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1 MarketsandMarkets Publisher Sample Phone: (US) or or (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST customerservice@marketresearch.com MarketResearch.com
2 NEXT GENERATION BIOMETRIC MARKET By Technology (Fingerprint, Palm, Face, Iris, Vein, Voice & Signature), Function, Application (Government, Defense, Travel & Immigration, Home Security, Banking, Consumer Electronics & so on), & Geography ( ) MarketsandMarkets
3 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers thirteen industry verticals, including advanced materials, automotive and transportation, banking and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2014 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. MarketsandMarkets Sample Pages 1
4 1 EXECUTIVE SUMMARY Biometrics can be described as distinctive physiological characteristics of a human being; such as a fingerprint, iris scan, and face recognition that can be utilized to recognize and verify individual s identity. Biometric technologies improve the effectiveness of identification and authentication processes, refurbish control access to physical and electronic resources, and advance the security of information systems. 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 compromised; tokens can be stolen or misplaced. It also prevents thefts, as information is stored in the digital form in the database, which makes it highly impossible to reconstruct, decrypt, or at least manipulate information. Biometrics increases accountability through eliminating terms such as buddy punching and provides a high degree of traceability of users access to computers or systems at any time. Currently, fingerprint recognition is the major biometric technology used, accounting for approximately % of the total biometric technology market; whereas iris recognition has more growth potential in the next five years. Iris recognition technology is the most accurate technology available among all the biometrics technologies as the shape and size of iris remains constant throughout the life even in the case of surgery and transplantation. In the past few years, biometric technologies have made their way across various applications such as travel, immigration and transportation, government, banking and finance, consumer electronics, healthcare, home security, and other applications. Biometrics technologies work on the principle of identifying an individual by his/her physical and behavioral traits. These technologies identify an individual by his/her physiological traits such as fingerprints, eyes, hand geometry, face, and veins and by behavioral traits such as voice, signature, and key stroke. Some of the major players in the biometrics market are NEC (Japan), Safran SA (France), 3M (U.S.), AuthenTec (U.S.), RCG Holdings (Hong Kong), Fujitsu (Japan) and Safetic (Belgium). MarketsandMarkets Sample Pages 2
5 TABLE 1 GLOBAL BIOMETRIC TECHNOLOGY MARKET VALUE, BY TYPES, ($BILLION) Type CAGR% ( ) Fingerprint Palm Face Iris/Retina Vein Voice Signature Others Total The biometric technology market is estimated to grow from $ billion in 2013 to $ billion in 2020, at a CAGR of % from 2014 to The growth of the biometrics market is mainly due to increasing concerns of the countries in terms of strengthening national security. The growth in e-passport program, use of biometric technology in criminal identification, and use of biometric technology in banking and finance is the major driver. The use of biometrics in consumer electronics has generated a lot of public awareness and is further expected to drive the market at a healthy rate. Fingerprint recognition market is expected to reach $ billion in 2020 from $ billion in the year 2013 at a CAGR of % (from 2014 to 2020). The low cost and wide acceptability are the major drivers for growth of fingerprint recognition market. Voice recognition market has the highest growth potential and is expected to grow at a CAGR of % (from 2014 to 2020). Similarly, Iris recognition market is expected to grow at a CAGR of % from 2014 to MarketsandMarkets Sample Pages 3
6 2 MARKET OVERVIEW 2.1 INTRODUCTION Existing methods of human identification such as identification documents and PIN are not able to cope up with the growing demand for stringent security, which gives a high growth opportunity for the use of biometric technology. This technology is also very popular as biometric characters such as face, fingerprint, hand, and voice cannot be lost, stolen or easily forged. FIGURE 1 OVERVIEW OF BIOMETRIC TECHNOLOGY MARKET BIOMETRIC TECHNOLOGY By Type By Function By Component By Application Physiological Behavioral Non Contact Hardware Software Physiological 1 Physiological 2 Iris/Retina Physiological 3 Voice Behavioral 1 Behavioral 2 Function 1 Hardware 1 Hardware 2 Signal Processing Algorithms Software 1 Application 1 Application 2 Home Security Application 3 DNA Physiological 3 Software 2 Application 4 Healthcare Application 5 Travel & Immigration MarketsandMarkets Sample Pages 4
