FWIW, here's the Frost & Sullivan story about biometrics:
GROWTH IN THE BIOMETRICS INDUSTRY SPURS INTEREST FOR START-UP COMPANIES AND INVESTORS
MOUNTAIN VIEW, Calif., Jun 1, 1999 /PRNewswire via COMTEX/ -- In the
not-so-distant past, iris scanners and identification by fingerprint
were technologies reserved for futuristic movies. Truth is, they are
used today at ATM machines, on drivers licenses and in the workplace on an everyday basis. Biometrics have become the new wave of
identification technology and they're coming to a business near you.
According to new research conducted by Frost & Sullivan
(www.frost.com), Emerging World Biometrics Applications Markets, law
enforcement and access control have been the primary markets for
biometrics. However, this technology is beginning to be used with more
frequency in other vertical markets as well. Additional government
applications as well as commercial opportunities are emerging. However, the underlying driver in the commercial arena is the business
community's search for tools that can prevent fraud. In this modern
age, opportunities for fraudulent identification have moved beyond the
tools for it's prevention resulting in huge losses.
Some market challenges include negative public perception issues, a
general lack of understanding and awareness for the various biometrics
technologies, a lack of standards, product performance unreliability
and high prices. There have been notable price declines as well as
product performance improvement in recent years. Convincing would-be
end users and the public as to the relevance and usefulness of such a
technology remains a majorhurdle.
Biometrics systems are currently being deployed for border control,
immigration, drivers licenses, national ID, social services and voter
ID.In 1998, revenues for the total government and civil biometrics
applications market totaled $62 million. The factors that are predicted to continue the growth of this market are the success of early social services projects, electronic payments of benefits (EBT), growth of the government systems integration market, success of AFIS technology in law enforcement, advances in computing technology, adoption of smart cards, the increase in airport traffic and the increase in global population. There are market restraints that could affect the popularity of this market including lengthy and slow sales cycle, the amount of initial capital investment required, the incompatibility of competing vendors systems, public acceptance issues, database size requirements, the Asian economic crisis, legacy information systems and the cost of competing in the market. Among the most popular applications to which biometrics are being deployed are automated teller machines (ATMs), point-of-sale (POS), teller counter, home banking, Internet commerce, and access control. In 1998, revenues for the total financial biometrics applications market were $2 million. The total computer & network security biometrics applications market was $7 million. A few factors that are expected to drive growth in this market include Compaq's decision to offer a biometrics identification peripheral, growth of computer networks and an increase on Internet remote access. The opposing factors that may restrain this market include the lack of standards, the lack of security risk awareness education and competing security products.
The majority of competitors in the market are small start-up
organizations focusing on the research and development of a particular
technology. They seek partners to provide them with funding and to
distribute their technology. Because of extreme market fragmentation,
competition is currently relatively low. Opportunities abound in this
young industry. Competitors must raise public awareness for biometrics
as a viable security solution. High profile implementations should be
sought to project real world product performance. Overall, industry
standards should be developed to encourage end-user investment.
Frost & Sullivan presents Market Engineering Awards to the biometrics
industry to recognize companies that have worked hard to make a
positive contribution to the market.
The 1998 Market Engineering Leadership Award is given to Identix for
demonstrating world class leadership in the biometrics industry and for its strategy and actions taken in the marketplace.
The 1998 Market Engineering Product Line Strategy Award is given to
Recognition Systems, Incorporated for covering the customer base with a range and quality of product lines to best suit market and customer
needs.
The 1998 Market Engineering Product Quality Award goes to Digital
Persona, for demonstrating superior product quality and for creating a
reliable well- made product as well as fulfilling customer needs.
Frost & Sullivan is an international marketing, consulting and training company that monitors the industrial industry for market trends, market measurements and strategies. This ongoing research is utilized to update a series of online subscriptions such as the World Barcode Equipment Market Custom Subscription (www.frost.com/online) and to support industry participants with customized consulting needs.
Visit Frost & Sullivan's web site at: frost.com
Emerging World Biometrics Applications Markets
Report: 5806-11 Date: May, 1999 Price: $3,450
SOURCE Frost & Sullivan
(C) 1999 PR Newswire. All rights reserved.
prnewswire.com -0-
CONTACT: Kelly Lawson of Frost & Sullivan, 650-237-4329, or fax,
650-903-0915 fax, or klawson@frost.com
/Company News On-Call:
prnewswire.com or fax,
800-758-5804, ext. 573125
WEB PAGE: frost.com
GEOGRAPHY: California
INDUSTRY CODE: PUB
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