MRR 2 (Historic)

presents

The Transformation of the Iris Recognition Market

2007 – 2020

april 11, 2007washington DCiPira biometric series

c. maxine mostacuity market [email protected]

ii--PiraPira

Markets Identification Solutions, Biometrics, Authentication

Services Market Analysis & Strategic PlanningOpportunity Assessment & AnalysisTechnology Adoption & Deployment Evaluations

Acuity Market Intelligence is an emerging technology strategy and research consultancy with a proven record of accurately anticipating biometric and associated identification solutions market trends.

©Acuity Market Intelligence April 2002

Technology Adoption & Deployment Evaluations

Clients Vendors, Solution Providers, Integrators, Investors, End Users

IBM

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Context

“Over the next 10 years the infrastructure to enable mainstream, ubiquitous biometric authentication will be developed. Biometrics will be a critical embedded component of the digital world, as it becomes a key enabler of trusted transaction control – data access and flow - for both personal and commercial use. This secure transaction capability will

How Will the Iris Recognition Market Evolve Through 2020?


ultimately define the genuine opportunity for revenue associated with deployment of biometric technologies. The technology itself will, in many respects, become inconsequential as the applications it delvers become essential components of 21st century life. “

“The Future of Biometrics”, Acuity Market Intelligence, April 2007

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Today’s Discussion

Market Growth Industry ForecastsIris Recognition Forecasts

Market Evolution Solutions Adoption Meta Driver Demand Curves

Iris Transformation Drivers Mass Public Deployment


Iris Transformation Drivers Mass Public Deployment Biometric Modality Evolution

Iris Market Snapshot Today and 2020

Iris Evolution Market Transformation Timeline

Keys to Iris Evolution Transformation Components

Perspective Driving the Future

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Market GrowthBiometrics Industry Forecast

Biometric Industry Revenues ( $m USD) 2007 - 2015

7 5628,334

9,259$9,000

$10,000$11,000


1,4502,113

3,0063,842

5,5816,531

7,562

$0$1,000$2,000$3,000$4,000$5,000$6,000$7,000$8,000

2007 2008 2009 2010 2011 2012 2013 2014 2015Copyright ©Acuity Market Intelligence 2007

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Market GrowthComparative Adoption Rates

50%60%70%

ATM3


0%10%20%30%40%

1975197719791981198319851987198919911993199519971999

MobilePC3

Internet1

ATM

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Market GrowthBiometrics Industry Forecast by Region

Worldwide Market Share 2007

North America

38%Central &

South America

Asia Pacific17%


America3%

Europe, Middle East

& Africa42%

Worldwide Market Share 2015

North America

26%

Central & South

America11%

Asia Pacific34%

Europe, Middle East &

Africa29%

Copyright ©Acuity Market Intelligence 2007


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Market GrowthBiometrics Industry Value Chain Forecast

$30,000

$35,000

$40,000Core TechnologyTechnology SolutionsApplication Point SolutionsIdentification Solutions

Value Chain SizingCore Technology represents a percentage of the overall revenues from biometrically

enabled identification solutions.


$0

$5,000

$10,000

$15,000

$20,000

$25,000

2007 2008 2009 2010 2011 2012 2013 2014 2015Copyright ©Acuity Market Intelligence 2007

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Market GrowthIris Recognition Forecast

Iris Recognition Annual Revenue2007 - 2015

$1,481$1,600

$1,800


$102 $169 $241$384

$670

$980

$1,210$1,334

$0$200

$400

$600$800

$1,000$1,200

$1,400

2007 2008 2009 2010 2011 2012 2013 2014 2015

US

D M

illion

s


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Market GrowthIris Recognition Forecast Share of Market

Global Market by Technology2007

Vein3%Iris

7%

Voice5%

Signature1% Other

1%AFIS/Livescan

33%

Global Market by Technology2015


Fingerprint25%

Face18%

Hand 7%


Other4%Signature

10%

Voice13%

Iris16%

Vein10%

Face15%

Hand 1%

Fingerprint15%

AFIS/Livescan16%


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Market GrowthIris Recognition Solutions Forecast

Iris Recognition Solutions Revenue2007 - 2015

$7,193$7,928

$8,807

$7,000$8,000$9,000

$10,000


$604$1,005

$1,430

$2,284

$3,982

$5,824

$0$1,000$2,000$3,000$4,000$5,000$6,000

2007 2008 2009 2010 2011 2012 2013 2014 2015

US

D M

illion

s


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Main StreetTechnology vs. Technology vs. Technology vs. Technology vs. Solution Life CyclesSolution Life CyclesSolution Life CyclesSolution Life Cycles SolutionSolutionSolutionSolutionSolutionSolutionSolutionSolution

Market Evolution

TodayTodayTodayTodayTodayTodayTodayToday

Solutions Adoption


Early Markets

©Chasm Group

Late Market

TechnologyTechnologyTechnologyTechnologyTechnologyTechnologyTechnologyTechnologyEarly MarketsEarly Markets Main StreetMain Street Late MarketLate Market