7 2.2 BIOMETRIC TECHNOLOGIES Biometrics technologies are termed as the art of identifying a person by either behavioral or physiological patterns. The demand for biometric technologies has increased manifold of late. The basic reason behind this is the rise in the number of terrorist activities, coupled with multiplicity of theft on the part of crucial data and information which have raised concerns regarding national security. Today, biometric technologies are used in several verticals such as consumer electronics, government organizations, airports, corporations, banks, and financial institutions where security remains the prime concern. FIGURE 2 BIOMETRIC TECHNOLOGY TYPES Vein Recognition Biometric Technologies 1 Biometric Technologies 2 Biometric Technologies 6 BIOMETRIC TECHNOLOGIES Iris Recognition DNA Recognition Biometric Technologies 3 Biometric Technologies 5 Biometric Technologies 4 MarketsandMarkets Sample Pages 5
8 Technically, biometrics is defined as the science of recognizing an individual based on biological or behavioral traits. Biometric technologies are concerned with the physical parts or organs of the human body or the personal traits of human beings and the recognition of individuals based on those parts. Fingerprint, face, iris, hand, and retina are considered biological biometrics, based on direct measurements of a part of the human body. Voice, signature, gait, and keystroke are considered behavioral biometrics; they are based on measurements and data derived from an action and therefore, indirectly measure characteristics of the human body. Biometric traits are distinctive personal identifiers which cannot be forgotten, lost, stolen or imitated; therefore, they reduce the incidence of theft or fraud. The automated methods implemented in biometric system can identify such differences and differentiate even between two seemingly identical twins Growth in E-Passport Program With the introduction of biometrics and computer chip, e-passport represents a major trend in the passport technology. E-passport uses the face detection technology where the user s face is matched against image held in the passport database; this confirms that the person has not applied for a travel document in another name. To reduce the threat of identity fraud, governments of various countries are implementing e-passport to strengthen the security features in passports. International Civil Aviation Organization (ICAO), which sets the principles and rules, by which international flights are conducted, is also supporting biometric technology to counter identity fraud. The compulsory implementation of e-passports for International Civil Aviation Organization (ICAO) member countries by 2015 will boost the market of biometric technology. MarketsandMarkets Sample Pages 6
9 FIGURE 3 GLOBAL E-PASSPORT AND E-VISA REVENUE, ($BILLION) $Billion Year Source: Secondary Research, Expert Interviews, MarketsandMarkets Analysis The global e-passport and e-visas market is expected to grow from $ billion to $ billion from 2014 to 2020 at a CAGR of %. Developed countries such as the U.S., U.K., and Japan are the major contributors; but it is forecasted that in the next five years, developing countries such as India, China, and Brazil will also be the major contributors towards the growth of e-passports and e-visas revenue. The impact of this driver in the short-term would be medium, as the use of biometric technology in e-passports is gradually increasing. However, in near future, the impact of this driver would be high. MarketsandMarkets Sample Pages 7
10 2.3 PORTER S FIVE FORCES MODEL Porter s Five Forces model defines the attractiveness of the biometrics industry. It provides information on profitability. As such, it supports decisions about entering and exiting a particular segment or an industry. Changes in these forces can have a drastic impact on the biometrics industry. Porter s five forces analyzes competition in the biometrics industry from five different angles such as degree of competition, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and threat of substitutes. FIGURE 4 PORTER S FIVE FORCES ANALYSIS FOR BIOMETRICS MARKET Bargaining Power of Suppliers Degree of Competition Bargaining Power of Buyers Legend 0 to 2: Low 2 to 6: Medium 6 & Above: High Threat of New Entrants Threat of Substitutes The impact of degree of competition and threat of new entrants on biometric market is high, while the impact of bargaining power of suppliers, bargaining power of buyers, and threat of new substitutes is medium on biometric market. MarketsandMarkets Sample Pages 8
