Biometrics access control systems are expected to gain more momentum in Saudi Arabia over the next six years amid rapid infrastructural development activities, coupled with the expansion of the hospitality and healthcare sector.
Biometrics access control systems are expected to gain more momentum in Saudi Arabia over the next six years amid rapid infrastructural development activities, coupled with the expansion of the hospitality and healthcare sector, according to
6Wresearch.
The market research firm made that point in a recent
report titled “Saudi Arabia Biometrics Market (2018-2024).” According to the report, the country’s biometrics market revenues are projected to cross US$52.9 million by 2024.
The study notes that Saudi biometrics market had gone through a decline but is now experiencing a rebound. “From 2014 to 2016, Saudi Arabia biometrics market witnessed a steep drop in demand owing to declining oil prices and deteriorating economy. However, post 2017, the market witnessed growth attributed to reviving investments in various infrastructure projects, Saudi Vision 2030 and a recovery oil prices,” the report said.
Saudi Vision 2030 is an initiative launched by Saudi Arabia. Among its various objectives are lowering the country’s rate of unemployment from 11.6 percent to 7 percent, increasing small and medium business contribution to GDP from 20 percent to 35 percent and increasing women’s participation in the workforce from 22 percent to 30 percent, according to the project’s website.
Public and private investments
The 6Wresearch report stressed that government initiatives along with rapid urbanization, and rising need for advanced vigilance systems are likely to emerge as the key drivers for the growth of Saudi Arabia biometrics market over the coming years.
“Government and transportation sector held majority of the revenue share in 2017 on account of greater number of government infrastructure projects including construction of roads, airport, metro, ports, and power plants,” said Rishi Malhotra, Senior Research Analyst for Research and Consulting at 6Wresearch.
At the same time, private investment will play a critical role as well, triggering demands for biometrics, the report said, adding this will be more noticeable in the hospitality and healthcare sector.
“During the forecast period, the hospitality and healthcare sector is expected to record highest growth owing to ongoing construction activities, along with upcoming events in the country including Global Health Exhibition and Formula E World Championship,” Rishi further added.
Meanwhile, Siddhant Sharma, Research Analyst for Research and Consulting at 6Wresearch, spoke from a technology point of view. “In terms of technology, fingerprint recognition segment held the highest revenue share in 2017 on account of higher installation in commercial offices, government and transportation, and hospitality and healthcare verticals,” he said.
“Moreover, amongst all regions in 2017, the Western Region held major revenue share and is expected to maintain its leadership during the forecast period. The regional growth is mainly attributed to ongoing/upcoming infrastructure projects including commercial buildings and transport development,” he said. “The region also includes Makkah and Madinah center for Islamic pilgrimage, resulting as a key driving factor for higher adoption for biometrics solutions.”
In terms of domestic manufacturing, currently, the market is at a niche stage with over 85 percent of the total revenues coming from foreign players, and the Saudi Arabia biometrics market recorded miniscule share of local players in the overall market, the report said.
According to the report, some of the major players in Saudi Arabia biometrics market include Suprema, ZK Technology, Assa Abloy Group, M2SYS, 3M Cogent, Precise Biometrics, NEC, Morpho and Aware LLC.