipment volumes of legacy credentials by 2013. With the International Civil Aviation Organization setting the standards for passports, we expect the penetration of e-passports to hit 89 percent of the overall installed base in 2016. For other forms of ID, it is the governments themselves that are setting the standards for their citizen documentation and in turn driving the smart-card market forward,” said Phil Sealy, Research Analyst.

“Smart-card solutions are offering government different ways to interact with their citizens,” said John Devlin, Group Director. “They are not only using biometrics as an authentication method, but also rolling out e-government solutions for online interaction with citizens. The new German national ID card is the perfect example, with services being developed by more than 150 companies to allow online banking, registration for online shopping, airline check-in, online tax declaration and car registration among others.”
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