Biometric Market and Industry Overview
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1 Biometric Market and Industry Overview Marcia Y. Jung Senior Consultant World Customs Organisation Brussels, Belgium December 8, 2005 Copyright 2005 International Biometric Group
2 Agenda About IBG Market overview Technologies Applications Vertical sectors Copyright 2005 International Biometric Group Page 2
3 International Biometric Group Biometric research, consulting and integration firm Founded in 1996 Offices in New York, London Including BiometricStore, a hands-on showroom and test facility with more than 100 hardware and software solutions Technology-neutral, vendor-independent Extensive experience across all biometric technologies Provide objective analysis and independent services on biometrics to public and private sector clients Broad biometric experience and capabilities System deployment Standards Performance and testing Multimodality Business case and feasibility of biometrics Copyright 2005 International Biometric Group Page 3
4 Representative IBG Clients Technology & Transportation American Airlines Diebold EDS Ingersoll-Rand Intel JFK Airport Lockheed Martin Microsoft Raytheon Honeywell Marconi Comm. Siemens Government Agencies AAMVA California DMV US White House OSTP US Transportation Security Administration Ontario, Canada MBS US Department of Homeland Security NYPD Transport Canada US Navy/SPAWAR EU Commission European Biometric Forum Hong Kong KSAR Financial Services AIG Charles Schwab Chase Manhattan Bank Citibank Dresdner Bank Fidelity Investments FSTC Visa World Bank Capital One MasterCard Booz Allen Hamilton Copyright 2005 International Biometric Group Page 4
5 Biometrics Market Overview Copyright 2005 International Biometric Group Page 5
6 Annual Biometric Industry Revenues Figures from IBG s Biometric Market and Industry Report Copyright 2005 International Biometric Group Page 6
7 Percent of Biometric Market by Global Region Figures from IBG s Biometric Market and Industry Report Copyright 2005 International Biometric Group Page 7
8 Customer-pull Growth Drivers National security Increased government-mandated biometric implementations for employees, citizens, and foreign nationals Further development of existing large scale programs including: US-VISIT EU-VIS/Schengen Visa Registered Traveler Program End-to-end identity management Increased interest in a solution that can provide personal authentication and authorization to secured resources Identity theft concerns Increased utilization of wireless devices to access sensitive resources Copyright 2005 International Biometric Group Page 8
9 Industry-push Growth Drivers Price-to-functionality ratio Capture devices have developed better value propositions Increasingly include on-device quality controls, encryption, template generation, and matching Standardization Reduced reliance on proprietary hardware/software Increased interoperability across devices, algorithms, and systems Improved developer toolkits Increased involvement of established corporations IT companies Electronics manufacturers System integrators Copyright 2005 International Biometric Group Page 9
10 Industry Challenges Dependence on government programs Elongated procurement and sales cycles Indeterminate requirements Difficulty demonstrating ROI in corporate applications Competition from non-biometric technologies Tokens RFID Smart cards Privacy concerns Informational privacy Personal privacy Copyright 2005 International Biometric Group Page 10
11 Market Focus: Technologies Copyright 2005 International Biometric Group Page 11
12 Percent of Biometric Market by Technology Figures from IBG s Biometric Market and Industry Report Copyright 2005 International Biometric Group Page 12
13 Fingerprint Growth drivers Proven in applications including access control, device / system access, consumer ID, civil ID Many solutions capable of accuracy, intuitive device operations Synergies with AFIS for large-scale systems Competitive, innovative marketplace Growth inhibitors Interoperability of systems still an unknown Certain users and populations less capable than others of enrollment, regular usage Stigma of fingerprinting impacts large-scale civil ID deployments Security problems such as liveness detection, spoofing Copyright 2005 International Biometric Group Page 13
14 AFIS / Live-Scan Growth drivers Viewed as most reliable technology for national security applications Broad mandate for fingerprint-based background checks Clearance Employment Interest in building fingerprint image repositories rather than template databases Growth inhibitors Privacy concerns AFIS vendors unaccustomed to operating outside of law enforcement application Deployment difficulties Competition from iris, face, DNA technologies Copyright 2005 International Biometric Group Page 14
15 Face Recognition Growth drivers Can leverage existing facial image databases (drivers' license), capture devices (CCTV) Frequently deployable with little impact on existing processes and systems Only technology capable of surveillance Emergence of 3D technology as a more accurate complement or replacement to 2D Default ICAO technology for travel documents Growth inhibitors Questionable accuracy Use in verification applications limited due to need for controlled capture environment Copyright 2005 International Biometric Group Page 15
16 Iris Recognition Growth drivers Resistance to false matching ideal for high-security applications Core technology suitable for access control, border control, and large-scale identification Exceptional speed / processing power ratio Hands-free operation for users No stigma of criminal usage Growth inhibitors Difficulty of operation leads to increased false non-match rates, capture error rates User discomfort with eye-based technologies Cost of devices and processing software Lack of options in marketplace unnerves potential deployers Viewed as less proven than fingerprint Copyright 2005 International Biometric Group Page 16
17 Multiple Biometrics Growth drivers Need for 100% population enrollment and processing in civil ID applications Ability to improve scalability, accuracy Desire to collect multiple biometrics for potential use in future applications Growth inhibitors Cost, effort of collecting multiple biometric characteristics Privacy impact of data collection Lack of mature solutions Only suitable for large-scale systems Copyright 2005 International Biometric Group Page 17
18 Market Focus: Applications Copyright 2005 International Biometric Group Page 18
19 Percent of Biometric Market by Application Figures from IBG s Biometric Market and Industry Report Copyright 2005 International Biometric Group Page 19
20 Application Overview Access control / attendance Controls access to a secure area Biometrics confirm physical presence Civil identification Conducted by government or government-sanctioned entity Determines eligibility for services, citizenship status, or entry into a jurisdiction Criminal identification Conducted by government or government-sanctioned entity Determines whether individual is wanted, incarcerated, or has a criminal history Copyright 2005 International Biometric Group Page 20
21 Application Overview Device / system access Controls access to secure device, system, and information Consumer identification Identification of a customer by a commercial entity Authorizes individual to execute a transaction Surveillance Identification of individual without explicit presentation or conscious interaction with device Determines whether individual is a person of interest Copyright 2005 International Biometric Group Page 21
22 Market Focus: Vertical Sectors Copyright 2005 International Biometric Group Page 22
23 Percent of Biometric Market by Vertical Sector Figures from IBG s Biometric Market and Industry Report Copyright 2005 International Biometric Group Page 23
24 Vertical Sector Overview Government the largest consumer of biometrics Customized, complex, standardized, system-based Range of needs from immigration to military to access control Consumer applications gaining substantial traction In the US, millions are enrolled in payment and check-cashing systems leveraging fingerprint biometrics Travel and transportation Hybrid of government and commercial requirements Registered traveler programs, employee access control Copyright 2005 International Biometric Group Page 24
25 Questions Marcia Jung Copyright 2005 International Biometric Group Page 25
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