In today’s digital age, biometric technology is becoming increasingly popular. It is a technology that identifies and verifies individuals based on their unique physiological or behavioral characteristics. Biometrics technology is rapidly gaining popularity in the automotive industry. Automotive biometrics refers to the use of biometric technology in vehicles to enhance security, convenience, and personalization. Automotive biometrics can be used for a variety of purposes, including vehicle access, start-stop functions, infotainment, and more.
The global automotive biometrics market is projected to grow at a CAGR of 17.9% during the forecast period (2021-2028). The market is expected to reach $1.5 billion by 2028, up from $415.5 million in 2020. The increasing demand for vehicle security and personalization, coupled with the growing trend of connected cars, is driving the growth of the automotive biometrics market.
Automotive biometrics refers to the use of biometric technology in vehicles. Biometrics is a technology that uses physiological or behavioral characteristics to identify and verify individuals. Automotive biometrics can be used for a variety of purposes, including vehicle access, start-stop functions, infotainment, and more. Biometric authentication technology is rapidly gaining popularity in the automotive industry due to the growing need for enhanced security and convenience.
Executive Summary
The global automotive biometrics market is projected to grow at a CAGR of 17.9% during the forecast period (2021-2028). The market is expected to reach $1.5 billion by 2028, up from $415.5 million in 2020. The increasing demand for vehicle security and personalization, coupled with the growing trend of connected cars, is driving the growth of the automotive biometrics market. The use of biometric technology in vehicles enhances security, convenience, and personalization.
Key Market Insights
- The global automotive biometrics market is projected to grow at a CAGR of 17.9% during the forecast period (2021-2028).
- The market is expected to reach $1.5 billion by 2028, up from $415.5 million in 2020.
- The increasing demand for vehicle security and personalization, coupled with the growing trend of connected cars, is driving the growth of the automotive biometrics market.
- Biometric technology is rapidly gaining popularity in the automotive industry due to the growing need for enhanced security and convenience.
Market Analysis
The global automotive biometrics market is segmented by technology, application, and region.
- By technology, the market is segmented into fingerprint recognition, facial recognition, iris recognition, voice recognition, and others. The fingerprint recognition segment is expected to dominate the market during the forecast period, owing to its ease of use and high accuracy.
- By application, the market is segmented into vehicle access, start-stop function, infotainment, and others. The vehicle access segment is expected to dominate the market during the forecast period, owing to the increasing demand for vehicle security.
- By region, the market is segmented into North America, Europe, Asia Pacific, and Rest of the World (RoW). Asia Pacific is expected to dominate the market during the forecast period, owing to the growing demand for connected cars and the increasing adoption of biometric technology in the region.
Market Drivers
- Increasing demand for vehicle security
- Growing trend of connected cars
- Need for personalized driving experience
- Advancements in biometric technology
Market Restraints
- High cost of biometric technology
- Concerns regarding privacy and data security
Market Opportunities
- Growing demand for electric vehicles
- Development of advanced biometric technology
Market Dynamics
The automotive biometrics market is highly competitive, with several players operating in the market. The key players in the market include Continental AG, Fujitsu Limited, Gentex Corporation, Hitachi, Ltd., Nuance Communications, Inc., Safran S.A., Synaptics Incorporated, and Voxx International Corporation, among others. These players are focusing on product development, partnerships, and collaborations to gain a competitive edge in the market.
The automotive biometrics market is characterized by rapid technological advancements. Advancements in biometric technology, such as facial recognition and voice recognition, are driving the growth of the market. The growing trend of connected cars is also fueling the demand for automotive biometrics.
Regional Analysis
Asia Pacific is expected to dominate the automotive biometrics market during the forecast period, owing to the growing demand for connected cars and the increasing adoption of biometric technology in the region. The region is home to some of the fastest-growing economies, such as China and India, which are driving the growth of the automotive biometrics market. North America and Europe are also expected to witness significant growth during the forecast period, owing to the increasing demand for vehicle security and personalized driving experience.
