Automotive Biometric Market Size was valued at USD 1.1 billion in 2021. The automotive biometric market industry is projected to grow from USD 1.2 Billion in 2022 to USD 3.9 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 17.3% during the forecast period (2022 - 2030). Increased focus on the development of autonomous vehicles, rising demand for aesthetically pleasing and comfortable car features, and advances in emerging countries are the major market drivers enhancing market growth. During the aforementioned projection period, the need for enhanced security management will further generate new opportunities for the automotive biometric market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Mercedes-Benz, Lexus, and BMW are the three leading premium car brands in the luxury car market. With over 290,000 units anticipated to be delivered in 2020, including 13,000 Model S vehicles, one of the most well-liked electric vehicles in the nation, Tesla is one of the most well-liked automakers in the United States. In 2020, the global market's value for high-end vehicles was estimated to reach around $591.90 billion. The market for automotive luxury vehicles has also increased globally due to changing lifestyles and rising disposable income. Due to this, there has been an increase in demand for automotive biometrics in several locations, which is anticipated to fuel market expansion over the coming years. Therefore, the growing popularity of luxury cars has enhanced the automotive biometric market CAGR globally in recent years.
The accuracy of biological evidence such as voice, facial, and fingerprint scans and recognition increases safety and privacy, which is a key reason for the growth of the automotive biometrics industry. Furthermore, hackers have difficulty finding passwords because access is only provided depending on the owner's identification. The automotive biometrics industry uses these biometric system in several ways, including access control for getting into a car using biometric scanners and providing personalized vehicles for users to access playlists or contacts applications. Several automakers, including Ford, BMW, Mercedes-Benz, and Volkswagen, seek to incorporate automotive biometric technologies into their vehicles for convenience and security. Thus the increased demand for vehicle security implants is another factor driving the growth of the automotive biometric market revenue.
The Automotive Biometric Market segmentation, based on type, includes fingerprint scans, voice recognition, face recognition, and others. Out of these, the fingerprint scan segment had the biggest market share in 2021. This market has expanded due to the automotive biometrics industry's innovative use of fingerprint recognition technology to enhance vehicle safety.
September 2021: IDEMIA introduced the IDEMIA STORM ABIS, a SaaS-based Automated Biometric Identification System (ABIS) for easy, accessible, and economical fingerprint analysis, comparison, and documentation. IDEMIA STORM ABIS enables local and national searches by providing tools for comparison, analysis, and case management, allowing fingerprint examiners to execute tests quickly and efficiently from anywhere. This introduction has further broadened the growth opportunity for the automotive biometric industry.
The facial recognition sector witnessed the fastest growth rate with respect to the Automotive Biometric Market revenue. Facial recognition technologies are employed in the automotive industry for several purposes, including car starting and reducing auto theft.
The Automotive Biometric Market data has been bifurcated by application into the vehicle security system, driver safety system, advanced steering and infotainment, and others. In 2021, the vehicle security systems segment dominated the market. The implementation of strict vehicle security regulations by regional governments and improvements in passive and active safety/security technology is driving up demand in the industry.
Figure 2: Automotive Biometric Market, by Application, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The second fastest-growing segment in the automotive biometric industry is the driver safety system sector. The sector is being emphasized by the rising acceptance of driver safety systems with various capabilities, including lane departure warning, blind spot warning, steering angle sensor, and heart rate monitoring. Hence, rising applications of the driver safety system in automotive biometrics positively impact market growth.
Based on the vehicle type, the global automotive biometric industry has been segmented into passenger cars and commercial vehicles. Passenger vehicle was the major user of the market in 2021. The primary application for fingerprint and facial recognition in passenger automobiles continues to be vehicle access control. However, the commercial vehicle also experienced significant growth. With rising demand for comfort, safety, and autonomous functions, the market for commercial cars is predicted to expand quickly.
By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Automotive Biometric market accounted for USD 0.48 billion in 2021 and is expected to exhibit a significant CAGR of 43.9 percent growth during the study period. One of the world's main centers for automobile production in North America. In 2021, sales of used cars were predicted to reach 40.9 million, an increase of 10% from 2020, according to Cox Automotive. Because of this, automakers in the area rely on more recent technology, including automotive biometrics, to provide value and stand out in the market.
Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: Automotive Biometric Market Share By Region 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's automotive biometric market accounts for the second-largest market share. The region's rising passenger automobile sales further accelerate the market's expansion. The average number of passenger automobiles in 2021 across 26 nations was 528331. Germany had the greatest value—2622132 passenger vehicles—and Bulgaria had the lowest—24537 passenger automobiles. Further, the German automotive biometric market held the largest market share, and the UK automotive biometric market was the fastest-growing market in the European region.
The Asia-Pacific Automotive Biometric Market is expected to grow at the fastest CAGR from 2022 to 2030. Products with cutting-edge technology are becoming more popular in this region, primarily in China, India, Japan, and Singapore. China has the highest production and sales of electric vehicles worldwide, according to data from the China Association of Automobile Manufacturers. This will probably lead to a rise in automotive biometric technologies. Moreover, China’s automotive biometric market held the largest market share, and the Indian automotive biometric market was the fastest-growing market in the Asia-Pacific region.
Major market players are spending a lot of money on R&D to increase the range of products they offer, which will drive the market even higher. Market participants are engaging in several strategic initiatives to broaden their reach internationally, along with significant market developments like launching new products, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the automotive biometric industry must offer reasonably priced goods if they want to expand and survive in a sector that is getting more and more competitive.
