Global Automotive Biometric Market Size (2023 - 2030)

In 2022, the Global Automotive Biometric Market was valued at USD 310 million and is projected to reach a market size of USD 1016.31 million by 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 16%. Increasing sales of EV and luxury vehicles, an increase in the need for safety, the rising adoption of automotive biometric systems in developed countries, technological advancements, and the growing demand for connected vehicles are some factors majorly driving the market growth.

Industry Overview:

Automotive biometrics are electronic devices that are used in automobiles for identification and authentication for a variety of purposes, including vehicular access, ignition switch, vehicle immobilizer, rationalization, and health monitoring. It identifies persons based on physiological and behavioral traits using fingerprint scanners, facial recognition, voice recognition, and other biometric technologies. Biometric systems collect the required information, compare it to existing records, and then provide the owner full access once the match is made. In an automobile, a biometrics system is linked to an interior camera that can detect the driver's face and modify the seat, mirror position, temperature, navigation, and other factors based on information recorded in a database. Biometrics in automobiles are compatible with existing security systems and provide multi-level security. Factors driving the Automotive Biometric market include a growth in the sale of electric and luxury vehicles, as well as increased concerns about safety and security. Market players are likely to benefit from increased adoption in developed countries. As the automotive business evolves, major automakers are being pushed to develop breakthrough technology and give a more individualized vehicle experience. The demand for electrified and self-driving automobiles, as well as expanded sensor-based technological applications, are boosting the Automotive Biometrics market. The market is poised to rise owing to the increasing use of text-to-speech and natural language processing-based technology, as well as biometrics. The future IRIS and facial recognition systems are likely to significantly improve car authentication systems, providing growth prospects for the Automotive Biometrics market. Furthermore, the rising desire for aesthetics and comfort features in automobiles has resulted in a rise in the application of automotive biometrics. Automobile OEMs and technology providers are collaborating to bring cutting-edge innovations to the automotive industry.

COVID-19 pandemic impact on Automotive Biometric Market

With the spread of the novel coronavirus COVID-19 across the globe, automakers took drastic measures such as plant closures to halt the virus's spread.  Many European companies suspended work, and the US and APAC automakers extended shutdown periods. The COVID-19 epidemic negatively impacted the economy, causing widespread economic dislocation, with the car industry at its epicenter. In February 2020, China's car market fell by 79%. As a result, Chinese automakers have petitioned the government for subsidies, tax incentives, and temporary reductions in emissions restrictions to revive the market. The impact of the disruptions in China on the US market had a substantial influence on the global economy and severely disrupted global supply chains. The global output unit of automotive has declined sharply as a result of the COVID-19 epidemic. EU-wide production losses owing to factory shutdowns, according to the European Automobile Manufacturers Association. The global pandemic began in Hubei Province, which is one of China's most important car production locations. The utilization of automotive plants in Hubei remained well below capacity, with several units completely shut down. Multiple supply chains were impacted by shipping and industrial output restrictions. The important step in manufacturing industries is component distribution, which is witnessed issues such as warehouse staffing, more intelligent and responsive allocation across channels, and the requirement for direct distribution,  as a result of the pandemic, which put a strain on supply chains. To contain the spread of COVID-19, biometric systems have been highlighted as a key technology for early detection, patient screening, and public safety monitoring.

MARKET DRIVERS:

Increasing sale of EV and luxury vehicles is driving the growth of the automotive biometric market

Electric car sales are fast expanding as public awareness of environmental protection grows, as well as government subsidies and programs. Electric vehicles are in high demand worldwide owing to the increasing awareness of the environmental impact of fuel vehicles. Enhanced charging infrastructure and extended vehicle range helped to promote the use of electric vehicles. Furthermore, major car manufacturers are moving toward electrification, with a concentration on hybrid, battery-electric, and plug-in hybrid vehicles. The growing popularity of electric vehicles is likely to accelerate innovation and development in the field of automotive biometrics. Manufacturers are building more advanced automotive biometric features for electric vehicles as sales of electric vehicles rise. Consequently, the growing sales of electric vehicles worldwide are likely to drive the automotive biometric market over the forecast period.

An increase in the need for safety is likely to boost the growth of the automotive biometric market

The high rate of accuracy in automotive biometrics as it asks for biological evidence such as fingerprint scans, face recognition, and others, thus enhancing the level of safety, is a major reason driving the growth of the automotive biometric vehicle access system market. As the biometric access method does not require passwords, it is difficult to hack or steal. Furthermore, because access is granted based on the owner's recognition, hackers will have a difficult time tracking down the passwords. Furthermore, biometric vehicle systems are simpler and speedier in terms of operation. For the safety and convenience of its consumers, some car manufacturers, such as Ford, BMW, Mercedes-Benz, and Volkswagen, aim to include biometric systems in their vehicles.

