Blogs

Global biometrics market, will mobile define the future course?

  • Prominence of mobile biometrics in the biometrics market
  • Fingerprint, the most significant biometric system in the contemporary world
  • Future of biometrics, iris, face recognition, etc.

 

In this age of rapid transformation, where information technology has spread its wings through several facets of our lives be it personal, professional or social. The security breaches (such as WannaCry ransomware attack in 2017), identity thefts and data hacking have all plagued the consumers. Biometric technology powered devices (fingerprint, face, iris, vein, signature, voice recognition, etc.) provide more secure, reliable and consumer-friendly alternative (based on human physical or personal behavioural traits for authentication, which are unique to individual consumers and are almost impossible to replicate) to traditional identification tools using passwords, physical ID cards, etc.

According to the TechSci Research, the global biometric market was valued at $12.8 billion (2016) at a CAGR 21.6% (2009-16) and is estimated to reach $29.4 billion (2022) with a CAGR 14.8% (2016-22) on the back of rising adoption of biometric tools across banking and finance, government (e-Governance processes, e-passport and national identity card programs and immigration services worldwide), consumer electronics (smartphones, tablets, smart cards, etc.), defence, healthcare and several other sectors.

The widespread adoption of biometric devices across various sectors and industries, regardless of their type, size, shape or geography has led to a fall in the prices of biometric hardware and software (especially fingerprint scanners) and has opened a huge range of opportunities globally. Fingerprint recognition systems, which were earlier used only in high-security facilities or restricted areas are now commonly available (office doors, server rooms, schools, banks, POS, etc.) and currently occupy a dominant position among all biometrics. 

At present, North America is the largest market in terms of the demand for biometric systems (32% of the global demand) on the backs of strong federal and local government spending for security infrastructure as well as other research and development programs. The region is closely followed by the Asia-Pacific and Europe with a market share of 28% and 22%, respectively.

The mobile biometrics recently gained significance with smartphones and tablets requiring data protection as more and more users increasingly carry out significant functions through mobiles. Moreover, earlier only flagship or high-end smartphones were equipped with fingerprint scanners, but nowadays even a mid-tier ($100) smartphone offer capacitive fingerprint sensor.

Televisory’s analysis of the impact of growing market appetite for the biometric security/identity systems on key players in biometrics market confirmed the same trend. 

There has been an exponential growth in the revenue as well as profitability margins for Fingerprints Cards AB and Precise Biometric (both catering to the smartphone markets) in last 2 to 3 years on the back of huge order inflows from the mobile biometrics market (mainly from mid-tier smartphones and tablets). While Aware Inc. and BIO-Key International Inc. could not take advantage of the strong growth in the mobile biometrics.

Though fingerprint recognition technology is dominant in the industry, Televisory expect that this technology will be less prominent and anticipate other advanced biometric technologies (such as technologies that identify on basis of facial, iris, DNA sequence, etc.) to gain prominence in the market. For instance, recently launched Apple iPhone X uses ‘face scanner’ and Samsung Galaxy S8 uses compact optical biometric ‘iris scanners’. Aware Inc. is already offering this advanced biometric product, although it has exhibited a stable revenue and margin trend in the past few years. Televisory believe that the company will outperform in the near future as the market for advanced biometrics matures.

While biometric equipment and software companies are set to benefit from new governmental projects to incorporate biometric technologies in several e-Governance processes and immigration services around the globe. The major push is intended from the growth of smartphones, tablets, smartcards and PCs in the mid-term. According to the International Telecommunication Union, nearly 95.5 percent of the population worldwide have mobile connections. Acuity Research estimates the number of biometrics smartphone users to reach 2 billion (2020) at a CAGR 20.1% (2016-20) with virtually all new smartphones shipped being biometric ready (2020).

Acuity Research projects that (2022) global mobile biometric market revenues will reach $50.6 billion annually including $3.1 billion in biometric sensor revenue (through ~2.7 billion biometrically enabled smartphones), $29.2 billion from direct purchase and software development fees (from ~16.7 billion biometric app downloads) and $18.3 billion in authentication fees (from ~1.37 trillion biometrically secured payment and non-payment transactions). Further, with the adoption of mobile biometrics in more consumer-centric markets (mid-tier and low-tier), the authentication volumes will increase substantially and open new avenues for revenue generation for the mobile biometrics (including app sales, authentication fees, etc.). Thus, Televisory expect Asia-Pacific to surpass North America (2022) on the back of increasing focus on mobile biometrics (with Asia-Pacific covering over one-third of the world population). 

