Biometrics market to reach $6.48 billion mark by 2010

The world’s biometrics market is forecast to show a CAGR of more than 33 percent over the 2000-2010 period and reach $6.48 billion mark by 2010, with all major regions projected to exhibit growths of more than 30 percent during the ten-year period. Europe is forecast to emerge as the fastest region for biometrics, with a CAGR of 35.66 percent during 2000-2010, while the United States, with a share of 37.08 percent in 2010, will maintain its dominating position. Facial recognition technology market will outpace all other biometric technologies with a CAGR of 53.72 percent during 2000-2010 and AFIS market, with an estimated share of 33.69 percent in 2006, will continue to be the largest segment over the analysis period.

A new study by San Jose, California-based Global Industry Analysts finds that increasing security concerns ranging from individual identity theft, and corporate security, to national security are driving the biometrics market. Driven by these factors, and decreasing costs of biometric systems, the market is witnessing high double-digit growth rates across all regions. Government initiatives could emerge as the key to driving growth of biometrics. Some countries have already rolled out biometric systems at airports and other ports of entry to check flow of illegal immigrants into their territories. On the technological front, noncontact systems could emerge as the answer to address inhibitions exhibited by users. Development of industry-wide standards has been initiated by some industry groups, which would lead to lower costs and enable easier adoption of present and emerging technologies. In addition to a few large corporations such as Motorola and Siemens, a large number of small companies are active in the industry. As the industry attains critical mass, larger technology companies would show interest in the industry, bringing with them scale and technological expertise and mergers and acquisitions would be the ideal way for entering the market.

Technological superiority, and, to an extent, marketing prowess would be the key differentiator between the winners and losers in the short term. In the long term, evolution of industry-wide standards would result in reduction of prices, and price is expected to emerge as the major competitive element.

The study covers technologies such as Automated Fingerprint Identification Systems (AFIS), Non-AFIS/Finger Scan, Hand Geometry, Iris/Retinal Scan, Facial Recognition, Voice Recognition, Signature Verification, and Keystroke Dynamics/Typing Rhythms. Among the companies profiled are 3M-AiT, A4Vision, AcSys Biometrics, AuthenTec, BIO-key International, Biometric Access Corporation, Biometric Security Limited, Bioscrypt, Cogent Systems, Communication Intelligence Corporation, Diaphonics, Fujitsu Microelectronics America, L-1 Identity Solutions, Motorola, NEC Corporation of America, Precise Biometrics, SAFLINK Corporation, SAGEM Defense Securite, Sensory, Siemens AG, TSSI, Veridicom, and Visiphor Corporation.

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