Automatic Identification System
Global outlook of the fingerprint module market
Market research analysts at Technavio have predicted that the global fingerprint module market will grow impressively during the predicted period and post a CAGR of more than 18% by 2020. As a result of technological advancements in the banking sector and the growing customer transition towards e-commerce industries, there has been a rapid increase in the volume of online transactions in the recent years. Financial institutions offer customers with easy and convenient transaction features and also offer facilities to transfer funds through mobile devices such as smartphones and tablet computers. Internet-based financial transactions in several sectors including the BFSI, healthcare, and retail industries are vulnerable to cyber-attacks. This need for a secure mode of transaction will induce more enterprises to implement effective fingerprint recognition technology, which in turn, will propel the demand for fingerprint modules in the coming years.
The implementation of the BYOD (bring your own device) policy in enterprises and the rising adoption of mobile devices among individuals have increased the need for securing personal and enterprise data across all platforms. This will lead to the development of advanced technologies, where mobile OEMs will integrate mobile devices with fingerprint scanner software and sensors. The market study report identifies the emergence of mobile biometrics as one of the major trends that will gain traction in this market in the next four years.
Competitive landscape and key vendors
The market is
Overview of fingerprint biometrics in the VAR (value-added reseller) market
Market research analysts at Technavio have predicted that the global fingerprint biometrics in the VAR (value-added reseller) market will grow steadily at a CAGR of almost 12% by 2020. The user credentials that organizations use to gain access to a system or an application are susceptible to security risks and has compelled organizations to start using SSO (single sign-on). In addition to increasing corporate security and reducing access control management costs, SSO also addresses issues of user convenience. Since vendors have started providing VAR software with SSO capabilities, it will lead to an increase in the demand for fingerprint biometric systems, especially in regions where the presence of biometric vendors is low.
This market study has identified that during 2015, government organizations were the major end-users of finger biometrics by VARs. The introduction of multimodal biometric systems will be one of the major trends that will gain traction in the market in the coming years. Multimodal biometrics is the integration of a number of biometric technologies such as fingerprint recognition, facial recognition, and voice recognition, and has found significance in several sectors such as healthcare, BFSI, transportation, automotive, and government. Owing to benefits like accurate and
Overview of the global two-factor biometrics market
Technavio’s market research analyst has estimated the global two-factor biometrics market to grow profoundly at a CAGR of almost 23% by 2020. The growing number of online transactions is considered to be one of the major drivers for this market. Though internet-based financial transactions are highly vulnerable to cyber-attacks, consumers are still dependent on the Internet for financial transactions due to its high convenience. Even though many financial institutions from across the globe have started using hardware OTP (one-time password) for financial transactions, the rising number of online-dependent customers will augment the need for better security techniques. This need for better security measures will fuel the need for two-factor authentication among end users from the banking and financial sectors.
This market study identifies the introduction of OOB (out-of-band) authentication as one of the major trends gaining traction in this market. This technique involves the use of two separate networks that work simultaneously to confirm and authenticate a user’s identity. Since OOB authentication requires a secondary authentication, it prevents fraudsters from accessing a user’s account even if they have all the secure credentials. The growing implementation of OOB authentication methodologies will greatly aid in the growth of the global two-factor biometrics market in the coming years.
Segmentation by end user and analysis of the two-factor biometrics market
During 2015, the BFSI segment accounted for more than 43% of the total market share and is anticipated to dominate this market until the end of 2020. Owing to increasing instances of transaction frauds in the BFSI sector, the requirement for highly secure identification and
Overview of the biometrics market in North America
Market research analysts at Technavio have predicted that the biometrics market in North America will grow steadily at a moderate CAGR of more than 12% by 2020. This market research analysis identifies the increase in number of identity thefts as one of the primary factors that will contribute to the growth of this market. The continuous rise in the use of websites and web applications by end-users coupled with the growing popularity of online consulting and sharing health-related results online has led to a rapid increase in the number of identity thefts. This recent increase in the instances of identity thefts has compelled many end-users to adopt secure authentication solutions. Since biometric security devices efficiently assess and verifies the identity of individuals based on their physical or behavioral characteristics, they are very reliable and have been identified as one of the market's strongest authentication solutions.