The rising adoption of automotive biometric systems in developed countries is augmenting the growth of the market

The surge in technological advancements in the automobile sector, as well as the growth of the automotive industry, are projected to be key contributors to the promotion of vehicle biometric systems in developed countries. The automotive industry in the United States will continue to be revolutionized by the internet of things (IoT) and artificial intelligence (AI) technology. Device connection, self-driving cars, electric powertrains, and shared mobility are some of the most recent innovations that will drive demand for automotive biometric systems in the future. According to a Deloitte automotive consumer survey, 71% of German consumers choose car safety over other vehicle attributes. More customers would be enticed to use an automobile biometric system in their vehicles as a result of this.

Technological advancements and the growing demand for connected vehicles are fuelling the growth of the automotive biometric market

The use of modern information technology, such as human-machine interface (HMI), passenger window touchscreens, and so on, is propelling the market forward. Furthermore, the adoption of iris recognition technology is likely to expand the market for Automotive Biometrics. The HMI enables the driver's dashboard to function as an iPad, with a voice-activated interface to browse cloud data. These beneficial attributes will benefit the automobile industry, resulting in market expansion. The rise of connected cars is accelerating the adoption of advanced technologies including artificial intelligence, the Internet of Things, and machine learning. In addition, the growing demand for driverless vehicles is projected to propel connected car technology forward. Moreover, throughout the projection period, the deployment of Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) technologies for better mobility communication is boosting the automotive biometric market. These beneficial characteristics are projected to improve the automotive industry.

MARKET RESTRAINTS:

High installation cost is a restraining factor for the automotive biometric market growth

Various technologies used in the automotive biometric access systems include facial recognition, voice recognition, fingerprint scanner, and others. Biometric devices are expensive to install, and only a few automobile manufacturers may be able to afford to use such technology in their vehicles. The expansion of the automotive biometric systems industry is stifled as a result of this. Furthermore, vehicle monitoring is costly and complicated to operate since it involves a greater number of software and hardware components, such as sensors, video cameras, and other accessories, all of which are utilized to analyze driver behavior. The cost of running an automotive biometric system is determined by several factors, including advanced technology and the type of vehicle. The significant investment and repair & maintenance costs involved in the development of modern technology, make the functioning operations of an automotive biometric system expensive.

Rising concerns regarding safety and security and cyber security risk are restraining the automotive biometric market growth

Automotive Biometrics utilizes advanced technology including sensors, cameras, and other connected technology. The growing use of linked devices raises the potential for cyber security breaches. The use of linked gadgets results in the collection of data, which includes the passenger's personal information, which can be abused by hackers. This important element makes it difficult for automakers to adopt new technologies, which comes at a hefty cost.

AUTOMOTIVE BIOMETRIC MARKET REPORT COVERAGE:

This research report on the global Automotive Biometric Market has been segmented based on technology, vehicle type, application, and region.

Automotive Biometric Market – By Technology

• Facial Recognition
• Voice Recognition
• Iris Recognition
• Fingerprint Recognition
• Multimodal Recognition

Based on Technology, the Automotive Biometric Market is segmented into Facial Recognition, Voice Recognition, Iris Recognition, Fingerprint Recognition, and Multimodal Recognition. Fingerprint Recognition System held the greatest market share in 2021. The automobile industry is leading the way in integrating fingerprint recognition technology for increasing vehicle safety, which has fueled the expansion of this area. The use of fingerprint and facial recognition technologies will result in a low-cost authentication system that will allow drivers to easily unlock and start their vehicles. This technology is mostly dependent on each driver's specific settings, which helps to reduce the danger of car theft. This important feature has improved the fingerprint recognition system in vehicles, which will help the market grow. The growing popularity of keyless entry and push-button ignition systems in automobiles have prompted the development of fingerprint sensors in the sector. For example, before the door will open, a finger must be put on the capacitive sensor on the door handle. As a result, the segment growth of the automotive biometric industry is likely to increase during the projection period.

The Facial Recognition segment is anticipated to be the fastest-growing segment during the forecast period owing to the wide use of security and reliable authentication. Face recognition software recognizes people by looking at their eyes, mouths, noses, and ears.

