Global government biometrics market to reach $6.9 billion by 2024

New research predicts the biometrics market will grow by 6.88% over the next 10 years. in 2014 the market is expected to be worth US$3.6 billion.

United States
The global government biometrics market is expected to be worth US$6.9 billion by 2024, according to a new report by Reportstack. In its report, The Global Government Biometric Systems Market 2014-2024, SDI predicts the biometrics market will grow by 6.88% over the next 10 years. This year, the market is expected to be worth US$3.6 billion. “Major factors influencing the demand for these systems include the central role being played by the requirement for verification of digital identity that is valid globally,” the report explains. Other factors influencing market demand include increasing demand for e-Governance services worldwide, increasing reliance on digital transactions and the availability of low-cost effective biometric systems. The growth of mobile devices, in particular smartphones with in-built biometric technology, will also help drive the market. The biometric systems market is now entering a phase of intense competition and innovation which is helping drive investment as suppliers vie for a share of the market, the report says.

Government initiatives towards identity and border control, increasing concern over data security and growth in urban population leading towards increase the proportion of rebel groups and terrorists are expected to boost the demand for biometric identity and security systems over the coming years. As this sector gains prominence, it is expected that large competitors will try to generate competence by acquiring medium and small sized niche entities, with unique facilities that will fill the gaps in their portfolio of products, or services.

In July 2012, Apple Inc acquired fingerprint sensor and recognition solution provider AuthenTec for US$356 million. Moving ahead the company has integrated the fingerprint recognition into its latest mobile devices iPhone 5S. In the same month, Cross Match Technologies, a provider of interoperable biometric identity management systems was acquired by Francisco Partners, a global private equity firm focused on investments in technology and technology-enabled services business.

Later in the same year, search engine giant, Google acquired facial recognition technology company Viewdle. The increasing demand for innovative biometric applications is expected to result in a further increase in consolidation activity over the coming months.

North America is expected to dominate the biometrics market, closely followed by Europe and Asia. Despite Europe’s continuing economic woes, the region’s share of the global market is predicted to increase over the projected period. In terms of technology, fingerprint identification is expected to account for 43% of the biometrics market. With a share of 26%, facial recognition comes second and Iris/Retinal identification is third with 13.2%. Some of the companies mentioned in this report are Precise Biometrics, Lumidigm Inc., 3M Cogent, Giesecke and Devrient (GandD), Gemalto, SecuGen Corporation, Fujitsu, RCG Holdings, Iris Guard, Computer Sciences Corporation, SUPREMA, Morpho, Cross Match Technologies, Inc., NEC Corporation, Smartmatic International Corporation, Hitachi, Ltd.