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

Used car market in India, online start-ups organising the sector

Per capita car ownership is low as compared to other developed nations and the global average Used cars were not a preferred means of ownership due to lack of trust among buyers and...

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...

Can PepsiCo turnaround the performance of its North American beverage segment?

What led to the consistent decline of PepsiCo’s trademark drinks in the last few years? Can the recent improvement in top-line numbers for PepsiCo’s beverage segment be maintained in...

Analysing the price behaviour of the volatile cryptocurrency market

A brief introduction on the types of cryptocurrencies Reasons for the spike in 2017 and the slump in 2018 Is cryptocurrency a bubble?   On November 15, 2018, the...

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,...

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...

Network densification and data speed in India, are HetNet and small cells a solution?

Worldwide data speed, where does India stand? Reasons for slow internet speed and status of the Indian telecom tower infrastructure How small cells fulfil data speed requirement...

SAP’s acquisition of Qualtrics, a costly affair or a strategic move?

History and evolution of SAP and ERP. Will experience measurement add value to SAP ERP?   On November 12, 2018 ERP software giant SAP announced an $8 billion acquisition...

Battle of the Low-Cost Carriers

The aviation industry has witnessed a mammoth growth in the last decade. IATA or the International Air Transport Association reported that revenues in the sector increased to $746 billion (2014)...

E-wallets dominate China, an analysis of the trend

E-Wallets: meaning and classification Widespread acceptance of e-wallets in China Comparison of PayPal, WeChat and Alipay on the operational parameters   E-wallets...

Coca-Cola remains a popular brand despite changing consumer preferences

Rising health concerns have triggered the global sugar war How is Coca-Cola surviving in the war? What makes Coca-Cola a popular company among consumers as well as in the equity...

Global jewellery retail industry and the growth of jewellery retail chains

  The annual global jewellery retail sales have grown at a CAGR of around 5% from USD 146 billion in 2005, this is expected to reach USD 250 billion in 2017. The top 5 regions for the...

A study of moissanite jewellery industry and its global market

Moissanite is used as an alternative to diamond jewellery. It is regarded at par with the diamond when compared on the basis of quality and physical properties. Moreover, moissanite glitter more...

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...

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...

Recovery still far away in the global graphite electrode manufacturing industry

The graphite electrodes find application mainly in the steel manufacturing through Electric Arc Furnace (EAF) route. EAF steel is mainly produced in EAFs by melting steel scrap through the...

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...

Big and small banks, is size, the key? Elucidated through key benchmarks

The banking industry has undergone a tremendous amount of change in the past 8 years as a result of the 2008 financial crisis. During this period, many small and large banks performed badly,...

Flying vehicles, could it be a reality?

Flying vehicles and potential advantages Companies involved in the manufacturing of flying vehicles Challenges faced by developers in the development and adoption of flying...

IBC is the need of the hour for the Indian NPAs mess?

The state of NPAs in India Introduction of IBC and other measures taken in the country What happened till date?   Non-performing assets (NPAs) or bad loans arises...