Automotive Biometric Market Size Projection (2024 - 2030)

By 2023, the valuation of the Automotive Biometric Market stood at USD 359.60 million, poised to attain a market size of USD 1016.31 million by 2030. Over the forecast period spanning from 2024 to 2030, the market is anticipated to register a Compound Annual Growth Rate (CAGR) of 16%. Key factors propelling market expansion include the burgeoning sales of Electric Vehicles (EVs) and luxury automobiles, augmented emphasis on safety measures, increased integration of automotive biometric systems in developed nations, continuous technological advancements, and escalating demand for interconnected vehicles.

Overview of the Automotive Biometric Industry:

Automotive biometrics encompass electronic mechanisms integrated into vehicles for identification and authentication purposes, catering to various functions such as vehicular access, ignition systems, vehicle immobilization, personalization, and health monitoring. These systems utilize physiological and behavioral characteristics for individual recognition, employing technologies like fingerprint scanners, facial recognition, and voice recognition. Upon data collection, biometric systems compare it against stored records, granting full access upon identification. Within automotive contexts, these systems are often linked with internal cameras detecting the driver's presence, adjusting seat positions, mirror angles, temperature settings, navigation preferences, and other parameters based on stored profiles. Automotive biometric solutions offer compatibility with existing security setups, furnishing multi-layered protection. Market growth is primarily driven by the upsurge in EV and luxury vehicle sales, alongside heightened safety and security concerns. Moreover, the widespread adoption in developed economies further fuels market expansion. As the automotive sector evolves, major manufacturers are compelled to introduce innovative technologies, promising a more personalized driving experience. The increasing demand for electrified and autonomous vehicles, coupled with expanded sensor-based applications, serves as a catalyst for the Automotive Biometric market. Additionally, the anticipated advancements in IRIS and facial recognition systems are poised to significantly enhance vehicle authentication mechanisms, presenting growth opportunities for the Automotive Biometric market. Furthermore, the growing preference for aesthetic and comfort features in automobiles contributes to the increased application of automotive biometrics. Collaboration between automobile Original Equipment Manufacturers (OEMs) and technology providers aims to introduce cutting-edge innovations to the automotive landscape.

Impact of the COVID-19 Pandemic on the Automotive Biometric Market:

The global spread of the COVID-19 pandemic prompted drastic measures within the automotive sector, including temporary plant closures aimed at curbing the virus's transmission. Numerous European companies suspended operations, while counterparts in the US and APAC regions extended shutdown durations. The economic repercussions of the COVID-19 outbreak led to widespread disruption, with the automotive industry bearing a significant brunt. In February 2020, China's automotive market witnessed a staggering 79% decline, prompting Chinese automakers to seek government interventions such as subsidies, tax incentives, and temporary relaxation of emission regulations to rejuvenate the market. The ripple effects of disruptions in China reverberated across the global automotive landscape, severely impacting supply chains. Notably, Hubei Province, a key automotive production hub in China, experienced reduced plant utilization and complete shutdowns, exacerbating supply chain challenges. Shipping and industrial output restrictions further compounded supply chain woes, particularly concerning component distribution. Amid the pandemic, biometric systems emerged as pivotal technologies for early detection, patient screening, and public safety monitoring efforts.

Market Drivers:

Escalating sales of EVs and luxury vehicles propel the growth of the automotive biometric market:

The burgeoning adoption of Electric Vehicles (EVs) is propelled by growing environmental consciousness, reinforced by government subsidies and initiatives. Increased charging infrastructure and extended vehicle ranges bolster the appeal of EVs worldwide. Major automotive manufacturers are transitioning towards electrification, focusing on hybrid, battery-electric, and plug-in hybrid vehicles. The surging popularity of EVs stimulates innovation in automotive biometric features, with manufacturers integrating advanced biometric solutions to cater to the evolving market demands. Consequently, the global uptick in EV sales is anticipated to drive the automotive biometric market during the forecast period.

Rising safety concerns contribute to the growth of the automotive biometric market:

The high accuracy rates of automotive biometrics, leveraging biological identifiers such as fingerprint scans and facial recognition, significantly enhance vehicle security. Biometric access methods, devoid of conventional passwords, mitigate hacking risks, ensuring robust security measures. Additionally, the streamlined operation of biometric vehicle systems augments safety and convenience. Leading automotive manufacturers, including Ford, BMW, Mercedes-Benz, and Volkswagen, are embracing biometric systems to enhance consumer safety and comfort.

