Optical Fingerprint Sensor Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Optical Fingerprint Sensor Market is projected to expand from USD 5.74 Billion in 2025 to USD 11.91 Billion by 2031, registering a CAGR of 12.92%. These sensors operate by utilizing a light source, typically an LED, alongside a light-sensitive microchip to capture a high-resolution digital image of a user's fingerprint. By illuminating the unique ridges and valleys of the finger, the system creates a distinct biometric template used for identity verification. The market is primarily driven by the widespread integration of under-display biometric systems in consumer electronics, especially smartphones, and the increasing demand for secure identity verification within banking and government sectors. These drivers indicate a fundamental structural shift toward passwordless security architectures and mandated digital identity frameworks worldwide, rather than mere temporary market trends.

Despite this growth trajectory, the market encounters a significant challenge regarding security vulnerabilities, specifically the sensor's susceptibility to presentation attacks involving high-quality 2D images or prosthetics. This limitation often requires the addition of software verification layers, which can make integration more complex compared to ultrasonic alternatives. The critical need for reliable optical sensor hardware is highlighted by substantial consumer reliance; according to the FIDO Alliance, in 2024, 34% of consumers accessed their financial services accounts using biometric authentication within the preceding 60 days. This data emphasizes the essential role of these interfaces in securing sensitive digital interactions.

Market Drivers

The extensive incorporation of optical fingerprint sensors into smartphones and wearable devices acts as the primary catalyst for market growth, particularly as manufacturers shift toward borderless OLED displays that require under-screen solutions. These sensors enable sleek, button-free industrial designs while preserving high-resolution biometric capture capabilities for device unlocking and secure payment authorization. This demand for seamless aesthetic integration has directly boosted the financial performance of key component suppliers dominating the under-display sector. For instance, Goodix Technology reported in its '2024 Interim Report' from August 2024 that it achieved a revenue of CNY 2.26 billion for the first half of the year, marking an 11.6% year-over-year increase largely driven by the adoption of its optical in-display sensor solutions by major mobile vendors.

Concurrently, the rollout of government-led digital identity programs is creating a crucial long-term demand vertical for robust optical sensing hardware. Nations are increasingly mandating biometric enrollment and verification for access to public services, welfare distribution, and border control, creating a need for durable sensors capable of managing high transaction throughputs and diverse environmental conditions. According to a press release by the Ministry of Electronics and Information Technology in April 2025, India's digital identity framework recorded over 27.07 billion authentication transactions in the fiscal year 2024-25, demonstrating the immense operational scale these sensors must support. Reflecting this global ubiquity, Fingerprint Cards AB noted in 2025 that its biometric solutions have been integrated into nearly 2 billion devices worldwide, confirming the technology's entrenched position in public and private sector infrastructure.

Market Challenges

The susceptibility of optical fingerprint sensors to presentation attacks significantly hinders their adoption in high-security environments, acting as a major restraint on market expansion. Unlike ultrasonic alternatives that map 3D contours, optical sensors rely on 2D images, making them vulnerable to spoofing via high-resolution photographs or prosthetic artifacts. This technological limitation forces manufacturers to implement complex software verifications that often reduce authentication speeds, thereby diminishing the hardware's appeal for premium financial and government applications where efficiency cannot be compromised for security. Consequently, institutional buyers prioritize systems with inherent liveness detection, limiting optical sensor growth primarily to cost-sensitive consumer electronics rather than high-stakes infrastructure projects.

The severity of this apprehension is reflected in recent industry sentiment regarding biometric vulnerabilities. According to the Biometrics Institute, in 2024, 51% of industry professionals cited spoofing and deepfake concerns as a key market restraint. This prevailing skepticism among experts directly impedes the deployment of optical hardware in sensitive sectors, effectively narrowing the addressable market as decision-makers gravitate toward more robust security architectures to mitigate fraud risks.

Market Trends

The widespread adoption of under-display technology in mid-range smartphones is significantly reshaping the market landscape, establishing optical sensors as the standard interface for borderless displays in the high-volume intermediate sector. While premium flagship devices increasingly integrate ultrasonic alternatives, optical modules are securing a dominant position in the mid-tier category due to their optimal balance of cost-efficiency and screen integration. This technological migration is actively displacing traditional capacitive sensors, forcing a contraction in the legacy hardware market as manufacturers prioritize the sleek aesthetics of under-screen architectures. Validating this shift, Fingerprint Cards AB reported in February 2025 that its Mobile segment revenue decreased by 51% year-over-year to SEK 254 million for 2024, illustrating the rapid decline in demand for capacitive solutions as the industry consolidates around optical under-display standards.

Simultaneously, the application of optical fingerprint sensing in automotive keyless entry systems is emerging as a critical growth vertical, driven by the electrification and digitization of modern transport. Automakers are increasingly embedding optical modules into vehicle start buttons and door handles to enable secure keyless access and personalized driver profiles that automatically adjust cockpit settings. This integration is directly propelled by the booming production of intelligent vehicles, which require robust biometric interfaces capable of operating reliably in diverse environmental conditions. According to Goodix Technology's '2024 Annual Report Summary' from April 2025, the production volume of New Energy Vehicles in China surged to approximately 12.89 million units in 2024, establishing a massive, rapidly expanding addressable market for automotive-grade optical biometric components.

Key Players Profiled in the Optical Fingerprint Sensor Market

• Synaptics, Inc.
• Shenzhen Goodix Technology Co., Ltd.
• Egis Technology Inc.
• Fingerprint Cards AB
• Qualcomm Technologies, Inc.
• IDEMIA Group
• Thales Group
• Microchip Technology Incorporated
• Vkansee Technology, Inc.
• Apple Inc.

Report Scope

In this report, the Global Optical Fingerprint Sensor Market has been segmented into the following categories:

Optical Fingerprint Sensor Market, by Component:

• Photo Diode
• Charged Coupled Device (CCD)
• CMOS Optical Imagers
• Cover Plate
• Lens

Optical Fingerprint Sensor Market, by Technology:

• Electro-Optical Imaging
• Multi-Spectral Imaging

Optical Fingerprint Sensor Market, by Application:

• Consumer Electronics
• Military & Defense
• Banking & Finance
• Telecom Operators
• Government Agencies
• Healthcare
• Smart Homes
• Others

Optical Fingerprint Sensor Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Optical Fingerprint Sensor Market.

Available Customization

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• Detailed analysis and profiling of additional market players (up to five).

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