Optical Fingerprint Sensor Market

The extensive usage of fingerprint sensors in consumer electronic devices drives market growth.

Market CAGR for optical fingerprint sensors is driven by the rising adoption of biometric systems in enterprises, which has accelerated the demand for fingerprint sensors. Tracking the time and attendance of employees has become easy with the implementation of biometric technology-based time and attendance registering systems. Fingerprint technology-based systems are easy to use and install. These systems help the management to track and analyze employee data. One of the biggest advantages of these systems is their ability to prevent employees from logging in for one another.

Earlier, the methods such as a time clock, sign-in sheet, and ID card swiping were used to capture time and attendance, which were vulnerable to forgery, but the use of fingerprint sensors has drastically reduced fraud in attendance systems. The advent of technology has not only permitted fingerprint systems to capture data, but they can also be integrated into payroll and various software to calculate employee productivity, work hours, and salary based on attendance, among others. Several companies, including private and government companies, have deployed fingerprint sensors to capture attendance.

Fingerprint sensors help in tracking employee time and attendance, as well as enhancing the security of the workplace. People not registered with the organization cannot enter the office premises as the fingerprint system blocks their entry.

Moreover, the increased smartphone adoption of in-display fingerprint sensors drives the Optical Fingerprint Sensor Market revenue. In-display fingerprint technology is utilized in many of today's top-of-the-line phones as it has a wide area to scan a finger, which gives the customer the best experience. The in-display fingerprint sensor operates with both wet and dry fingers, and its optical sensor is very light and does not take up much space in a phone. Also, the in-display fingerprint carries a shorter time than other fingerprint sensors to look at a finger.

So, these benefits allow fingerprint sensors to be built into smartphone screens. With such usage of in-display fingerprint sensors, the market is said to enhance more with time, which is why continuous research and developments are going on in the fingerprint sensor market, creating huge opportunities for recent start-ups and manufacturers of such sensors.

Moreover, technological improvement in fingerprint sensor technologies and the development of advanced and innovative products, such as biometric payment cards, are other factors driving market revenue growth. Biometric payment cards are the same as debit or credit cards but are ultra-thin and built with a low-power optical fingerprint sensor. While using this card, consumers requirement to use their fingerprint instead of a PIN. Moreover, manufacturers are deploying advanced technologies to cope with increasing market demand. For instance, in May 2022, Fingerprint Cards AB registered 500 patents globally for its biometric sensor technology.

The firm has also enhanced its portfolio beyond capacitive biometrics sensors to an optical fingerprint sensor with angled mirrors implanted in an active part of a display and touchless solutions.

The Global Optical Fingerprint Sensor Market Industry is projected to experience substantial growth over the next decade. With a market value of 2.51 USD Billion in 2024, it is anticipated to reach 7.47 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 10.43% from 2025 to 2035. Such projections indicate a robust demand for optical fingerprint sensors across various sectors, driven by technological advancements and increasing security concerns. As the market evolves, stakeholders are likely to explore new opportunities and innovations, further enhancing the Global Optical Fingerprint Sensor Market Industry.

The growing adoption of optical fingerprint sensors in the financial services sector is a key driver of the Global Optical Fingerprint Sensor Market Industry. Financial institutions are increasingly leveraging biometric authentication to enhance security and streamline customer transactions. The implementation of fingerprint sensors in ATMs and mobile banking applications provides a secure alternative to traditional PINs and passwords. This trend is indicative of a broader shift towards biometric solutions in financial services, which is expected to contribute to the market's growth trajectory. As the industry evolves, the Global Optical Fingerprint Sensor Market Industry stands to benefit from the increasing reliance on biometric technologies.

Technological advancements play a pivotal role in shaping the Global Optical Fingerprint Sensor Market Industry. Innovations in sensor design, such as improved image processing algorithms and enhanced optical clarity, contribute to the effectiveness of fingerprint recognition systems. These advancements not only increase the speed and accuracy of fingerprint scanning but also reduce the size and cost of sensors, making them more accessible for various applications. As a result, the market is poised for substantial growth, with projections indicating a rise to 7.47 USD Billion by 2035. This evolution in technology is likely to attract new players and stimulate competition within the Global Optical Fingerprint Sensor Market Industry.

