Touching New Heights: The Booming Smartphone Fingerprint Sensor Market of 2023

In 2023, the Smartphone Fingerprint Sensor market saw a notable 4% annual unit growth, driven by a surge in adoption of Fingerprint-On-Display (FoD) and Capacitive sensor products. This growth was particularly propelled by the demand for In-display fingerprint sensors in OLED-based devices and the lower average selling price (ASP) of Capacitive fingerprint sensors, stimulating stocking demand. However, despite the increase in unit volume, the market experienced a slight decline of less than 5% in revenue due to pricing pressures, notably affecting Optical and Capacitive sensor products.

Smartphone Fingerprint Sensor Revenue by Segment

Following a period of inventory adjustments and destocking activities in late 2022, the fingerprint sensor market regained momentum, with notable expansions in OLED smartphones adopting Fingerprint-On-Display sensors, including Optical and Ultrasonic variants. Goodix Technology emerged as a dominant player, securing over 40% market share, closely followed by Fingerprint Cards. However, despite their strong capacitive sensor portfolios, both faced challenges in pricing and profitability amidst market downturn.

Looking ahead, the market is poised for a pricing recovery driven by increased end-market demand and the continued expansion of Fingerprint-On-Display sensor products in mid and high-end smartphones. Additionally, competition in the optical and ultrasonic fingerprint sensor segments is expected to intensify with the launch of new products, promising to reignite revenue growth for sensor vendors and propel innovation in the industry.