Biometrics market forecast 2015-2021

Global Biometric Market 2015 at $7.0 Billion, Rising to $44.2 Billion by 2021 (University Chronicle)

Biometric modalities include hybrid fingerprint / palm print, facial recognition, iris image, and voice recognition. The global biometrics market is $7.0 billion in 2014, rising to $44.2 billion by 2021. Biometrics revenue and device shipment forecasts are segmented by modality and market segment. There are four market segments, law enforcement, border control which includes government ID systems, workplace access, and consumer ID.

According to Susan Eustis, leader of the team that prepared the study, “Biometrics represent a multi-billion dollar industry because the devices provide personal identity protection. Biometrics is used by civil authorities to permit the organization of people into units of government that are a cohesive group of people, not intruded upon by outsiders. Biometrics provides a cornerstone of law enforcement agencies with fingerprint ID.”

Forecast: Global Smart Security Market 2015-2019

Latest report on the global smart security market that is estimated to grow at a CAGR of 18.59% over the period 2014-2019 (Sandler Research)

Smart security solutions are used to monitor the activities and behavior of people in areas that are more prone to unauthorized access or damage, such as enterprises, educational institutions, commercial buildings, and utility infrastructure. Smart security includes advanced security systems such as IP surveillance cameras, biometric access control systems, integrated perimeter intrusion prevention systems, and wireless alarms. Thus, these solutions can secure an area from miscreants, terrorist activities, and data theft.

Adoption of intelligent security solutions for cities and their infrastructure not only provides security but also peace of mind to the residents.

The analysts forecast global smart security market to grow at a CAGR of 18.59% over the period 2014-2019.

Forecast: Mobile biometrics revenue $3.5 billion by 2024

Starting from a base of $249 million 2015, global mobile biometrics revenue is forecast to reach $3.5 billion by 2024, with cumulative revenue for the 10-year period totaling $17.5 billion. (EFY Times)

Biometrics for mobile devices have finally reached a tipping point. The march began with the release of the Apple iPhone in 2007 and later the iPad, each subsequently matched by Android competitors. These smartphones and tablets finally have enough processing power and hardware capabilities to put biometrics directly into their users’ hands. Biometrics, whether for mobile devices or large stationary systems, typically perform one of two functions: authentication, proving that someone is who they claim to be, or identification, figuring out who someone is. Nearly all consumer-facing use cases are authentication and nearly all identification uses are enterprise-facing, especially government use cases. Somewhere in the middle, financial institutions are offering their users the chance to authenticate to online banking systems with their voices or with their eyes, in place of keying a personal identification number (PIN).

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.

The findBIOMETRICS 2013 Year in Review is out

Biometrics Makes Headlines – The findBIOMETRICS 2013 Year in Review (findBIOMETRICS)

From Peter O’Neill’s introduction:

What a year for the Biometrics and Identification Industry! The past year in biometrics was explosive. Biometrics has become real. From the rapid growth of the FIDO Alliance to the Consumer Electronics Show that hailed in 2014, biometrics are being talked about everywhere! Industry verticals like Border Control, Financial, Healthcare, Law Enforcement, National ID, etc. are all moving aggressively ahead into 2014. Our industry made headlines in 2013 and will continue to do so in 2014, so …be prepared…be innovative …be ready to capitalize on a rapidly growing marketplace.

We received responses from Canada, Spain, Russia, China, Ireland, Mexico, Brazil, Hong Kong, Sweden, Germany, UK, France, Korea, The Netherlands, Taiwan, Lithuania, Singapore, Japan, Italy, Malaysia and the USA.

Here’s a link straight to the 33-page PDF report.

Innovations in Biometrics for Consumer Electronics

Frost & Sullivan: Integration of Biometrics in Consumer Electronics a Fast-Emerging Trend (Yahoo)

[…]fingerprint recognition will remain the leading biometric technology used in consumer electronics due to its convenience, cost-efficiency and quick ROI. Iris recognition and multimodal biometrics will rapidly grow in the next three years due to their accuracy, although the high cost and large size of iris recognition systems may hinder widespread uptake. Voice and face recognition technologies likewise should find higher usage depending on the security requirement of the application.

More good insight at the link.

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.

Market Report: China fingerprint biometrics revenue six-fold increase by 2018

China Biometrics Market Forecast & Opportunities, 2018 (Research and Markets)

“China Biometrics Market Forecast & Opportunities, 2018”, identifies that fingerprint identification market in China is anticipated to grow at the CAGR of around 38%, reaching up by six folds revenue by the end of 2018. Anhui, Shandong and Shanghai are the leading provinces of eastern region, generating highest revenue in biometrics market when compared with other regions in the country. One of the other large biometric projects is e-passports, which is primarily to be implemented in Shaanxi province in northern region and would act as the main growth driver for biometrics market in the next five years. The major players of biometrics industry in China are Zk Technology, Ingersoll Rand, Rosslare Security, Zks Group and Suprema Inc.

Global biometrics market is anticipated to reach USD 20 Billion by 2018

Global Biometrics Market is Well Poised to Cross USD 20 Billion by 2018 Says TechSci Research (Press Release via Digital Journal)

The major share in biometrics technology has been figuratively captured by fingerprint recognition technology (AFIS & Non-AFIS). However, with the emergence of a lot of companies in this sector such as “Fujitsu Ltd” the market is poised for a stiff competition.

The government organizations have been the leading contributor to the industry which is anticipated to continue leading the market. In addition to that, large corporates have adopted biometric for logical as well as access control applications to increase the trust among their customers and employees.

Asia is anticipated to overtake North America by 2018 on account of huge growth in security market in the countries such as China and India. With the increasing IT security spending and growing government project in China, Indonesia, India and others will spur the demand for biometric systems.

Logical access control applications are growing rapidly with the increase in computer hardware and Internet. In addition, vein recognition technology is growing rapidly due to advancement in security management. Also, with the introduction of multimodal biometrics, the market is expected to touch new heights in the coming years.

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