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European Biometrics Markets - Investment Analysis and Growth Opportunities

Published by: Frost & Sullivan

Published: Feb. 2, 2006 - 71 Pages


Table of Contents


1. Executive Summary
        1. Executive Summary
                1. Executive Summary

2. Introduction and Methodology
        1. Introduction
                1. Introduction
                2. Methodology

3. Industry Fundamentals and Growth Opportunities
        1. Market Overview and Industry Fundamentals
                1. Introduction
                2. Market Overview
                3. Industry Economics
        2. Segment Analysis
                1. Introduction
                2. Non-AFIS
                3. AFIS
                4. Facial Recognition
                5. Eye Scan
                6. Hand Geometry
                7. Voice Verification
                8. Signature Verification
        3. Investment Analysis and Growth Opportunity
                1. Investment Themes
                2. Value Chain Analysis
                3. Value Chain Industry Verticals
                4. Sector Scorecard
                5. Company Scorecard
                6. Growth Monitor

4. Financial Benchmarking Analysis
        1. Frost & Sullivan Biometrics Universe
                1. Industry Classification
        2. Industry Profitability
                1. Year-over-Year Sales Growth
                2. Operating Profit Margin
                3. Selling General and Administrative Expenses to Sales
                4. Research and Development Expenses to Sales
                5. Net Profit Margin
                6. Revenue per Employee
                7. Industry Cycle Analysis
        3. Balance Sheet Analysis
                1. Current Ratio
                2. Receivables and Payable Days
                3. Debt Equity Ratios
        4. Valuation
                1. Historical Valuation based on Sales and Profitability
                2. Year to Date Stock Performance
                3. Frost & Sullivan Biometrics Stock Index
                4. Historical/Current Mergers & Acquisition and Valuation
                5. Industry Growth Outlook
                6. Private Equity and Venture Capital Activity



List of Figures



Chapter 3

  • Biometrics Market: Sector Scorecard (Europe), 2005

  • Biometrics Market: Company Scorecard (Europe), 2005

  • Biometrics Market: Growth Monitor (Europe), 2004


Chapter 4

  • Biometrics Market: Frost & Sullivan Biometrics Universe (Europe), 2004

  • Biometrics Market: Year-over-Year Sales Growth (Europe), 2001-2004

  • Biometrics Market: Operating Profit Margin (Europe), 2001-2004

  • Biometrics Market: Selling General and Administration Expense to Sales (Europe), 2001-2004

  • Biometrics Market: Research and Development Expenses to Sales (Europe), 2001-2004

  • Biometrics Market: Net Profit Margin (Europe), 2001-2004

  • Biometrics Market: Current Ratio (Europe), 2001-2004

  • Biometrics Market: Receivable and Payable days - Pure Play Companies (Europe), 2001-2004

  • Biometrics Market: Total Debt to Equity Ratio (Europe), 2001-2004

  • Biometrics Market: Mergers and Acquisitions (Europe) 2001-2005

  • Biometrics Market: Earnings per Share (EPS) Guidance (Europe), 2006


Abstract

Research Overview

Governments and the Financial Services Industry Drive European Biometrics Markets

Stringent security standards and specifications stressed by governments across Europe are driving the region’s biometrics markets which has grownmarkets, which have grown, by over 50 per cent in recent years. Already, o"Organisations such as the International Civil Aviation Organisation (ICAO) the BioApPiI Consortium are have been pplacing increasing emphasis on the need for security and the importance of using biometrics to aid in security.", says the analyst of this research. Further, European biometric passports, the national ID program and the new Schengen information system-II have propelled the increased adoption of biometrics. With As biometrics being viewed as a is fail-safe and , as well as a more efficient method of screening, the security-conscious financial services industry is also implementing this technology to safeguard confidential information.

This Frost & Sullivan Financial Benchmarking and Analysis (FBA) service presents a broad financial outline of the current European biometrics industry by highlighting the major market and financial trends. It examines growth sectors of notable interest and provides a comprehensive financial as well as valuation analysis of leading biometric firms in the industry. The key growth segments reviewed are non-automated fingerprint identification system (non-AFIS ), AFIS, facial recognition, eye scan (iris and retina), hand geometry, voice verification and signature verification.

