Global Automotive Biometric Identification System Market Research Report: Forecast (2023-2028)

Market Definition

Biometrics are used extensively in various applications across the automotive industry, including health monitoring, rationalization, vehicle immobilizer, ignition switch, & vehicle access control, among others, to start a vehicle using biometric scanners. Several automakers are integrating fingerprint technology into vehicles as the probability of finding two same fingerprints is extremely less. Manufacturing, tourism, logistics & transportation sectors are witnessing high demand for commercial vehicles, i.e., stimulating the demand for biometric systems for such vehicles.

Market Insights & Analysis: Global Automotive Biometric Identification System Market (2023-28)

The Global Automotive Biometric Identification System Market is projected to grow at a CAGR of around 22% during the forecast period, i.e., 2023-28. Most of the market would be driven by the mounting demand for autonomous & connected vehicles, the ever-increasing inclusion of smartphone-enabled features in cars, and the burgeoning demand for data-driven services in vehicles. Worldwide, the massive surge in the sales of passenger cars in the last decade, and consequently, active efforts of automakers to enhance vehicle safety & security are further projected to drive the market. 

Biometric identification systems comprise high-end security elements that help prevent unauthorized access to driver & vehicle details. In the coming years, mainly mid-size cars are likely to exhibit biometric identification technology. More & more functionalities are being integrated into different vehicle models for enhanced user ease & security, owing to the growing consumer concerns over vehicle safety. Subsequently, the demand for automotive biometric identification systems is spurring at a prominent pace worldwide.

The industry participants have started offering different types of biometric identification systems comprising iris-based in-car cameras, hand gestures, face & fingerprint recognition scanners, voice recognition solutions, etc., with increased accuracy & reliability, mainly to assure reliability & quality. In addition, behavior-based software & algorithms are being integrated into biometric identification systems, which, in turn, shall stimulate the growth of the market in the coming years.

Market Dynamics

Key Driver: Mounting Demand for Connected Cars with Enhanced Safety Features

The ever-increased penetration of connected cars and the demand for self-driving autonomous cars to provide enhanced comfort & convenience to drivers are spurring the usage of advanced technologies like the IoT (Internet of Things), AI (Artificial Intelligence), & ML (Machine Learning), among others, and, consequently, augmenting the demand for biometric systems like facial, voice, fingerprint recognition, etc., for improved vehicle privacy & safety. Currently, the rising installation of these technologies as access control systems to start the vehicle through different biometric scanners is providing users with a more personalized experience and, in turn, driving the Global Automotive Biometric Identification System Market.

Growth Restraint: High Costs of Automotive Biometrics and Risks of Cyberattacks

One of the most prominent challenges for the global automotive biometric identification system market growth during 2023-28 is the high costs associated with the deployment of these technologies in the automotive sector, which restricts its adoption to only luxury vehicles. Another aspect likely to hinder the market expansion in the forecast period is the risk of cyberattacks associated with the use of connected devices in vehicles, which generates massive amounts of user data that can be manipulated by hackers.

Market Segmentation

Based on Vehicle Type:

• Passenger
• Commercial

Of both, passenger vehicles hold the maximum share of the Global Automotive Biometric Identification System Market. It ascribes to the rapidly increasing urbanization and the growing interest of consumers in private vehicle ownership owing to their improving living standards. Consequently, the burgeoning production & sales of vehicles worldwide and the mounting need for enhanced vehicle safety & security in them are augmenting the demand for biometric identification systems.

Several automotive OEMs are increasingly deploying innovative technologies to allow users for more personalization in vehicles and enhance vehicle accuracy. In addition, there's a growing penetration of luxury passenger cars equipped with high-end features like biometric vehicle access control. Hence, these aspects are spurring growth in the automotive biometric identification system market for passenger cars.

Based on Technology:

• Voice Recognition
• Fingerprint Recognition
• Iris Recognition
• Gesture Recognition
• Facial Identification

Here, fingerprint recognition holds the largest market share. Presently, it is the most extensively used biometrics in the automotive sector owing to the massive availability of this technology, its easy deployment, and lesser costs than other systems. In addition, the increasing integration of personalized features in vehicles and the rising penetration of connected cars & autonomous vehicles across both developed & developing countries are also driving the demand for fingerprint recognition in automobiles.

Fingerprint recognition is enabling automakers to enhance the driving experience and devise attractive & convenient ways to personalize the vehicle. The technology is being used as a security function and hence is considered a biological key for drivers to unlock & start cars without any hassle. These innovations are leading to the increasing integration of this technology into several luxury cars, thereby augmenting the overall growth of the Global Automotive Biometric Identification System Market.

Regional Projection

Geographically, the Global Automotive Biometric Identification System Market expands across:

• North America
• South America
• Middle East & Africa
• Asia-Pacific
• Europe

Of all regions globally, North America is projected to acquire a significant share of the Automotive Biometrics Identification Systems Market during 2023-28. It owes to the growing adoption of technologically advanced products and the mounting demand for luxury & autonomous vehicles across the region.

Across North America, the US is the leading market in terms of acceptance & advancement of automotive biometrics technology, and the country is projected to maintain its market dominance due to a sizable consumer base that holds multiple vehicles and the extensive presence of leading industry participants. In addition, growing user concerns over driver authentication owing to rapidly rising vehicle thefts across North America are also promoting the adoption of biometric identification systems in the region.

Regional automakers are increasingly adopting newer technologies, including biometrics, in order to create additional value & market differentiation. Several companies have already started integrating biometric technology into their high-end luxury vehicles equipped with superior security features, including ignition switch, vehicular access, rationalization, vehicle immobilizer, as well as health monitoring.? Hence, these aspects are set to create lucrative prospects for the North America Automotive Biometrics Identification Systems Market through 2028.

Recent Developments in the Global Automotive Biometric Identification System Market

• In May 2022, DERMALOG Identification Systems GmbH & Rheinmetall AG formed a new JV (Joint Venture), Rheinmetall Dermalog SensorTec GmbH, to provide automakers with the most innovative biometric technologies, including a DMS (Driver Monitoring System), which recognizes when drivers are distracted & then warns them accordingly.
• The same year in January, LG Electronics developed a new technology to allow car owners to start their vehicles without using a key by identifying their facial expressions & finger movements using multiple in-car cameras. This system uses one of the cameras to identify the user's specific body parts, and the second camera automatically adjusts its viewing angles based on the first camera's data to capture the user's iris & other biometric characteristics.

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