ID: MRFR/AM/7055-CR | February 2021 | Region: Global | 154 pages
Automotive biometric market in terms of value is estimated to reach USD 958.4 million by 2026, registering a 16.28% CAGR during the forecast period.
A biometric system is an essential system utilized in automobiles for the purpose of biometric identification and authentication in vehicles. Its purpose is to provide safety in vehicles and used in various applications,including vehicle immobilizer, health monitoring, and biometric car access. Biometric automotive security is a very important concept in the automotive industry due to the growing number of vehicle theft.The Automotive Biometric market is driven by factors such as the increase in the sale of EV & luxury vehicles and rising concerns regarding safety & security. However, the high cost of the system is expected to restrain the market growth. Rising adoption in developed countries is expected to create growth opportunities for market players.
ECONOMIC IMPACT ON AUTOMOTIVE INDUSTRY
With the continuous spread of the novel coronavirus spread across the world, automakers are taking extreme measures in the form of plant closures to halt the spread of COVID-19. The situation remains uncertain as more European companies suspend work, and the US and APAC automakers extend shutdown periods. The automakers' plans on North American production are an effort to slow the spread of the COVID-19 virus; however, currently the region is the global epicenter of the outbreak, with the daily number of confirmed cases outstripping the number in any other region. In the US and Canada, the response of government has been a combination of state or provincial, federal, and local measures. In other regions, the countries' governments are applying seemingly ever-more stringent conditions on social interaction, travel, and workplace attendance. These regions are experiencing similar situations, which is having a marked effect on economy as well as society and causing massive economic disruption, with the automotive industry at the center of this turmoil.
The regional impacts of the pandemic outbreak are highly variable, but as it spreads, the status in the harder hit areas provide a glimpse of what may be witnessed in the near future. China saw a 79% drop in the automotive market in February 2020. As a result, Chinese auto manufacturers have petitioned the government to stimulate the market through subsidies, tax breaks, and temporary reductions in emissions requirements. The initial epicenter of the global outbreak is Hubei province, which is one of the key regions of automotive production in China. Utilization within automotive plants in Hubei remains far below capacity, with many plants fully shut down, and the recovery process may require months to get back on track, post the outbreak.
IMPACT ON SUPPLY CHAIN
All countries across globe are trying to make a fine balance between protecting health, minimizing economic and social disruption, and respecting human rights. The growing spread of corona virus leads to disruption in the plastic material markets. Restrictions to shipping and industrial production are affecting multiple supply chains. Distribution of components is the key process in manufacturing industries, which is facing challenges such as staffing of warehouses, a need for direct distribution and more intelligent and responsive allocation across channels due to pandemic which led to pressure on supply chains. The impact on the US market from the disruptions in China will be significant and will have huge an effect in the world economy and badly disrupt global supply chains.
IMPACT ON RAW MATERIALS
Automotive manufacturing possesses complex process, with subcomponents required to assemble a single product which is sourced from several countries across the globe. The raw materials required to manufacture these subcomponents could also come from different countries and continents, and the finished products will again be transported all over the globe. The dependency on logistics make import, export of raw material and finished product more complex due to disruption in supply chain.
The sales of electric vehicles (EVs) are growing rapidly owing to the rising awareness regarding environment protection and government subsidies and schemes. The awareness regarding the impact of gasoline vehicles on the environment has created a demand for electric vehicles globally. Government initiatives, such as subsidies, grants, improved charging infrastructure, and increased vehicle range helps promote the adoption of electric vehicles. For instance, in September 2017, the Indian Ministry of Road Transport and Highways announced several non-fiscal incentives to ensure that electric vehicles account for 15% of the total vehicle sale in the country in the next five years. Moreover, key automotive OEMs are moving toward electrification, with focus on the development of hybrid, battery electric vehicle, and plug-in hybrid vehicles. The growing demand for electric vehicles is expected to lead to innovation and development in automotive biometric products. The increased sale of electric vehicles will enable the manufacturers to develop more advanced automotive biometric features for electric vehicles. Thus, the increased sale of electric vehicles is expected to drive the global automotive biometric market during the forecast period.
According to the World Health Organization (WHO), more the one million people are killed, and more than 50 million people are injured on roads every year due to bad road conditions, while 90% of road traffic deaths occur, primarily in developing countries. Such a scenario is expected to raise concerns regarding safety and security in vehicles.
