European governments are investing in e-ID cards

The threat of terrorist attacks and illegal immigration are pushing the use of e-ID cards as a means to quickly validate the identity of citizens. Nonetheless, official e-ID deployment will take a while as the technology is still expensive and the market fragmented.

In addition, for international documents such as e-Passports, European countries must comply with the standards set by the International Civil Aviation Organization (ICAO). National documents also need to correspond to global standards. As a result, some countries across Europe have started to issue documents similar to those available overseas such as the European Citizen Card.

Even though these standards and regulations are expanding the market for e-ID cards, it is difficult for new entrants to penetrate this mature space. The lack of competition is generating conflicts and lobbying among the major players to win national projects. Elections, parliamentary discussions, and industry pressure all directly affect these projects, pushing up costs. The varying requirements of countries, based on particular security needs, services and distinct objectives, cause further delays and cost escalations to e-ID projects.

Jean-Noël Georges, Global Programme Director, Information & Communication Technologies, Frost & Sullivan, commented: “International regulations for travellers and immigrants are shaping the e-ID document ecosystem. One such regulation requires countries across Europe to ensure that the third generation of e-Passports is strongly encrypted and has new security features, such as supplemental access control, by December 2014. To minimise the impact of these challenges, market players should partner with local participants or at least have local representatives during national ID deployment. They must also clearly define and deliver on client expectations to quickly gain acceptance among customers across Europe.”