Automated Fingerprint Identification System (AFIS) Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Service), By End Use, By Region, And Segment Forecasts, 2024 - 2030

Report Overview

The global automated fingerprint identification system (AFIS) market size was valued at USD 8.14 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 19.1% from 2024 to 2030. Rising security concerns globally have driven a strong demand for robust identification and verification systems, including automated fingerprint identification systems. AFIS is a set of electronic components that utilizes computer systems to capture, store, and analyze a person's biometric information. The database is then checked to authenticate and authorize the identities of individuals. AFIS technology offers a fast, reliable, and tamper-proof method for identifying individuals, making it an appealing option for governments and law enforcement agencies.

The growing demand for secure financial transactions, particularly in online and mobile banking, is another major factor propelling the adoption of AFIS. For instance, an ATM can be equipped with this technology for cash withdrawal instead of debit cards, requiring just a PIN to withdraw money irrespective of a person having it. Fingerprint verification provides an additional layer of security compared to traditional passwords, reducing the risk of fraud. Advancements in AFIS technology, such as improved speed and enhanced accuracy, have made it an efficient and cost-effective identification tool, leading to its faster adoption rate. A majority of governments across the globe are implementing national identity schemes and biometric databases. AFIS plays a crucial role in ensuring the success of these initiatives by enabling faster and more efficient identification and verification of citizens.

Additionally, growing concerns over illegal migration, terrorist activities, and crime rates have compelled government investments in border security and law enforcement. AFIS enables faster and verifiable identification of criminals from its vast data repository and requires minimum expertise, which has aided in driving market growth in recent years. For instance, in Bengaluru, India, the local police force has implemented the Mobile Crime and Criminal Tracking Network System (MCCTNS) since September 2022. This system uses a fingerprint scanner linked to a criminal database, with individual scans displaying whether a person has any criminal records. As of May 2024, around 1.7 million people had been scanned using this technology, with close to 15,000 individuals found with criminal backgrounds. This highlights the efficiency and need for such solutions to enable preventive policing, aiding industry growth.

Component Insights

The hardware segment accounted for a leading revenue share of 44.9% in the global market in 2023. Hardware components such as fingerprint scanners, cameras, and computer systems form the main functionality of AFIS. These components capture, store, and analyze fingerprint data, making them a core aspect of system operations. The initial deployment of an AFIS solution necessitates a significant investment in these hardware components. Continuous innovations in hardware technology have compelled organizations to upgrade their systems, leading to segment growth. The emergence of an automated biometric identification system (ABIS) is expected to improve the efficiency of authorities in identification processes through the implementation and use of a more advanced database, which is expected to propel market demand.

The service segment is expected to register the fastest growth rate during the forecast period. AFIS systems are becoming increasingly sophisticated, incorporating advanced algorithms and leveraging artificial intelligence (AI) for enhanced accuracy. This level of complexity has highlighted the importance of specialized services to ensure seamless integration with existing security infrastructure and timely maintenance for optimum functioning of the system. Increasing awareness regarding the benefits of AFIS has created a substantial demand from underdeveloped and emerging economies for this technology for law enforcement and public service purposes, which has created a corresponding need for installation and periodic maintenance services.

End Use Insights

The banking & finance sector held the largest market share in 2023. These institutions handle sensitive customer data and deal with substantial amounts of money. As a result, a robust security system has become an essential component of their daily operations. There is a constant risk of security breaches potentially costing these institutions substantial monetary and reputational losses. AFIS technology is a secure and reliable technique for user authentication, which significantly reduces the risk of unauthorized access and fraudulent transactions. These factors have resulted in extensive investments from the banking and finance sector for such automated systems.

Meanwhile, the government sector is expected to expand at the fastest CAGR during the forecast period in the AFIS market. Government agencies are constantly seeking ways to improve public safety and national security through the deployment of advanced solutions. AFIS offers a faster and more reliable method for criminal identification, border control, and access control to government facilities. Additionally, governments are prioritizing initiatives to digitize their operations and modernize their citizen identity infrastructure, which requires the presence of a substantial number of identification systems. These tools also find extensive applications in situations such as natural disasters, as they can easily identify victims and missing persons by scanning through their database, thus accelerating government efforts for rehabilitation and support.

Regional Insights

North America accounted for the largest revenue share of 37.4% in the global market in 2023. A well-developed technological infrastructure in the region has encouraged significant advances in the research, development, and deployment of cutting-edge AFIS solutions. This focus on innovation has ensured that North American companies remain competitive in the global market. Moreover, governments and businesses in the region prioritize the deployment of robust security measures. This translates to a strong demand for AFIS solutions across various sectors, including government agencies, financial institutions, and private enterprises.

