Fingerprint Identification Module Market Size, Analysis 2032

Report Description

Fingerprint Identification Module Market Outlook 2031

The global fingerprint identification module market size was valued at USD 6.27 Billion in 2023 and is likely to reach USD 20.77 Billion by 2032, expanding at a CAGR of 17.01 % during 2024 – 2032. The market growth is attributed to the increasing adoption of mobile phones and the rising adoption of fingerprint authentication in several organizations across the globe.

Rising adoption of fingerprint authentication in several organizations and corporates is projected to drive the market in the coming years. Corporates and organizations are deploying biometric systems for monitoring attendance, which increases the demand for fingerprint identification modules. These modules validate the user identity by comparing a minute image and tracks employee, student, & faculty attendance. Moreover, the growing acccuracy of biometric systems is further boosting the market growth.

• According to a Forbes report published on August 25, 2022, biometric accuracy increased from 96% to 99.8% between 2014 and 2018.

Get Free Sample Report

The demand for fingerprint identification modules is rapidly growing in law enforcement, consumer electronics, aviation, BFSI, healthcare, and other industries, as these are highly fraud-resistant. These modules are very convenient, as there is no need to remember or carry any physical identification. These modules also group fingerprints from the same individuals, reducing the complexity of the necessary searches and search times, which enhances its adoption in several industries and applications.

The COVID-19 pandemic hampered the demand for fingerprint identification modules. The abrupt rise in COVID-19 infection drastically declined the sales of biometric systems, owing to the closure of corporates, schools, and colleges where biometrics systems are widely used for monitoring attendance. This impeded the demand for fingerprint identification modules, as these modules are used in biometrics to enforce reliable logs of system transactions and protect an individual's rights. Additionally, the adoption of smartphones sharply fell during the pandemic, hindering the demand for fingerprint identification modules, as these modules are utilized in smartphones to authenticate transactions or unlock devices. For instance,

• According to a report, the sales of smartphones dropped to 1.35 billion in 2020 as compared to 1.54 billion in 2019.

Impact of Artificial Intelligence (AI) on Fingerprint Identification Module

The growing technological advancements with the integration of artificial intelligence in biometric systems create an immense opportunity in the market. AI-powered fingerprint identification modules identify and automatically respond to data breaches in fingerprint authentication. Moreover, AI in fingerprint identification modules enhances security by using a minutiae-based algorithm.

Fingerprint Identification Module Market Dynamics

Get Free Sample Report

Major drivers

Increasing adoption of mobile phones across the globe is expected to boost the demand for fingerprint identification modules during the forecast period. Mobile devices often feature fingerprint identification modules, allowing users to unlock their devices with ease. Fingerprint identification modules in mobile phones also improve convenience and provide a strong deterrent to unauthorized access, enhancing their adoption in mobile phones. Thus, the rising demand for mobile phones is propelling the market. For instance,

• According to a report, the number of mobile devices operating across the globe was 15 billion in 2021 and is expected to reach 18.22 billion by 2025.

Growing trend of mobile payment is projected to drive the market in the coming years. Mobile payment utilizes fingerprint identification modules to confirm identity and then securely processes the authentication as well as transaction in one seamless process. Therefore, the rising adoption of mobile payment is propelling the market.

Existing Restraints

Rising adoption of facial recognition systems in mobile phones and smart security systems is expected to restrict the market during the forecast period. Mobile phones are widely adopting facial recognition systems instead of fingerprint scanners, as these systems enhance convenience and efficacy as well as increase security and safety. Moreover, the deployment of fingerprint identification modules is expensive, as it includes several sensors and complex technologies, encouraging users to lessen its adoption.

Emerging Opportunities

Increasing investment in R&D activities by major players to develop and launch high-performance fingerprint scanners creates an immense opportunity in the market. These scanners are used for applications requiring a high standard of reliability and supporting auto-correction as well as 360-degree rotation authentication. For instance,

• On February 24, 2021, Aratek a key global company in biometrics technology, announced the launch of a new A700 fingerprint scanner, supporting a wide array of OS such as Windows2000, XP, Vista, Windows 7 / 8 / 10, Android, and other embedded systems for high interoperability. It is a full-featured optical fingerprint scanner. It is specifically engineered to fill the needs of a growing number of applications requiring a high standard of reliability.

Scope of the Fingerprint Identification Module Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Technology Segment Analysis

Based on technology, the fingerprint identification module market is categorized into optical fingerprint scanners, capacitive-based fingerprint readers, and multispectral imaging sensors. The optical fingerprint scanner segment held a large share of the market in 2022, due to its potential to enhance fraud prevention.

Optical fingerprint scanners are easy to integrate into smart devices such as smartphones, tablets, & others and are relatively inexpensive as compared to other biometric authentication technologies. The technology also offers improved accuracy and enhanced security at a low cost, which increases its adoption in fingerprint identification modules.

The capacitive-based fingerprint reader segment is projected to expand at a rapid pace in the coming years, owing to the increasing adoption of smartphones and the rising trend of mobile payments. Capacitive-based fingerprints offer high accuracy and a fast authentication process, enhancing its adoption in smartphones.

Capacitive-based fingerprint generates an image by measuring the changes in capacitance between the ridges and valleys that make up the fingerprint, making it a strong line of defense against security breaches. This increases the demand for capacitive-based fingerprint readers in the fingerprint identification module.

Get Free Sample Report

Industry Vertical Segment Analysis

In terms of industry vertical, the global market is segregated into government & law enforcement, consumer electronics, aviation, BFSI, and healthcare. The consumer electronics segment registered significant growth in 2022, due to the rising demand for smart devices and growing digitalization in emerging countries.

Consumer electronics devices such as smartphones, tablets, and laptops are adopting fingerprint identification modules to offer an added layer of security and convenience, as these modules authenticate a person based on matching the data within a system. Additionally, increasing the demand for mobile or digital payments is propelling the demand for consumer electronics devices, as they support the quick and efficient transfer of funds and enable users to make paperless payments.

The government & law enforcement segment is anticipated to grow at a robust pace during the assessment period, owing to its ability to ensure obedience to laws by everyone within a state. Government & law enforcement agencies are widely using fingerprint identification modules to track a criminal record as well as previous convictions and arrests to aid in sentencing, parole, probation, and pardoning decisions.

In addition, governments across the globe are turning to fingerprint biometrics, as they establish civil registration and identification programs to reap a wide range of benefits. This enhances the adoption of fingerprint identification modules in the government & law enforcement industry.

Regional Outlook

Based on regional outlook, the fingerprint identification module is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America accounted for a major share of the market in 2022, due to the expanding usage of the unique finger impression recognition technology in individual document verification and the presence of established market players such as SecuGen Corporation, HID Global Corporation, Apple Inc., and 360 Biometrics. Moreover, the increasing adoption of biometric fingerprint scanning at several airports in the region is propelling the demand for fingerprint identification module in the coming years, as it is deployed in biometrics scanning.

The market in Asia Pacific is estimated to expand at a high CAGR in the coming years, owing to the increasing adoption of digital payments or mobile payments and the growing trend of digitally verifiable identities. In addition, the rising penetration of smartphones in the region is expected to boost the demand for fingerprint identification modules during the forecast period, as these modules are placed in smartphones to authenticate transactions or unlock devices. For instance,

• As per a report published, the penetration of smartphones in Asia Pacific reached 76% in 2022 and is projected to reach over 90% by 2030.

  Get Free Sample Report