Frost & Sullivan analysis notes government as the biggest spender on biometrics in SEA and ANZ markets

February 27, 2013 - 

A new market report from Frost & Sullivan, Analysis of the Southeast Asia and Australia-New Zealand Biometrics Market has found that biometrics market revenue is expected to reach around US $600 million in 2016.

The report notes that the governments of Southeast Asia (SAE) and Australia-New Zealand (ANZ) are investing heavily in security projects and infrastructure, such as border control systems and national ID program, which bodes well for the market in the two regions. Further, the Civil Aviation Organization (ICAO) regulation mandating biometric passport implementation by 2015 is further accelerating this growth.

“Smart phones that provide the NFC features are expected to adopt biometrics to provide authentic access to users,” Frost & Sullivan research analyst, Vivek K Reghu said. “This will generate significant revenues for the market.”

Also, notes the report, in the healthcare vertical, the passing of the Health Insurance Portability and Accountability Act (HIPAA) ensuring confidentiality of patient information compels hospitals to tighten security, prompting a biometric investment.

The report also indicates that the financial downturn in Europe, the United States and Japan has pegged back the market in spite of its capabilities and importance. Tightening of government budgets too has delayed the implementation of projects in infrastructure and security. Also, researchers suggest that the market has also slowed down to some extent due to concerns over privacy. Key projects such as the civil ID program were halted in ANZ due to strong opposition from the public as well as the opposition parties.

“Biometrics vendors need to increase awareness through marketing and convince people that their private credentials are stored securely,” Reghu said. “Such proactive efforts and robust R&D can go a long way in optimally tapping the market’s potential.”

Analysis of the Southeast Asia and Australia Biometrics Market is part of the Automatic Identification & Security Growth Partnership Services program, which also includes research in the following markets: ANZ biometrics market, global civil and military biometrics market assessment, Indian biometrics market and the world biometrics market.

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