Automatic Identification System
Overview of the biometrics market in the BFSI sector
According to the market research analysts at Technavio, the global biometrics market in the BFSI sector is anticipated to witness impressive growth and will post a staggering CAGR of close to 20% over the forecast period. The BFSI sector is increasingly focusing on providing the highest level of security to their customers by reducing identity duplication. With changing consumer preferences and introduction of new payment methods, it has become imperative for banks to transform the payments and card (PCI) industry digitally. This has led to the introduction of new payment methods such as PIN cards, mobile wallets, and EMV chips. With the advances in technology, the number of frauds and forgeries are also increasing, thereby increasing the need for a solution which is difficult to duplicate. Several banks are adopting biometrics to prevent fraud and protect customer’s information from being compromised. Furthermore, the rise in the number of threats from hackers and malware has led the BFSI sector to replace passwords with biometric authentication options such as iris scans, fingerprint identification, vein recognition, and voice recognition solutions.
One of the recent trends gaining significant traction in the market is the increasing adoption of vein recognition in ATMs and POS terminals. Banks and financial institutions in emerging economies like India, China, Mexico, and Brazil has readily adopting vein recognition biometrics to
Overview of the global iris recognition in access control market
Market research analysts at Technavio predict that the global iris recognition in access control market will grow steadily during the forecast period and post an impressive CAGR of about 18% by 2020. This market research analysis identifies the rise in adoption of cloud-based biometrics as one of the primary growth factors for the iris identification in access control market. Cloud-based biometric technology utilizes cloud services through a web-based user interface and is available to the end-users on-demand. The pricing of cloud-based biometrics is based on a pay-per-use model, which makes it affordable by small and mid-size organizations as well. Moreover, pairing mobile biometric technology with cloud biometrics speeds up the identification process and will enable law enforcement officials to identify criminals by comparing their biometric data against data stored in the cloud, preventing unnecessary visits to the police station.
Multimodal biometrics ensures secure authentication by identifying an individual with a combination of two or more biometrics technologies. The introduction of iris recognition into multimodal biometrics will be one of the major trends that will gain traction in this market in the next four years. Multimodal biometrics using iris recognition combined with fingerprint or facial identification are already being used
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
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.