Passport Reader Market Research Report and Outlook by 2028

The global market for passport readers is anticipated to reach a valuation of US$ 310.17 million by the year 2028, with a projected compound annual growth rate (CAGR) of 6.5% from 2022 to 2028.

The passport reader market is expected to experience steady growth throughout the forecast period. Several factors are driving this expansion, including a growing immigrant population, an increase in the use of electronic passports, and a rise in international air travel. Additionally, technological advancements, particularly in optical character recognition (OCR), are likely to further stimulate growth in the passport reader sector. Companies in this market are concentrating on product innovation to maintain competitiveness by integrating cutting-edge technologies into their passport readers. For example, in 2019, Access-IS unveiled the integration of its OCR310e OCR OEM engine with the Aratek Marshall mobile identification and authentication solution, enabling the reading of data from the machine-readable zone (MRZ) of various documents, including passports. In 2018, BKC "Bancomzvjazok" JSC, a prominent systems integrator in Ukraine, launched the K. BPT800 portable terminal, which features an RF MRZ scanner.

Geographically, significant investments in airport infrastructure across Africa are on the rise. The International Air Transport Association (IATA) projects a 5.1% increase in air passenger volume by 2035, which is driving airport development throughout the continent. These advancements, along with ongoing and planned airport construction projects in the developing economies of the Middle East, are expected to enhance the deployment of passport readers in the MEA region. Furthermore, upcoming international events such as Dubai Expo 2020, the Bahrain International Technology Exhibition, the Arabian Travel Market, and The Middle East Event Show (MEES) are anticipated to increase the flow of international travelers, thereby necessitating the installation of passport readers at airports, hotels, and other key locations.

Saudi Arabia is projected to exhibit the highest CAGR during the forecast period. The nation continues to draw a significant number of international tourists, immigrants, students, and business professionals to its major cities. Consequently, the adoption of efficient, technology-driven passport readers across both public and private sectors has greatly facilitated the management and verification of individuals, helping to reduce illegal immigration over the years. Additionally, the country's substantial investments in infrastructure aimed at boosting tourism and attracting migrants for enhanced business opportunities are expected to create numerous lucrative prospects for passport reader market participants in the coming years.

In 2022, Saudi Arabia announced plans to construct one of the largest airports globally, designed to accommodate approximately 120 million passengers annually by 2030 and 185 million by 2050. This initiative is likely to generate significant opportunities for market vendors during the forecast period. The implementation of e-gates in Saudi airports is also driving the demand for software upgrades in existing identity verification systems in the region.

The UAE held the largest share of the passport reader market in 2022. The country continues to attract a considerable influx of international tourists, immigrants, students, and business professionals across its major cities. As a result, the adoption of efficient, technology-enabled passport readers in both public and private sectors has significantly improved the management and verification processes, helping to mitigate illegal immigration over the years. Furthermore, the UAE's ongoing investments in infrastructure development to enhance tourism and attract migrants for better business opportunities are expected to continue providing numerous profitable avenues for passport reader market players in the future.

Impact of the COVID-19 Pandemic on the Passport Reader Market

The COVID-19 pandemic had a profound impact on the MEA region, particularly affecting countries such as Turkey, Iran, Iraq, Israel, Saudi Arabia, and the UAE. The aviation sector in the MEA was severely disrupted by the pandemic, leading to a drastic decline in passenger numbers and revenue generation as airport operations were halted by authorities. Numerous airport construction and expansion projects that were scheduled for completion in 2020 and 2021 faced delays due to the temporary suspension of construction activities, resulting in a slower-than-expected adoption of new technologies, which adversely affected the growth of the passport reader market.

However, as lockdowns and restrictions were lifted in 2021, international travel resumed, leading to a resurgence in demand for passport readers in the region. For instance, international arrivals in the Middle East more than tripled from January to September 2022, reaching 71% of pre-pandemic levels in 2019.

Key players in the global passport reader market include Access Ltd, ARH Inc., Beijing Wintone Science & Technology Co., Ltd., DESKO GmbH, Thales Group, IER SAS, Regula, Shenzhen Rakinda Technology Co., Ltd., Lintech Enterprises Limited, and Veridos GmbH.

The overall size of the passport reader market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast for the passport reader market across all segments. Additionally, primary interviews were conducted with industry participants and experts to validate the data and gain further analytical insights. Participants typically include industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the passport reader market.