FINGERPRINT SENSORS MARKET ANALYSIS
The global fingerprint sensors market is estimated to be valued at US$ 10.26 Bn in 2024 and is expected to reach US$ 21.97 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 11.5% from 2024 to 2031.
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The growing usage of biometric technology for authentication in smartphones, wearable devices, and increasing digitization initiatives across industries are some key factors driving the market growth.
Increasing adoption of biometric technology
The adoption of biometric technology has been rising rapidly in recent times due to increased focus on security and convenience. Biometric authentication provides a hassle-free identification method for users without the need to remember passwords or pins. Fingerprints have emerged as one of the most popular and widely used modalities for biometric identification due to their uniqueness and ease of capture.
Fingerprint sensors have enabled quick and seamless biometrics-based login for millions of smartphone, laptop, and desktop users globally. As people store more sensitive personal and financial information online, there is a growing need for secure authentication methods to protect unauthorized access. Fingerprint biometric provides a much stronger layer of security compared to traditional password or pin-based systems which are prone to hacking. Major technology companies now include fingerprint sensors as standard features in their flagship devices recognizing the consumer demand for embedded biometric security.
Governments and large enterprises have also upped their deployment of biometric technologies like fingerprint scanning for critical infrastructure access, citizen identification programs, and workforce management systems. National ID programs in regions like Asia and Africa heavily rely on fingerprint biometrics for enrolling citizens. Financial institutions are tapping into the power of fingerprint biometrics for securing digital payments, online banking, and point-of-sale transactions. As identity theft rises, regulated sectors are under increased pressure to fortify security protocols and compliance measures through advanced authentication technologies.
Overall, the digital transformation witnessed across industries has generated new opportunities for fingerprint biometrics. Rising security breaches and data leaks have heightened awareness about the need for fail-proof identification protocols. This has driven widespread inclusion of fingerprint sensors in a variety of new use cases beyond smartphones. As biometric solutions gain more trust over time with higher accuracy standards, their adoption across both consumer and enterprise verticals will continue growing rapidly.
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Growing demand for fingerprint sensors in consumer electronics
Fingerprint sensors have carved a dominant niche for themselves in the smartphone market and this success is fueling their integration into various other consumer electronic devices as well. Smartphone makers led the way by bundling front and back mounted fingerprint readers in their flagship phones over the past few years. As biometrics grew popular among consumers to unlock phones, technology entrepreneurs spotted avenues to apply this convenience factor beyond mobiles.
Smart televisions and home appliances now offer fingerprint authentication for secure payment acceptance and parental controls. Wearables like smartwatches are also fitting fingerprint sensors to avoid passcodes for payments and unlocking companion phone apps. As the PC segment battles increased security risks, laptop and desktop models have commenced including fingerprint biometrics for frictionless login, data protection and access to BIOS settings. Even gaming consoles are experimenting with fingerprint sign-in as a hygienic alternative to controllers.
Automakers are tapping into the driver identification capabilities of fingerprint sensors to enable personalized infotainment profiles, enable push-button starts, and make in-vehicle payments more seamless. In addition, the education sector has turned to fingerprint readers to digitize attendance, library access control, and exam invigilation functions. All these diverse applications spread across industries have spurred immense growth in the demand for compact, accurate, and durable fingerprint modules suitable for integration into various consumer devices and original equipment manufacturer products.
Leading fingerprint sensor vendors have thus expanded their portfolios to include new miniature form factors, multi-factor authentication support, waterproofing, enhanced chipsets with higher processing speeds, and advanced pixel morphing algorithms for superior capture quality. As biometric identifiers become more entrenched in customer experiences, their presence will proliferate across a much wider array of consumer electronics over the coming years, significantly bolstering the demand for fingerprint sensors. Strong market pull from tier-1 brands guarantees sustained uptake.
Key Takeaways from Analyst:
The global fingerprint sensors market continues to grow at a steady pace driven by the increasing adoption of biometric technology across various industries. Major drivers for the market include the growing demand for secure authentication in smartphones and increasing usage of fingerprint sensors in IoT devices. The adoption of fingerprint sensors has increased significantly in the consumer electronics sector, especially in high-end smartphones.
