According to the new research report titled "Passport Reader Market - Global Analysis and Forecast to 2028" published by The Insight Partners, the market is expected to reach US$ 310.17 million by 2028, registering a CAGR of 6.5% during 2022-2028.
APAC is Expected to Register Fastest CAGR During the Forecast Period
The major demand for passport reader in the region is anticipated to be generated by countries such as China and India. The region also has a strong presence of passport reader manufacturers engaged in developing advanced products, including combo readers and self-service kiosks. The key passport reader market manufacturers in APAC include Sinosecu Technology Co., Ltd; RTscan Technology Limited; and Shenzhen HCC Technology Co., Ltd. Moreover, the increasing number of international business travelers due to rising industrialization in the region is propelling the passport reader market size. Moreover, several economies across APAC are adopting e-passports. For instance, in January 2020, the Bangladesh government launched an e-passport facility. Also, in 2019, the Indian government announced its plans to introduce e-passports to issue ~22 million e-passports in the first phase. Additionally, in 2019, Indonesia received the PKD certificate from the ICAO for the country's e-passports. Adoption of e-passports will further endure to impact the passport reader market.
In 2022, China held the largest passport reader market share. The country has large number of airports attracting massive number of passengers. Guangzhou Baiyun Airport, Chengdu Shuangliu Airport, Shenzhen Bao'an Airport, and Chongqing Jiangbei Airport are some of the airports attracting enormous passenger traffic. In addition, the emergence of Hong Kong as a business capital, especially in the past few years, has further boosted the presence of various international airlines operating in the country. As a result, the China witnessed a surge in international airports and a rise in demand for passport readers across its airports. Enormous passenger traffic is amongst a key factor driving the growth of passport reader market.
Furthermore, the country continues to invest in the expansion of airports and related infrastructure due to the rising passenger volume. Several cities across China started airport construction projects in 2022. In January 2022, the fourth phase of the Shanghai Pudong International Airport expansion project started, which after completion, is expected to be capable of facilitating annual passenger throughput of 130 million in 2030. Similarly, in November 2022, the Chinese Central Government approved a plan to expand Macau International Airport. After completion, the airport capacity will be doubled to handle 15 million passengers annually. Thus, the country is expected to provide numerous profitable growth opportunities for the passport reader market players during the forecast period.
Besides, mentioned countries, Vietnam, Malaysia, Singapore, Thailand, and Nepal will also continue to attract a significant number of international passengers, especially tourists, facilitating the demand and simultaneous investment to develop seamless and robust airport infrastructure, security, and validation at their terminals. Hence, the rest of APAC is poised to provide numerous profitable business growth opportunities for the passport reader market players.
Key findings of study:
The aviation industry in APAC begun operating in 2021 after being temporarily halted in 2020. China is presently operating cargo flights to 102 destinations across 49 foreign countries. In April 2020, foreign and Chinese airlines operated ~1,574 scheduled cargo flights each week, i.e., 55.2% higher than the pre-COVID-19 pandemic. These airlines operated an average of 2,365 cargo flights every week, consistent with the schedule for the first two weeks of May 2020, i.e., 133.2 pc higher than the pre-COVID-19 period. The rapid recovery in air traffic is expected to boost the demand for passport readers, as the construction work on over a quarter of key airport infrastructure projects across the country has been restarted in late March 2021. Recovery in Asian air traffic and growing airport infrastructure projects will assist in boosting the passport reader market size.
Among the Rest of APAC, the passport reader market growth is majorly driven by major tourist-attracting countries such as Singapore, Malaysia, Thailand, Vietnam, Indonesia, and Nepal, driving the market growth for various security and authentication related products as well as solutions across the country. As a result, the countries continue to invest in technologies that facilitate seamless validation and verification of international passengers along with the expansion of their existing number of international terminals to accommodate the rising number of international passengers flowing through the respective countries. Airport modernization is another aspect contributing towards the passport reader market. For instance, in August 2022, the Singapore government announced that the construction of a new terminal at Singapore's Changi Airport with a capacity of up to 50 million passengers a year has restarted, which was stalled for two years due to the pandemic. Furthermore, in August 2022, the Malaysian government announced the construction of a new airport in Lawas, which is expected to start in Q1 of 2023. Thus, all the above factors are expected to fuel the passport reader market growth in the forecasted period.
The passport reader market in India is anticipated to register the highest CAGR during the forecast period. The country is poised to witness a significant surge in demand for passport readers due to the aggressive expansion of its airport infrastructure and expansion and maintenance of its existing airports. It was seen that there were ~74 operational airports in India in 2014, which raised to 140 operational airports in 2022. The country's government has further planned to develop and operationalize 80 more airports by 2027, totaling 220 airports. Furthermore, according to Jyotiraditya Scindia, minister for civil aviation, the country will have ~1,200 aircraft and 400 million passengers by 2027. Also, in January 2022, the Indian government announced that they had approved the construction of 21 greenfield airports in the country. These 21 greenfield airports will be constructed across the country in places such as Mopa (Goa); Navi Mumbai, Shirdi, and Sindhudurg in Maharashtra; and Kalaburagi, Bijapur, Hassan, and Shimoga in Karnataka. Thus, the country's public sector, such as airports and other government organizations, continues to provide a robust business growth opportunity for various airport security-related products and services, including the passport reader business. This factor will assist in fueling the passport reader market.
In Australia, strong economic background and presence of numerous popular cities and tourist attractions, has led to the early adoption of passport readers which is turn has supported the passport reader market growth. As a result, the country has an extensive application for passports across its airports, hotels, private resorts, and prominent travel agencies for swift validation of individuals. Thus, the above-mentioned factors are propelling the passport reader market in Australia.
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