A study by market research consulting firm Mordor Intelligence — titled “The Consumer Biometrics Market – Growth, Trends, and Forecast (2020-2025)” — predicts that the industry is expected to grow at a compounded annual growth rate (CAGR) of 17.2% during the forecast period.
This would mean an increase in shipments from 2.1 billion units in 2019 to 5.26 billion being shipped annually by 2025.
According to the report, the rising demand for the ease and convenience of biometrics is expected to be a driving force for market growth. A survey conducted by Visa revealed that 70% of consumers are ready to use biometric authentication in lieu of a password, citing that they feel the tech to be more comfortable as it doesn’t involve the memorization of passwords.
The same survey showed that more than 65% of consumers already are familiar with biometrics, and 86% show interest in turning to biometrics for identity verification or for making payments.
The report also notes that the increasing use of internet and mobile devices has in turn increased connectivity and the number of payments conducted through mobile, and consequently has led to a growth in the awareness of the need for sophisticated biometric security.
Another report by financial services company Credit Suisse notes that in 2018 the number of smartphones equipped with fingerprint scanners shipped was 1.08 billion.
Further growth trends identified in the Mordor report include the growth in popularity of fingerprint scanners, which ranked as the preferred form of biometric identification (63%) among U.S. adults in a survey conducted by Veridium, placing well ahead of facial recognition (14%), passwords and PINs (8%), and voice recognition (2%).
In terms of growth by region, Asia-Pacific, with the highest population, is expected to lead in both size and rate of growth. This is due partially to the region’s increasingly urbanized population demographics, an increase in purchasing power, as well as the proliferation of smartphone companies either headquartered or with manufacturing facilities in the region.
The report also notes that biometric solutions are also increasingly being incorporated by automotive companies in the region.
March 25, 2020 – by Tony Bitzionis
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