Since no two people can have the same pattern of markings on their fingertips, fingerprint sensors have become an important tool in security applications. Almost all new smartphones come with an integrated fingerprint sensor that established the identity of the user for unlocking the screen and allowing access to certain applications with such security locks. In 2017, almost 50% of all smartphones produced had such components, and the next year, the percentage increased to 60%.
Thus, with the consistent increase in smartphone sales around the world, the fingerprint sensors market size, as computed by P&S Intelligence, is expected to increase from $3.8 billion in 2019 at a high 13.6% CAGR between 2020 and 2030 (forecast period). In the beginning, mobile phones were mostly produced in Europe and North America, and they were expensive for the common folk. But, since the entry of Chinese companies in smartphone production, their prices have dropped drastically, and the masses are now able to purchase them.
Similarly, these devices are gaining popularity in the government sector, where identity authentication is even more important. An increasing number of government complexes, including income tax offices and military establishments, are using fingerprint sensors are an important access control tool. Since these places have tonnes of sensitive information, who it is exposed to is critical. Similarly, with governments around the world going digital, they are replacing handwritten signatures with electronic fingerprint data for the distribution of public services. For instance, drivers’ licenses often carry a microchip containing biometric information such as the fingerprint and iris scans of users.
As a result of these factors, the consumer electronics and government categories occupied the top positions in the fingerprint sensors market during the historical period (2014–2019), on the basis of vertical. This situation will continue to remain the same till 2030 with governments around the world putting more-robust identity and access management solutions in place and the demand for consumer electronics with advanced features increasing. During the forecast period, the banking, financial services, and insurance (BFSI) category is likely to witness market growth at the highest CAGR within the segment.
Compared to consumer electronics, the BFSI sector has an even stronger need for the authentication of users’ identity. Since this sector deals with money, the risk of frauds and cyberattacks is one of the highest here. Moreover, with the increase in the volume of digital transactions via debit and credit cards, which are one of the most-widely cloned objects, the need for better security measures is high. As a result, these cards are being integrated with a microchip containing the user’s fingerprints, while the mobile point-of-sale (mPOS) terminals, or credit/debit card machines, are being equipped with a fingerprint reader.
