Forecast: Global biometrics market to see 19.6% CAGR through 2020

Biometrics – A Global Market Overview (Research and Markets)

The global market for Biometrics is slated to post a strong CAGR of 19.6% between 2014 and 2020 to reach a projected US$30.1 billion by 2020 from an estimated US$10.3 billion in 2014. Fingerprint recognition is estimated the largest technology with market worth US$3.2 billion in 2014 while Civil ID is slated to be the largest application with global market of US$4.6 billion in the same year.

Biometrics market forecast: Middle East

UAE, Saudi Arabia, Turkey And Israel Spurring The Demand For Biometrics Systems In Middle-East Biometrics Market (EFY Times)

Increasing investments, surging government security spending, rising number of tourists, government projects, upcoming UAE’s World Expo 2020 and increasing IT spending are fueling the demand for biometrics systems in Middle-East market. In global biometrics market, share of Middle-East region is expected to surge due to countries such as UAE, Saudi Arabia, Turkey and Israel.

Predicting the future of security

IDC Reveals Worldwide Security Predictions for 2015 (TMCnet)

Some excerpts:

2. Biometric Identification – Mobile devices have biometric capabilities and in 2015 we expect that 15% of those devices will be accessed biometrically, and that number will grow to 50% by 2020.

5. Security SaaS – Enterprises will be utilizing security software as a service (SaaS) in a greater share of their securiy spending. By the end of 2015, 15% of all security will be delivered via SaaS or be hosted and by 2018 over 33% will be.

6. User Management – By 2016, multi-factor authentication will be the primary method of access control used by 20% of enterprises for highly privileged or otherwise sensitive accounts.

There’s a lot more good information at the link.

Access control upstages video surveillance

The Press Release for this Memoori market research study contains a lot of great information…

This steady consistent growth since 2011 has been driven by a combination of factors including strong growth in IP Video Networking and IP Access Control products, buoyant markets in Asia and North America and higher levels of penetration in vertical markets such as transport, retail, health and education.

ACCESS CONTROL MOVES TO IP AND DELIVERS CUSTOMER VALUE PROPOSITIONS

Access Control, for so long the poor relative of Video Surveillance, this year it has come out of the shadows and upstaged it by delivering a higher growth rate and we forecast that it will continue to increase its growth rate over the next 5 years.
This will be achieved by moving to IP Technology and integrating Access Control with Identity Management. There can be no doubt about the business case for integrating these services. Identity Management for the purpose of Access Control has given rise to a number of major acquisitions in the last 5 years. September 2010 saw a flurry of activity with the purchase of L-1 Identity Solutions by Safran for $1.1 billion, 3M’s purchase of Cogent Systems for $430m, the merger of AuthenTec and UPEK. In 2014 whilst the number of deals declined, this group accounted for 19.2% of the total number of acquisitions and 5.6% of the total value.

Access control through a standard card reader system is a weakness particularly at a time when risk of corporate theft, malicious damage to staff and property and terrorism has increased. The need for a more secure system incorporating biometric devices to authenticate identity and manage the process is becoming a standard requirement for new systems in high security areas.

Physical Identity and Access Management (PIAM) is also a service that promises to deliver further growth opportunities. It enables common policy, workflow, approval, compliance automation and life cycle management of the identity / badge holder (employee, contractor, visitor, temps) across disparate physical security systems. The key benefit from PIAM solutions is operational cost reductions that can be delivered through this platform providing a bridge between the disparate systems, without stripping out and starting again. PIAM has so far failed to attracted the mainstream PACS business.
There is a steady stream of alliances and partnerships between PIAM Software companies & PACS companies but so far we have not identified any mergers and acquisitions. Information on the business is pretty sparse and most “best estimates” on the market size range around $150 million. This if accurate is quite small considering that virtually all Fortunes Top 500 companies must have installed one.

IMPROVED PERFORMANCE, ROI & REDUCED TCO

Now has to be the time to dig even deeper and for manufacturers to increase their efforts to align the motivation of security buyers to invest in better performing systems through educating and training both themselves and those in the distribution channel in order to drive out all the benefits.

Whilst technology has been the enabler of change, the driver and motivator is now clearly to channel this to deliver products and services that increase productivity and provide a better ROI and reduce the TCO. This is gradually changing the buyers culture from believing that physical security is a pure cost centre to a profit centre.

