Optical Fingerprint Sensor Market Overview:
The global optical fingerprint sensor market is growing at a CAGR of 12% for the forecast period of 2017 to 2023. The rising demand for biometric security is a mega pusher for the market of fingerprint sensors. The rapid industrialization in the major and developing countries in the world is increasing the popularity of fingerprint sensors. The advancements in the latest technologies have allowed the market to expand in the areas of smartphones, tablets, security systems, etc. Almost all smart electronic devices, especially phones and computers are coming with fingerprint sensors placed on them.
A fingerprint sensor is a trackpad that contains sensors on them. The sensor receives minutia points of the fingerprints and scanning software identifies the arch, loop, worn pattern, and other attributes from the fingerprint and records the identification of the person. There is a wide application of these devices in urban workplaces like offices, factories, shopping malls, healthcare organizations, etc. This biometric technic to identify employees of an organization is fast, cost-effective, and convenient. The optical fingerprint sensor market is growing based on this rapid industrialization and urban development construction. Although the technology is sophisticated, there is certain limitation too that restricts the growth of the market.
The emergence of the COVID-19 pandemic has been a curse to the global human race. In the previous year when the infectious diseases had spread in major countries of the world. The impact of the pandemic is multilateral and affects a lot of societal and economic faculties. Due to the practice of social distancing, the Governments of several countries have imposed lockdowns for months. This lockdown situation is made all the running enterprises, distribution, manufacturing pause and shut down for the period. This pause has a huge impact on the emerging economies. The fingerprint sensor market was hit by the pandemic as well.
The unavailability of working staff in the offices reduces the need for biometric scanners. Also, the fingerprint scanners in the public space require surface contact which is counterintuitive to the social distancing protocols. Since the majority of the workforce has been trapped in the work-from-home paradigm, the need for new scanners becomes unreasonable. The massive hit in the major industries has reduced the investments in the optical fingerprint sensor market as well. Unless the manufacturing units start functioning effectively and the market demand reaches stability, the growth of the market will face several bumps along the way.
Optical Fingerprint Sensor Market Dynamics:
One of the primary market drivers for the market is the fast urban development factor in the emerging economies. There has been a steady growth in the Asia Pacific fingerprint sensor market due to the rapid industrialization factor. The fingerprint sensors are tools to consolidate the security functioning of an organization, a housing premise, a personal device, etc. availability of fingerprint scanners in smartphones has been a steady driving force behind the market growth. There has been a lot of emphasis from the Government authorities and agencies to incorporate fingerprint sensors in every level of employees for internal security and transparency in the employee management system.
The fingerprint sensor manufacturers are committed to secure sensitive data, like location, passwords, banking, and payment gateways, with encrypted software protection associated with the user’s fingerprints. This kind of functional convenience is driving the market. Investments in the systems are cost-effective, as it reduces the manhours and expense of the human workforce from the security unit.
Advancements in technology invite a lot of possibilities for emerging markets. The optical fingerprint sensor market is going to experience tremendous growth in the future with the innovations in the smartphone and other electronic devices industry. The advent of the Internet of things (IoT) industry has induced the demand for smart devices in the market. Majority of the smart devices rely on fingerprint sensors because it is a cost-effective choice. The capacitive touch sensors require a Bezel screen display, which is costlier. So, the expansion of the smartphone industry will introduce a lot of possibilities for the market.
There is a lot of innovations going on to restrict fraud and forgery in the security system. For instance, the multispectral imaging system is an advancement on the existing optical fingerprint scanning system to detect fraudulent inputs. These improved security measures will increase the efficiency of the markets. Technological innovations increase the productivity of the devices. The optical fingerprint sensor industry is going to witness a phenomenal growth in the coming years with the expansion of smart devices in the mainstream market.
One of the major obstacles in the fingerprint security system is its costliness. The initial investment is quite high comparing with other available security measures. The high manufacturing costs of these devices cause their expensive prices them. This factor harms the global optical fingerprint sensor market demand. Several end-users from the emerging markets get struck due to the affordability issue of the technology. Apart from the installation charges, the maintenance and servicing rates of these devices are quite high too.