High-quality automotive biometric systems ensure the exemplary functions of steering handling and vehicle security in an automotive industry. This makes the automotive biometric system a critical aspect of ensuring safety and security. According to the Monroe Shocks & Struts (Tenneco Inc.), there is an increase in the sales of passenger vehicles in developing countries. These passenger vehicles, such as sedans and luxury vehicles, primarily use face and voice biometrics to handle the vehicle functions according to the setbacks. Moreover, according to the BMW Group, there is an increase in the sales of premium passenger cars, which inherit automotive biometric and other safety and security features. Moreover, the leading global automotive parts and component suppliers are biometric technologies to the automotive OEMs to withstand the vehicle theft.
The monitoring of vehicle and driver is expensive and has complex operations as it features a larger number of software and hardware such as sensors, video cameras, and other accessories that are used for analyzing the driver behavior. The operational cost of automotive biometric system depends on various factors such as advanced technology and vehicle type. The working operations of automotive biometric system are expensive owing to the high investment and repair & maintenance costs involved in the generation of advanced technology. For instance, vehicles equipped with advanced driver assistance systems (ADAS) can add an extra cost ranging from USD 3,000 to USD 5,000 to the repair bill after a crash due to pricey sensors and their calibration requirements. Moreover, the production and safety concerns regarding technology development also hinder the growth of the automotive biometric systems. Additionally, the sensors used for steering, automatic emergency braking, and adaptive cruise control systems cost around USD 500 to USD 1,500. Caterpillar Inc. and Seeing Machines as a tie-up have developed an eye tracker as an automotive biometric solution which costs from USD 15,000 to USD 20,000 which is not affordable for financially average people. Furthermore, the components and materials used in the driver assistance technology systems must be selected as per international standards such as the American Society of Mechanical Engineers (ASME) and Society of Automotive Engineers (SAE). This leads to an increase in the cost of high-quality raw materials and components used in the manufacturing of automotive biometric systems.
The growth of the automotive industry and rise in technological advancements in the automotive industry are the major factors expected to promote automotive biometric system in developed countries. According to an automotive consumer study conducted by Deloitte, 68% of consumers in the US feel that increasing accident numbers of autonomous vehicles without automotive biometric system has made them more cautious of this technology. internet of things (IoT) and artificial intelligence (AI) technologies will continue to revolutionize the automotive sector in the US. Device connectivity, autonomous driving, electric powertrains, and shared mobility are also the latest trends which will lead to the demand of automotive biometric system in the near future. As per the automotive consumer survey done by Deloitte, around 71% of consumers in Germany give preference to vehicle safety than the other features of the vehicle. This would attract more customers to adopt automotive biometric system for their vehicles.
The global market forautomotive biometric solutionshas been segmented based on type, vehicle type, and application.
Based on type, the global automotive biometric market has been segmented into fingerprint scan, voice recognition, face recognition, and others. Fingerprint scanners consist of scanners and readers used to authenticate and recognize the fingerprint of an individual to grant or deny access to the system installed in automotive. Fingerprint-based identification is the oldest identification method and is widely used for security and reliability authentication. In February 2020, Halfords Group plc (UK) announced to launch a new steering wheel lock system enabled with a fingerprint reader. Voice recognition refers to the software's ability to receive and interpret the voice commands to perform the operations. Voice recognition enables the hands-free operations of the vehicles. It helps in providing GPS communications, entertainment, locking and unlocking features, and among others in automotive. Voice recognition helps in providing safety and convenience to drivers and passengers. Face recognition system identifies the persons through facial features such as eyes, mouth, nose, and ears. In 2019, Hyundai Motor Group (South Korea) developed the driver state warning (DSW) system that recognizes the driver's face and eyes. Facial recognition technology also helps in various other features such as seat position and automatic side mirror adjustments.
Based on vehicle type, the global automotive biometric market has been segmented into passenger car and commercial vehicle.Passenger cars refer to road motor vehicles used to carry passengers rather than goods. According to the Organisation for Economic Co-operation and Development (OECD), passengers’ cars are such vehicles that have the capacity of carrying not more than nine persons, including the driver. The increase in population, high purchasing power capacity, comfort & convenience, and growing need for owning transportation vehicles trigger the demand for passenger vehicles in the upcoming future. Commercial vehicles include mini-vans, trucks, tractors, trailers, coaches, buses, and other vehicles used to transport goods and passengers. The increasing demand for commercial vehicles in the processing, manufacturing, and logistics sectors and the continuous growth in the tourism and hospitality sectors propels commercial vehicles' demand. The increase in demand for safety, comfort, and automatic features in commercial vehicles is expected to surge the demand for automotive biometric systems in commercial vehicles.
