ABI Research predicts biometrics market to shift focus on banking, consumer electronics
ABI Research predicts that by 2021 the biometrics market will reach $30 billion and redirect its revenue focus away from the governmental sector to embrace opportunities in the consumer and banking sectors.
As a result of this new shift in focus, consumer and banking segments will experience 19% and 12% growth rates, respectively.
The new research is part of ABI Research’s Biometric Technologies and Applications Service.
“After establishing a foundation in smartphones and user authentication, the biometrics market is branching out and entering the evolving IoT ecosystem,” says Dimitrios Pavlakis, Industry Analyst at ABI Research. “The revenue shift will happen as the market focuses on consumer devices and securing more investment from mobile and computing device OEMs, as well as large banks and credit card companies.”
Border control is currently one of the highest growth areas in the government market sector.
The research finds that enterprises are focused on employee authentication, as is the consumer sector on smartphones. The integration of fingerprint technology in smartphones will lead to the disruptive growth of the current consumer landscape.
ABI Research forecasts that fingerprint sensor shipments will hit close to two billion by 2021, accounting for an overall growth rate of 44%.
The increase will result in biometrics becoming particularly relevant in the automotive, data management, healthcare and telemedicine, smart home, and wearables IoT market segments.
As biometric technology rapidly advances within these different sectors, market players need to be on the alert for new security legislation that could potentially affect companies’ business strategies in the years ahead, according to ABI Research.
The influx of new devices integrated with biometric sensors in the connectivity world and the emergence of new applications in the banking sector translates to an increase in overall market value. However, it also means that security concerns continue to increase.
The research states that these are one of the main challenges that multi-vertical companies like Safran Morpho, M2SYS, 3M Cogent and Crossmatch must tackle, while smaller players like Nuance, Agnitio, Aware Inc. and BIO-key are focusing their efforts on specific segments and evolving markets.