The ability of software to accept and interpret spoken commands to perform tasks is referred to as voice recognition. In the car industry, it aids in the provision of GPS communications, entertainment, locking and unlocking features, and other functions. Drivers and passengers benefit from voice recognition as it improves safety and convenience.

Automotive Biometric Market – By Vehicle Type

• Commercial Vehicles
• Passenger Cars

Based on the vehicle type, the automotive biometric industry is bifurcated into commercial vehicles and passenger cars. The Passenger Cars segment held the largest market share of more than 60% and is projected to show its dominance during the forecast period owing to the increasing adoption of luxury vehicles. The rising demand for improved security and personalized vehicles has been a major driver of the segment growth of the automotive biometric market. Passenger cars are automobiles that are designed to transport people rather than commodities. More population, increased spending power, increased comfort and convenience, and a growing need to possess vehicles all contribute to the demand for passenger automobiles. Minivans, trucks, tractors, trailers, coaches, buses, and other commercial vehicles are used to transport products and passengers. Commercial vehicle demand is being fueled by rising demand in the processing, manufacturing, and logistics industries, as well as continued expansion in the tourism and hospitality sectors. The desire for safety, comfort, and autonomous functions is on the rise.

Automotive Biometric Market – By Application

• Driver Safety Systems
• Vehicle Security Systems
• Advanced Steering & Infotainment
• Others

Based on Application, the Automotive Biometric Market is segmented into Driver Safety Systems, Vehicle Security Systems, Advanced Steering & Infotainment, and Others. The Vehicle Security Systems in the automotive biometric industry account for a significant market. Nowadays, car security systems play a significant role in vehicles as fuel theft is becoming more common, necessitating the implementation of vehicle security systems in passenger and commercial vehicles around the world. A car security system aims to keep vehicles safe. Ongoing technology breakthroughs in automobile safety, such as biometrics, are becoming more significant. GPS, cameras, radio frequency identification (RFID), fingerprint sensors, and the Internet of Things (IoT) features in automobiles are fuelling the demand for vehicle security systems. Vehicle driver safety systems are designed to keep track of the driver's awareness to ensure safe driving practices. To analyze and monitor the driver's attentiveness, these systems use biological and performance measures. The increasing demand for smart vehicles, improved connection solutions, and the increasing desire for safe and luxurious features in automobiles drive the adoption of infotainment systems. V2X solutions, ADAS systems, Human Machine Interface (HMI) systems, telematics devices, display systems, speech recognition, smartphone integration, and sensors are all connected to give a better driving experience for the driver and passengers.

Automotive Biometric Market - By Region:

• North America
• Europe
• Asia-Pacific
• Rest of the World

Geographically, the North American Automotive Biometric Market is anticipated to hold a relatively larger share in the global automotive biometrics system market. This can be attributed to the increasing disposable income in the region, and increasing adaptability for such highly technologically advanced products amongst consumers. Furthermore, the automakers in the region rely on modern technology, such as biometrics, to offer value and differentiate themselves in the market. The corporations are positioning and segmenting their biometric offerings for the market in a strategic way. BMW, Mercedes-Benz, Volkswagen, and Ford, among others, have previously stated that biometric technology will be included in their high-end luxury segmentation automobiles with high-security features. As a result of the increased demand for vehicle safety and control systems, as well as customer awareness of modern automotive systems, the use of automotive biometric systems is likely to grow in the United States. Government rules in this region requiring advanced automotive biometric systems force manufacturers to offer them, increasing in demand for automotive biometric systems in automobiles. Many automakers are abandoning traditional key-based vehicle access systems in favor of electronic keyless entry systems like fingerprint scanning and voice recognition.

The European Automotive Biometrics market dominated the global market with a market share of more than 47.8% in 2021, followed by North America and the Asia Pacific.  Europe, particularly Western Europe, is anticipated to account for a significant portion of the worldwide automotive biometrics industry. The presence of major manufacturers such as Mercedes, BMW, and Volkswagen as well as the deployment of electric vehicles, and others led to the development of efficiently connected automobiles, increasing demand for the most up-to-date authentication technology. The availability of major automakers such as Ford, Mercedes, Volkswagen, and BMW, as well as the deployment of electric vehicles, are boosting the Automotive Biometrics market, as these higher-end vehicles are more likely to adopt vehicle biometrics. Increased concerns about car safety and security are driving the industry in Europe, and automotive biometrics firms in the region are increasingly cooperating and extending their operations to enhance their regional influence. The government and automotive firms of Europe support technical harmonization and offer funds for research and development to boost the competitiveness of the European automotive biometrics sector and protect its technological infrastructure.