Increasing adoption of automotive biometric systems in developed countries fosters market growth:

Technological advancements and the burgeoning automotive sector in developed nations drive the proliferation of vehicle biometric systems. The United States automotive industry is witnessing transformative shifts propelled by Internet of Things (IoT) and Artificial Intelligence (AI) technologies. Innovations such as connected devices, self-driving capabilities, and electric powertrains underscore the demand for automotive biometric systems. German consumers prioritize vehicle safety, indicating a favorable reception towards automotive biometrics. Enhanced technological integration and favorable consumer sentiments in developed economies fuel market expansion.

Technological advancements and escalating demand for connected vehicles propel the automotive biometric market:

The integration of modern information technologies such as Human-Machine Interface (HMI) and iris recognition augments market growth. HMI facilitates interactive dashboards akin to iPads, enhancing user experience and driving market expansion. The proliferation of connected cars accelerates the adoption of advanced technologies like Artificial Intelligence and the Internet of Things, fostering market growth. Deployment of Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) technologies further bolsters the automotive biometric market, promising enhanced mobility communication.

Market Restraints:

High installation costs impede the growth of the automotive biometric market:

Automotive biometric access systems encompass various technologies, including facial recognition and fingerprint scanners, necessitating substantial investments. The prohibitive costs associated with biometric device installation pose challenges for widespread adoption, limiting market growth. Moreover, complex software and hardware components required for vehicle monitoring incur additional expenses, contributing to the high operational costs of automotive biometric systems.

Heightened safety and security concerns, coupled with cybersecurity risks, restrain market growth:

The integration of advanced technologies in automotive biometrics, such as sensors and connected devices, heightens cybersecurity vulnerabilities. Connected devices collect sensitive passenger data, exposing vehicles to potential cyber threats. Automakers face challenges in adopting new technologies amidst cybersecurity risks, necessitating substantial investments to mitigate vulnerabilities and ensure robust data protection measures.

Automotive Biometric Market – By Technology

• Facial Recognition
• Voice Recognition
• Iris Recognition
• Fingerprint Recognition
• Multimodal Recognition

Categorized by Technology, the Automotive Biometric Market encompasses Facial Recognition, Voice Recognition, Iris Recognition, Fingerprint Recognition, and Multimodal Recognition. Leading the market in 2021, the Fingerprint Recognition System held the largest market share. The automotive sector is spearheading the integration of fingerprint recognition technology to enhance vehicle safety, thereby propelling the expansion of this domain. Utilizing fingerprint and facial recognition technologies offers a cost-effective authentication system, facilitating drivers in unlocking and starting their vehicles effortlessly. Tailored to individual driver settings, this technology mitigates the risk of car theft, thereby enhancing the appeal of fingerprint recognition systems in vehicles and fostering market growth. The burgeoning preference for keyless entry and push-button ignition systems in automobiles has spurred the incorporation of fingerprint sensors in the sector. For instance, a finger placed on the capacitive sensor on the door handle is required before the door can be opened. Consequently, the segmental growth of the automotive biometric industry is poised to escalate during the forecast period.

Anticipated to be the fastest-growing segment during the forecast period, the Facial Recognition segment is driven by its extensive usage in security and reliable authentication. Face recognition software identifies individuals by analyzing their eyes, mouths, noses, and ears.

Voice recognition refers to the software's capability to comprehend and execute tasks based on spoken commands. In the automotive industry, it facilitates GPS navigation, communication, entertainment, locking/unlocking features, and other functionalities. Enhancing safety and convenience for drivers and passengers alike, voice recognition technology is instrumental in modern vehicles.

Automotive Biometric Market – By Vehicle Type

• Commercial Vehicles
• Passenger Cars

Segmented by vehicle type, the automotive biometric industry comprises Commercial Vehicles and Passenger Cars. Holding a majority market share of over 60%, the Passenger Cars segment is poised to maintain its dominance owing to the rising adoption of luxury vehicles. The escalating demand for enhanced security and personalized driving experiences propels the growth of this segment. Passenger cars, designed primarily for transporting people, are witnessing increased demand attributed to factors such as population growth, rising disposable incomes, heightened comfort and convenience expectations, and a growing desire for vehicle ownership. On the other hand, Commercial Vehicles encompass a variety of transportation means for goods and passengers, including minivans, trucks, tractors, trailers, coaches, and buses. The surge in demand for commercial vehicles is fueled by expanding sectors such as manufacturing, logistics, tourism, and hospitality, coupled with a growing emphasis on safety, comfort, and autonomous functionalities.