One of the primary business strategies manufacturers use in the global automotive biometric industry to assist clients and expand the market sector is local manufacturing to reduce operating costs. The automotive biometric industry recently delivered some of the most significant benefits recently delivered to medicine. The automotive biometric market major player, such as Fingerprint Cards AB, Nuance Communications, Voicebox Technologies, Fujitsu Ltd, and others, are working to boost market demand by supporting R&D projects.
DERMALOG Identification Systems is a global market leader in biometric identification systems. For over 25 years, DERMALOG has been a pioneer in creating biometric goods and solutions, reinventing biometric security products for law enforcement, civil governmental agencies such as national registration, voter and driver registrations, health agencies, and security agencies. In May 2022, DERMALOG Identification Systems GmbH, Germany's largest biometrics company, and the technology conglomerate Rheinmetall AG formed a new joint venture. Rheinmetall Dermalog SensorTec GmbH, a joint venture between the technology conglomerate Rheinmetall and the biometrics company DERMALOG, aims to improve road safety. The partnership's goals include the creation of a next-generation driver monitoring system.
Also, Daimler AG manufactures and distributes automobiles, trucks, and vans. The company creates, manufactures, distributes, and sells a diverse range of automotive goods, including passenger cars, trucks, vans, and buses. Daimler AG also offers financial and other services in connection with its automotive operations. In November 2021, Daimler Mobility and Visa formed a new cooperation to provide 'native' in-car payments driven by biometrics for Mercedes-Benz automobiles. Purchases will be made directly through the car's head unit (MBUX), which will have a fingerprint biometric sensor for authentication. The new biometric solution will be included in 'Mercedes pay,' a component of Daimler's mobility and digitalization strategy. It will be the first in the world to include the Visa Cloud Token Framework in its vehicles.
December 2023: Tesla has received a patent for driver monitoring using facial biometrics. Tesla, the renowned manufacturer of electric vehicles, has just obtained a U.S. patent for a driver face recognition system. This innovative technology greets the driver with a customized greeting, automatically changes temperature and music settings according to the driver's preferences, and in case of driver unresponsiveness, it promptly contacts emergency services and directs the vehicle to the closest hospital.
On the social media platform X, which was acquired by Elon Musk, the owner of Tesla, when it was formerly known as Twitter, news of the patent was shared by a user named The Cybertruck Guy. This user's account is only focused on the progress and release of Tesla's angular silver Cybertruck. The patent outlines a "customized system and technique for a vehicle that takes into account the spatial position of vehicle occupants and specific parts of their body." Put simply, this technology not only analyzes face features but also records and evaluates the vertical dimensions of various body parts. It then adjusts in-car systems to optimize space, align audio playback, and position HVAC vents for individual passengers.
Furthermore, it demonstrates the procedure via which a driver's condition is evaluated as being within the expected range, and the sequence of choices that activate emergency alarm signals and, if feasible, automated transportation to a medical institution.
Tesla is not the only firm globally using biometric hardware and software into its automobiles. Eagle Eye Defense (EED), a security company based in Gauteng, South Africa, is providing fingerprint biometrics for drivers as a measure to combat the high incidence of car-jackings in the nation, which now stands at about 60 per day. The automobile will be activated by a fingerprint scan using a sensor located in a concealed position that is only known to the driver. When someone other than the owner attempts to start the automobile, warnings are activated.
TimesLive's feature on EED's technology highlights the integration of biometrics for security and select payments by big luxury manufacturers like Mercedes-Benz and Lexus.
January 2022: LG Electronics has created a new technology that will allow car owners to start their automobiles without using a key by recognizing their facial expressions and finger gestures using several in-car cameras. The biometric authentication system uses one of the cameras to identify the user's body parts. Based on the data from the first camera, a second camera automatically adjusts its viewing angles to record the user's iris and other biometric information.
| Report Attribute/Metric | Details |
| Market Size 2021 | USD 1.1 billion |
| Market Size 2022 | USD 1.2 billion |
| Market Size 2030 | USD 3.9 billion |
| Compound Annual Growth Rate (CAGR) | 17.3% (2022-2030) |
| Base Year | 2021 |
| Market Forecast Period | 2022-2030 |
| Historical Data | 2018 & 2020 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, and Vehicle Type |
| Geographies Covered | Europe, North America, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Fingerprint Cards AB, Nuance Communications, Voicebox Technologies, and Fujitsu Ltd. |
| Key Market Opportunities | Rising adoption in developed countries |
| Key Market Dynamics | Increase in sale of EV and luxury vehicles Rising concerns regarding safety and security |
Frequently Asked Questions (FAQ) :
The Automotive Biometric Market size was prized at USD 1.1 Billion in 2021.
The global market is estimated to grow at a CAGR of 17.3% during the forecast period 2022-2030.
The largest share of the global market was held by North America.
The key players in the market are Fingerprint Cards AB, Nuance Communications, Voicebox Technologies, and Fujitsu Ltd.
The growing adoption of face recognition in the adoption of automobile industry can boost the key players of the automotive biometric market growth.
The fingerprint automotive biometric category dominated the market in 2021.
The vehicle security systems application had the largest share of the global market.
Team Lead - Research With a technical background as bachelor's in mechanical engineering, with mba in operations management , swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the automotive/a&d domain. swapnil has worked on major projects in verticals such as aerospace & defense, automotive and many other domain projects. he has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.
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