The Economic Outlook For The Biometrics Industry In Europe
The Economic Forecast for Biometrics in Europe looks to be pretty strong. According to major Business Consulting Firm, known as "Frost and Sullivan" believes that the Market Value for the Biometrics Industry could triple in the coming years: "The market for biometrics products is going to almost triple by 2012 from its 2008 value. As the level of security breaches and transaction fraud increases, the need for enhanced, secure identification and personal verification technologies increases proportionally." (SOURCE: http://www.findbiometrics.com/article/689).
However, despite this very optimistic outlook (especially given the Economic Conditions today), it should be noted that the Federal Governments in Europe make up for almost half of the Biometrics Market Share, to be exact, it is at 44.5%. The Biometrics Industry took a pretty good hit financially, last year, in 2008. In the aggregate, Revenues declined by about 10%, but when in comparison to the other Market Sectors such as Finance and Banking, it is just a mere drop in the bucket.
Despite the fact that the European Biometrics Market is dominated by Fingerprint Recognition Technologies, there are other Biometric Technologies which seem to be coming into the limelight. I have written about these Biometric Technologies before, and they are Existing Technologies, or are in the Research and Development Phase with the promise of good potential. For example, " . . . established technologies that are gaining momentum include face recognition - both 2 Dimensional (2D) and 3 Dimensional (3D), iris scans, hand geometry, vascular scans (palm vein scans), and retina scans. Upcoming physiological technologies include skinprints, earlobe scans, brain fingerprints, and DNA recognition. Technologies based on behavioural patterns, such as voice recognition, signature scans, keyboard and mouse patterns, gait (walk patterns), and body odour recognition are also in the development process." (SOURCE: http://www.findbiometrics.com/article/689).
Multimodal Biometric Solutions are also expected to take off in Europe, fueled especially by the growth of the e-Passport. It is expected that Multimodal Biometric Solutions will be the norm by the year 2020, and this could prove to be the biggest Market Mover yet in the Biometrics World. This is especially true for existing Biometric Technologies, such as Iris Recognition and Facial Recognition. For example, "The integration of iris and retina recognition biometric systems and 2D and 3D face recognition systems are anticipated to gain wide adoption in the next seven to ten years with their low error rates. Multimodal biometrics such as fingerprint, face, and iris are expected to become the standard biometric for high-end applications in government, border control and airport security by 2020." (SOURCE: http://www.findbiometrics.com/article/689).
With respect to the emerging Biometric Technologies which are still in the Research and Development Phase, but do show potential to capture a significant Market Share in the next couple of decades is DNA Recognition.
Finally, it is anticipated that will be significant activity in terms of Mergers and Acquisitions in the Biometrics Industry within the coming years.
Final Thoughts On Today’s Posting
Overall, the Market Applications in Europe which will have the greatest potential include the Education Market (for example, using Fingerprint Recognition for the Subsidized School Lunch Programs); the Retail market (especially Time and Attendance Applications, for example using a Hand Geometry Scanner for clocking in/clocking out, instead of using the normal punch card); the Financial Market (especially because of increased Government Mandates and Legislations, and the proliferation of ID Theft); and the Healthcare Market (especially because of heightened Government Regulation and Legislation with regards to protection of Confidential and Private Data with regards to the patient).
However, in my opinion, the Private Industry needs to step in a lot more in terms of Purchase Orders and the awarding of Security Contracts. Just like here in the United States, the Federal Government is the biggest player in the Biometrics Market in Europe, primarily because of the launch and use of the e-Passport. There needs to be a balance here between the Private Sector and the Federal Government, with more favor to the Private Sector. There has been a lot done by the Federal Governments both in the United States and in Europe with regards to Bailout Pakcages in various types of Industries, and I would hate to see the Federal Government in both places being viewed as another Bailout Tool for the Biometrics Industry, given is Market Dominance and awarding highly valuable Security Contracts.
Finally, in my opinion once again, the focus needs to be on bettering the existing Biometric Technologies that we have now, rather than wasting valuable Research and Development Money upon what I call the "Exotic Biometric Technologies of the Future". I would even classify to a certain degree, DNA Recognition here. I have written about it before, but DNA Recognition still has a very, very long way to go until it can even be considered to have some serious promise as a viable Biometric Technology. In comparison, Gait Recognition has the greatest potential to be a viable "Biometric Technology of the Future". Let’s take what we have now, and make it better, in other words, using the Marketing Slogan, "Building A Better Mousetrap".
Ultimately though, how much the Biometrics Industry grows into the future, whether here in the United States or in Europe, lies in the hands of the End User. After all, they will be dictating growth with their Wallet and Checkbook. Therefore, the greatest attention needs to be paid here-educating the End User about the Ease of Use and the Perceived Usefulness of using Biometric Technologies in their everyday lives, so they can readily understand the Benefits of what they will be getting. Once the End User understands what they are getting and how it will serve to their Security Needs in a manner they can easily understand, they will buy Biometric Technologies, no matter how expensive it is.
Source for this Posting: http://www.findbiometrics.com/article/689