The Global Optical Fingerprint Sensor Market Industry experiences a notable surge in demand for biometric security solutions. As security concerns escalate across various sectors, including banking, healthcare, and personal devices, the adoption of fingerprint sensors becomes increasingly prevalent. In 2024, the market is projected to reach 2.51 USD Billion, reflecting a growing inclination towards secure authentication methods. This trend is further fueled by advancements in technology, which enhance the accuracy and reliability of optical fingerprint sensors. Consequently, organizations are integrating these solutions to safeguard sensitive information, thereby driving the growth of the Global Optical Fingerprint Sensor Market Industry.

Government initiatives aimed at promoting biometric technologies significantly impact the Global Optical Fingerprint Sensor Market Industry. Various countries are implementing policies to enhance national security and streamline identification processes, leading to increased investments in biometric systems. For instance, initiatives in public safety and law enforcement encourage the adoption of optical fingerprint sensors for identity verification. These efforts not only bolster security measures but also create a conducive environment for market growth. As governments recognize the importance of biometric solutions, the Global Optical Fingerprint Sensor Market Industry is likely to expand, driven by public sector demand and funding.

The integration of fingerprint sensors in consumer electronics significantly influences the Global Optical Fingerprint Sensor Market Industry. With the proliferation of smartphones, tablets, and wearable devices, manufacturers are increasingly incorporating optical fingerprint sensors to enhance user experience and security. This trend is particularly evident in flagship devices, where biometric authentication is becoming a standard feature. As consumer preferences shift towards devices that offer seamless and secure access, the market is expected to witness a compound annual growth rate of 10.43% from 2025 to 2035. This integration not only boosts the functionality of devices but also propels the growth of the Global Optical Fingerprint Sensor Market Industry.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American optical fingerprint sensor market will dominate owing to advancements in fingerprint sensor technologies, and the presence of key market players will boost the market growth in this region. Further, the US optical fingerprint sensor market held the largest market share, and the Canadian optical fingerprint sensor market was the fastest-growing market in the North American region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Optical Fingerprint Sensor Market SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's optical fingerprint sensor market accounts for the second-largest market share owing to advancements in fingerprint sensor technologies and the presence of key market players in this region. Further, the German optical fingerprint sensor market held the largest market share, and the UK optical fingerprint sensor market was the fastest-growing market in the European region.

The Asia-Pacific optical fingerprint sensor market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to rising applications of fingerprint sensors for law enforcement drives the market growth in this region. Moreover, China’s optical fingerprint sensor market held the largest market share, and the Indian optical fingerprint sensor market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the optical fingerprint sensor market grow even more. Market participants are also undertaking multiple strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the optical fingerprint sensor industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global optical fingerprint sensor industry to benefit clients and increase the market sector. Major players in the optical fingerprint sensor market, including Goodix (China), Fingerprint Cards AB (Sweden), Synaptics (US), Apple Inc. (US), Egis Technology (Taiwan), and others, are attempting to increase market demand by investing in research and development operations.

Qualcomm Inc designs and develops wireless telecommunication products and services. The firm offers integrated circuits and system software for mobile devices and other wireless products. Its product offerings include radio frequency transceivers, consumer wireless devices, cellular modems, application processors, power management and wireless connectivity integrated circuits. The company's products find applications in mobile devices, laptops, tablets, cellular handsets, cameras, servers, wireless devices and network infrastructure equipment, routers, access points, wearable devices, voice and music devices, gateway equipment, consumer electronic devices, desktop computers, and IoT devices. In January 2021, Qualcomm launched the second-generation in-display fingerprint sensor.

The 3DSonic Gen 2 offers a larger surface area for the sensor and faster processing. The product is 50% faster and 77% larger than the first-generation sensor.

Vivo is a technology company that offers telecommunications solutions. The company's cell plan includes prepaid and postpaid such as mobile and TV plans. The company services comprise recharge, connectivity, fiberoptic solution, broadband, payment solution, 4g, 5g and 4.5g, among others. It also provides a combo of TV and cell, internet and mobile plan, and home and mobile pack. The company also allows the user to buy gadgets online. It also provides live channels and subscription and recording of digital content services. The company provides mobile apps for both Android and iOS users.

In January 2022, The Vivo launched IQOO 9 Pro, the first smartphone to include Qualcomm's 3D Sonic Max ultrasonic fingerprint reader, and it is powered by the brand-new Snapdragon 8 Gen 1 processor. The IQOO 9 Pro's Qualcomm 3D Sonic Max enables a lightning-fast fingerprint enrollment process with just one tap. Once the user's fingerprint is registered, it unlocks the phone in just 0.2 seconds.