Terrorism and fraud risks will drive demand for automatic identification systems: Technavio
Technavio analysts forecast positive growth for many segments of the global automatic identification system market over the next four years due to increased revenues in several markets, including access control solutions, contactless smart cards and palm vein biometrics.
The high convenience of contactless smart cards and its extensive adoption by governments to meet their escalating security needs is helping to drive the growth of the global contactless smart cards market, resulting in a CAGR of close to 33% during the period 2016-2020.
Technavio identifies APAC to be the largest market for contactless smart cards during the forecast period as the countries in this region are at high risk of terrorism and criminal activities, which leads to a high demand for such security solutions.
Apart from contactless smart cards, the global palm vein biometrics market is also expected to grow significantly at a CAGR of over 22% during the forecast period, according to Technavio.
“The increasing adoption of mobile devices across various sectors including healthcare, government, enterprises, BFSI, and transportation is prompting the introduction of palm vein recognition for securing access to data on mobile devices,” said Bharath Kanniappan, one of the lead analyst at Technavio for ICT research.
The North American market will dominate the global palm vein biometrics market, reaching revenues of more than US$438 million by the end of 2020, according to Technavio research analysts
Meanwhile, access control solutions is forecasted to grow at a CAGR of more than 13% during the period 2016-2020 following the increasing demand for a high level of data and identity security in corporate firms.
There has been an increasing need for access control solutions like biometrics and smart cards due to the recent rise in the number of terrorist attacks and criminal activities. Since most corporate employees use their mobile devices to access company data, the demand for access control solutions will increase significantly as these devices are highly vulnerable to attacks.
The report highlights several key vendors for automatic identification system technology, including Gemalto, Giesecke & Devrient, Oberthur Technologies, and Safran for contactless smart cards, BioEnable, Fujitsu, and M2SYS for palm vein biometrics, and 3M Cogent, Honeywell Security Group, and Allegion for access control solutions.
Previously reported, Technavio released a new research report titled ‘Global Biometrics Market in the Government Sector 2016-2020‘, which forecasts that the global biometrics market in the government sector will grow at a CAGR of over 11% until 2020.