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Research of the Russian market of biometric technologies, 2018-2022

February 2019

Analytical Report (full version)

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Analytical Report (full version)

Research of the Russian market of biometric technologies, 2018-2022
Research of the Russian market of biometric technologies, 2018-2022
February 2019

Research of the Russian market of biometric technologies, 2018-2022

February 2019

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J'son & Partners Consulting has completed the preparation of a study of the Russian market of biometric technologies in the period between 2018 and 2022. For the first time in history, we have got a detailed analysis of the Russian biometric market specifics and key trends (in terms of technologies and consumption sectors as well), calculation of the volume and structure of the Russian market of biometric technologies (including forecasts to 2022). It is a deep analysis of potential and perspective scenarios of biometric technologies application in Russia.

 

As part of the project the following interviews were done:

 

- 15 interviews with key vendors and suppliers of biometric technologies / equipment (including, 3DiVi, HBS, Idemia, ITV / Axxonsoft, NEC Neva, Sonda Technology, SWIP, Tevian, Vocord, AAM systems, Vzor technology, ProSoft Biometrics, Rostelecom, Technoserv, GC STC);

 

- 26 interviews with customers (Sheremetyevo airport, S7, Gazovik stadium (Orenburg FC), Alfa-Bank, Bank OTKRITIE, BinBank, Post Bank, Promsvyazbank, Tinkoff, SWiP, Renaissance Insurance, Azbuka Vkusa, Messenger / Euroset, X5 Retail Group, DoDo Pizza, the house, Papa John's, Amaks Hotel & Resort, GOST Hotel Management, University of synergy, SkyEng, Ministry of education of the Russian Federation, Medicine clinic, “Doctor at work”, MTS innovation center, Rosatom).

 

Main trends of the Russian market of biometric systems

 

The Russian market of biometric technologies for the last 4 years showed an active growth at the level of 35.74% (CAGR). According to J'son & Partners Consulting, by the end of 2022 the market will grow 2.5 times compared to 2018. The projected annual growth rate of biometric technologies in Russia in the next 4 years will be 1.6 times higher than the global figures and will be 25.62%.

 

The Russian biometric market structure differs significantly from its global structure. While Fingerprint technologies continue to occupy a dominant share in the global space, there is an active penetration of Facial Recognition technology in Russia. Over the past 3 years, facial recognition technologies have increased their share in the total volume of the Russian biometric market to almost 50%, demonstrating a significant CAGR (106.7%) in the period 2015-2018.

 

The key factors causing facial biometrics growth in Russia are the following: a technological breakthrough in the field of machine learning naturally ensured the diffusion of Facial Recognition in the still unsaturated Russian market, the emergence of Russian startups with the world's best algorithms for face identification caused a high interest to this segment from large investors, as a result — the Facial Recognition technology in Russia receives significant support from the state (including at the level of legislation). In the next 4 years, the growth rate of facial recognition technology in Russia will be 1.7 times higher than in the world.

 

Vein Recognition in Russia is also a fast-growing and promising segment. High reliability, resistance to attacks and unstable conditions of the environment give the technology advantages over Fingerprint and in some cases over Facial Recognition. An additional advantage of the vein pattern identification technology is the optimal combination of quality and cost characteristics.

 

Over the past 4 years, the Russian market of Vein Recognition showed 46.08% CAGR (4.6 times higher than  Fingerprint). The share of the Vein Recognition segment in the total volume of the Russian biometric market is 4 times higher than that in the world.

 

Fingerprint in Russia continues to dominate only in the segment of ACS (mainly due to the lower cost), as well as in the field of criminology. In the total volume of the Russian biometric market the share of fingerprints has reduced — over the past 4 years more than 2 times. The growth of Voice Recognition in Russia is constrained by both limited functionality of application (call-centers) and technological imperfection of modality. Due to the high cost, Iris Recognition technologies will continue to be a very niche product — the key target market for this technology will focus on border controls and facilities with high-security requirements. The share of this modality in the Russian market by 2022 will be no more than 1.2% (for comparison in the world this figure is projected at 13.5%).

 

The key trend of the Russian market of biometric technologies is the transition from intra-corporate use of biometrics to the active development of use-cases related to customer services. This trend can be observed in almost all consumer segments: in transport (from video surveillance systems and biometric ACS to self-boarding systems); in sports facilities (from video analytics systems to biometrics integrated with ticket offices), and "paperless" technologies; in the banking sector (from physical access control and the access to corporate information systems for remote identification of customers in retail and HoReCa — to the accounting systems of working time of employees for biometric payment systems, personalized services, check-in biometric systems and use of biometric identifiers as an effective tool in advertising and marketing.