Based on application, the global automotive biometric market has been segmented into vehicle security system, driver safety system, advanced steering & infotainment, and others. Vehicle security system plays an important role in vehicles, nowadays. The rising cases of vehicular and fuel theft trigger the need for the adoption of vehicle security systems in passenger and commercial vehicles globally. A vehicle security system is designed to provide vehicles’ security. The growing technological advancements day by day regarding the safety of vehicles such as biometrics. GPS, fingerprint sensors, cameras, radio frequency identification (RFID), and integration of the Internet of Things (IoT) in automotive surges the demand for vehicle security system segment during the study period. Driver safety systems in vehicles are designed to monitor the driver's alertness to ensure safe driving practices. These systems include biological and performance measures to assess and monitor the driver’s alertness. The use of infrared sensors and cameras to monitor the alertness of the driver. Infotainment refers to the combination of information and entertainment services in vehicles. The growing demand for smart vehicles, enhanced connectivity solutions, and the rising need for safe and luxurious features in automobiles propel the need to adopt infotainment systems in vehicles. The integration of infotainment systems in vehicles connects with various automotive technologies, which includes V2X solutions, ADAS systems, Human Machine Interface (HMI) systems, telematics devices, display systems, voice recognition, smartphone integration, and sensors to provide a better driving experience to the driver and passengers.
Based on region, the report on the automotive biometricmarket has been divided into North America, Europe, Asia-Pacific, and the rest of the world.
Asia-Pacific offers significant growth potential for the automotive biometric market due to the high demand for vehicles in China, Japan, India, and South Korea. The automotive biometric market is growing with the increasing vehicle sales in this region as automotive biometric systems are used to identify and authenticate vehicles for improving vehicle safety and comfort. As per the data from the China Association of Automobile Manufacturers, China is one of the largest manufacturers and sales of EVs in the world.This is likely to increase the adoption of biometric systems in vehicles.
Automotive biometric manufacturing companies in North America are focusing on offering advanced and cost-effective biometric systems. In January 2018, BYTON Limited (China) unveiled its drivable concept SUV car equipped with advanced human-vehicle interaction such as voice recognition, biometric identification, hand gesture control technology, and touch control features in Las Vegas, US. Therefore, the high demand for automotive safety and control systems and consumer awareness regarding advanced automotive systems are expected to support the use of automotive biometric systems in the US.The increasing demand for safety and security in the automotive industry drives the North America automotive biometric market. The government regulations regarding vehicle safety in this region push the manufacturers to offer advanced automotive biometric systems, which leads to a rise in demand for automotive biometric systems in vehicles. The National Highway Traffic Safety Administration (NHTSA) focuses on adopting laws and regulations regarding the safety of vehicles. Many automakers are shifting towards electronic keyless entry systems such as fingerprint scan and voice recognition from the conventional key-based vehicle access systems in vehicles.
The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. Hitachi Ltd., Synaptics Incorporated, Fujitsu, Nuance Communications, Inc., HID Global Corporation, and Fingerprint Cards AB are some of the key players operating in the global market. These companies compete in terms of availability, quality, price, and technology and consider product development, acquisition, and partnership as their key strategies in the global automotive biometric market. Although the international players dominate the market, regional and local players with small market shares also have a significant presence. The international players may strengthen their presence in the global market by heavily investing in product development during the forecast period.
The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. Hitachi Ltd., Synaptics Incorporated, Fujitsu, Nuance Communications, Inc., HID Global Corporation, and Fingerprint Cards AB are some of the key players operating in the global market.
The globalautomotive biometricmarket has been segmented based on type, vehicle type, and application.The automotive biometricmarket is driven by factors such as the increase in the sale of EV & luxury vehicles and rising concerns regarding safety & security. However, the high cost of the system is expected to restrictthe market growth. Rising adoption in developed countries is expected to create growth opportunities for market players.
|Market Size||2025: USD 958.4 million|
|CAGR||16.28% CAGR (2020-2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Technology, Vehicle Type and Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Fujitsu Ltd (Japan), Synaptics Incorporated (US), Methode Electronics (US), VOXX International (US), Voicebox Technologies (US), Hitachi Ltd (Japan), Safran S.A (France), Nuance Communications (US), Hid-Global (US), Fingerprint Cards AB (Sweden)|
|Key Market Opportunities||Growing investments into automotive infrastructure development|
|Key Market Drivers||The rise in need for safety and security can drive|
Frequently Asked Questions (FAQ) :
The automotive biometric market can thrive at 12% CAGR by 2025.
By 2025, the automotive biometric market can value at USD 1,128 Mn.
Hitachi Ltd (Japan), Nuance Communications (US), Safran S.A (France), and Hid-Global (US) are some reputed names in the automotive biometric market.
The rise in need for safety and security can drive the key players of the automotive biometric market growth.
The growing adoption of face recognition in the adoption of automobile industry can boost the key players of the automotive biometric market growth.