Technological Advances and Growing Cyberthreats Boost Biometric Relevance
The global biometrics market is valued at over USD 40 billion and is poised for strong, sustained growth, driven by a set of transformative technology trends that are increasing its relevance across various sectors. The rise of AI is improving biometric accuracy and speed, enabling systems to identify individuals more precisely than ever before. However, AI also poses new security threats, such as deepfakes and synthetic identities, which biometric systems are increasingly designed to detect and counteract. The convergence of physical and digital spaces—through IoT, smart cities, and connected devices—positions biometrics as essential for secure, streamlined access across environments.
In response to the rise in cyberthreats, Zero Trust security has become a foundational approach to authentication, operating under the assumption that all users, devices, and applications could be compromised. This model requires continuous, per-user and per-device verification, strengthening security across networks and pushing for more resilient identity management solutions.
At the same time, user and device authentication remain overly dependent on passwords, despite their long-standing reputation as one of the weakest links in IT security. Biometrics can play an important role in the solution, either independently or as an integrated part of multi-factor authentication, providing a robust layer of protection against unauthorized access.
You are the key to everything
The phrase “You are the key to everything” perfectly captures the essence of biometrics and has inspired Fingerprints’ biometric solutions since the company’s inception. In recent years, the bulk of the company’s revenue has come from sales of fingerprint sensor modules and related algorithms and software, primarily to mobile phone and PC manufacturers, as well as to providers of access control solutions.
Over the past several years, the fingerprint sensor market for mobile phones has become increasingly commoditized, resulting in heightened price pressure and narrowing margins. In 2024, we saw the same trend emerge in PCs, where growing price pressures began to impact profitability. In response to these shifts, Fingerprints has decided to exit both segments to focus on areas with stronger growth potential, greater differentiation and higher margins.
Around 80 percent of the revenue in biometric devices and sensors is currently generated outside consumer electronics, in the government & security, enterprise & industrial, healthcare, and financial sectors, as well as in the biometric lock industry. Furthermore, it is in these markets that we expect to see most of the market growth in the coming years. Fingerprint recognition stands as the dominant biometric modality in terms of revenue, and we expect it to increase further in importance. At the same time, we foresee continued growth in both iris- and face recognition as contactless biometrics are seeing widespread adoption due to heightened hygiene concerns and the demand for convenience.
Our fingerprint and iris recognition technology are world-class, and we will continue to develop solutions based on these biometric modalities. A recent example is our fourth-generation iris recognition software, launched towards the end of 2024. This "just glance" technology offers secure, touchless authentication with exceptional versatility, performing reliably even with accessories like glasses and masks. It supports privacy-sensitive sectors, including automotive and access control, and is well-suited for Zero Trust security frameworks, where it mitigates deepfake risks and enhances system-level security.
Strategic focus on high-growth markets: Digital Identity and Cybersecurity
Our transformation enables us to focus on markets with stronger growth dynamics and higher margins — including secure enterprise access and digital identity platforms. We are reallocating resources to these segments to deliver long-term shareholder value and scalable growth. Our investment plans include partnerships and technological advancements that strengthen our identity solutions, with a particular focus on sectors requiring advanced authentication, such as enterprise security, both in edge modalities and in the cloud.
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