Lower Prices of Finger-scan Products are a Critical Parameter to Compete in a Cost-conscious Market

Though prices of finger-scan systems have been declining over the years, they are still relatively more expensive than other existing security solutions such as magnetic stripe cards and proximity cards. Although many companies have begun to prioritize security over price, several cost-conservative customers may choose to adopt inexpensive though less reliable solutions. Eventually, the trade-off between price and value received has to be tipped in favor of customers. However, certain finger-scan devices such as silicon-based products that have entered the market are priced lower than traditional optical sensors and they are beginning to be used outside high-security, high-price application markets.

This research examines the World Non-AFIS Fingerprint Biometrics Market. It provides key market drivers, restraints affecting growth, and offers a detailed competitive market analysis. The research provides a seven-year revenue forecast across different vertical, application, and geographical segments. Non-Automated Finger Identification System (Non-AFIS) fingerprint devices are also called finger-scan devices in this study.

Emergence of a New Security Paradigm Focused on Implementing Greater Security Solutions

The need for higher security solutions post September 11, 2001 has significantly boosted interest in finger-scan technology as a means to enhance security. The attacks created enormous media attention and generated high awareness levels on the benefits of biometric technologies. As a result, government agencies and private enterprises have started evaluating biometric technologies and have begun pilot studies in certain cases. Increasing incidences of identity-related thefts have also fuelled this trend. Biometric technologies have now entrenched themselves in national as well as civilian defense priorities and strategies.

The U.S. Government is a major driver of biometrics, with its deep urgency for improved security, resulting in higher defense budgets and wide agreement on the use of advanced security technology. "The government is laying emphasis on standards compliance, real-world applicability, better performance, and accuracy," note the analysts. Some government projects for finger-scan technology include national ID, driver's license, and military/employee ID.

Favorable Legislations Widen Market Base

The biometrics technology market is riding a wave of government and political will for the evaluation and use of biometric technologies. The U.S. Enhanced Border Security and Visa Entry Reform Act of 2002 mandates all entry ports of the U.S. to install biometric identifiers by October 2004. This requires participating countries in the U.S. Visa Waiver program to issue machine-readable passports to their nationals as well, creating a huge potential for biometric technologies.

An increasing level of awareness and acceptance among consumers is expected to help sustain industry growth. Numerous government legislations and efforts by industry associations have helped create a strong base for future growth. Falling solution prices, and improved performance levels are likely to help this market attain higher growth rates. "Finger-scan technology has become more robust, reliable, and accurate. This along with the progressively declining prices of finger-scan solutions has made this technology very competitive," note the analysts.