According to Technavio’s market research predictions, the global biometric market is all set to grow in the automotive sector. It is expected to grow tremendously at a Compound Annual Growth Rate (CAGR) of 19.27% during the period of 2017-2021. Based on an in-depth market analysis, the industry experts prepared the report, Global Biometric Market in the Automotive Sector 2017-2021, which covers the landscape and growth prospects that would most likely shape the coming years.
Both the manual keys and electronic keyless entry system possessed certain loopholes that left the vehicles vulnerable to theft. The existing vulnerabilities drove the growth of biometrics in the sector and biometric vehicle access system is going to see a significant rise over the next few years. Owing to the economic slowdown, the past few years saw a transitory demand for automobiles in the developed countries. The emerging markets however witnessed a massive growth due to elevated buying power of the consumers and strong economic growth. Especially in the BRIC countries, i.e. Brazil, Russia, India and China, trade practices have been vigorous and several OEMS entered the market to tap the potential.
Major Original Equipment Manufacturers (OEMs) and keyless entry system manufacturers are expected to invest in advanced automotive biometrics for vehicle access. Another factor triggering its growth is the need for user-friendly infotainment systems. Growing customer demands for smart innovations are also driving the growth of global automotive biometric systems. Biometric voice systems can be used to fix car problems associated with infotainment systems, i.e. navigation functions, communication and vehicle audio thereby facilitating better user interaction with the vehicle system. Smartphone enabled biometric recognition would also help in vehicle access and ignition.
Europe, Middle East and Africa (EMEA)
By the end of 2015, EMEA had close to 51% of the total market share. It’s expected to grow and lead other regions and become the major revenue contributor in the coming years. Further, the presence of global automobile giants such as Mercedes-Benz, Audi, BMW and Volkswagen makes it one of the largest markets for biometric vehicle access system.
The report identifies the market’s prominent biometric vendors as:
The automotive biometric market is still bursting out and smooth adoption of biometrics is not as facile as it seems. In a cost-sensitive industry that requires high quality and is characterized by the presence of a large amount of biometric manufacturers, the prominent vendors are looking for ways to provide a more personalized experience resulting in an increased demand for biometric access systems.