IDville Blog | Contactless ID applications continue to increase in numbers

Contactless ID applications continue to increase in numbers

by Admin 18. July 2012 11:59

As advanced access control systems continue to be used around the world, organizations are adopting next-generation ID cards on a more frequent basis. While this trend is happening throughout industries, the government, healthcare and citizen verticals are particularly increasing their adoption of ID cards.

A new report by ABI Research confirmed this finding, noting that the market for citizen, healthcare and government ID badges will generate more than $86 billion in revenue between 2012 and 2017.

Contactless is the new cool

Contactless ID cards, in particular, are growing in demand around the world and are widely recognized as today's "must have" identification technology, ABI Research noted.

"The trend to adopt a contactless interface will continue throughout the forecast period. We expect to see strong and continued adoption of dual interface [identity cards] primarily utilized in national ID cards," ABI Research analyst Phil Sealy said.

In fact, global contactless ID shipments are forecast to grow from 49 percent of the market in 2011 to approximately 61 percent in 2017. This will largely be driven by the increased deployment of national ID cards and electronic passports around the world, including in France, Brazil and Russia, among others. Cumulative shipments for national ID badges and e-passports will grow from 209 million units in 2011 to roughly 489 million in 2017, ABI Research reported.

Near-field communications becomes more widely used

By using NFC technologies, companies can integrate IDs into mobile devices, wristbands and smart cards. According to a report by NFC Bootcamp, NFC technologies are being used for broad applications, including entry and identity purposes at theme parks, music festivals and major events, to name a few.

Disney World, for example, recently announced its plan to use radio-frequency identification tools in a FastPass program that lets individuals use their RFID-enabled iPads to reduce the time it takes to wait in line. Additionally, Disney plans to give visitors RFID wristbands that automatically encrypts their identity and data onto an RFID chip that will act as a park ticket, NFC Bootcamp reported.

A report by MarketsandMarkets noted that the market for NFC applications is expected to expand at a compound annual growth rate of 38 percent through 2016, eventually generating more than $10 billion in revenue.

As contactless technologies mature, ID cards will be used for a wide range of purposes and applications, making the consumer and business lifestyle much more convenient.

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