Automotive Biometric Market – By Application

• Driver Safety Systems
• Vehicle Security Systems
• Advanced Steering & Infotainment
• Others

Distinguished by application, the Automotive Biometric Market includes Driver Safety Systems, Vehicle Security Systems, Advanced Steering & Infotainment, and Other applications. Vehicle Security Systems hold substantial market share within the automotive biometric industry. As incidences of fuel theft become more prevalent, the implementation of vehicle security systems in both passenger and commercial vehicles gains importance. These systems aim to safeguard vehicles using a variety of technologies including biometrics. Biometric breakthroughs in automotive safety, including GPS, cameras, RFID, fingerprint sensors, and IoT features, are driving the demand for vehicle security systems. Driver safety systems are designed to monitor driver attentiveness and ensure safe driving practices. These systems utilize biological and performance metrics to analyze driver behavior and alertness. The increasing consumer demand for smart vehicles, connectivity solutions, and luxurious features fuels the adoption of advanced steering and infotainment systems. These systems encompass various technologies such as V2X solutions, ADAS, HMI systems, telematics, display systems, speech recognition, smartphone integration, and sensors, aimed at enhancing the driving experience.

Automotive Biometric Market - By Region:

• North America
• Europe
• Asia-Pacific
• Rest of the World

Geographically, the North American Automotive Biometric Market is expected to hold a significant share in the global automotive biometrics system market. This can be attributed to rising disposable incomes and increasing consumer acceptance of technologically advanced products. Moreover, automakers in the region are leveraging modern technologies, including biometrics, to differentiate themselves in the market and provide value to consumers. Companies like BMW, Mercedes-Benz, Volkswagen, and Ford have announced plans to incorporate biometric technology into their high-end luxury vehicles, emphasizing enhanced security features. The demand for automotive biometric systems in the United States is expected to surge due to government regulations mandating advanced automotive security systems.

In 2021, the European Automotive Biometrics market dominated the global market, accounting for over 47.8% of the market share, followed by North America and Asia Pacific. Europe, particularly Western Europe, is expected to witness significant growth in the automotive biometrics industry. Presence of major manufacturers such as Mercedes, BMW, and Volkswagen, coupled with the adoption of electric vehicles, is driving the demand for advanced authentication technologies. Additionally, increased concerns regarding car safety and security are propelling the automotive biometrics market in Europe.

The Asia Pacific Automotive Biometric Market is poised for rapid growth, fueled by high vehicle demand in countries like Japan, China, India, and South Korea. China, in particular, is a major manufacturer and consumer of electric vehicles, which is expected to drive the adoption of biometric systems in automobiles.

Latin America, the Middle East, and Africa are projected to register considerable growth in the Automotive Biometric Market, driven by substantial investments in the automotive sector.

Major Key Players in the Market

1. Hitachi, Ltd.
2. Fujitsu Limited
3. Voxx International Corporation
4. Nuance Communications
5. Safran S.A
6. ASSA ABLOY AB (HID Global Corporation)
7. BioEnable Technologies Pvt. Ltd
8. Synaptics Incorporated
9. Fingerprint Cards AB (publ)
10. Methode Electronics, Inc.

Market dynamics, governmental support, and technological advancements influence the growth trajectories of vendors. To enhance their market presence, vendors must focus on improving visibility and upgrading their offerings. In the global automotive biometric market, competition revolves around factors such as availability, pricing, quality, and technology. Product development, acquisitions, and collaborations are key strategies employed by market players. While multinational corporations dominate the industry, regional and local players also play significant roles. Over the forecast period, multinational companies are expected to strengthen their position in the global market through active investment in product development.

Recent Developments in the Global Automotive Biometric Market

• Partnership: In August 2021, NEXT Biometrics partnered with Paravision, a global facial recognition company, to offer dual authentication solutions integrating face and fingerprint biometrics
• Product Launch: In September 2021, Genesis announced the rollout of its "Face Connect" technology, enabling vehicles to detect human faces and control doors without smart keys.
• Acquisition: In April 2020, Fujitsu Frontech North America, Inc. acquired Fulcrum Biometrics, LLC, expanding its biometric authentication solutions business domestically and internationally
• Collaboration: In September 2020, Cerence collaborated with BJEV to develop an intelligent voice assistant for electric SUVs, enhancing the driving experience through speech-enabled applications.
• Product Launch: In January 2019, Hyundai Motor Corporation introduced an enhanced biometric system allowing drivers to unlock and start vehicles with a touch