However, security and privacy concerns around the usage of fingerprint data could hamper the market growth to some extent. Accuracy and reliability issues associated with some low-cost fingerprint sensors also act as a restraint. High growth is expected in the automotive industry as fingerprint authentication helps enhance vehicle security. Emerging applications in payments, government ID programs, and law enforcement present major opportunities for market expansion. As biometric technologies evolve further, the usage of multi-modal biometric sensors combining fingerprint with facial recognition could gain traction. Overall, with declining prices and improvements in technology, the fingerprint sensors market is well-positioned to grow steadily in the coming years.
Market Challenges: High implementation cost
The high investment required for the implementation of fingerprint sensors poses a significant challenge for the growth of the global fingerprint sensors market. The infrastructure setup and sensor integration costs for large-scale fingerprint authentication installations are quite substantial. For instance, installing fingerprint verification systems across numerous physical access points like office entrances can cost hundreds of thousands of dollars. Similarly, integrating fingerprint scanners into mobile devices increases the bill of materials and overall production expenses. The complex sensor technology and stringent precision standards associated with fingerprint readings mandate premium-priced components as well. Moreover, additional investments are needed for employee training, technical support, software & database maintenance, and user enrollment. These systematic costs present a notable barrier, especially for cost-sensitive applications and price-conscious end users. Continuous R&D initiatives and mass production economies of scale would be crucial to drive down the per-unit pricing of fingerprint sensors over the long term.
Market Opportunities: Integration of Fingerprint Sensors in IoT Devices
The increasing integration of fingerprint sensors into various internet of things (IoT) devices and applications presents a lucrative opportunity for the fingerprint sensors market. With the proliferation of connectivity across end-points, there is a rising need for strong yet user-friendly authentication systems to ensure cybersecurity and access control. Fingerprint biometrics provide a convenient and secure solution owing to their accuracy and scalability. IoT domains like smart home security systems, wearables, smartphones, automotive, banking, and healthcare are opting fingerprint sensors for user identification, device unlocking, and digital payments. This growing dependency on fingerprint verification in IoT ecosystems would spur extensive demand for low-cost, compact sensors with enhanced capabilities. Mass IoT adoption could further encourage sensor miniaturization and integration into smaller devices. Overall, the convergence of fingerprint biometrics and IoT is expected to play a pivotal role in driving the revenues of fingerprint sensor vendors in the coming years.
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Insights By Type - Convenience and Familiarity Drive the Rise of Optical Fingerprint Sensors
In terms of type, optical fingerprint sensors is expected to contribute 52.3% share of the market in 2024 owing to their easy-to-use and familiar nature. Optical sensors work by scanning fingerprints using an optical image sensor and light-emitting source, typically via a small prism that recognizes variations in ridges and valleys on fingerprints. This allows users to simply place their finger on the sensor surface for authentication, without needing to swipe or press down firmly like some other technologies. This one-touch convenience has made optical sensors tremendously popular, especially for smartphones where quick unlocking is essential.
As people have become accustomed to unlocking their phones via fingerprint recognition, this optical approach has emerged as the most familiar and intuitive option. It mimics the natural motion of resting a finger, avoiding learning curves associated with less common technologies. This ease of use and learnability has helped drive mass adoption of optical sensors across consumer and now also commercial/embedded devices. With their familiar form factor increasingly seen as the de facto standard, optical fingerprint sensors continue delivering a seamless user experience driving their ongoing dominance in the market.
Insights By Technology - Ubiquitous Connected Devices Fuel the Rise of Touch Fingerprint Sensors
In terms of technology, touch fingerprint sensors is expected to contribute 56.5% share of the market in 2024 due to the proliferation of internet-connected devices demanding quick, frictionless authentication. Touch sensors work by reading fingerprint details when a fingertip makes direct contact with the sensor surface, without needing to swipe or press down. This makes them ideally suited for integration into modern device designs where screen real-estate is limited.
Today's landscape of smartphones, tablets, laptops and an growing range of IoT/wearable devices demand secure yet seamless and convenient means of verification wherever users interact with these always-on, always-connected portals. Touch sensors fulfilling this need for instant on-screen authentication without additional steps have seen tremendous growth. Their support of fast unlocking complements modern lifestyles increasingly extended across multiple synced digital devices.
The rise of biometric-reliant functions like secure payment and access also drives the need for embedded, discrete security that touch sensors provide. With few moving parts, they fit tightly into shrinking form factors without compromising the experience. This convergence of ubiquitous connectivity and built-in security needs continues powering the demand for finger-only touch authentication technologies.
