Introduction: Driven by multiple factors such as information security needs, public safety demands, and the standardization of biometric identification, the potential market space for biometrics is rapidly expanding. Fingerprint recognition products are currently the most convenient, reliable, and affordable biometric products, making them the preferred choice for attendance tracking in most small and medium-sized enterprises. Simultaneously, fingerprint recognition is gradually becoming a standard feature in portable devices.

 
      OFweek Electronic Engineering Network News: As early as the early 1980s, my country entered the field of biometrics. With mastery of its core technologies, the industry has developed relatively maturely. Statistics show that the global biometrics market will experience a compound annual growth rate of 35.2% over the next five years, reaching a market size of US$37 billion. According to our model calculations, the biometrics market, primarily driven by fingerprint recognition, facial recognition, and iris recognition, is expected to reach US$37.02 billion in 2018, with a compound annual growth rate of 35.2% from 2013 to 2018.
 
      Structurally, the driving force behind fingerprint and iris recognition is mainly the explosive growth of the smart terminal application market, while the driving force behind facial recognition is mainly the increasing demand from the public safety market. Facial recognition and iris recognition, due to their small initial user base but strong growth potential, are projected to increase their share of the overall biometrics market from 11.4% and 5.1% respectively in 2013 to 22.4% and 22.1% in 2018. In China, a populous country, the potential market for biometrics is rapidly expanding, driven by multiple factors including information security needs, public safety requirements, and the standardization of biometric identification.
 
  Fingerprint Recognition Has the Greatest Potential
 
  Fingerprint recognition, with its uniqueness and security advantages, slightly surpasses passwords and proximity cards. Fingerprint recognition products are currently the most convenient, reliable, and affordable biometric products, making them the preferred choice for attendance tracking in most small and medium-sized enterprises. Currently, fingerprint attendance products account for over 40% of the total sales of biometric products in the Chinese market, ranking first. This reflects the highest adoption rate of fingerprint recognition technology, and fingerprint recognition is gradually becoming a standard feature in portable devices.

      With the launch of Apple's fingerprint recognition system, major mobile phone manufacturers have also incorporated fingerprint recognition into their devices. Given the global smartphone market's annual growth rate, the potential is substantial. According to an IDC report, global smartphone shipments reached approximately 1.004 billion units in 2013 and are projected to exceed 1.8 billion units by 2017, representing a compound annual growth rate (CAGR) of 16%. Gartner predicts that global tablet shipments will reach 300 million units in 2014 and 400 million units in 2017, with a CAGR of 10%. Assuming the penetration rate of fingerprint recognition in smart terminals is 13%, 23%, 40%, and 50% respectively from 2014 to 2017, and the estimated profit for packaging and testing a single chip used to implement fingerprint recognition in mobile phones is 4/4/3/3 yuan respectively from 2014 to 2017, then the market profit for the entire fingerprint recognition chip packaging and testing segment will grow from 434 million yuan in 2013 to 3.332 billion yuan in 2017, representing a CAGR of 66%.
 
  IC manufacturers are vying for market share.
 
  Domestic and international chip suppliers are aggressively competing for orders. Following industry reports that international giant Synaptics has secured mobile phone chip orders from Samsung Electronics, a fierce battle for fingerprint recognition chip orders has recently erupted between IC design companies from both sides of the Taiwan Strait. Industry sources indicate that Chinese chip manufacturers Goodix and Silead have respectively secured orders for mobile phone chips from Meizu, Huawei, and ZTE. Taiwanese manufacturers, however, are still awaiting positive news regarding customer orders.
 
  Taiwanese fingerprint recognition chip manufacturers point out that since Apple launched the iPhone 5S with fingerprint recognition, Android phone brands have been actively seeking better fingerprint recognition chip solutions and developing related applications and apps. The upcoming new generation of iPads will also feature fingerprint recognition, further forcing Android phone brands to accelerate their efforts to incorporate fingerprint recognition into their Android products as soon as possible.
 
  Currently, both domestic and international chip suppliers are accelerating the development of fingerprint recognition products, with some even forming alliances to seize market opportunities. For example, Elan Microelectronics is collaborating with Starcom, and FocalTech has partnered with IDEX, a major fingerprint recognition manufacturer, to strengthen its fingerprint recognition chip solutions. Mass production is expected to begin in the first half of 2015 in cooperation with customers.
 
 
  Fingerprint recognition is poised to take root in the Internet of Things (IoT) market.
 
      Synaptics has long been a leading brand in the touchscreen market, and the company has been continuously exploring ways to improve its touch technology across various fields. Synaptics CEO Bergman stated that starting in the fourth quarter of 2014, more smartwatches using Synaptics touch ICs will be available, but the current percentage of touchscreen functionality in the company's product portfolio is unclear. In fact, Google Glass uses Synaptics' touch IC technology.
 
      However, compared to smartphones and tablets, the biggest challenge for watches is the small touch area, which limits the range and functionality available to them. Synaptics may develop 3D Touch technology (using gesture sensing) better suited for smartwatches, such as allowing users to activate specific functions by placing their fingers on certain areas of the watch's surface.
 
      Regarding the impending arrival of the Internet of Things (IoT), Bergman stated that the company has close partnerships with panel manufacturers including Chi Mei Optoelectronics (in fact, Asia has many important panel manufacturers, which is why Synaptics values the Asia market). Therefore, they confidently assert that most IoT product manufacturers will likely choose Synaptics' solutions from the same panel manufacturers they select.
 
  With many fingerprint recognition products already developed and manufactured, fingerprint recognition technology has begun to enter the civilian market, becoming the most representative core component of biometrics. It is believed that the widespread application of this technology is just around the corner.