Abstract
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 Frost & Sullivan 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.
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