 

In this aspect, the key driver of the Russian market of biometric technologies is the platform of remote biometric identification, which creates a safe environment for market scaling through the integration of a variety of client scenarios on a national scale.

 

Fintech is the No. 1 segment in which the Russian biometrics market will develop in the next 4-5 years. According to estimates done by J'son & Partners Consulting, the market of banking biometrics in the period between 2018-2022 will show the highest growth rates (54% CAGR) compared to other industry segments and by the end of the forecast period will increase its share in the total volume of the Russian biometric market more than 2 times.

 

The total current share of Retail and HoReCa in the total volume of Russia’s biometric market is estimated at 28%. These segments are projected to grow at an annual rate of 12-16% over the next 3-5 years.

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This information note was prepared by the J'son & Partners Consulting. We work hard to provide factual and prognostic data that fully reflect the situation and available at the time of release. J'son & Partners Consulting reserves the right to revise the data after publication of new official information by individual players. 

 

Copyright © 2018, J'son & Partners Consulting. The media can use the text, graphics, and data contained in this market review only using a link to the source of information - J'son & Partners Consulting or with an active link to the JSON.TV portal

 

™ J'son & Partners [registered trademark] 

 

 

Detailed results of the study are presented in the full report:

 

"Research of the Russian market of biometric technologies, 2018-2022”

 

Contents (327 pages)

1. Introduction: aims, objectives, methodology

1.1. Aims and objectives of the study

1.2. Research methodology

2. Key findings: roadmap and general forecasts for the Russian market of biometric technologies

3. "Technology competition": technological analysis and comparison of key modalities

3.1. General description of the technology analysis methodology, terms and definitions

3.1.1. Sources and methodology

3.1.2. Terms and definitions used

3.2. Analysis of the studies devoted to NIST, FVC and IBG: FNIR / FPIR, FMR / FNMR, the average time of formation of the pattern, the average time of comparison, the average time of verification / identification

3.2.1. Fingerprint

3.2.2. Face

3.2.3. Iris

3.2.4. Palm/Finger Vein

3.3. Comparison of biometric modalities on vulnerability to forgery and support of liveness technology

3.4. General comparison of biometric modalities by a number of parameters: reliability, speed, cost, necessary equipment, template size, dependence on external factors, resistance to forgery, applicability to remote identification systems, convenience and availability of use, etc.

4. Analysis of competition in the Russian market of biometric technologies

4.1. General description of the Russian biometric market ecosystem

4.2. Key players in the Russian market of biometric technologies

4.2.1. 3DiVi

4.2.2. BioLink Solutions

4.2.3. Fujitsu

4.2.4. HBS

4.2.5. IDEMIA

4.2.6. ITV / Axxonsoft

4.2.7. N-Tech lab

4.2.8. Tevian

4.2.9. Visionlabs

4.2.10. AAM systems

4.2.11. Armo systems

4.2.12. VOCORD

4.2.13. Vzor Technology

4.2.14. GC Technoserv

4.2.15. Papilon

4.2.16. ProSoft-Biometrics

4.2.17. SATRO Paladin

4.2.18. Sonda Technology

4.2.19. GC STC

4.3. Price analysis of biometric equipment in the Russian market

5. Volume and structure of the Russian biometric market

5.1. Volume and structure of the Russian biometric market in 2013-2018

5.1.1. Russian manufacturers of biometric equipment and companies producing equipment under their own brand abroad: technologies, strategies and production volumes

5.1.2. Volume and dynamics of biometric equipment imports in the Russian Federation, 2013-2017 (in physical and monetary terms), key factors of influence

5.1.3. Structure of biometric equipment imports in the Russian Federation in the context of technologies / modalities 2013-2017 (Fingerprint, Vein, Face, Iris, Hand Geometry)

5.1.4. Structure of biometric equipment imports in the Russian Federation in terms of regions and brands 2013-2017

5.2. Volume and structure of the Russian market of biometric PACS 2014-2022

5.2.1. Dynamics of the Russian market of biometric PACS and their share in the total market of access control systems in 2014-2022

5.2.2. Structure of the Russian market of biometric access control systems in the context of modalities (Fingerprint, Face, Vein, Iris, Hand Geometry) in 2014-2022