Promising Markets for Venture Capitalists and Private Equity Participants

The nascent European biometrics market is very attractive to venture capitalists hoping to strike it rich by backing young companies. "‘Innovation-centric’ European venture capitalists mainly fund research activities such as designing new products and developing more flexible as well as customised solutions. ," says the analyst of this research. "Therefore, there is great potential for investment in this emerging market, a case in point being the development of multimodal biometrics."

Although there is much potential for investment, However, as in any other market, venture capitalists investment are expected towill invest in the European market only on anbe on an interest-return basis, basing their support on the success of t and further investment depends entirely on the success of the product. Biometrics companies must appreciate that venture capitalists usually ensure ownership of Intellectual Property rights of the product they are funding and if they pre close their venture, they carry the IP with them. Given this/Due to this, eExperts opine that the ideal exit strategy for venture capitalists is likely to be through an initial public offering. Keeping with this trend, the biometrics market is expected to see more private companies go public.

Multi-modal Biometrics - The Future of Biometric Technology

Currently, industry participants are keenly researching to consolidate different biometric technologies’ in one system - multimodal biometrics. Given the interest of venture capitalists in bankrolling product development, the market can expect increasing emphasis on the integration of biometric technologies. "To support the tremendous expansion of biometrics in Europe, what is required is greater standardization among the various technologies that will allow for interoperability," states the analyst.

Benefits of this Service

Comprehensive Market Coverage

The research provides an in-depth coverage of the market trends in Europe. It traces the currently buoyant markets in Europe and provides short-term outlook for the market.

In-depth Industry Analyses

FBA takes into account the major performance indicators such as ratios, valuation multiples and growth monitors, and also provides an in-depth analysis across the breadth and depth of the industry. The goal of the FBA service is to provide financial analysts and investment professionals with the tools and information needed to support financial analysis and investment decisions of all sorts.

Mergers and Acquisitions (M&A)

The study also tracks the changing complexion of the airport security equipment industry on a whole with due consideration to the notable M&A activities in the last five years.

Current Market Participants

The research offers market sizes and growth prospects for select growth segments, ways to exploit new growth opportunities and chances for possible alliances within the industry.

Investment Community

The goal of the FBA service is to provide financial analysts and investment professionals with the tools and information needed to support financial analysis and investment decisions of all sorts. For example, industry scorecards and company scorecards map the industries and companies by growth prospective, size, sector consolidation and attractiveness for private equities and venture capitalists.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
  • Non-automated fingerprint identification system
  • Automated fingerprint identification system
  • Facial recognition
  • Eye scan
  • Hand geometry
  • Voice verification
  • Signature verification
Technologies

The following technologies are covered in this research:
  • Non-automated fingerprint identification system (Non AFIS) - It is also known as finger scan. This market is defined as all products that use finger-scan technology using the pattern of lines, ridges and valleys as the basis for verification.
  • Automated fingerprint identification System (AFIS) - It is used for one-to-many searches on large-scale databases typically in forensic applications for positive identity.
  • Facial recognition - Face recognition uses selected characteristics of the face to identify an individual and is employed solely for the purpose of capturing a facial image through a camera and comparing it with an image stored in a database.
  • Eye scan - For the purpose of this study, iris recognition includes the measurement of patterns of the iris as a means of identification.
  • Hand geometry - Hand Geometry biometrics compares the geometry of a hand’s characteristics such as width, length and thickness to verify the identity of an individual. It captures over 90 measurements of a hand’s length, width, thickness and surface area to form the digital hand template of nine bytes. Finger geometry is similar, but looks at the shape and characteristics of the index and middle fingers of the hand that is saved on a 20-byte template.
  • Voice verification - Voice Verification, speaker verification or voice biometrics involves verification of the speaker based on numerous vocal tract characteristics such as the vocal tract length and the geometry of the sinuses.
  • Signature verification - Signature verification biometrics measures characteristics such as speed, stroke order, stroke count, timing and writing pressure to verify the user.
What's Included
  • Market sizing and competitive analysis of growth segments
  • Financial benchmarking analysis of biometrics industry including ratio analysis
  • Performance of Frost & Sullivan Biometrics Index and valuation multiples for biometric companies
  • Growth monitor that ranks companies based on prospective revenue growth
  • Industry growth outlook that discusses market estimates until 2008


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