Abstract
Research Overview
Governments and the Financial Services Industry Drive European Biometrics Markets
Stringent security standards and specifications stressed by governments across Europe are driving the regionfs biometrics markets, which have grown, by over 50 per cent in recent years. Already, organisations such as the ICAO (International Civil Aviation Organisation) and the BioAPI Consortium are placing increasing emphasis on the need for security and the importance of using biometrics to aid in security. Further, European biometric passports, the national ID program and the new Schengen information system-II have propelled the increased adoption of biometrics. With biometrics being viewed as a fail-safe and more efficient method of screening, the security-conscious financial services industry is also implementing this technology to safeguard confidential information.
This Frost & Sullivan Financial Benchmarking and Analysis (FBA) service presents a broad financial outline of the current European biometrics industry by highlighting the major market and financial trends. It examines growth sectors of notable interest and provides a comprehensive financial as well as valuation analysis of leading biometric firms in the industry. The key growth segments reviewed are Non-AFIS (non-automated fingerprint identification system), AFIS, facial recognition, eye scan (iris and retina), hand geometry, voice verification and signature verification.
Promising Markets for Venture Capitalists and Private Equity Participants
The nascent European biometrics market is very attractive to venture capitalists hoping to strike it rich by backing young companies. "eInnovation-centricf European venture capitalists mainly fund research activities such as designing new products and developing more flexible as well as customised solutions," says the analyst of this research. "Therefore, there is great potential for investment in this emerging market, a case in point being the development of multimodal biometrics."
However, as in any other market, venture capitalist investment will be on an interest-return basis, and further investment depends entirely on the success of the product. Biometrics companies must appreciate that venture capitalists usually ensure ownership of Intellectual Property rights of the product they are funding and if they pre close their venture, they carry the IP with them. Experts opine that the ideal exit strategy for venture capitalists is likely to be through an initial public offering. Keeping with this trend, the biometrics market is expected to see more private companies go public.
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