The increasing popularity and application of biometric identification is becoming common practice. According to Marketresearch.com research reports, the biometrics market is expected to increase from US$4,217.2 million in 2010 to an estimated $11,229.3 million in 2015. The growing concerns of terrorism and safety have led to the strengthening of national security becoming a top priority, which has ultimately led to the growth of the biometrics market. a&s International China Best Buys interviewed several suppliers to give some standpoints from Chinese suppliers.
The increasing popularity and application of biometric identification is becoming common practice. According to Marketresearch.com research reports, the biometrics market is expected to increase from US$4,217.2 million in 2010 to an estimated $11,229.3 million in 2015. The growing concerns of terrorism and safety have led to the strengthening of national security becoming a top priority, which has ultimately led to the growth of the biometrics market. a&s International China Best Buys interviewed several suppliers to give some standpoints from Chinese suppliers.
Fingerprint Continues to Dominate the Market
Despite being the most mature form of biometrics, fingerprint remains the most popular. The compound annual growth rate (CAGR) is an estimated 19% since 2010 to 2015. The application of automated fingerprint identification system (AFIS) in national ID's and civil identification is the main reason for the growth of the market. The AFIS market continues to generate the highest revenue of $1,372.4 million from 2010 and is expected to reach $3,283.7 million by 2015.
In the past conventional security systems where knowledge-based methods or token-based methods were deployed often proved to be problematic, forgetting a password or the loss of a card can lead to hacking, fraud and duplication of information. This is where biometric advantages lay, due to the uniqueness of physical characteristics such as the fingerprint where no two fingerprints are known to be identical and there is no need for cards or passwords. AFIS can often be seen in access control and for monitoring attendance due to its simplicity and effectiveness.
The increasing use and maturity of fingerprint identification have left end-users questioning what breakthrough technology or products can be expected for this coming year. “In 2012, there will be more breakthroughs in fingerprint identification technology, such as in-depth integration with other technology,” said Telan Lee, General Manager at Feptel. “Now that we have realized optical-digitalization technology in our products, we will continue to develop this and integrate with MiFare.”
As mentioned above, the fingerprint identification technology is already mature and the trend amongst manufacturers seems to be heading towards integration of technology. “We are already in the process of conducting a research and development project which will incorporate the different forms of biometric technology integration,” stated Rufus Wang, CEO of Shenzhen Probuck Technologies. Other manufacturers are more focused on the integration of biometrics with one form of technology. “Presently, our fingerprint identification products are integrated with Radio Frequency Identification (RFID) and this is currently our primary focus,” said Michael Liu, Manager of Foreign Trade at Sebury Technology.
Is Facial Recognition the Upcoming Trend?
The gradual maturity of AFIS has led the way for the new upcoming facial recognition trend, the facial recognition market has an estimated CAGR of 24.2% from 2010 to 2015. Facial recognition technology has developed steadily over the past few years, with the emergence of new technology and products which has made this more appealing for the market. “The use of facial recognition will become more widespread and the number of companies involved in the facial recognition industry will be on the rise,” said Eric Lee, Director of Marketing and Sales at Hanvon Technology.
“What makes facial recognition attractive to users is that its non-contact, safe and hygienic in comparison to fingerprints it is a less passive method, therefore the popularity of facial recognition can be seen in the increased usage in the recording of attendance,” said Wang. However, Wang points out that facial recognition, although, can be considered a new form of identification and without a doubt its technology is becoming more advanced, further observations are still required in the market.
Invasion of privacy remains a concern with face recognition, but China's manufacturers do not agree with this. “Strictly speaking, facial recognition is similar to that of AFIS,” said Wang. “Both require the extraction of characteristics which are transformed into encryption for processing and identification. Therefore, duplication and inappropriate use should not be a concern.”
Eric Lee further develops this point stating that facial recognition should be ubiquitous, the problems surrounding safety in society is a major consideration, society should be more aware of safety, further information and guidance is required for the market.
Despite being hailed as the new technology of biometric recognition, the development of facial recognition is not as quick compared to AFIS, it will remain in the high-level market, according to Telan Lee. Liu claims its development is due to the advancement of the economy, but it will not become the main trend or replace other technology such as RFID. “Another point to consider is each product and its technology have its distinguished features and application limitations,” said Wang.
Iris Recognition for the High-End Market
The iris recognition market is predicted to increase with a CAGR of 27.5% from 2010 to 2015. In biometrics, iris recognition is perhaps considered the most accurate as the use of mathematical pattern recognition techniques are used to identify an individual. According to Eric Lee, as a non-contact form of biometric recognition the future development of iris recognition is bright, particularly once imaging technology advances.
The key advantage with this technology is its extreme resistance to false matches due to the uniqueness of the iris, individuals who are genetically identical retain independent iris textures. The iris is also a well protected organ, unlike fingerprints which become difficult to identify with time due to daily wear and tear.
A major consideration with iris recognition is costs, the cost of an iris scanner is much higher in comparison with other forms of biometrics recognition and token based or knowledge based methods. “Iris recognition will continue to appeal to high-end markets or specific projects and in the short-term this is not going to change,” said Wang. Therefore, this would suggest this technology is not particularly suited for mass application and does not have cost advantages for the mass market. “On the contrary, once technology develops and becomes more advanced costs will decrease,” said Liu.
Looking into the Future
The growth of the biometrics market has created fierce competition between manufacturers which is unavoidable. The appearance of pricing wars and “me-too” products are becoming an issue within the industry as competitors compete for their share of the market. “Competition is unavoidable each player must face the reality, this will consequently lead to the minimization of profits but this can also improve the standards for some players in the industry” stated Wang.
Maintaining competitive advantage in the market is crucial for survival and development Chinese manufacturers each have their own tactics and strategy when approaching such a competitive market. “Keeping one step ahead of the game, we will continue to incorporate new ideas to our products without compromising quality” stated Telan Lee. According to Eric Lee, apart from the improvement of products and technology expanding the application of the products is part of their competitive strategy.
The overall outlook for the 2012 biometrics market is unanimous between China's manufacturers, the market will continue to expand at a steady rate, with the release of new products and technology. “What to look out for in the future is that biometrics will not only be used by companies to monitor attendance and access control, we will see the growing use of biometrics in domestic, government, education sector and hospitals,” said Wang. Telan Lee points out that another particular market is the logistics networks where biometrics will be integrated into the system.
Further investments in marketing, development of new technology and ensuring product quality continues to be a top priority for China's biometrics manufacturers. To uphold their share of the market, the continuous release of new products integrated with the latest functions and technology is what can be anticipated for the biometric market in the future.