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Consumer Biometrics Market - Growth, Trends, and Forecast (2020 - 2025)

Consumer Biometrics Market - Growth, Trends, and Forecast (2020 - 2025)

  • March 2020
  • 155 pages
  • ID: 5877824
  • Format: PDF
  • Mordor Intelligence LLP
Up to $750 off Until Mar 10th 2021


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The Consumer Biometrics Market has shipped 2100 million units in 2019 and is expected to reach 5263 units shipment by 2025, registering a CAGR of 17.2%, during the period of 2020-2025 . Rising demand for ease and convenience, availability, and reachability of biometrics is expected to create opportunities for the market further. According to the findings of a survey commissioned by VISA, consumers are ready to leave the password behind. 70% of consumers believe that biometrics are always more comfortable as they do not involve memorizing passwords. More than 65% of consumers are already familiar with biometrics, while 86% are interested in using biometrics to verify the identity or to make payments.

- The increasing connectivity and digitization have increased customer interactions with devices and services, which is further demanding identity authentication for access. The increasing awareness of the need for sophisticated biometric security, widening the scope of applications of biometrics technology in consumer electronics, to improve customer experiences, and technological advancements are expected to drive the growth of the market over the forecast period.
- The rapid proliferation of the internet and the growth of mobile devices has led to increased payments through mobile. This mode of payment is anticipated to experience significant growth over the next few years.
- For instance, according to GSMA, the number of smartphone subscribers in North America is expected to reach 328 million by 2025. Moreover, by 2025, the region is likely to witness an increase in the penetration rates of mobile subscribers (86%) and the internet (80%), the second-highest in the world. Additionally, according to GSMA, by 2025, Europe is estimated to have the highest rate of penetration of the internet (82%) and smartphones (88%).
- The increasing penetration of smartphones, which are equipped with fingerprint sensors, is among the prominent driver for the growth of fingerprint sensors. According to the Credit Suisse report, in 2018, the shipment of smartphones with fingerprint sensors worldwide stood at 1,082 million units.

Key Market Trends
Fingerprint Sensing Modules to Hold the Major Share

- Devices used for fingerprint biometrics provide the users with increased convenience, availability, and reachability of embedded biometrics. The demand for fingerprint sensing modules for consumer authentication is expected to witness significant growth over the forecast period on account of the increasing demand for biometric technology for access management, need for better security, and change in consumer preference for new technologies with a personalized experience.
- Smartphones, in that row, have witnessed an increasingly growing trend in this technology over the past five years. This technology has been leveraged to facilitate online transactions, authentication, and many other services.
- A survey conducted on 1,000 US adults by Veridium to understand biometric consumer sentiment indicated that their most preferred form of biometric identification on their phones is the fingerprint, at 63%. Other forms of identification are ranked way below, such as facial recognition (14%), traditional passwords and PINs (8%), and voice recognition (2%).
- The market studied has seen various technological developments in smartphones from a separate fingerprint scanner to an in-display fingerprint scanner. Vivo, a Chinese Smartphone brand, was the first to implement in-display fingerprint. Starting with the launch of the iPhone 5S, which had a TouchID capacitive technology, many other next-generation smartphones have incorporated multiple biometric options that users can set for different purposes.

Asia-Pacific to be the Largest and Fastest Growing Market

- Asia-Pacific has the largest population of all the regions. With an increase in the urban population and increased purchasing power, Asia-Pacific is expected to be one of the largest and fastest growing markets for consumer biometrics.
- Major smartphone companies, including Huawei, Apple, Samsung, Xiaomi, and Lenovo has its manufacturing facilities in China. With the continuous increase in smartphone sales, the demand for fingerprint sensors to be embedded into smartphones is expected to increase in the country.
- Seeking the growing opportunities in the market, the companies in the region are manufacturing biometric sensors. For instance, in December 2019, Chinese sensor manufacturer Goodix introduced its latest ultra-thin optical in-display fingerprint sensor by integrating it in Oneplus 7T pro 5G Mclaren.
- Automotive companies in the region are actively investing in integrating consumer biometric solutions in their upcoming vehicles. For instance, Xiaopeng Motors has introduced its P7 model, which has an embedded fingerprint sensor in the handlebar.

Competitive Landscape
The providers of consumer biometrics market are adopting an aggressive pricing strategy to gain a competitive edge in the market. Many companies are increasing their market presence by introducing new products or solutions or by entering into strategic mergers and acquisitions. For Instance, in June 2019, Assa Abloy signed acquired the international identity solutions business of De La Rue, a leading passport manufacturer based in the United Kingdom. De La Rue´s International Identity Solutions business is a strategic technological addition to the company.

- February 2020 - Goodix has developed some innovative fingerprint solutions, which will power up advanced 5G flagship experiences with dual commercialization, which are Huawei Mate Xs, and Realme X50 Pro 5G. These innovations will result in better positioning of the company.
- January 2020 -Next Biometrics Group SA received an order for UIDAI and STQC certified fingerprint biometric readers in India, with a value of USD 750,000. The customer provided a 20% upfront payment, and the first readers are in transit. The purchase order reflects the increased demand for biometric solutions, primarily those related to the Indian Government’s Aadhaar program, which continues to provide NEXT with opportunities to expand its share in the growing Indian market.
- November 2019 - Synaptics Inc. announced its expansion into the automotive segment, with the launch of its fingerprint biometrics for the automotive industry. The company is expected to roll out these solutions to the global market in the first half of 2020.

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