Insights By Vertical - Stringent Regulations and Customer Demand Drive Adoption in the Banking & Finance Sector
In terms of vertical, Banking, Financial Services, and Insurance (BFSI) is expected to contribute 43.1% share in 2024 significantly to the market due to stringent regulatory pressure and growing customer demand for contactless, convenient verification. Digital financial services have seen tremendous growth yet also open security risks if credentials are compromised. Financial institutions are therefore under regulatory and competitive pressure to deploy advanced biometric security to mitigate threats of fraud and protect user accounts/data.
Further, banking customers increasingly demand the same quick, seamless experiences on mobile/web that they receive in other aspects of digital life. Customers do not want to endure multiple steps, passwords or friction when accessing financial platforms or making payments and transfers. Fingerprint authentication addresses these needs by removing reliance on static credentials vulnerable to theft, while maintaining an easy, habitual interaction model.
The higher accuracy & liveness detection of modern fingerprint technologies also assure financial regulators that deployed solutions meet stringent accuracy and security standards. With their rapid adoption across other customer-facing sectors, fingerprints have emerged as a familiar biometric standard for customers as well. This convergence of regulatory compliance needs and evolving consumer experience demands continue powering the use of fingerprint security solutions across banking and financial services vertical.
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North America has established itself as the dominant region in the global fingerprint sensors market. The region is expected to account for 41.5% of the market share in 2024. The early adoption of advanced biometric technologies across various applications such as mobile devices, laptops, attendance systems, and law enforcement agencies has provided the region an edge over others. Major original design manufacturers and smartphone leaders are headquartered in the region, which has further fueled the widespread integration of fingerprint sensors in their flagship devices. The brisk pace of innovation and strong focus on R&D by technology leaders have enabled North America to develop market-defining fingerprint sensor technologies and stay ahead of the curve.
Another factor contributing to North America's dominance is the presence of a robust ecosystem supporting the development and adoption of biometric solutions. Collaboration between research institutions, sensor developers, and end users has helped address challenges and create opportunities for new and improved use cases. The strong demand from verticals like banking, healthcare, and government across the developed markets of the U.S. and Canada has also created a thriving environment for fingerprint sensors.
The Asia Pacific region has emerged as the fastest growing regional market for fingerprint sensors globally. China, in particular, represents an attractive market owing to the country's massive smartphone and electronics manufacturing industry. Leading smartphone OEMs have established large production bases in China to cater to the growing domestic demand as well as exports. This has encouraged sensor developers to increase their focus on the region to gain access to this critical consumer base. The price-sensitivity of APAC consumers has also spurred competition and innovation, promoting the integration of advanced yet affordable fingerprint sensors. The rapid digitization initiatives by governments across Southeast Asian countries are further expanding the scope for biometrics adoption.
Fingerprint Sensors Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 10.26 Bn |
| Historical Data for: | 2019 To 2023 | Forecast Period: | 2024 To 2031 |
| Forecast Period 2024 to 2031 CAGR: | 11.5% | 2031 Value Projection: | US$ 21.97 Bn |
| Geographies covered: |
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| Companies covered: |
Apple Inc., CrucialTec, Egis Technology Inc., Fingerprint Cards AB, Goodix Technology, IDEX Biometrics, Invixium, M2SYS Technology, NEXT Biometrics, Novatek Microelectronics Corp., Qualcomm Technologies, Inc., Synaptics Incorporated, Touch Biometrix, Vicharak, and VKANSEE |
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*Definition: The global fingerprint sensors market consists of companies that develop and manufacture fingerprint sensors and sensor modules for use in applications like consumer electronics, travel and immigration, government and law enforcement, military, defense, and aerospace, healthcare, finance, and banking industries. Fingerprint sensors play a vital role in access control and security systems by providing contactless biometric identification and authentication through live scan fingerprint technology.
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About Author
As an accomplished Senior Consultant with 7+ years of experience, Pooja Tayade has a proven track record in devising and implementing data and strategy consulting across various industries. She specializes in market research, competitive analysis, primary insights, and market estimation. She excels in strategic advisory, delivering data-driven insights to help clients navigate market complexities, optimize entry strategies, and achieve sustainable growth.
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