Global Fingerprint Sensors Market Size Grows at a Staggering CAGR of 11.76%

Introduction

A fingerprint sensor, also known as a fingerprint scanner, is a type of technology that recognizes and verifies an individual's fingerprints to deny or grant access to a computer system or physical facility. Fingerprint sensors are a biometric security technology that combines hardware and software to identify the fingerprint scans of an individual. The required users must place their fingers on a hardware scanner to activate these sensors. The sensors scan and replicate the individual's input, comparing it to previously stored scans for similarities. If a match is found, the individual is granted access.

Market Dynamics

Increasing Usage of Fingerprint Sensors for Smart Wearable Devices and Smartphones Drives the Global Market

Smart wearable devices, such as watches, include fingerprint scanners that can be used to unlock applications on a connected smartphone. Such market developments are anticipated to influence the demand for fingerprint sensors further. For instance, in June 2021, Facebook announced plans to implement biometric features.

In addition, sales of smart wearables are growing exponentially, and the technology's penetration rate is very low compared to that of the smartphone; this provides more room for growth in the coming years. Cisco Systems predicts that connected wearables will reach 192 million USD by the end of 2022. This is expected to drive smartphone fingerprint sensors.

Government Initiatives to Adopt Biometrics in Various Fields Create Tremendous Opportunities

Diverse government initiatives worldwide are investing in developing civil identity systems incorporating biometrics, and the number of such projects is rising. These systems have numerous applications, including universal identification, law enforcement, and border security. With initiatives such as Aadhar and Social Credit Systems, China and India have created Asia's world's largest biometric database.

The Aadhar system is a unique identification number consisting of 12 digits generated based on an individual's photograph, iris scans, and ten fingerprints. As of January 2020, the number of Indian residents possessing an Aadhaar number reached 1,250,784,712, accounting for approximately 99.9% of the country's total population.

Regional Analysis

Asia-Pacific is the most significant global fingerprint sensors market shareholder and is anticipated to exhibit a CAGR of 12.45% during the forecast period. Increasing mobile transactions in China and government initiatives are anticipated to be the country's primary market drivers for fingerprint sensors. China's high mobile transaction volume is expected to create market opportunity. According to the China Internet Network Information Center (CNNIC), there will be approximately 852.5 million mobile payment users in China in 2020, compared to 583.3 million in 2018. This increase in mobile payment transactions increases the demand for fingerprint sensors.

Furthermore, continuous product innovations primarily drive the fingerprint scanner market in Japan. In July 2021, Fingerprint Cards partnered with the Tokyo-based company MoriX Co., Ltd. to develop and launch biometric payment cards in Japan. Fingerprints' T-Shape module, which features ultra-low power consumption and is customized for integration into payment cards using standard automated manufacturing techniques, will be embedded in the cards. Incorporating biometric sensors into contactless payment cards enhances security, cleanliness, and sanitation while increasing card utilization.

North America is estimated to exhibit a CAGR of 12.17% over the forecast period. North America contributes a significant portion of the market share. The United States is a developed economy with widespread adoption of advanced technologies and devices incorporating fingerprint sensors, contributing to its market share. Smartphones are among the largest contributors to the consumer electronics industry's demand for fingerprint sensors. In addition, smartphone sales in the United States have consistently increased in recent years. Smartphones had the highest retail revenue in the consumer electronics sector in the United States in 2020, accounting for 79 billion dollars, according to the Consumer Technology Association, followed by gaming software and services and laptops and notebook PCs. This is anticipated to stimulate the market for fingerprint sensors.

Key Highlights

• The global fingerprint sensors market size was valued at USD 7.74 billion in 2022. It is estimated to reach 21.05 billion by 2031, growing at a CAGR of 11.76% during the forecast period (2023–2031).
• Based on type, the global fingerprint sensors market is bifurcated into optical, capacitive, thermal, and ultrasonic fingerprint sensors. The capacitive fingerprint sensor segment dominates the global market and is estimated to exhibit a CAGR of 11.27% over the forecast period.
• Based on application, the global fingerprint sensors market is divided into smartphones/tablets, laptops, smartcards, IoT, and other applications. The smartphone/tablets segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 11.52% throughout the forecast period.
• Based on the end-user industry, the global fingerprint sensors market is segmented into military and defense, consumer electronics, BFSI, and government. The consumer electronics segment owns the highest market share and is estimated to exhibit a CAGR of 10.68% during the forecast period.
• Asia-Pacific is the most significant global fingerprint sensors market shareholder and is anticipated to exhibit a CAGR of 12.45% during the forecast period.

Competitive Players

1. Qualcomm
2. Thales Group (Gemalto NV)
3. Idemia France SAS
4. IDEX Biometrics ASA
5. Vkansee Technology, Inc.
6. Shenzhen Goodix Technology Co., Ltd.
7. CrucialTec Co Ltd.
8. TDK Corporation (Invensense)
9. Fingerprint Card AB
10. Synaptics

Recent Developments

• May 2023: Samsung Display introduced the first mobile OLED panel with an integrated biometric reader and heart rate sensor. This panel, known as Sensor OLED, can minimize a smartphone's or tablet's complexity by integrating biometrics and health tracking.

• September 2023: Digital Chat Station reported that by the end of this year, prominent technology company Goodix will begin mass production of its ultrasonic under-display fingerprint sensor.

Segmentation

1. By Type
   1. Optical
   2. Capacitive
   3. Thermal
   4. Ultrasonic
2. By Applications
   1. Smartphones/Tablets
   2. Laptops
   3. Smartcards
   4. IoT
   5. Other Applications
3. By End-User Industries
   1. Military and Defense
   2. Consumer Electronics
   3. BFSI
   4. Government
   5. Other End-User Industries