The increasing risks of frauds and thefts in the banking, financial services, and insurance (BFSI) sector, on account of the surging penetration of connected devices and the internet, will augment the requirement for fingerprint sensors in the coming years. The rising incidence of such threats has led to the emergence of biometric cards. Unlike conventional payment cards, biometric cards are more secure and fast. Fingerprint sensors-enabled payment cards can authenticate the identity of users in less than one second and offer more security than a standard four-digit pin.
In addition, government organizations, courts, and military headquarters are rapidly installing advanced sensors to secure their premises. These organizations are also adopting fingerprint sensors to authenticate the identity and avoid duplication during the provision of several services to the public. For example, the Unique Identification Authority of India (UIDAI) utilizes Aadhaar-based biometric identification to distribute the benefits of social welfare schemes to the economically weaker sections. Owing to these reasons, the fingerprint sensors market will progress at a CAGR of 13.6% during 2020–2030. According to PS Intelligence, the market was valued at $3.8 billion in 2019.
To cater to the escalating need for increased security in the BFSI and government sectors, companies such as Synaptics Incorporated, Integrated Biometrics LLC, IDEX Biometrics ASA, Fingerprint Cards AB, Shenzhen Goodix Technology Co. Ltd., Next Biometrics Group ASA, Egis Technology Inc., id3 Technologies, and Qualcomm Incorporated are focusing on launching new products. For instance, in June 2019, Integrated Biometric LLC launched the Dannoline of low-power light-emitting sensor (LES)-based fingerprint scanners. These scanners have been designed for biometric fingerprint identification applications, due to their low weight, compactness, and low-power requirement.
Similarly, in December 2019, Fingerprint Cards AB collaborated with Valid S.A., a payment technology provider, to offer contactless biometric payment cards. Through this collaboration, the former aims to attract more customers in Latin America (LATAM) and the U.S. Likewise, in February 2020, Fingerprint Cards AB expanded its portfolio of fingerprint authentication touch sensors by adding capacitive touch sensors under its FPC1020 and FPC1024 series. The company supplies its touch sensors to logical and physical-access device manufacturers.
Currently, fingerprint sensor manufacturers are increasingly focusing on producing in-display fingerprint sensors, due to the rising use of smartphones and online payments, globally. Smartphone manufacturers are rapidly integrating in-display fingerprint sensors in their offerings, owing to their strong focus on reducing the bezels and making the devices smoother and sleeker. For instance, Qualcomm Incorporated introduced ultrasonic in-display fingerprint sensors in 2019. These sensors are more reliable and secure than the optical sensors of the company.
Geographically, the Asia-Pacific (APAC) region led the fingerprint sensors market in the past and it is expected to retain its dominance in the foreseeable future as well. This is due to the increasing adoption of such instruments in the government organizations of India, China, and Indonesia, for official verification purpose. Besides, the rising disposable income of people and the surging popularity of smartphones in the region will amplify the usage of such sensors in the foreseeable future.
Thus, the augmenting need to mitigate frauds and thefts in the BFSI sector and the spurring demand to secure the identity of people by government agencies will amplify the demand for fingerprint sensors.
