Digital identity checks could rise 20 percent as outbreak impacts biometrics market: Goode Intelligence
Biometric fingerprint technology markets that do not involved shared devices, such as smartphones or payment cards, should be unaffected by the fallout from the coronavirus outbreak, according to a blog post from Goode Intelligence. The large-scale deployment of biometric payment cards will be delayed by one to two years, however, according to the research and consulting firm.
For shared devices such as ATMs, POS devices, door locks and kiosks, contactless technology, whether for fingerprints or not, may be reconsidered for deployment by organizations.
The fingerprint smartcard market will be significantly impacted by a slowdown in card manufacturing, as factories around the world are temporarily shuttered. The post notes that several countries have also taken the step of increasing the limit for contactless payments, some by 50 percent or more, though this is not expected to pose a long-term barrier to the market.
The centers of global biometric sensor manufacturing in China, South Korea and Taiwan have closed factories, which are expected to run at only 70 to 80 percent of capacity even once they are back in operation. OEMs, however, especially of mobile devices, have reported over-supply of biometric components.
How issues around remote identification and biomedical checks, and the data they generate, will be resolved is uncertain, as is how long ‘emergency’ measures will remain in place.
More broadly, the coronavirus is accelerating some key megatrends of the last couple of decades, replacing physical service delivery with digital service delivery via any device that can run an app or browser. Partly due to this, Goode is revising its prediction of 704 million digital identity verification checks during 2020 up by 15 to 20 percent.
Digital identity numbers overall are expected to follow a similar path to that previously predicted, but at different speeds between different verticals and applications. Goode Intelligence points out that the anticipated loss of $30 billion by airlines (per IATA), and passenger decline of 13 percent, one major avenue to digital identity will be substantially reduced.
Finally, Goode Intelligence is suspending its physical events and summits, but plans to run virtual summits in the coming months.