APAC biometrics market to surpass $900M by 2016, Frost & Sullivan says

Rising crime rates and terrorism around the globe have forced governments to increase monitoring and introduce reliable border control systems. These security concerns and government regulations aimed at criminal identification and automated immigration at all entry points, whether air, land or sea, drive biometrics adoption in the government vertical across APAC.

New analysis from Frost & Sullivan finds that the market earned revenues in the range of US$500 million in 2011 and is expected to grow at a CAGR of 12.6 percent till 2016, to reach $905 million. With many emerging economies in the region, there is a strong need for building infrastructure in terms of national identification and border security. Therefore, the APAC biometrics market will witness faster growth than those in North America, the Middle East and Europe.

“National ID programs have been implemented in many countries in the region to identify residents and track insurgents,” said Susan Sahayan,Frost & Sullivan Research Analyst. “However, due to the global financial crisis, tight government budgets and the high initial investments needed to implement full-fledged biometric systems, many projects have been delayed or shelved.”

To overcome these barriers, companies must facilitate the convergence of various biometric modalities into a single offering, as multiple authentication methods for identifying an individual will enable higher accuracy and greater security. They must be able to integrate biometrics with other technologies, such as video surveillance, to meet the need for more intelligent and robust security systems.

“For companies looking to offer advanced technologies and secure large-scale government projects, good credentials are critical,” noted Sahayan. “This raises entry barriers for potential market participants.” To stay ahead of their peers, participants are likely to resort to consolidation. Although this move will further intensify competition among the key players, it will also catalyze the development of innovative and suitable products.