11 2.4 BIOMETRIC TECHNOLOGY LIFE CYCLE Biometric technology life cycle depicts the industry trend of various types of biometric technology. This life cycle has been categorized into four phases, such as Introduction, Growth, Mature, and Decline. Introduction phase signifies that the product or technology is at the nascent stage and not yet commercialized, but will succeed in future. Growth phase signifies that product or technology has a strong demand and huge scope in the market and also the highest growth potential. FIGURE 5 BIOMETRIC TECHNOLOGY LIFE CYCLE Face Sample Text Voice Sample Text Sample Text Signature DNA Sample Text Introduction Growth Maturity Decline Fingerprint recognition is the oldest method of biometric technology and has been placed in between maturity and growth phase. Fingerprint recognition is commonly used in most of the applications such as government, banking and finance, and travel and immigration. Face, Iris, Palm, and Voice are placed in the growth phase, as these types have started getting MarketsandMarkets Sample Pages 9
12 commercialized in the biometric market. Iris recognition is expected to get deployed in most of the applications in near future, as it is the most accurate type of biometric authentication. DNA, Vein, and Signature are placed at introduction phase. These types are at the nascent stage and yet to gain a significant share in the market. MarketsandMarkets Sample Pages 10
13 3 BIOMETRIC TECHNOLOGY MARKET, BY TYPE 3.1 INTRODUCTION Biometric recognition can be classified into several types; such as fingerprint, palm, face, iris/retina, vein, voice, signature, and others. Fingerprint recognition is the most common type of biometric authentication. It is widely used in travel and immigration, government activities, banking and finance, and for security purpose. FIGURE 6 CONVENTIONAL AND NEXT GENERATION BIOMETRIC TECHNOLOGY Fingerprint Voice POPULARITY Sample Text Signature Sample Text Palm Sample Text Sample Text Sample Text CONVENTIONAL NEXT GENERATION MarketsandMarkets Sample Pages 11
14 Conventional biometric technologies include fingerprint recognition, face recognition, palm recognition, and iris recognition. Fingerprint recognition is an automated digital version of the old ink-and-paper method used for more than a century ago for identification; whereas face recognition identifies people by analyzing features of the face. Voice, vein, signature, DNA, and GAIT recognition are looked upon as the next generation of biometric technology. All these technologies are new as compared to conventional biometric technology. Biometrics like GAIT recognition is used in public gatherings to detect individuals who represent a security threat or behave suspiciously. DNA recognition is considered to be more accurate. The major benefit of DNA recognition is that the chance of two individuals sharing the same DNA profile is less than one in a hundred billion with different bands studied SOME OF THE DEPLOYED APPLICATIONS OF IRIS RECOGNITION TABLE 2 DEPLOYED APPLICATIONS OF IRIS RECOGNITION Year of Deployment Technology Description 2011 Iris recognition 2011 Iris recognition On May 10, 2011, Hoyos Group demonstrated a device called EyeLock using iris-recognition, as an alternative to passwords to log people into password-protected websites and applications. In a number of airports based in the U.S. and Canada, iris recognition systems have been installed as a part of the NEXUS program that facilitates entry into the U.S. and Canada for pre-approved, low-risk travelers Mobile offender recognition Police forces across America have started using BI2 Technologies mobile MORIS (Mobile Offender Recognition and MarketsandMarkets Sample Pages 12
15 Year of Deployment Technology Description Information System) Iris recognition Iris recognition technology has been implemented by BioID technologies SA in Pakistan for UNHCR repatriation project to manage aid distribution to Afghan refugees. To make sure people do not get paid more than once, their irises are scanned, and the system will detect the refugees in the next try Iris and fingerprint scan Aadhaar, India's UID project uses Iris scan along with fingerprints to identify people and allocate a Unique Identification (UID) number Iris recognition UAE Iris Guard's Homeland Security Border Control has been operating an expellee tracking system in the United Arab Emirates (UAE) since Today, all of the UAE's land, air, and sea ports of entry are equipped with iris recognition systems. MarketsandMarkets Sample Pages 13
