Top

Fingerprint Sensor is Becoming Standard Feature in Smartphones

More than one billion fingerprint sensor enabled smartphones will be shipped in 2018. The fingerprint sensor is likely to become the standard choice for smartphone OEMs to provide for authentication. This is driven by a rapid rise in services such as digital payments, mobile banking and the commensurate increase in the need to be able to authenticate the user securely.

Exhibit 1: Global Smartphone Fingerprint Sensor Penetration.


 Source: Market Outlook CY2017Q2

In CY 2018, almost three in four smartphones will be equipped with a fingerprint sensor. Not only the adoption rate by users but also the advancement in the sensor integration has been rising by leaps and bounds. With changing smartphone designs to include more edge to edge displays, ultrasonic and optical fingerprint sensor technology, which can be used in with wide range of materials and even under the display screen or under water, will drive the technology forward.

The penetration of fingerprint sensors in the low-mid end smartphones will increase next year due to rising scale and declining cost of the fingerprint sensor, making it one of the essential components in a smartphone.

Exhibit 2: Smartphone Fingerprint Sensor Penetration and share by OEMs in CY2017Q2.

 

Source: Smartphone Fingerprint Sensor Report CY2017Q2

Samsung was the market leader within fingerprint enabled smartphones, contributing to 12% market share, followed by Apple and Huawei with 11% and 8% respectively, during Q2 2017. In terms of adoption across the total portfolio shipments, Apple and Xiaomi led, followed by Huawei and OPPO. However, Samsung, ZTE and LG lagged their rivals with a relatively lower rate of fingerprint sensor integration across their total shipments. Chinese brands are already using fingerprint sensors as a differentiator, especially in emerging markets, to compete with local and international brands. They are adding capabilities beyond just unlocking the phones or payments to include gestures to control the camera, gallery and other applications.

Reliability of the fingerprint sensor is major issue, as most of the capacitive fingerprint sensors can be easily spoofed. However, with the latest fingerprint sensors that have live finger detection, or employ ultrasonic fingerprint sensing technology to create a 3D image of the fingerprints, it is potentially more secure and should be the next factor of differentiation for OEMs.

There is an increasing pressure on fingerprint suppliers to match the growing demand of sensors, match the cost expectations to remain competitive and at the same time innovate. Suppliers like Fingerprints, Synaptics & Goodix currently contribute to over half of the total smartphone fingerprint sensors. However, players such as Qualcomm, eGIS and Silead are positioned to grow with more design wins in coming quarters.

In a scenario where OEMs are increasingly differentiating their products from competition in terms of unique designs, the placement and the type of the fingerprint sensor plays a major role in the overall design of the smartphone. The suppliers have their work cut out and will be responsible for many OEM flagship design decisions. Watch out for under the glass and in-display designs in the next wave of flagship launches. Furthermore, customizing the smartphone sensor with a smart home button that can provide gesture support and over the top features like heart rate monitoring can also make it a more versatile sensor.

Parv is a Senior Analyst with Counterpoint Technology based out of India. He has 6+ years of experience in providing market research and strategic consulting across various industries. He tracks the semiconductor market with a focus on the mobile handset, telecom and IoT industry.

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited

Registration

In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.