Global Fingerprint Sensors Market To Grow Significantly Due To Rising Demand For Biometric Authentication And Digital Payment Technologies
The global fingerprint sensors market is estimated to witness high growth owing to rising demand for biometric authentication and growing adoption of digital payment technologies. The global fingerprint sensors market is estimated to be valued at US$ 10.26 Billion in 2024, exhibiting a CAGR of 11.5% over the forecast period (2024-2031). Furthermore, the increasing usage of smartphones and connected devices requiring multi-factor authentication is also expected to drive the market growth during the forecast period.
Market Dynamics:
The growth of the global fingerprint sensors market is driven by two major factors. Firstly, the rising demand for biometric technologies across various industries, such as consumer electronics, BFSI, government & law enforcement, travel & immigration, and healthcare, is expected to drive the demand for fingerprint sensors over the forecast period. They are increasingly being used for user authentication, attendance tracking, and security & access control applications. Secondly, the growth in digital payments and rising adoption of mobile wallets are also augmenting the market growth. Fingerprint sensors allow easy enrollment and authentication for financial transactions through mobile devices, thus providing convenience to customers. Their integration in smartphones, tablets, payment POS devices, laptops & PCs for security and payments is anticipated to drive the fingerprint sensors market during 2024-2031.
Growing Demand for Biometric Authentication is Driving the Market Growth
One of the key drivers for the global fingerprint sensors market is the growing demand for biometric authentication across various industry verticals such as consumer electronics, IT & telecommunication, BFSI, healthcare, and others. Fingerprint sensors are being increasingly used for mobile authentication, online payments, device access, banking transactions, and attendance tracking. They offer a secure and convenient authentication method compared to traditional passwords. As security requirements are rising with growing digitalization, businesses are adopting fingerprint sensors to authenticate users. This is driving the adoption of fingerprint sensors in smartphones, laptops, tablets, and other consumer devices.
Integration of Fingerprint Sensors in Mobile Payments is Another Key Driver
Another major driver for the fingerprint sensors market is their growing integration in mobile payment applications and digital wallets. Mobile payments are surging in popularity due to their ease of use and convenience. To make mobile payments more secure, fingerprint authentication is being integrated. Users can pay for products by simply scanning their fingerprints on their mobile devices. This removes the hassle of passwords and PINs. Major companies like Apple, Google, and Samsung are introducing fingerprint sensors in their flagship devices and promoting their usage for mobile payments. As of now, China is leading the adoption of mobile payments authenticated via fingerprints. However, mobile payment providers in other regions are also following suit. This increasing integration of fingerprint sensors for mobile payments will augment the growth of this market.
High Development Cost of Biometric Sensors Acts as a Restraint
One of the key challenges faced by the fingerprint sensors market is the high development cost associated with biometric sensors. Designing and manufacturing biometric sensors require significant R&D investments. Advanced technologies like capacitive, ultrasound, optical, thermal sensors, and others involving MEMS and AI features have high development costs. This makes biometric sensors relatively expensive compared to traditional security methods like PINs and passwords. The high selling price of fingerprint sensor-equipped devices can discourage some potential customers, especially in price-sensitive developing markets. This relative pricing disadvantage of fingerprint sensors vis-à-vis other security options acts as a restraint for this market.
Requirement of Large Upfront Investments Hinders Market Growth
Another restraint for the fingerprint sensors market is the requirement of large upfront investments to integrate biometric security into existing systems and processes. Organizations need to invest in deploying necessary hardware, software, and networking infrastructure for capturing, storing, and matching biometric templates. They also require investments in training employees, updating policy documents, ensuring regulatory compliances, among others. These additional overhead costs discourage penny-pinching companies and hinder widespread adoption. The upfront investment inhibits small businesses and cost-cutting organizations from leveraging the security and convenience benefits of fingerprint sensors. This significant requirement of capital at the initial stages poses a challenge for this market.
Popularity of Contactless Biometrics Offers New Opportunities
One of the key opportunities for fingerprint sensor vendors is the growing popularity of contactless biometrics owing to the pandemic. The need for touchless authentication has surged in the new normal to minimize surface contacts. Contactless biometrics using technologies like face recognition, iris scans, and palm/vein detection are gaining prominence. While fingerprint remains the most popular biometric for authentication, companies are innovating new contactless fingerprint sensors as well. For example, Qualcomm unveiled an advanced ultrasonic fingerprint scanner that can detect fingerprints from a distance of 1-2 cm without direct contact. The demand for such non-contact biometrics will open new revenue streams for fingerprint sensor manufacturers.
Integration in IoT Devices Brings Significant Opportunities
The massive growth of IoT devices also presents a lucrative opportunity for fingerprint sensors market players. IoT security is receiving increased attention due to growing connectivity of devices containing critical data. Fingerprint sensors can offer a reliable means of access control and authentication for IoT devices and solutions across sectors. Their incorporation can deliver convenience to users while meeting stringent security requirements. Major fingerprint sensor manufacturers are actively collaborating with technology giants to integrate their technology into smart home devices, voice assistants, wearables, medical devices, and industry equipment among others. This widespread implementation of fingerprint biometrics in IoT brings substantial opportunities to drive the revenues of market participants.
Link: https://www.coherentmarketinsights.com/market-insight/fingerprint-sensors-market-5444
Key Developments:
- In September 2023, Mastercard, a global leader in payment technology, announced a new in-car payment partnership with Mercedes for drivers in Germany. This collaboration enables customers to use a fingerprint sensor in their vehicles to make digital payments at over 3,600 service stations across the country.
- In May 2023, Samsung Display, a pioneer in display technology, revealed a significant advancement in biometric technology at SID Display Week 2023 in Los Angeles. Their latest Sensor OLED Display integrates a light-sensing organic photodiode directly into the panel, removing the need for separate sensor modules underneath the display.
- In April 2023, UIDAI, the Unique Identification Authority of India, partnered with IIT Bombay to develop contactless fingerprint capture software for smartphones. This collaboration focuses on creating touchless fingerprint technology with integrated liveness detection, aiming to advance biometric authentication beyond facial recognition. The system will capture multiple fingerprints simultaneously to enhance accuracy and is designed for integration within the larger Aadhaar ecosystem.
- In February 2023, IDloop, a Germany-based firm specializing in biometric technology, unveiled a contactless 3D fingerprint scanner with microscopic resolution. The company highlighted this cutting-edge technology as an effective solution for swiftly comparing fingerprints against existing databases, including the three billion individuals already registered in government systems through contact-based scanners.
Key Player:
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