Security, sadly, is still regarded by most end users as a cost center and as such has been towards the end of the food chain for capital investment. This can be crucial when budget reductions are on the agenda. However a gradual change in attitude by buyers is taking place. Specifically that security can be a cost saver when reducing shrinkage (retail) and that when integrated with other services it can increase productivity in the business enterprise and therefore reduce operational costs. This has been made possible through IP convergence and in some vertical markets such as retail there is a growing belief that IP Video Surveillance should be treated as a profit centre.
This has had a major impact on increasing the value-add on security projects. The market has not been slow to see the opportunities and changing requirements for more converged and integrated solutions. In order for companies to deliver such systems many have decided that it is necessary to acquire, merge or form alliances and partnerships with other suppliers. In order to maximize the opportunities of delivering on ROI it is vital for suppliers to have specialist knowledge and experience in vertical markets. But equally important is to have the networking skills to join all the vertical and horizontal layers of product together with the analytical software and interface with the other building services software and finally join them to the business enterprise. Video Surveillance is already on route to establishing an important role in the Building Internet of Things (BIoT) and the wider IoT.

 

Face recognition gaining appeal

Analysis of the Global Face Biometrics Market (Companies and Markets)

The global market for face biometrics across government and commercial applications is at the growth phase of the Gaussian curve. North America (NA) and Europe account for a major share of the world market, with this trend expected to continue over the forecast period. Emerging economies such as Brazil, India, South Africa, the Middle East, Russia, and China are expected to embrace this technology, thereby offering considerable growth opportunities.

Forecast: North American market

New Report Suggests North America as Growth Leader in Biometric Technology Market (M2SYS)

The report suggests that, “the global biometric technology, types, and applications market is expected to reach $13.89 billion by 2017 at an estimated CAGR of 18.7%,” and that, “North America is a market leader in the biometric technology market.”

What’s interesting about the prediction that North America is positioned as a market leader in biometric technology is that it is arguably the region with the most opposition and resistance to it.

Is that irony, or has the American public’s opposition to biometrics been overstated?

Forecast: Germany law enforcement biometrics CAGR 17.6% through 2018

Law Enforcement Biometrics Market in Germany 2014-2018 (Companies and Markets)

A major driver of the market is the high demand for security. The Government sector, especially the law enforcement bodies, is in need of more secure and protected security measures. The increase in investments by the government in biometric solutions is a major boost for the Biometrics market in Germany.

Further, one of the major challenges that hinder the growth of the market is the accuracy of biometric systems. The accuracy of the biometric system may not be high enough in certain applications such as negative identification or if the fingerprints are faded, which is a special physical characteristic.

Analysts forecast the Law Enforcement Biometrics market in Germany to grow at a CAGR of 17.6 percent over the period 2013-2018.

India Fingerprint Biometrics Market (2014 – 2020) (6Wresearch)

According to 6Wresearch, India’s Fingerprint Biometrics Market is projected to grow at a CAGR of 35.1% during 2014-20.Though, in overall fingerprint biometrics market, government, travel & transportation application captured lion’s share, but in the forecast period its share is likely to decline, owing to increasing penetration and adoption in other application markets such as healthcare, banking & financial, retail and commercial offices.

Biometrics market forecast to 2020

Biometrics market will be worth $23.54 billion by 2020 at an estimated CAGR of 17.6% (Markets and Markets)

Biometrics provides a high degree of security and convenience which ensures confidentiality of personal information. This is superior to traditional passwords/PINs as these are easily guessed, forgotten, or copied; tokens can be stolen or misplaced. Biometric technology helps in preventing theft as the information is stored in the form of a digital record in the database which makes it highly impossible to reconstruct, decrypt, or manipulate. Biometric uses biological characteristics or features which are inseparable from a person, thus, reducing the threat of loss or theft.

Next Generation Biometric Market
Source: Markets and Markets

Report: Biometrics market to more than triple in size over next 6 years

Global biometrics market $5.2 billion in 2013, is expected to reach $16.7 billion by 2019 (Market Research Reports)

A rise in government projects has been seen as terrorists become an increasing threat. This has been accompanied by increasing data security concerns. There is a need for advanced security devices. Security systems implementations drive the market for biometric systems. Biometric data protection is being used to replace photographs, passwords and PIN codes.

Market forecast for commercial biometrics applications

FrostSullivan: Global Commercial Biometrics Market to Grow Considerably as Awareness Increases (MENAFN)

Increasing awareness of biometrics across industries will spur the global commercial biometrics market. While historically the adoption of biometrics has been concentrated in the government sector, recent years have witnessed considerable demand for applications such as ATMs, retail points of sale, and finance. Iris and face recognition algorithms have undergone substantial advancements and are gaining prominence, while fingerprint technologies remain the most popular.

New analysis from Frost & Sullivan, Analysis of the Global Commercial Biometrics Market, finds that the market earned revenues of 1.48 billion in 2012 and estimates this to reach 6.15 billion in 2019. In addition to fingerprint, facial and iris biometrics, the study covers hand geometry, voice, and signature technologies.