Despite having been in use for the past two decades, biometrics is yet to achieve penetration into several industries. Previously, the technology was extensively used in data centers to provide physical access to employees of an enterprise. Since the volumes of data in data centers have grown exponentially, the need for big data storage and processing have consequently increased. Incorporating advanced biometrics in numerous end-user verticals is expected to dramatically evolve the market trends, supply & demand dynamics, and the competitive landscape in the Next Generation Biometrics Market. Biometrics finds application in numerous end-user industries such as consumer electronics, aerospace & defense, healthcare, government, residential, security, and retail. With these increasing applications in end-user verticals, demand for highly secure biometric systems is expected to drive the growth of the global Next-Generation Biometrics Market. The market generated $13.14 billion in 2018, and growing at a CAGR of 22.2% during the forecast period of 2018 to 2023, it is expected to reach $35.82 billion by 2023.
Application and Geographical Analysis of the Next Generation Biometrics Market
The consumer electronics segment in the end-user industry generated maximum revenue in the next generation biometrics market, amounting to $4.87 billion, in 2018. The vertical is estimated to reach $13.16 billion, growing at a CAGR of 22% during the forecast period. The rampant demand for consumer electronics products such as smartphones is encouraging the next generation biometrics market growth. Smartphone manufacturers are integrating different variants of biometrics in phones such as through authentication of the fingerprint, facial, and iris biometric equipment are used in smartphones. So, the increasing smartphone demands will resonate a hike in the requirement for biometric equipment. According to the Global Systems for Mobile Communication (GSMA), the number of unique mobile subscribers has surpassed 5 billion units globally. With such optimistic growth prospects for the smartphone industry, the global next-generation biometrics market is poised to witness considerate demand in the near future. Additionally, the residential segment is also a growing segment for the next generation biometrics market. The prevailing concept of smart homes and smart cities will employ a significant number of smart biometric locks in homes and that will positively influence demand for advanced biometrics in the residential sector which will subsequently contribute to next-generation biometrics market growth.
In terms of geography, the Americas are the most lucrative segment of the next generation biometrics market. Both the developing regions such as Brazil and the developed region such as the U.S. and Canada have shown a potential growth in the market and generated $6.1 billion in 2018, and is set to observe growth at a CAGR of 22.5% during the forecast period and reach $17 billion by 2023. The U.S. Department of Homeland Security is one of the most extensive users of biometrics in the country and as per the American Civil Liberties Union, the Federal Bureau of Investigation (FBI) is now capable of matching more than640 million photos using facial recognition techniques. The FBI ran over 152,000 searches from October 2017 to April 2019 with its law enforcement database. The increasing surveillance activities to improve security and safety are projected to inject massive revenues into the next generation biometrics market. The other growth drivers amplifying the next generation biometrics market revenue in the region are the growing end-user verticals of consumer electronics and healthcare. The increased per capita disposable income in the developed regions is also one major factor driving the next generation biometrics market.
Next Generation Biometrics Market Major Developments
• New York-headquartered MasterCard is a financial services operator, which mainly processes online payments across banks and merchants. In 2018, MasterCard announced innovative biometric cards which aim to eliminate passwords from its debit and credit cards. For this, the company is integrating fingerprint scanning technology with the biometric cards. The card contains a sensor which scans the fingerprint, creates, and stores an encrypted digital template of the fingerprint in the database which is referred to for processing any future payments. This technological update is expected to prove effective for the company and customers, as the company witnessed an increased number of transactions and reduced fraud rates by eradicating the risks arising due to static passwords.
• 2018 marked the year of innovation in mobile payments techniques. One such development was Tascent Mobile launching Tascent MX. Tascent MX provides biometric software, hardware, and security services with a secure identity authorization path. Since its inception, the company has powered numerous transactions. The product integrates advanced recognition of fingerprint, voice, and iris, and face biometrics, for a variety of authentication and registration applications. Tascent MX has multi-generation mobile and multi-modal biometrics capabilities and also offers identity verification which is secure, scalable, accurate and easy-to-use. This technology is expected to reduce hassles involved during border management, travels, and transactions.
• Biometrics is an essential component in the military and defense operations. The U.S. army conventionally used basic iris and fingerprint collection methods to maintain its-personnel database; however, the technique was not that effective in collecting other facial features. A newer system termed “Next Generation Biometric Collection”, is currently in the acquisition cycle. It aims to integrate newer facial detection techniques along with the existing iris and fingerprint biometric system. This new system is lighter and smaller, and has capabilities for collecting and exhibiting facial features much more precisely than the existing one. Additionally, the U.S. army’s research lab is also working towards developing voice and DNA biometrics technologies and is exploring possibilities of utilizing these biometric identification systems on a contactless and automated basis that does not require a human operator.
Next Generation Biometrics Market Competitive Landscape
The companies influencing the next generation biometrics market are IDEMIA (formerly Morpho S.A.S), Integrated Biometrics Inc., Suprema Inc., ZK Technologies LLC, 3M Cogent Inc., Hitachi Ltd., SecuGen Corp., CMI TECH Co. Ltd., HID Global, IRIS ID Systems Inc., Precise Biometrics AB, BIO-key International Inc., Crossmatch Technologies, IDEX ASA, and NEC Corporation. In September 2018, HID Global partnered with Crossmatch, biometric identity management and secure authentication solutions company. The company offers products and solutions related to rapid mobile identification, background checks, criminal booking, security clearance process, military base access, mobile intelligence, visa processing, and counter-terrorism. HID Global’s services are prevalently utilized in educational institutions, financial institutions, hospitals, industrial businesses, and the government sector. With this acquisition, HID aims to spread its operations to immigration and border control, military & defense, law enforcement markets. Companies are expanding geographically to gain ground over their competitor in the next generation biometrics market.
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