Standalone fingerprint sensors have peaked in smartphones, says IHS Markit: Page 2 of 2

January 17, 2018 //By Julien Happich
Standalone fingerprint sensors have peaked in smartphones, says IHS Markit
In his "Fingerprint Sensors Overview Report", IHS Markit's principal analyst for LEDs and lighting, Jamie Fox notes that the fingerprint sensors market is facing a major disruption following the introduction of Face ID, Apple's facial recognition system designed in the company's iPhone X.

While Synaptics and Fingerprint Cards dominated in the early years of the fingerprint sensor market, 2016 and 2017 have seen new competitors entering the market and gaining share.

Goodix is the largest of these companies, and it is challenging Fingerprint Cards for the lead position in the market in 2017. Silead has also won share in China in 2016 and 2017, while Egistec has gained design wins at Samsung. In 2018 there may also be newcomers to the market, such as InvenSense, which was acquired by TDK. Recent competition has driven commoditization in capacitive sensors, leading to lower packaged sensor prices, which fell under $2 in 2017.

Hence the market for fingerprint sensors in mobile phones is not forecast to grow as quickly as it did in 2015 and 2016. In fact, revenue and profits are actually forecast to decline through 2021. Fingerprint sensor makers are therefore looking for new markets, and they hope to see good growth in fingerprint sensor sales for smart cards starting in 2018. 
Other fingerprint sensor markets expected to grow in the future include automotive and door locks, which could turn out to be big long-term opportunities for the industry.

IHS Markit - www.ihsmarkit.com

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