5.2.3. Key trends determining demand dynamics in the Russian market of biometric PACS in 2018-2022

5.3. Volume and structure of the Russian video surveillance market / video analytics market, and Facial Recognition market in 2014-2022

5.3.1. Volume of the Russian market of video surveillance software / video analytics market and dynamics of facial recognition share in the total market of video analytics in 2014-2022

5.3.2. Dynamics of the Russian Facial Recognition market in 2014-2022

5.3.3. Structure of the Russian Facial Recognition market: sports facilities, transport, urban video surveillance systems, retail, PACS, remote biometric identification (fintech) in 2014-2022

5.4. Volume, structure, key barriers and prospects of the Russian Voice Recognition market in 2014-2022

5.5. Dynamics of volume and structure of the Russian biometric technology market in 2014-2022

5.5.1. Volume of the Russian biometric technology market in 2014-2022

5.5.2. Structure of the Russian biometric technology market in terms of modalities (Fingerprint, Face, Vein, Iris, Hand Geometry, Voice) in 2014-2022

5.5.3. Branch structure of the  Russian biometric technology market (Criminalistics, Transport and public security systems, Sports facilities, Banks, Retail, HoReCa, Education, health Care, Industrial facilities, Administrative facilities) in 2014-2022

6. Key consumer segments and demand analysis: application scenarios (current penetration and prospects), technology potential, consumer characteristics, examples of real integrations in Russia, benchmark with the global trends

6.1. Biometric documents

6.2. Criminalistics

6.2.1. Intelligent video surveillance systems, “safe city”

6.2.2. AFIS and operational identification

6.3. Border and migration control

6.4. Transport

6.4.1. Airports, train stations, etc.

6.4.2. Public transport

6.5. Sports facility

6.6. Banking sector

6.6.1. Enterprise environment and physical access

6.6.2. Biometric technologies in customer services

6.6.3. Biometric payment systems

6.6.4. Remote biometric identification

6.7. Insurance

6.8. Retail

6.9. Catering

6.10. Hotel business

6.11. Education

6.12. Healthcare

 

List of pictures

Picture 1. Number and growth rate of equipment imported in Russia in 2013-2017

Picture 2 Dynamics of biometric equipment imports growth rates in RUR and USD with comparison of the exchange rate changes in 2014-2017    

Picture 3 Biometric identification is one of the key technological trends of the Russian PACS market          

Picture 4 Structure of the Russian market of security systems: the share of biometric access control systems and traditional card PACS in 2014-2022, % (in monetary terms)       

Picture 5 Dynamics of the Russian market of biometric PACS in 2014-2022, million RUR    

Picture 6 Volume of the Russian market for video surveillance systems and dynamics of the share of the facial recognition segment in 2014-2022  

Picture 7 Volume of the Russian market of Facial Recognition (excluding equipment) in 2014-2022, million RUR     

Picture 8 Dynamics of the Russian market of Voice Recognition, million RUR, 2014-2022   

Picture 9 Dynamics of the Russian market of biometric technologies, million RUR, 2014-2022        

Picture 10 Global market of eID: number of issued ID cards and the market volume

Picture 11 Volume of the world market of biometric technologies in automated airport systems, million USD          

Picture 12 Volume of the world market of biometric technologies and dynamics of the BFSI segment, billion USD

 

List of tables

Table 1 Map of potential applications for Vein Recognition on the Russian market in 2018-2022

Table 2 FpVTE 2012 (NIST) test results, distribution of the participants according to FNIR

Table 3 FpVTE 2012 (NIST) test results, distribution of the participants according to "template formation time" and "recognition time”

Table 4 FVC-ongoing test results, distribution of the participants according to FNMR, "template formation time" and "comparison time”

Table 5 FRVT 2018 (NIST) test results, distribution of the participants according to FNMR indicator (companies with the best results)

Table 6 FRVT 2018 (NIST) test results, distribution of the participants according to "template formation time" and "comparison time”

Table 7 FRPC 2017 (NIST) test results in the "Verification" section, distribution of the participants according to FNMR, "template formation time" and "comparison time”

Table 8 FRPC 2017 (NIST) test results in the "Identification" section, distribution of the participants according to FNIR indicators, "template formation time" and "identification time”

Table 9 IREX IX 2018 (NIST) test results in the "Verification" section, distribution of the participants according to FNMR, "template formation time" and "comparison time”

Table 10 IREX IX 2018 (NIST) test results in the "Identification" section, distribution of the participants according to FNIR and “identification time”