ChasmChasm

©Acuity Market Intelligence©Acuity Market Intelligence©Acuity Market Intelligence©Acuity Market Intelligence

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Market EvolutionMeta Driver Demand Curves

Public Sector Market EvolutionIntegrated eBorders eID eGovernment passports, visas, border control National IDs, ID Cards ID verification, electronic access

Market Demand

Hi h


2004 2006 2008 2010 2012 2014

High

Medium

Low

©Acuity Market Intelligence

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Market EvolutionMeta Driver Demand Curves

Enterprise Security Information Transactions Financial Transactions physical & logical access IP, accounts, private data POS, electronic payments

Commercial Market Evolution

Market Demand


2004 2006 2008 2010 2012 2014

High

Medium

Low

©Acuity Market Intelligence

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Iris Transformation DriversMass Public Deployment

Emergence of Asia PacificHygiene Concerns

“Do Nothing” BiometricsNo User Positioning


No User PositioningNo User Action

Changing Nature of RequirementsApplication Domains

PersonalPublic/CommercialCivil/LE

Transactions

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Iris Transformation DriversBiometric Modality Evolution

AFIS – low cost, ubiquitous criminal/civil ID Finger – freebie embedded in personal devicesFace – across application domains, limited targeted purposes


Signature – public/commercial contractsVoice – personal and public commercial phone based transactionsVein – touchless prevails for public/commercial applications where active user involvement desiredHand – fades awayIris – public/commercial touchless, “do nothing”

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Iris Market Snapshot

Ubiquitous

Low Cost/High Performance

Flexible Form Factors

Embedded Capture Devices

Today 2020

Limited Deployment

Expensive

Awkward

Bulky Capture Devices


Algorithm Agnostic

Broad Distance Range

Personal Device Integration

Passive Subject Acquiring

Solutions Portfolio

Consumer Control

Citizen vs Consumer Use

Mediocre User Experience

Algorithm Dependency

Limited Distance

Proactive Subject Positioning

“High End” Applications

Minimal Solutions Capability

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Iris Market EvolutionTransformation Timeline

Proven TechnologyAcceptanceSolutions PerspectiveConsolidationNew Market Entrants

Price/Performances Drops Widespread AdoptionDominant Players Emerge Implications Large Scale ID Understood


2007 2010 2012 2015 2017 2020

ConvergenceCo-opetition Infrastructure Enabled

Large Scale ID ProgramsPrivacy Enhancing, SolutionsEnabled Transactions Personal Devices EnabledConsumer IrisRoutine Transactions

Ubiquitous IrisVolume Transaction Business

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Keys to Iris Evolution

Market RequirementsEmbeddedLow Cost/High PerformanceBuilt in Extensible SecurityNo/Low user Impact

Technology CapabilitiesFlexible Form FactorsDistance Capture Subject FindingSurveillance

Bridging the “Human-Machine Identity Gap”

Transformation Components


No/Low user ImpactHygienic, Non Invasive100% Solution

Surveillance Environment Tolerant

Total SolutionsOperating Environment CraftedHuman Factors ConsiderationsEase of Enrollment Legal, RegulatoryPrivacy/Civil Liberty Protection

Business ModelsTransactions

Information & FinancialPersonal, Commercial, &

eGovernment

Service Based

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A confluence of factors including the emerging central role of the Digital Identity in IT, population mobility and workforce decentralization, demand for eGovernment services, near ubiquitous reliance on digital transactions, and the inevitability of broadband access everywhere will require a level of authentication available only through the use of biometrics.

The entry of sophisticated, well funded market players with technology expertise in high resolution image capture large scale data management and high speed processing and

PerspectiveDriving the Future


resolution image capture, large scale data management and high speed processing, and pattern recognition and matching algorithms from varied fields such as robotics, astronomy, and intelligent video elevate technological capability and provide the requisite knowledge for the industry to leverage this opportunity and experience sustained growth.

Iris based access, identity, and surveillance applications will become integral to a range of solutions including border control, government ID programs, ATM usage and facilities, information and transactions security at nuclear and chemical plants, top secret military and intelligence facilities, and major financial institutions. Iris recognition will become a preferred method of authentication for two primary reasons. Capture technology will become increasingly more sophisticated operating accurately regardless of environmental conditions. Biometric authentication that does not require the user to “do anything” e.g. position themselves in relation to or have physical contact with a reader, will be prove safer (no transmission of germs) and more convenient for users.

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c. maxine mostprincipal640 w linden st, louisville, CO 80027+1 303.449.1897 [email protected]

Questions?For more Information


www.acuity-mi.com

The Future of BiometricsMarket Analysis, Segmentation & ForecastsInsight into the Trends, Drivers & Opportunities

that will Shape the Industry through 2020

Documents

MRR 2 (Historic)