The launch of advanced smartphones and mobile devices that are equipped with built-in biometric sensors has subsequently increased the use of biometrics technology in the mobile payment industry. Though the rate of adoption of biometrics for mobile payments is currently slow, the shift from the use of passwords to more secure solutions will lead to an increase in the adoption of biometrics for mobile payments. Moreover, smart device manufacturers have also started embedding their devices with various biometric sensors for fingerprint, voice recognition, and finger vein scanners. The adoption of mobile biometric authentication technologies is predicted to have a positive impact on the growth of the market during the forecast period.
Segmentation by technology and analysis of the biometrics market in North America
- Fingerprint recognition
- Facial recognition
Overview of the global transit cards market
Technavio’s market research analyst predicts that the global transit cards market will grow at a modest CAGR of close to 9% during the forecast period. One of the primary drivers for this market is the growing demand for tamper-resistant cards. Magnetic tape cards store customer details and can be altered quite easily. Tampering results in the loss and misuse of valuable information. Tamper-resistant cards are safe as the information stored in them is accessible only with a personal identification number (PIN), making it difficult to forge. Such cards provide more security and also protect against a range of issues such as hacking and misuse of passwords. Increased demand and adoption of such cards will have a significant impact on market growth over the forecast period.
In this industry report, the analysts estimate that among the different trends, the use of contactless smart cards in the transportation section will have a significant impact on the market’s growth potential over the next few years. The transportation sector is deploying contactless cards to improve security in the billing and payment processes. These cards are increasingly preferred as they enable faster identification and speed up fare payment transactions, especially at border crossings. Increased adoption of contactless smart cards will have a positive impact on the market and will also propel market growth during the forecast period.
Geographical segmentation of the transit cards market
The APAC region was the market leader for transit cards in 2015 with a market share of close to 46%. Factors contributing to the growth in this market are the presence of large transportation companies in this region, greater acceptance of contactless smart
Overview of the global biometrics market in the government sector
Technavio’s market research analyst predicts the global biometrics market in the government sector to impressively grow at a tremendous CAGR of almost 12% over the forecast period. Increasing instances of terrorist attacks across North America and Europe have made airport security extremely stringent and a priority for many governments. Fingerprint recognition solutions are one of the best options available for the authentication of passengers traveling across the country. The implementation of such biometric solutions enables airport officials to monitor passengers more efficiently as the chances for errors are fewer. Moreover, fingerprint recognition solutions also provide complete information about the passengers entering and exiting the airport, and this information can be used to track terror suspects. Since governments around the world are looking to counter terrorist attacks, the demand for biometric solutions for adoption at airports will increase significantly over the next few years.
The emergence of touchless sensing technology is one of the most important trends spurring the growth prospects for the global biometrics market in the government sector. Previously, fingerprint scan involved the end user placing his/her finger on a paper or a platen surface, which rendered degraded images due to improper finger placement, slippage, smearing, skin deformation, and wear and tear of the device. This led to several discrepancies in the authentication process leading to unauthorized access. However, the latest technological advancements have led to the development of touchless sensing technology that generates a 3D fingerprint scan to overcome the problems faced by the traditional fingerprint recognition technology. This touchless fingerprint technology is interoperable with legacy devices to provide high-quality images. Moreover, to make
With the enormous volume of information being generated each second, both the physical and virtual security of data are of utmost importance in today’s world. A fundamental aspect of most security protocols is identifying who can and cannot access protected data.
Automatic identification systems allow an individual to be identified with minimal processing time, while still ensuring high security. Biometrics is one such automatic identification system. It uses unique physical characteristics like fingerprints, voice, and retinas to authenticate identity.