Competitive Landscape
The global automotive biometrics market is highly competitive, with several players operating in the market. The key players in the market include Continental AG, Fujitsu Limited, Gentex Corporation, Hitachi, Ltd., Nuance Communications, Inc., Safran S.A., Synaptics Incorporated, and Voxx International Corporation, among others. These players are focusing on product development, partnerships, and collaborations to gain a competitive edge in the market.
Segmentation
The global automotive biometrics market is segmented by technology, application, and region.
- By technology, the market is segmented into fingerprint recognition, facial recognition, iris recognition, voice recognition, and others.
- By application, the market is segmented into vehicle access, start-stop function, infotainment, and others.
- By region, the market is segmented into North America, Europe, Asia Pacific, and Rest of the World (RoW).
Category-wise Insights
The vehicle access segment is expected to dominate the automotive biometrics market during the forecast period, owing to the increasing demand for vehicle security. The fingerprint recognition segment is expected to dominate the market by technology, owing to its ease of use and high accuracy. By region, Asia Pacific is expected to dominate the market, owing to the growing demand for connected cars and the increasing adoption of biometric technology in the region.
Key Benefits for Industry Participants and Stakeholders
- Enhanced security and convenience for vehicle owners
- Personalized driving experience for vehicle owners
- Competitive advantage for companies offering automotive biometrics solutions
- Opportunities for technological advancements and innovation
SWOT Analysis
Strengths:
- Enhanced security and convenience for vehicle owners
- Growing trend of connected cars
- Advancements in biometric technology
Weaknesses:
- High cost of biometric technology
- Concerns regarding privacy and data security
Opportunities:
- Growing demand for electric vehicles
- Development of advanced biometric technology
Threats:
- Intense competition among players in the market
- Regulatory challenges
Market Key Trends
- Advancements in biometric technology
- Growing trend of connected cars
- Increasing demand for vehicle security
- Need for personalized driving experience
Covid-19 Impact
The COVID-19 pandemic had a significant impact on the automotive industry, including the automotive biometrics market. The pandemic led to a decline in vehicle sales and disrupted global supply chains. However, the pandemic also led to a surge in demand for contactless technologies, including biometric technology. The use of biometric technology in vehicles, such as facial recognition and voice recognition, can help reduce the risk of infection transmission. This has led to an increase in the adoption of biometric technology in the automotive industry.
Key Industry Developments
- In June 2020, Continental AG announced the development of a new biometric authentication system for vehicles, which uses facial recognition technology.
- In January 2021, Gentex Corporation announced the launch of its new HomeLink Connect mobile app, which enables drivers to control smart home devices from their vehicles using biometric authentication.
- In February 2021, Synaptics Incorporated announced the launch of its new biometric touchpad solution for automotive applications.
Analyst Suggestions
The automotive biometrics market is expected to witness significant growth during the forecast period. Advancements in biometric technology and the growing trend of connected cars are driving the growth of the market. Companies operating in the market should focus on product development and partnerships to gain a competitive edge. The development of advanced biometric technology and the growing demand for electric vehicles present significant opportunities for companies in the market.
Future Outlook
The global automotive biometrics market is expected to continue its growth trajectory during the forecast period. The increasing demand for vehicle security and personalization, coupled with the growing trend of connected cars, is expected to drive the growth of the market. The development of advanced biometric technology and the growing demand for electric vehicles present significant opportunities for companies in the market. Companies operating in the market should focus on product development and partnerships to gain a competitive edge.
Conclusion
The automotive biometrics market is revolutionizing the automotive industry by enhancing security, convenience, and personalization for vehicle owners. The global automotive biometrics market is projected to grow at a CAGR of 17.9% during the forecast period (2021-2028). The increasing demand for vehicle security and personalization, coupled with the growing trend of connected cars, is driving the growth of the market. The use of biometric technology in vehicles, such as facial recognition and voice recognition, can help reduce the risk of infection transmission, which has led to an increase in the adoption of biometric technology in the automotive industry. Companies operating in the market should focus on product development and partnerships to gain a competitive edge and take advantage of the growing demand for automotive biometrics solutions.