Federal Demand Defining and Driving Smart Card Market
As a result of Homeland Security Presidential Directive 12 (HSPD-12), which requires the establishment of a "mandatory, Government-wide standard for secure and reliable forms of identification issued by the Federal Government to its employees and contractors...," the federal market for Smart Cards is rapidly expanding.

The federal demand for Smart Cards is setting the standards and fueling for the deployment of Smart Cards utilizing PKI by state and local governments and the private sector.

A Frost & Sullivan report for the Smart Card Alliance stated that "HSPD-12 is a key driver for the government and ID market. The deployment of FIPS 201-compliant ID applications within agencies, as well as the U.S. e-passport project, will be the key growth factors in this market."

For example, federally-issued Smart Cards will be provided to local police, firefighters and other emergency services personnel in the Washington metropolitan area. "The Homeland Security Department will soon issue Washington, D.C.-area responders smart cards.... 12 jurisdictions in Maryland, Virginia and the District of Columbia....will distribute smart cards to their first responders.... The cards will use Public Key Infrastructure (PKI) to identify each first responder by their sponsoring agency..."

Many frequent flyers will be using federally-managed Smart Cards. "Registered Traveler, which has been operating with about 20,000 enrollees in pilot projects at several airports, is set to roll out nationwide June 20. ... Interested travelers can sign up for Registered Traveler at airports...and receive a smart card containing their biometric information. In return, the travelers may use the smart cards for speedier processing through security checkpoints at airports and may avoid having to remove shoes, coats or laptop PCs..."

Since the federal government is defining the national market for Smart Cards, federal policies that affect Smart Cards are of interest to all stakeholders.