Frost: Biometrics Ushering in Next Age of Asia-Pacific Security

June 5, 2008 // Published as a news service by IHS

According to Frost & Sullivan, market participants have realized the need for proper standardization, which will allow biometrics products to be interoperable with other security systems.

Recent analysis from Frost & Sullivan of the biometrics markets in Asia-Pacific, found earned revenues of $126.3 million in 2007, with estimates to reach $1643.1 million in 2012.

National ID projects and e-Passport programs are providing the biggest potential for biometrics in Asia-Pacific today, analysts said. With the cost of biometric readers declining, biometric border control security is being implemented in many countries across Asia.

Various countries have shown keen interest in both national ID projects for citizen identification and the e-Passport program, wherein fingerprint and facial biometrics are integrated with the smart card.

With the e-Passport program implementation coming to an end by 2008, analysts said new issuance of passports by the countries under the U.S. VISA Waiver program will significantly add to the growth in unit shipment.

"The national ID of Malaysia is already equipped with a thumbprint template and the Indian national ID will also be equipped with a fingerprint template," said Frost & Sullivan senior research analyst Navin Rajendra.

"While India has already begun assembling a database of its citizens, countries such as Japan, China and Indonesia are expected to take to biometrics shortly."

While National ID and e-Passport are expected to be the mainstay applications of the biometrics market, analysts said fingerprint identification will continue to be the dominant mode of biometric identification in most markets. However, there will be more coverage and wider use of other biometric methods as well, even for individual applications.

"This is partly because certain biometric methods, such as fingerprint identification, are often associated with criminal detection," said Rajendra. "As a result, markets such as Japan and South Korea are averse to the use of fingerprint biometrics and are increasingly adopting non-intrusive methods of user identification in spite of their higher costs."

Analysts said there is immense opportunity for smart cards in the untapped markets of Asia. The early signs of acceptance of the new technology are encouraging for smart card participants. System integrators have realized the need for proper planning and coordination in order to increase the market revenues.

Still, the high cost of implementing the biometric system has been a restraint globally, analysts said, and the same is likely to be the case in the Asia-Pacific region. End-users looking at a security system are often weary of the high cost involved and tend to wait until there is a reduction in prices.

"This apart, the prolonged cycle time for the implementation of a biometric project is a significant restraint, especially when organizations are looking at a quick and seamless implementation," said Rajendra. "Depending on the size of the project, the cycle time can vary anywhere from six to 18 months."

The Asia-Pacific market is seeing a lot of convergence of technologies and applications. Analysts said it is absolutely essential for market participants to bring about interoperability and standardization in this era of convergence. Through mutual and proper cooperation between system integrators, biometric systems can be seamlessly integrated with other security systems with reduced downtime.

The expansion and large-scale implementation of a number of biometric projects will compel manufacturers to focus on standardization. Once this technology becomes ubiquitous, analysts said users will become more comfortable with the biometrics system.

Source: Frost & Sullivan.