Biometrics market expected to exceed $23B by 2019 claims new report
The global biometrics technology market is projected to reach a value of $23.3 billion by 2019, at a CAGR of 20.8% from 2013 to 2019, according to a report published by Transparency Market Research.
The report notes that high level security is needed more than ever now with escalating security concerns brought on by the rise in terror attacks and crimes.
The rapid growth of the biometrics technology market can be party attributed by recent government initiatives such as e-passport, national identification programs, along with various border control projects such as European Dactyloscopy, Visa Information Systems and new generation Schengen Information System.
But on the flipside, says the report, the constant privacy concerns and high costs associated with biometrics could potentially slow down the growth of this market.
The report also shows that the escalating usage of multimodal biometrics to boost the security level will likely open new growth opportunities for this market in the coming years.
In terms of application type, the non-AFIS biometrics systems had the largest revenue share of 41.40% of the total biometrics technology market in 2012. Meanwhile, recent advancements in technology have caused silicon sensor prices used for fingerprint recognition to decrease considerably.
These advancements have made the sensors more efficient, which in turn has lead to the lowering of production costs and expanding their application in a wider range of devices.
This has also caused non-AFIS systems to become more cost effective than their predecessors as a result of being more user-friendly and their integration with smart phones and laptops. Iris recognition segment is also projected to grow at the highest CAGR of 28.6% by 2019, as a result of their high accuracy level and stability.
As far as end use is concerned, transport/visa/logistics and government segments together made up for more than 50% of the total biometrics technology market in 2012, due to the growing need for examining the traveler’s credentials.
The transport/visa/logistics and government segments will continue to dominate the other end use segments by 2019. The rise in popularity of internet banking for transactions has lead to biometrics technology being deployed in the banking and finance sector, and as a result, this end use segment is expected to grow at the highest CAGR during forecast period.
North America, which accounted for 32.1% of the overall revenue share in 2012, is expected to maintain its leading share throughout the forecast period.
Meanwhile, Asia Pacific is projected to grow at the fastest CAGR of 22.0% from 2013 to 2019. Other evolving economies in this region including India, China, Australia and Japan, have a need for building infrastructure in regards to border security and national identification.
Taking all these factors into account, the report concludes that the Asia Pacific biometrics technology market will likely see a faster growth rate than Europe, the Middle East and North America.
Currently, the global biometrics technology market is comprised of a large number of domestic and multinational established players, such as Morpho SA (Safran) which made up 19.0% of the total market share in 2012. Other leading players include 3M Cogent, NEC Corporation, DigitalPersona and Accu-Time Systems.
In September 2013, Transparency Market Research reported that the global healthcare biometrics market is expected to grow at a CAGR of 25.9% from 2013-2019, to reach $5.9 billion in 2019.