Your Rating

Slack set out to kill E-mail

Started as a side project for internal use in a gaming company High revenue growth with recurring revenues Went Public by offering shares through the Direct Public Offering ...

Tire manufacturing industry, analysing the cost and margin trends

The global market for tire manufacturing stands at $180 billion. Michelin anticipates the long-term demand to rise at the rate of 5 to 10% a year in developing markets and 1 to 2% a year in mature...

Rapidly growing Indian online food delivery industry and its unrealised profits

Evolution of online food delivery industry in India Geographical penetration and scope for expansion Key players and their zeal to balance revenue and costs   Online...

An analysis of Malaysian rubber glove industry

How big is the international rubber gloves market? Reasons behind the healthy and steady growth Malaysia’s role in the industry Why are companies struggling for stable...

Failure of Amazon in China, an analysis

E-commerce market in China Online consumer product retailers in China Performance of Amazon in China   Amazon is a global e-commerce player selling a wide...

Can lithium-ion anode demand for needle coke reduce availability for electrode players?

What is needle coke? Uses of needle coke Lithium-ion battery manufacturers demand needle coke   Needle coke? Needle coke is a specialised form of petroleum coke...

Carbon black industry, strong potential for supernormal profitability?

What is carbon black? Its uses Impact of the environmental curbs in China   What is carbon black? Carbon black is a fine carbon powder and it is a disorderly...

Is the radio broadcasting industry in the U.S. dying? An analysis

Radio, the most powerful medium of reach in the U.S. Why the industry is moving at a slow pace? Radio’s health is still sound, will it continue in the long-term?   ...

Housing finance market in India. Is affordable housing driving the growth?

Overview of the housing finance sector in India Key players dominating the segment and their dynamics Factors driving aggressive demand for housing   The housing...

Indian wood panel industry, growth drivers and present trends

Current market scenario in the Indian plywood industry Growth in the housing sector and rapid urbanisation to provide the boost GST rationalization to reduce price difference...

Sri Lankan economic and political crisis

Sri Lanka’s latest political crisis, who governs the nation? Poor economic indicators adding to the nation’s woes   Sri Lanka is currently embroiled in a political crisis,...

Blockchain, an emerging concept, a disruptive technology (Part 1)

What is blockchain? How is blockchain revolutionary? Cryptocurrency, the new money ICOs, the new way of raising money Summary Blockchain is a software architecture...

Rice industry outlook 2018

Major rice producers and consumers Global rice trade Factors dominating the trade   Rice is the 3 rd largest produced agricultural commodity in the world, after...

Rise of Ant Financial, will the success story continue?

What is Ant Financial? Journey to become king of unicorn Will regulatory curbs hinder its success journey?    Ant Financial, an affiliate and integral part...

Malaysian rubber glove industry, an update

Rising global demand for gloves Impact of USP 800’s implementation and the US-China trade war on Malaysia’s rubber gloves industry Key challenges for the Malaysian rubber...

Unnoticed growth of the media and entertainment industry in India

Overall industry brief Growth of the M&E industry and its segments Major supporting elements of this growth   Media and Entertainment (M&E) is a very wide industry...

Battle for the textile and apparel industry in Southeast Asia

The reasons for China’s decreasing presence in the industry Initiatives by the governments in Southeast Asia to boost the textile trade Vietnam and Bangladesh’s quest to conquer...

Baidu’s Apollo, the underdog of autonomous driving platform

Overview of the autonomous vehicle sector in the global automobile industry Search giant Baidu’s entry into the autonomous driving space Baidu’s approach in becoming a front-runner...

OYO Rooms, an Indian start-up to enter Japan

Growth story of OYO Rooms in India Business model of OYO Rooms Analysis of strategy to enter Japan   OYO Rooms, the Indian start-up has decided to venture in Japan...

Education industry in India, an overview

Growth of private universities in the nation Future potential of the education industry in India   The education sector in India is estimated to be worth USD 91.7 billion...