U.S. Automated Fingerprint Identification System (AFIS) Market Trends

In the U.S., law enforcement agencies have been at the forefront of deploying AFIS technology. For instance, the Federal Bureau of Investigation (FBI) has stored fingerprint information of citizens in the country since 1924 and was among the first institutions to use AFIS. The Integrated Automated Fingerprint Identification System (IAFIS) has been maintained by the FBI’s Criminal Justice Information Services Divisionsince 1999. This system offers automated fingerprint search features, electronic image storage, latent search capabilities, and electronic exchange of fingerprints. The agency has utilized these systems for criminal investigations, background checks, and border control, with constant technological advancements further aiding them in their operations.

Europe Automated Fingerprint Identification System (AFIS) Market Trends

The European region accounted for a notable market share in 2023. Governments in regional economies such as France, Germany, Italy, and Spain have shown rising concerns over the entry of illegal and uncontrolled immigrants across their borders and thus have increased their investments in tightening their security, particularly in the wake of terrorist threats and immigration concerns. As a result, the AFIS technology is being widely utilized by agencies across these countries, as it is an efficient method for verifying identities at borders and within national territories.

Issues such as uncontrolled immigration and rising crime rates have compelled the UK government to opt for AFIS to upgrade the economy’s security infrastructure. Additionally, the UK border force is implementing advanced techniques for the identification of travelers at public places such as railway stations and airport premises. Commercial organizations in the country are also switching to biometric-based access systems, with the banking and finance sector having already established a strong AFIS infrastructure. Changing technology in AFIS requires continuous software and system upgrades. This combination of demand and supply has led to the growth of this market in the country.

Asia Pacific Automated Fingerprint Identification System (AFIS) Market Trends

The Asia Pacific segment is expected to register the fastest CAGR during the forecast period. The fast pace of economic growth and rising disposable income levels in Asia Pacific have driven demand for enhanced security measures across various sectors, including banking, immigration control, and access control. Governments in the region have implemented policies that encourage the use of biometric identification systems, including fingerprints. These policies incentivize the development and deployment of AFIS solutions, creating significant opportunities for AFIS providers to launch their products.

India Automated Fingerprint Identification System (AFIS) Market Trends

In India, the rapid growth in technological adoption and the need to maintain a unique identity for every individual to prevent fraudulent activities has created a significant demand for biometric identification tools. The Indian government implemented the ‘Aadhaar’ scheme, considered the largest biometric ID system in the world, in 2009, which gives each citizen a unique 12-digit identity number. The fingerprint and iris data are stored in government servers, which are then utilized for implementation and identification of beneficiaries for various government welfare schemes. This augmentation of public data on a single platform has led to streamlining of operations. Additionally, several thousand new registrations take place every year, fueling a constant demand for upgraded AFIS.

Key Companies & Market Share Insights

Some key companies involved in the automated fingerprint identification system (AFIS) market include NEC Corporation, HID Global Corporation, and Fujitsu.

• NEC Corporation is a Japanese multinational IT and electronics company that offers solutions and services in AI, cloud, network solutions, smart cities, digital signage, and biometric authentication, among other areas. In the biometric authentication space, the company’s Bio-IDiom brand offers six types of biometric authentication, including facial recognition, iris recognition, fingerprint and palmprint recognition, finger vein recognition, voice recognition, and ear acoustic authentication. The company’s face and fingerprint recognition technologies have served over 70 regions and countries through the implementation of more than 1,000 systems.

• HID Global Corporation is an American secure identity solutions manufacturing company operating as an independent subsidiary of the Swedish security firm Assa Abloy. The company offers biometric authentication solutions in facial, fingerprint, palm print, and iris recognition. The product range for fingerprint scanners includes HID Lumidigm multispectral imaging fingerprint readers and HID DigitalPersona optical readers. HID also offers capacitive fingerprint readers under the EikonTouch name and a thin-film transistor (TFT) technology-based NOMAD reader and module. These products are designed as per the Secure Software Development Lifecycle (SSDL) methodology, which ensures a seamless integration of the solution into the existing infrastructure of customers.

Recent Developments

• In July 2024, SoftBank Corp. entered into a strategic partnership with NEC Corporation for the integration of the latter’s Bio-IDiom biometric authentication technology into its security services and communication networks. This integration will enable the company to implement robust security measures that would cater to the customized requirements of different use cases and industries.

• In May 2024, IDEMIA Public Security North America announced the implementation of its STORM ABIS Automated Biometric Identification System by the latent print division of Volusia Sheriff’s Office in Florida. This is a cloud-based system, which will enable the police to remotely identify, analyze, compare, and document fingerprints via advanced algorithms.

Automated Fingerprint Identification System (AFIS) Market Report Scope

Global Automated Fingerprint Identification System (AFIS) Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the automated fingerprint identification system (AFIS) market report based on component, end use, and region.

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Hardware

  • Software

  • Service

• End Use Outlook (Revenue, USD Million, 2018 - 2030)

  • Banking & Finance

  • Consumer Electronics

  • Defense & Security

  • Government

  • Healthcare

  • Transport/Logistics

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • Japan

    • India

    • China

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE