Europe Fingerprint Sensor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Fingerprint Sensor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Europe fingerprint sensor market is expected to register a CAGR of 1.44% during the forecast period (2020 - 2025). The advancements in sensor technology are expected to drive the fingerprint sensors market's development over the subsequent few years in the region. For instance, a new peculiarity of in-display finger sensors leveraged by smartphone makers is expected to encourage smartphone sales in the future years. The growing need for smartphones is anticipated to drive market growth in the coming years.

Key Highlights

• Germany has one of the world's biggest economies, and the country is growing gradually in fingerprint sensor technology. The terrorist attacks from the last decade in the country highlighted the need for increased security and safety on Germany's streets. A significant upgrade of the security is already underway in the country, and it acts as a driving factor for the fingerprint sensors market in the region.
• Moreover, the increasing focus on consumer safety can provide opportunities for fingerprint technology. For instance, in 2019, TfL and Uber were both under pressure to guarantee rider safety after Uber drivers in the United Kingdom and the United States were accused of assaulting passengers in transit. In light of such instances, there is a possibility that Uber will be required to force drivers to scan their fingerprints or faces to continue operating in the region.
• In France, various initiatives by the government and similar institutions to augment technology efforts have funded the efforts made by the players, universities, or research groups, which is expected to boost the market throughout the forecast period. Some of the region's prominent players are entering strategic partnerships that allow them to develop the technology further, thereby fueling the demand for the technology.
• Further, various initiatives by the government and similar institutions, in order to augment its efforts in the fields of technology, have funded the efforts made by the players, universities, or research groups, which is expected to boost the market throughout the forecast period. The EU General Data Protection and Regulation (GDPR) is one such initiative by the European government that focuses on data privacy, thereby giving rise to the fingerprint module manufacturers' opportunity to tap the market by providing better and safer solutions.
• The outbreak of COVID-19 led multiple manufacturing facilities of players to shut down. The semiconductor industry is declining, leading to a lowering in the fingerprint sensors market. This also translates into a snowballing effect on the fingerprint sensor market, leading to lower research expenditure related to fingerprint sensors.

Key Market TrendsBFSI Industry is Expected to Drive the Market Growth

• In order to provide better safety over their transactions, several banking and financial institutions have shifted toward technologies that support them in this initiative, with fingerprint readers being one of them, in the United Kingdom. This is expected to boost the fingerprint sensors market in the region over the forecast period.
• For instance, in March 2019, the British bank, NatWest, started conducting trials to use a new NFC payment debit card, which is supported with a built-in fingerprint scanner. Some of the region's major players are entering into strategic partnerships that allow them to develop the technology further, thereby fueling the demand for technology in the market over the forecast period.
• Further, in 2019, The Royal Bank of Scotland (RBS) announced a pilot of payment cards emphasizing biometric fingerprint technology. The trial is being brought out with around 200 of the bank's NatWest customers and will take place in the United Kingdom. The fingerprint acts as a replacement for PIN entry and is used to verify transactions over EUR 30, making it quicker and easier for customers to complete their payments.
• These banks' successful deployment of payment cards has increased the focus of various banking organizations towards biometric payment cards. Further, according to Visa's survey, consumers are as likely to want to use fingerprint recognition for in-store scenarios as they are for online payment scenarios. Of all the biometric authentication techniques queried, fingerprint recognition ranked the highest in terms of desired payment authentication for in-store usage.

Germany Holds Significant Market Share

• Germany holds robust resources in fingerprint sensors domain, comprising technology and innovation expertise at Research and Technology Organizations (RTOs) and industrial competences at the application layer. In addition, the country is well placed on manufacturing advanced and innovative electronic products in low- or mid-volume segments, with extraordinary added value for end user's market segments.
• The payments industry in Germany is moving at a fast pace. Driven by pressure from major e-commerce and IT giants, like Google, Samsung, and Apple, financial institutions have been fervently pursuing standardization initiatives in a bid to improve services and assure central intermediation role in the payment's ecosystem. This is expected to boost the fingerprint sensors market, over the forecast period, in the region.
• The automotive sector of the region is home for major automotive manufacturers, which are likely to follow the automakers, like Hyundai, and include fingerprint sensors into their designs. In terms of production, Volkswagen Group, BMW, and Daimler alone produced 4.66 million vehicles in German factories in 2019. According to the data by the German Association of the Automotive Industry, VDA, the domestic auto market grew 5% in 2019, after buyers registered 3.6 million new cars. Considering such high volumes of production, fingerprint sensors' potential is likely to be high going forward.
• In Germany, a growing share of fingerprints' R&D resources has been realigned from capacitive sensors in mobiles to other technologies, one of which is in-display sensor technology. For instance, in the region, companies like Fingerprint Cards AB collaborated with key customers in the first half-year 2018 to continue developing this technology and bring it to the mass market.

Competitive Landscape

The Europe fingerprint sensor market is moderately fragmneted. Both regional and global players are involved in product development and strategic activities such as partnerships, mergers, and acquisitions. Some of the key developments in the market are:

• January 2020 - Sweden-based company Fingerprint launched two capacitive touch sensors : FPC1020 and FPC1024. These newly-developed products will help expand the company’s fingerprint authentication sensor portfolio for physical and logical access devices and applications.
• January 2020 - IDEX increased the potential scope of its on-card enrollment solution, with new patents in the United States and Germany. These patents are filed on innovations, which will help register a user’s fingerprint to a biometric smart card, and it will help IDEX expand its existing biometric enrollment system.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

TDK Corporation
Egis Technology Inc.
Fingerprint Cards AB
Gemalto NV
IDEX ASA
Next Biometrics Group ASA
IDEMIA France SAS
Dermalog Identification Systems GmbH
NuData Security
Jenetric GmbH

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