The global automotive biometrics market was valued at USD 210.10 million in 2020 and is expected to grow at a CAGR of 19.2% during forecast period. The growing innovation in the automotive biometrics vehicle by deploying automated solutions and robotics technology is positively influencing the market. Further, the growing production and market demand of autonomous and connected vehicles around the world is also expected to accelerate the market growth during the forecast period. Also, there has been a considerable increase in passenger cars sales over the last decade, with emerging nations generating a huge market demand for automotive biometrics installed in the vehicles. In addition, the rising focus of automobile companies for enabling personalized vehicles for the users, along with favorable government initiatives relating to vehicle safety, are also augmenting the growth outlook.
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The recent outbreak of the COVID-19 pandemic is extensive around the world, tapping communities, countries, and societies under massive pressure. As the ongoing pandemic (COVID-19) has spread all over the world, automakers are undergoing difficulties in managing their output level and supplies of components in the international market. Although, this pandemic has further fallen down the production unit of automobiles globally. According to the European Automobile Manufacturers Association, the production losses of vehicles due to factory shutdowns valued around 2,446,344 motor vehicles. In particular, automotive biometric systems have reduced drastically due to low production of automotive and disruptions in the supply chain. As a result, the biometrics market is expected to face a significant downfall in recent years.
The rising focus on the development of autonomous vehicles is likely to drive the growth outlook for advanced automotive biometrics. Due to the improved accuracy of biometric systems, they are increasingly adopted in automotive security systems. As the biometric system is extremely dependent on biological confirmation, such as fingerprint scan, face & recognition technology, it improves the level of safety. Some of the manufacturers such as Ford, Mercedes-Benz, BMW, and Volkswagen are planning to integrate the biometric system in the vehicles to improve the customer's safety and convenience. Thus, the high deployment of automotive biometric has been observed, which could reinforce the biometrics market growth around the world.
Moreover, the escalating demand for comfort and aesthetics features in cars has significantly strengthened the adoption of automotive biometrics, as it enables a more personalized experience for customers. Further, these biometrics system are linked with an interior camera that can identify the driver’s face and can automatically modify the mirror positioning, temperature, navigation, seat, and other parameters as per the data stored in the database.
The market is primarily segmented on the basis of type, scanner, sales channel, vehicle, and region.
By Sales Channel
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Based on the scanner type segment, the fingerprint scan segment is expected to hold the largest market capture in the global market in 2020. The large share can be accredited to the increasing integration of personalized functions in automotive biometrics platforms and the growing penetration of connected cars and smart vehicles across developed and developing nations. Furthermore, fingerprint scan popularity and familiarity are now becoming a leading progression among automobile manufacturers to assess the use cases for the technology in vehicles. Besides, fingerprint recognition technology is used as a security function and thus is considered as a biological key. This technological innovation has led to the advancement of keyless cars and push-button ignition systems that triggered the segment’s growth.
On the contrary, the voice recognition segment is projected to register a significant growth rate in the overall market during the forecast period. Factors such as the growing availability of biometric voice solutions for an automotive vehicle and the increasing advancements in voice recognition capabilities across autonomous vehicles are likely to support the demand for voice recognition in the automotive biometrics market. Apart from this, companies such as Google, Apple, and Nuance are reforming the way of the practice of voice-activation in vehicles. For instance, Nuance’s Dragon Drive Automotive Assistant is integrated with voice, cloud, and connectivity components and offers an exclusive suite of services and features to the users in vehicles. Therefore, this factor will act as a key factor for driving biometrics market growth worldwide.
Among the vehicle type segment, the passenger car segment is expected to hold the largest market capture in the global biometrics market in 2020. The large stake can be accredited to the increasing need for vehicle safety and security system, along with the rise in the production of passenger cars across developed and developing nations. According to the International Organization of Motor Vehicle Manufacturers (OICA), globally, the car's production is estimated at nearly 67.1 million in 2019, representing a surge from 58.2 million since 2010. Also, most OEM manufacturers of passenger cars mainly emphasize deploying innovative technologies into the vehicle to allow more personalized vehicles for the users, alongside enhancing vehicle accuracy. Thus, the rising technological breakthrough in the this sector also acts as a significant factor for supplementing the growth of the segment worldwide.