Table 11 IBG 2006 test results for Fujitsu algorithm (hand veins), FMR and FNMR

Table 12 IBG 2006 test results for Hitachi algorithm (finger veins), FMR and FNMR

Table 13 ICFVR test results 2017 (Vienna fingers) — performance of the FMR and FNMR, "Average comparison time»

Table 14 Comparison of biometric technologies (Fingerprint, Face, Iris, Vein) in terms of errors of the 1st and 2nd kind, the average time of template formation, the average time of comparison, the average time of recognition

Table 15 Methods to detect attacks in biometriya

Table 16 implementation of Vitality Detection in different biometric technologies (types of attacks and techniques used for detection and prevention)

Table 17 Comparison of biometric technologies for resistance to counterfeiting and attacks

Table 18 Advantages and disadvantages of biometric technologies: Fingerprint, Face, Vein, Iris, Voice

Table 19 Comparison of biometric technologies (Fingerprint, Face, Vein, Iris, Voice) by a set of qualitative and quantitative parameters

Table 20 Key players in the Russian biometric market and estimated revenue

Table 21 Average prices for biometric equipment presented on the Russian market in terms of brands and models, 2018

Table 22 Russian manufacturers of equipment and companies providing equipment under their own brands

Table 23 Structure of imports of equipment in the context of the modalities / technologies (in real terms) 2013-2017

Table 24 Structure of import of biometric equipment by regions (in real terms) 2013-2017

Table 25 Structure of imports of biometric equipment by manufacturers / brands (in real terms) 2013-2017

Table 26 Comparison of the Russian and world market of biometric access control systems in 2014-2022: PACS market size (million USD) biometric PACS market volume (million USD) CAGR 2014-2018 and 2018-2022 (%) penetration rate of biometric technologies on the market of ACS (%), the share of Russia in total volume of the world market for PACS (%), the share of Russia in the world market of biometric access control

Table 27 Structure of the Russian market of biometric PACS in terms of technologies / modalities (Fingerprint, Vein, Face, Iris, Hand Geometry) in value terms 2014-2022

Table 28 structure of the Russian market Facial Recognition by industry 2014-2022

Table 29 Dynamics of the Russian and world market of biometric technologies (billion USD), the share of Russia in the global market (%) 2014-2022

Table 30 Dynamics of the Russian market of biometric technologies in terms of modalities (Fingerprint, Vein, Face, Iris, Voice, Hand Geometry): million RUR and growth rates (%), 2014-2022

Table 31 Dynamics of the Russian biometric market structure in terms of modalities (share of Fingerprint, Vein, Face, Iris, Voice, Hand Geometry in the total market), % 2014-2022

Table 32 Comparison of the Russian and world biometric market structures in the terms of modalities (Fingerprint, Face, Vien, Iris, Voice) 2014-2022: market volume USD million, CAGR 2014-2018 and 2018-2022 (%), share in the total volume of the biometric market

Table 33 Volume of the Russian market of biometric technologies by sectors (million RUR), 2014-2022

Table 34 Sectoral structure of the Russian market of biometric technologies (%), 2014-2022

Table 35 Ranking of biometric technology application scenarios in the “Airports” segment, influencing factors, KPI efficiency and the most promising technologies

Table 36 Ranking of biometric technology application scenarios in the "(railway, bus, etc.) stations" segment , influencing factors, KPI efficiency and the most promising technologies

Table 37 Ranking of biometric technology application scenarios in the "Public transport" segment, influencing factors, KPI efficiency and the most promising technologies

Table 38 Ranking of biometric technology application scenarios in the "Sports facilities" segment, influencing factors, KPI efficiency and the most promising technologies

Table 39 Ranking of biometric technology application scenarios in the "Banking" segment, influencing factors, KPI efficiency and the most promising technologies

Table 40 Ranking of biometric technology application scenarios in the “Insurance” segment, influencing factors, KPI efficiency and the most promising technologies

Table 41 Ranking of biometric technology application scenarios in the “Retail” segment, influencing factors, KPI efficiency and the most promising technologies

Table 42 Ranking of biometric technology application scenarios in the "Public catering" segment, influencing factors, KPI efficiency and the most promising technologies

Table 43 Ranking of biometric technology application scenarios in the "Hotel" segment, influencing factors, KPI efficiency and the most promising technologies

Table 44 Ranking of biometric technology application scenarios in the “Education” segment, influencing factors, KPI efficiency and the most promising technologies

Table 45 Ranking of biometric technology application scenarios in the “Healthcare” segment, influencing factors, KPI efficiency and the most promising technologies