Fingerprint Cards AB (publ) communicates view on long-term development of markets for biometrics and the company’s competitive position

Over 80 percent of all smartphones sold currently have some form of biometric sensor. The technology is generally accepted and appreciated by users throughout the world, who use their biometric data to unlock devices, make payments and gain access to apps. There is still growth potential in the mobile industry, in part by increasing the attach rate of biometric sensors for smartphones and in part through new product innovations. However, Fingerprints expects the growth in biometrics to primarily occur in new areas.

While the adoption of biometrics in areas outside of smartphones has been sporadic over the past few years, there are now clear indications that biometrics is on the verge of entering into several new consumer mass markets. Fingerprints would therefore like to communicate the company’s view on the long-term potential in key market segments, as well as our aspirations.

Market potential in 2026 and beyond

Mobile and PC
For capacitive fingerprint sensors for smartphones, we see a potential annual total addressable market (TAM) amounting to ~800 million units by 2026. Capacitive sensors are a long-proven technology in the mobile industry, due in large part to their reliability, performance, and cost effectiveness. Some of Fingerprints’ customers are in fact again favoring capacitive sensors over under-display sensors. Slim, side-mounted sensors and rear-mounted sensors are particularly popular. Fingerprints is currently the market leader in capacitive fingerprint sensors for smartphones, with a share of more than a third of the global market. Our aspiration is to, over time, increase our market share to ~40 percent. Our recently launched FPC1540 sensor is doing very well in the market, as it enables a range of the latest smartphone designs, including borderless and foldable phones. The FPC1540 can also enhance the user experience beyond offering a convenient and secure authentication method, doubling as the power button, volume control, operating the camera shutter and scrolling.

In parallel, we expect to see the market for under-display fingerprint sensors for smartphones to continue growing and then flatten out at an annual TAM amounting to ~600 million units in 2026. Our aspiration is to be a significant player in this segment with a market share up to 20 percent.

In the years ahead, we expect to see solid growth in the market for fingerprint touch sensors for PCs, including Chromebooks. We estimate the number of PCs shipped every year to remain at ~260 million units, and that approximately two-thirds of these devices, i.e. ~170 million units, will have a fingerprint touch sensor by 2026. Fingerprints’ aspiration is to lead this market with a share of up to ~40 percent. Products from Acer, Asus, Google, HP, Huawei, Microsoft, and Samsung have already been launched with our fingerprint sensors. Fingerprints’ partners among the traditional smartphone module houses are now also significant players in the PC market, and several of our smartphone customers are gaining market share in PCs. In August 2020, Fingerprints launched a new solution aimed at the PC market, comprising customized software and a range of Fingerprints’ touch sensors. We expect the first PCs integrating this new offering to be launched during 2020.