Personal Identity Poised to be the Fastest Growing Segment of CEE Security Printing to 2015

21 October 2010

Leatherhead UK, 21 October 2010. The central and eastern European (CEE) market for security printing will see a 4.6% average annual growth rate in the period 2010-2015, according to a new report from Smithers Pira. The most dynamically expanding segment is expected to be personal identity, predicted to grow by a CAGR of 9.3% in the five years to 2015. Smithers Pira also sees a number of interesting long-term development trends now starting in the CEE security printing market, including 3D face recognition and contactless payment cards.

The Future of Central and Eastern European Security Printing to 2015 examines the security printing market of nine central and eastern European (CEE) countries: Bulgaria, the Czech Republic, Hungary, Poland, Romania, Russia, Slovakia, Slovenia and Ukraine. It provides five-year (2010-15) qualitative and quantitative forecasts for security printing in this region by end-use sector, technology, printing process, and country. The research for the report collected data from a variety of sources, including literature, the internet, Smithers Pira's in-house databases and previous reports, market studies, technology papers and extensive interviews and discussions with experts.

Smithers Pira estimates the size of the CEE security printing market in 2010 at €558 million. In 2015, it forecasts the industry to grow to €698 million - an average annual growth of 4.6%. Individual market segments are expected to develop at different rates. Personal identity is predicted to have the fastest growth with a CAGR of 9.3% to 2015.

The reasons behind such a comparatively dynamic growth of the personal identity market, according to the study, are:

• Compared to other sectors, personal identity is less affected by the economic crisis, which hit eastern Europe hard
• The identity sector is mainly driven by government programmes. In recent years, there has been increasing international pressure to issue e-ID documents, with the result that most CEE countries now issue e-passports and often other e-ID documents.
• The fact that these documents are more expensive than their predecessors contributes to market value growth rather than volume growth.
• A moderate increase in applications for new documents is anticipated. Between 2013 and 2015, Smithers Pira expects demand for new documents will increase as the effects of the economic crisis fade and international travel picks up.

Smithers Pira has also identified several long-term (2015-2020) likely development directions for the CEE security printing industry:

Contactless payment cards - with a development hotspot between 2015-2020 - are expected to be a combination of EMV cards with integrated contactless payment ability. Smithers Pira believes this form of contactless payment has the greatest chance of market success in CEE countries. Adam Page, Head of Editorial at Smithers Pira explains: "When considering the long-term effects of this trend it is important to understand the current market environment in eastern Europe, which is different from that of developed countries. CEE markets are characterised by relatively low payment card penetration, particularly in rural areas, which we see as an opportunity. On the other hand, the effects of the macroeconomic turmoil still lingering in some countries of the region mean that the adoption of another new technology may take longer than anticipated."

3D face recognition is another technology to watch in CEE according to Smithers Pira. Within the next 10-15 years this technology could lead the way towards a third generation of electronic passports and a new generation of ID cards and driving licences. According to Smithers Pira, companies active in the security printing segment may find new market opportunities by considering this next-generation technology.

The Future of Central and Eastern European Security Printing to 2015 is available now for £3,750. For more information, please contact Stephen Hill on +44 (0) 1372 802025, or via e-mail on stephen.hill@smitherspira.com

Press contact: For editorial queries, details of the study or an expanded article please contact: Rebecca Leigh +44(0)1372 802207 rebecca.leigh@smitherspira.com

Smithers Pira
Smithers Pira - the worldwide authority on packaging, paper and print industry supply chains.

Established in 1930, Smithers Pira provides strategic and technical consulting, testing, intelligence and events to help clients gain market insights, identify opportunities, evaluate product performance and manage compliance.

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