There is a notable lack of skilled and trained personnel in the servicing and maintenance section of the market. The market is facing restraints due to the lack of skilled personnel. Smaller enterprises and business organizations cannot be part of the fingerprint sensor market unless there is a robust servicing industry going parallel. It is also noteworthy that, the fingerprint sensors are technology bound. Unless the security systems get upgraded with new equipment, the growth of the market cannot accelerate.
There are certain drawbacks in the existing system, which exposes the market to unavoidable challenges. The hackers and spoofers are constantly working on different methods to dismantle the security system. To curb criminal activities, the systems need to upgrade more up-to-date technologies all the time. The fingerprint readers are vulnerable to oil and dust. That is why a lot of spoofers forge the identity by damaging the devices. The optical fingerprint sensor market growth faces serious challenges due to the use of the false image of fingerprint placed on the reader.
Also, in the current scenario, the devices are failing to include a wide spectrum of people. People who are regular in manual work does not always retain clear worn pattern in their fingers. Elderly people face the same issue. These systems exclude any person with a hand or other disability. That is a major reason how the market will be challenged in the future. The optical fingerprint sensor market share is heavily reliant on the effectiveness of the system. Unless the developers come up with the latest marketable solutions to improve spoof detection, the market will face a challenge in the way of growth.
Cumulative Growth Analysis:
Despite several challenges and hardships, the market is sustaining a positive growth record for the last several years. The global market is maintaining steady growth and is growing at a CAGR of 12% for the forecast period of 2017 to 2023. According to the latest optical fingerprint sensor market forecast, the net valuation of the industry will reach USD 1 billion by the end of 2023. The latest projections suggest that the fast adoption of fingerprint sensors in IoT devices will lead the market growth in the coming future.
Value Chain Analysis:
The fingerprint sensor industry is varied due to different applications in the market. The end-user industries determine the distribution channels for the market. It is safe to say that the global manufacturers of the technology use B2B and B2C both marketing channels to reach the end-users.
Optical Fingerprint Sensor Market Segment Overview:
The optical fingerprint sensor market size is divided into several market segments based on different parameters. The market is segmented on considerations of technology, component, application, region, etc.
Optical Fingerprint Sensor Market Segments Based on Components:
Optical Fingerprint Sensor Market Segments Based on Technology:
Optical Fingerprint Sensor Market Segments Based on Application:
Optical Fingerprint Sensor Market Segments Based on Region:
Optical Fingerprint Sensor Market Regional Analysis:
According to the optical fingerprint sensor market analysis, the global market is divided into North America, Europe, Asia Pacific regions. The APAC region is the global leader in the fingerprint system market share. The prosperity in the smartphone and semiconductor industries in countries like Japan, Taiwan, China, South Korea, etc, constitutes the growth of the region.
Optical Fingerprint Sensor Market Competitive Landscape:
The global key players of the market are:
Optical Fingerprint Sensor Market Recent Developments:
In 2019, Samsung Electronics launched their Galaxy S10 smartphone which incorporated the Qualcomm ultrasonic capacitive touch fingerprint technology.
Optical Fingerprint Sensor Market Report Overview:
The optical fingerprint sensor market report discusses the growth, size, trends, forecasts, etc, aspects of the global market.
Optical Fingerprint Sensor Market Report Period:
Optical Fingerprint Sensor Market Report Demography:
The optical fingerprint sensor market is predicted to grow at a 12% CAGR between 2016- 2023.
The optical fingerprint sensor market is predicted to reach USD 4 billion by 2023.
The APAC region will lead the optical fingerprint sensor market.
Demand for bezel less displays and ruggedness of optical fingerprint sensors are driving the optical fingerprint sensor market growth.
Key players profiled in the optical fingerprint sensor market include Aware Inc (U.S.), Securlinx Integration Software (U.S.), Bio Key International Inc (U.S.), Fingerprint Cards AB (Sweden), VocalZoom (Israel), SecuGen Corporation (U.S.), Shenazhen CAMA Biometrics Co.Ltd (China), Bayometric (U.S.), Vkansee (China), BioEnable Technologies Pvt. Ltd. (India), and Synaptics Incorporated (U.S.).