BURNABY, B.C., CANADA – The market for biometric authentication systems is projected to grow at a compound annual growth rate (CAGR) of approximately 14% until 2020, according to a new report by TechSci Research.
The driving forces for this highly competitive market will be increasing security needs, government projects and constant development in technology, states the “Global Biometrics Market Forecast & Opportunities, 2020,” report.
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In 2014, government projects accounted for about 13% share in global biometric authentication systems market. In addition, biometric systems are gaining attraction in the residential sector, which is projected to grow significantly. Due to high initial investment and fulltime R&D costs – two major barriers restricting entry of new players into the biometrics market – well established players face negligible threat from new entrants, according to the report.
Proven credibility of biometric products and competitive pricing have diminished the threat of substitutes, and with small as well as established players offering biometric products in the market, competitive rivalry is set to intensify further.
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The global biometrics market is witnessing escalation in demand from various sectors. This is primarily due to improving accuracy rate, reliability and longevity of biometric authentication systems, such as fingerprints, iris patterns, facial features and other physiological characteristics.
Of the available technologies in the market, fingerprint biometrics is the most widely used biometric recognition technology, but the trend seems to be changing given that other biometric technologies like palm vein and hand geometry are becoming more feasible and prevalent. Over the next five years, vein scanners are expected to witness escalation in demand and consequently register fastest growth among all other segments, according to the report.