16 4 BIOMETRIC TECHNOLOGY MARKET, BY APPLICATION 4.1 INTRODUCTION The overall market for biometric technology is categorized into a number of applications based on its usage; applications are Government, Defense, Travel and Immigration, Home Security, Banking and Finance, Consumer Electronics, Healthcare, Commercial Security, and others. The market for biometric technology has been consistently improving from 8-10 years and one of the major reasons for this growth is Security. In the current scenario, Government and Travel and Immigration are the most important applications of biometric technology. FIGURE 7 PERCENTAGE DISTRIBUTION OF BIOTECHNOLOGY APPLICATIONS MARKET, 2013 AND % % 11.3% % % % % % % % % % % % % % % % The chart above shows the percentage distribution of biotechnology application market for 2014 and It is observed that Government and Travel and Immigration will remain at the top by MarketsandMarkets Sample Pages 14
17 5 BIOMETRIC TECHNOLOGY MARKET, BY GEOGRAPHY 5.1 INTRODUCTION The biometrics market has been segmented into four geographies: namely Asia-Pacific (APAC), North America, Europe, and ROW (Rest of the World). Out of the four, North America contributes maximum toward the biometrics market. This is mainly due to the increased awareness toward national security after the attacks. Adoption of biometrics technologies in passports and visas is also the reason behind the growth of these technologies in North America. FIGURE 8 BIOMETRICS MARKET SHARE, BY GEOGRAPHY, 2013 & % % % % % % % % In 2013, North America had contributed to the highest market share, that is, %, due to the mass adoption of different biometrics modalities, especially in passports, visas, and many other areas. Europe followed next with a share of % and APAC with a share of %. MarketsandMarkets Sample Pages 15
18 In 2020, APAC is expected to surpass the market of North America. The countries in APAC such as India, China, and Japan are seen as the main countries driving the future market. APAC is expected to occupy % of the total market share of overall biometrics market, followed by North America, and Europe. FIGURE 9 APAC: BIOMETRIC MARKET SHARE, BY COUNTRY, 2013 & % % % % % % % % % % % % The chart above shows the comparison in percentage share of the countries in APAC s biometric market for 2013 and Japan is at the topmost position in 2013, contributing %. The major drivers for the biometric technology market in Japan are increasing government funding for biometric technology deployments and increasing usage of biometric technology in banking and finance sector. China accounts for % in 2013 and is expected to contribute % in India is expected to gain momentum till 2020, as its mega project UID will be rolling out for the major chunk of the population by MarketsandMarkets Sample Pages 16
19 6 COMPETITIVE LANDSCAPE 6.1 TYPES OF BIOMETRIC TECHNOLOGY OFFERED, BY COMPANIES Given below is the list of companies offering different types of biometric technology. There are only a few companies dealing with signature and DNA recognition; they are Cross Match Technologies (U.S.) and NEC Corporation (Japan). TABLE 3 TYPES OF BIOMETRIC TECHNOLOGY OFFERED, BY COMPANIES Company Name Type of Biometrics offering Face Finger Palm Iris Voice Signature DNA 3M Cross Match Technologies Facebanx Fingerprint Cards Fujitsu Limited Fulcrum biometrics NEC Corporation RCG Holdings Safran SA Siemens AG SupremaInc Thales Group ValidSoft MarketsandMarkets Sample Pages 17
20 Disclaimer: MarketsandMarkets strategic analysis services are limited publications containing valuable market information provided to a select group of customers in response to orders. Our customers acknowledge, when ordering, that MarketsandMarkets strategic analysis services are for our customers internal use and not for general publication or disclosure to third parties. Quantitative market information is based primarily on interviews and therefore, is subject to fluctuation. MarketsandMarkets does not endorse any vendor, product or service depicted in its research publications. MarketsandMarkets strategic analysis publications consist of the opinions of MarketsandMarkets' research and should not be construed as statements of fact. MarketsandMarkets disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. MarketsandMarkets takes no responsibility for any incorrect information supplied to us by manufacturers or users. All trademarks, copyrights and other forms of intellectual property belong to their respective owners and may be protected by copyright. Under no circumstance may any of these be reproduced in any form without the prior written agreement of their owner. No part of this strategic analysis service may be given, lent, resold or disclosed to noncustomers without written permission. Reproduction and/or transmission in any form and by any means including photocopying, mechanical, electronic, recording or otherwise, without the permission of the publisher is prohibited. MarketsandMarkets Sample Pages 18
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