The Asia Pacific Automotive Biometric Market is anticipated to grow at a quicker rate, with a considerable increase during the projected period. The high demand for vehicles in Japan, China, India, and South Korea offers substantial growth potential for the automotive biometric industry in the Asia Pacific region. China is one of the world's largest manufacturers and sellers of electric vehicles, according to data from the China Association of Automobile Manufacturers. This is likely to increase the use of biometric systems in automobiles.

The Automotive Biometric Market in Latin America, the Middle East, and Africa is anticipated to register a considerable growth rate over the forecast period owing to substantial investments in the automotive sector.

Major Key Players in the Market

1. Hitachi, Ltd.
2. Fujitsu Limited
3. Voxx International Corporation
4. Nuance Communications
5. Safran S.A
6.  ASSA ABLOY AB (HID Global Corporation) 
7. BioEnable Technologies Pvt. Ltd
8. Synaptics Incorporated
9. Fingerprint Cards AB (publ)
10. Methode Electronics, Inc. 

Market conditions, government backing, and industrial progress all influence the vendors' growth. As a result, vendors need to concentrate on increasing their visibility and upgrading their offerings. In the worldwide automotive biometric market, these businesses compete on availability, price, quality, and technology, with product development, acquisition, and collaboration as major strategies. Although worldwide businesses dominate the industry, regional and local players with smaller market shares are also present. During the projection period, multinational companies may increase their position in the worldwide market by actively investing in product development.

In March 2021, The US Patent and Trademark Office issued a patent filed by Samsung depicting a fingerprint biometric car ignition system. A fingerprint sensor implanted in an automobile's steering wheel might be used to start the car, possibly in conjunction with the driver's smartphone as a physical secondary identification element, according to the patent.

Notable happenings in the Global Automotive Biometric Market in the recent past

• Partnership- In August 2021, NEXT Biometrics teamed with worldwide facial recognition company Paravision. NEXT Biometrics is now able to provide dual authentication techniques to customers looking for both face and fingerprint biometric solutions as a result of this agreement.
• Product Launch- In September 2021, Genesis stated that it will begin rolling out its own "Face Connect" technology, which will allow vehicles to detect human faces and control doors without using a smart key.
• Product Launch- In February 2020, HID Global announced that the Singapore Police Force's traffic division has implemented an electronic Know Your Customer system that uses HID Lumidigm V-series Fingerprint Sensors to verify the identity of driver's license applicants.
• Product Launch- In March 2020, Shenzhen Goodix's fingerprint authentication solution for vehicles made its first public appearance with its development on Lynk & Co. 05. Lynk & Co. unveils their all-new SUV with a variety of high-tech features unique to the automotive industry.
• Acquisition- In April 2020, Fujitsu Frontech North America, Inc. purchased Fulcrum Biometrics, LLC. Fujitsu will be able to increase its offerings and extend its biometric authentication solutions business both domestically and internationally as a result of the acquisition.
• Collaboration- In September 2020, Cerence collaborated with BJEV to build an intelligent, personalized voice assistant experience with speech-enabled applications for the first electric SUV in the BJEV ARCFOX line: T. The Cerence Drive portfolio powers the vehicle's infotainment system. ARCFOX's T's voice assistant blends embedded and cloud-based technologies, including speech recognition, text to speech (TTS), natural language understanding (NLU), and speech signal enhancement, using Cerence Drive's hybrid architecture (SSE).
• Product Launch- In January 2019, Hyundai Motor Corporation created an improved biometric system for automobiles that allows drivers to unlock and start their vehicles with a light touch. Furthermore, to limit the risk of vehicle theft, Hyundai's fingerprint recognition technology allows only authorized drivers to start and stop the automobile.
• Product Launch-  In August 2019, Cerence software, developed by Nuance Communications, Inc., will give biometrics and other software to connect drivers and automobiles. Cerence software can be used to detect speech, touch, gesture, emotion, and look, and is already used in more than 280 million cars across the world.
• Product Launch- In September 2019, Hitachi Ltd. unveiled its new hand gesture authentication system, which uses finger vein biometrics to authenticate any camera in London.
• Product Launch- In November 2019, Synaptics Incorporated fingerprint biometrics were commercially offered in the automotive sector. This announcement is in keeping with the company's vision for automotive biometrics, which includes the ability to regulate personalization not only for seat positions and audio playlists but also for accessing multiple engine control modes and geo-fencing.