Biometrics Research Note: Biometrics to gain traction in security product market
The demand for new technology such as biometrics and smart cards will broaden the market for residential and commercial security products in the United States over the next five years.
The Biometric Research Group expects the market for residential and commercial security products to reach US$25 billion by 2017. Eventual economic acceleration and increased corporate spending in the U.S. will result in new commercial building construction and existing building retrofits that will include security upgrades, which will drive faster growth of security products.
Increasingly, many existing security products such as employee ID access cards, password protection, and personal identification numbers (PINs) are considered outdated. Many private firms will look to upgrade those products to entry-level biometrics in the near future.
Biometric Research Group estimates that the biometric share of the residential and commercial security product marketplace will equal at least US$3.5 billion in 2017. We still project that the U.S. military and government sector will dominate the lion share of biometric spending, but we anticipate that commercial space will constitute a growing market share.
Fingerprint technology is the most established and widespread form of biometrics, and will dominate the residential and commercial security product marketplace. Biometric Research Group projects that fingerprint technology will represent US$3 billion of revenue within the residential and commercial security product marketplace by 2017.
The main advantages of fingerprint technology is that it is the most economical biometric technology and its small storage space, reduced power requirements, and resistive nature to temperature and background lighting make it an ideal technology to be deployed in a range of logical and physical access environments.
Targeted market environments that will exceedingly benefit will include home-based and small to mid-sized businesses. Biometric Research Group anticipates that the fingerprint-based biometric lock segment will experience exponential growth. Manufacturers that are positioned to benefit include Anviz, Assa-Abloy and Weiser Lock. These companies manufacture electronic locks for both home and business that capture fingerprints and use them to identify residents and personnel to allow entry.
Anviz, who exhibited at the 2012 Biometric Consortium Conference & Biometric Technology Expo held in Tampa, offers a wide range of unique fingerprint locks for both the home and office. Most of the firm’s fingerprint lock offerings are low-cost, ranging from US$120 to $200 per unit. The latest Anviz fingerprint algorithm makes a door open in one second after finger touch. With its simple design, enrollment can be done within five seconds. A unique card reader design provides great convenience for both young and elderly family members as well as office staff. Reversible handle features makes for easy do-it-yourself (DIY) installation, while smart design ensures low power consumption.
Assa-Abloy and Wesier Lock also offer similar devices. Under its Yale brand, Assa-Abloy offers its YDM4T09 fingerprint digital door lock for homes. The lock allows users to trigger entry access by a numeric PIN input or with the swipe of a lightweight personal secure electronic card. A correct PIN entry on the YDM4109 grants access only if the user follows up by touching the keypad with his or her palm. Weiser Lock’s SmartScan Deadbolt product is also a residential grade deadbolt that incorporates a fingerprint reader into stylish design.
We expect these company’s products, along with those of other manufacturers, to experience huge revenue gains. The technologies dual purpose of “ease of access” for homes and businesses and “time management” for small to mid-sized businesses will make them desirable additions during property retrofits, relocations or expansions. The addition of time management functions through these access control technologies will also potentially save firms hundred if not thousands of dollars through the tracking of truant employee behavior.
While major disadvantages of the technology such as problems around the enrollment of elderly people, manual laborers, and certain cultural groups due to hygienic concerns have been identified; Biometric Research Group expects that these issues will be rapidly resolved by continued innovation and research and development.
Biometric Research Notes provides forward-looking and systematic data about the global biometric market, allowing industry stakeholders to calculate political, economic and investment risk.