On the contrary, the commercial vehicle segment is projected to register a considerable share in the overall biometrics market. Factors such as the robust production and sales of commercial vehicles are one of the major factors impelling the demand of the biometrics market. As per the International Organization of Motor Vehicle Manufacturers (OICA), the global production of commercial vehicles is estimated at around 24.6 million in 2019, signifying an increase from 23.8 million units of commercial vehicles in 2017. As a result, the deployment of automotive biometrics is increasing in commercial vehicles mainly due to improved vehicle safety, thereby accelerating the growth of the overall biometrics market.
Geographically, North America is leading the global automotive biometrics market in 2020 and is estimated for the major revenue share due to the rising adoption & utility of automotive biometrics in passenger cars and commercial vehicles. For instance, in 2018, the production of commercial vehicles in the United States was about 8.5 million, representing an increase from 8.1 million in 2017, as per the International Organization of Motor Vehicle Manufacturers (OICA). Further, foreign manufacturers are projected to become a part of the mainstream automotive biometrics industry in North America, especially in the United States and Canada. Since they have an extensive number of automotive parts suppliers along with the increasing number of vehicles on the road, are the few factors responsible for the high adoption of automotive biometrics in the region.
Europe's market is mainly driven by the rising concern of vehicle safety and security, along with automotive biometrics companies in the region are increasingly involved in partnership and business expansion to accelerate their geographical presence. Moreover, to accelerate the competitiveness of the European automotive biometrics industry and preserves its technological infrastructure, the government and automotive companies of Europe support technological harmonization and provides funding for R&D. Therefore, the market demand for automotive biometrics is expected to grow in these economies.
Moreover, APAC is anticipated to perceive a significant growth stake over the study period. These countries have undergone the greatest transformation in the automotive biometrics industry. The growth of GDP in the Asian economy and the high presence of automotive manufacturers create a huge market demand for automotive biometrics in emerging Asian countries such as China, India, and Malaysia.
In addition, the Asian countries are also expected to provide substantial growth opportunities to automotive biometric manufacturers owing to the high production and sale of a vehicle in these countries, arising from the low costs and maintenance for the user. For instance, the sales of passenger vehicles (including cars, utility vehicles, and vans) in India have been estimated at 3.28 million units, growing at 7.98% in 2017-18. Also, it is observed that India's share in the global passenger vehicle market to reach 8% by 2020, as per the India Brand Equity Foundation. This, in turn, is expected to leverage the growth prospect for the automotive biometrics market.
Some of the major players operating in the global automotive biometrics market include ASSA ABLOY AB, BioEnable Technologies Pvt, Biometrics Research Group, Inc., CMI TECH., Continental AG, Crossmatch Technologies, Fingerprint Cards AB, fujitsu limited, Hitachi, Ltd., Methode Electronics, Nuance Communications, Safran S.A, SecuGen Corporation, Synaptics Incorporated, Voxx International Corporation, ZKTECO CO., LTD.
Market size value in 2020
USD 210.10 million
Revenue forecast in 2028
USD 695.43 million
19.2% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD million/billion and CAGR from 2021 to 2028
By Type, By Scanner, By Sales Channel, By Vehicle, By Region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
ASSA ABLOY AB, BioEnable Technologies Pvt, Biometrics Research Group, Inc., CMI TECH., Continental AG, Crossmatch Technologies, Fingerprint Cards AB, Fujitsu limited, Hitachi, Ltd., Methode Electronics, Nuance Communications, Safran S.A, SecuGen Corporation, Synaptics Incorporated, Voxx International Corporation, ZKTECO CO., LTD