BW0053 NOV 20,2000 4:59 PACIFIC 07:59 EASTERN
( BW)(CA-FROST-&-SULLIVAN) Frost & Sullivan Research Reveals
Biometrics Is Not Mission Impossible
Business Editors and High-Tech/Science Writers
SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 20, 2000--We have all seen
it in the movies. A person needing access to a computer network uses a
fingerprint, his voice, or an eye scan to identify himself.
Well, the movies have become reality. Biometrics, a method of
authentication based on physical or behavioral characteristics, is
projected to become much more prolific in the coming decade as our
increasingly paperless society looks for a quick, secure way to
identify people.
New strategic market research from Frost & Sullivan
(www.frost.com) reveals that the U.S. User Authentication Device
Markets generated revenues of over $200 million in 1999. Frost &
Sullivan predicts that figure will reach $2.6 billion by 2006.
This industry is composed of hardware tokens, software tokens, and
biometrics. All are used for authentication. The hardware token
segments are the most widely used authentication devices.
"Growth in this market will be spurred largely by the ability of
smart cards and USB tokens to store digital certificates used in PKI,"
says Frost & Sullivan industry expert Jason Wright. "The hardware
token market is expected to mirror the growth of the PKI market in the
U.S."
While the hardware token segment controls the lions' share of the
market, the biometrics segment is the most interesting. The biometric
market had been virtually non-existent until 1999, but it is expected
to flourish over the next several years as it becomes a mainstream
solution. Industry-wide standards are being set, thanks to the efforts
of Microsoft and the International Biometric Industry Association
(IBIA), BioAPI consortium. Microsoft is integrating biometric
authentication technology into its next version of Windows, thereby
validating the technology.
"The Microsoft implementation conveys to the public that this
technology is ready for widespread adoption," says Wright. "Many IT
administrators have dismissed the idea of biometric solutions as not
being a viable technology or have been hesitant to involve themselves
in a technology that has not achieved mainstream status. For many, the
Microsoft move will alleviate those apprehensions."
Yet there are other security solutions less expensive than
biometrics. Why wouldn't security administrators go with a cheaper
alternative? Wright believes that the use of biometric solutions will
increase because of the sheer fun of using the equipment.
"While this aspect of the technology is seldom considered, the
fact is users enjoy using biometric authentication devices," says
Wright. "Since the technology is viewed as cutting-edge and so simple
to use, biometric products definitely appeal to users. The allure of
using biometric equipment will help vendors win contracts for
implementation over other security technologies."
The difficulty involved in deceiving a biometric device is what
makes this method of authentication so secure. In the past, however,
price of equipment has been a significant hurdle. The declining cost
of these solutions eliminates a critical barrier to market
penetration.
"While some fingerprint scanners and PC cameras can be purchased
for less than $100, a higher dollar value appeals to the psyche of
buyers," says Wright.
Frost & Sullivan presents the 2000 Marketing Engineering Awards to
companies that have worked hard to make a positive contribution to the
U.S. User Authentication device industry. The Brand Awareness
Development Award is presented to RSA Security (RSAS). The Market
Penetration Award goes to CryptoCard. The Product Innovation Award is
given to eTrue (formerly Miros).
Companies that participated within this industry include: Access
Controls; ActivCard; Aladdin Knowledge Systems; American Biometric
Company; Authen Tec; Axent Technologies; Biometric Access Corp. (BAC);
Biometric ID (BII); Biometric Security Corp.; BioNetrix; Blockade;
CryptoCard; Cybernetic; Cylink; DataKey; Digital Persona;
Electro-Optical Systems; eTrue; Eutron; First Access; Gemplus; IBM;
I/O Software; Identix; IriScan; Key Tronic; Keyware Technologies;
Leehmah Datacom; Litronic; Mytec; National Registry; Net Nanny
Software; Neurodynamics; Parkinson Howe, Ltd.; Precise Biometrics;
RSA; Rainbow Technologies; SAC Technologies; SafLink; Secugen; Secure
Computing; Schlumberger; Shuttle Technology; Sony; SpeakEZ (T-Ntix);
Spyrus; Thompson SGS; Thorne Secure Science; Unisys; Utimaco; V-One;
Veridicom; VeriVoice; Visage; Vista Imaging; Visionics; Who?Vision;
VASCO, and ZaphyrBiometrics.
Frost & Sullivan, which is headquartered in San Jose, Calif., is a
global leader in international strategic market consulting and
training. Frost & Sullivan's industry experts monitor the IT industry
for market trends, market measurements and strategies. This ongoing
research is used to complement the Network Security Subscription,
which includes studies on the U.S Digital Certificate Markets and the
U.S. Firewalls Market. Executive summaries and interviews are
available to the press.
Along with publishing in-depth strategic market consulting
research, Frost & Sullivan also provides custom consulting needs to
a variety of national and international companies.
U.S. User Authentication Device Markets
Report: 7418-74 Date: November 2000
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CONTACT: Frost & Sullivan
Kristi Grier, 210/247-2401
kgrier@frost.com
http://www.frost.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS PUBLISHING HARDWARE
SOFTWARE TELECOMMUNICATIONS