The global consumer electronic biometrics market is expected to witness significant growth over the next seven years on account of increasing demand of biometric technology in consumer electronics segment. Increasing application of biometrics for the purpose of better security has also emerged as one of the major growth driver in this market.
Growing application of biometrics in consumer electronics such as fingerprint and facial recognition has been integrated with electronic devices such as laptops, mobiles and other smart handheld devices. In addition, biometrics are being used in government operations, patient management and for several other purposes. Mobile phone industry is expected to account for the largest share in biometrics for consumer electronics market. Apart from this, corporations focusing on identity verification and device security are influencing growth over the past few years.
The major end-users for this market include mobile phone, PCs, laptops, car locking systems, gaming consoles and TV remote controls. Rising demand for convenience, availability and reachability of embedded biometrics is expected to be another major factor in driving adoption of biometrics in consumer electronics. Integration of biometrics with consumer electronics, coupled with its high cost is expected to have a negative impact on growth. Furthermore, lack of standardization is expected to hamper the market growth over the next seven years.
The key strength of this market is its uniqueness, convenience and security. Biometrics are responsible for considerably reducing calls on account of a pre enrolled authorized user access. This helps in developing convenience and security for consumer simultaneously. Mobile payments are going to experience significant growth over the next few years owing to security, which is a primary concern these days. Adoption of biometrics will ensure high security in mobile payments. This is expected to influence growth over the next few years. This market is expected to have strong impact on factors such as connectivity, convergence, health, wellness and well-being. Wide scale adoption of this technology is expected over the next few years.
Technological advancements in biometric sensors on account of its use in laptops, smart phones and other handheld devices is expected to drive growth over the forecast period. Global consumer electronic biometrics market can be segmented into major geographic region that are North America, Europe, Asia Pacific and Rest of the World (Latin America, Middle East &Africa.) Asia pacific was having largest share in terms of revenue on account of rising demand in consumer electronic industry for biometric sensors. This is the major growth driver for this market over the next seven years. The market at a faster pace as compared to the North America. Wide user adoption by leading mobile companies such as LG, Sony and HTC is expected to be a critical factor influencing growth in the APAC region.
Mobile biometrics is one of the key segments in this market. Mobile biometrics can be segmented into three sectors such as embedded biometric in smart phone, biometric apps offered by different vendors and biometric authentication for payment via secured cloud based services linked to smartphone. Owing to all these factors, it is expected that biometrics will be the standard feature of all smart phones in the coming years.
U.S. is expected to be the fastest growing market in North America. Asia Pacific is expected to penetrate in emerging economies including India, Mexico and Russia are driving significant growth on account of growing consumer demand. Key economies such as India and China are high potential markets owing to growing population, which in turn will fuel the growth for consumer electronics. Rising disposable income in emerging economies is influencing demand for smart phones. Increasing use of biometric systems in law enforcement agencies is expected to drive consumer electronic biometrics demand over the forecast period.
The consumer electronic biometrics market can be further segregated on the basis of application such as voice scan, facial scan, hand scan, finger scan and iris scan. Finger scanning is the fastest growing sector in consumer electronics sector. Facial scan is expected to be the second fastest growing segment in the market. The market has also been segregated on the basis of types such as capacitive sensors, optical sensors, electric field sensors, thermal sensors and ultrasound sensors. Capacitive sensors and optical sensors occupied the largest and second largest market share in 2014.
In consumer electronic biometrics market, most of the patents are owned by South Korea, Japan, U.S. Patent landscapes are dominated by fingerprint technology. Increasing investment activities in North America are expected to play a key role in driving the market growth in the couple of years. The market is characterized by brands which have high research and development capabilities and wide distribution channels.
Major players in the market are adopting aggressive pricing strategy to gain competitive edge are key feature of the market. The leading players in biometric sensor market are IDEX ASA (Norway), Infineon Technologies AG (Germany), 3M (U.S.), CrossMatch Technologies, Inc. (U.S.), Suprema Inc. (South Korea), NEC Corporation (Japan), Safran (France),and ZKTeco. The vendors that are engaged in this market are Siemens Biometrics, Fingerprint Cards AB, Biometrics Security Ltd, Panasonic Corp., Suprema Inc., and Cross Match Technologies Inc.
The consumer electronic biometrics market is expected to witness increased consolidation in coming years. New entrants and existing vendors prefer both routes to either enter a new market or to broaden their portfolio offerings. Recently, AuthenTec was acquired by Apple which helped Apple to attain all its patents for biometrics security in mobile devices. In 2015, Fujitsu Inc. announced the launch of a smart phone with iris scanner. Technological innovations are expected to be key features of the market. Growing demand for biometric innovations in electronic products is expected to result in fall of prices.
Consumer electronic biometric market comprises of few players with large business presence. Companies are making huge investments in research and development activities in order to gain competitive edge over other players. New entrants in this market are trying their best to reach the regional players. The rising demand from electronics sector is expected to drive innovations over the forecast period.