Group 1 - The evolution of fingerprint recognition technology in smartphones has shifted from physical to optical and now to under-display ultrasonic fingerprint recognition, which is becoming a trend in the industry [1] - Several domestic smartphone manufacturers are set to adopt ultrasonic fingerprint unlocking technology in their flagship models, indicating a potential explosive growth in this technology [1] - Ultrasonic fingerprint recognition offers higher security and faster unlocking speed compared to traditional optical methods, as it can penetrate surface contaminants and ensure stable and accurate unlocking in various environments [1] Group 2 - Although ultrasonic fingerprint recognition is currently more expensive and mainly used in high-end flagship phones, advancements in domestic technology and decreasing costs are expected to expand its application to mid-range products and other smart devices [2] - The rapid development of IoT and smart home sectors will further broaden the application scenarios for ultrasonic fingerprint recognition, making it a mainstream solution for secure identity verification [2] - The market size of China's ultrasonic fingerprint recognition industry is projected to reach 363 million yuan by 2028 [2] Group 3 - O-film, a leading company in the optical and electronic field, has been focusing on fingerprint recognition and 3D ToF microelectronics, maintaining a significant market share in the fingerprint recognition module sector [2] - O-film has been producing fingerprint recognition modules since 2015 and has consistently ranked among the top global suppliers [2] - The company has a strong position in both optical and ultrasonic under-display fingerprint recognition modules, and its self-developed technologies enhance smart lock products [2] Group 4 - With the increasing prevalence and upgrade of smart terminal devices, ultrasonic fingerprint recognition technology is expected to maintain a high growth trajectory as a key identity authentication method [3] - O-film has long been producing ultrasonic fingerprint recognition modules for overseas clients, and the company is likely to benefit from the rapid penetration of this technology in the domestic market in the coming years [3] - As ultrasonic technology matures, O-film's advantages in the fingerprint recognition market will become more pronounced, presenting new development opportunities [3]

Core Insights - The domestic ultrasonic fingerprint recognition module industry has rapidly penetrated from high-end markets to mass consumer sectors due to core technological breakthroughs and significant reductions in manufacturing costs, with a projected market size of approximately 2.697 billion yuan in 2024 [1][13] - The industry has seen a collaborative innovation across the supply chain, with domestic manufacturers upgrading piezoelectric materials from traditional lead zirconate titanate (PZT) to environmentally friendly aluminum nitride (AlN), and innovating with CMOS Sensor architecture, reducing module thickness to 0.15mm and production costs from $20 in 2021 to $12, a decrease of over 40% [1][13] - The application scenarios for ultrasonic fingerprint recognition modules have expanded explosively due to the dual drivers of cost reduction and performance enhancement [1][13] Industry Overview - Ultrasonic fingerprint recognition modules utilize ultrasonic waves to penetrate materials and identify fingerprints based on reflected signals, forming a 3D image for high precision and security [2] - The modules can be categorized into single-point and wide-area ultrasonic fingerprint recognition modules based on the recognition area size [2] Industry Development History - The industry has undergone four main stages: the embryonic phase before 2015, initial application from 2016 to 2020, rapid expansion from 2021 to 2023, and diversification of applications from 2024 onwards [4][5][6] - The initial phase saw limited commercial application due to sensor size and cost constraints, while the introduction of Qualcomm's SenseID in 2015 marked a significant technological advancement [4] - From 2021 to 2023, the industry experienced rapid growth, with domestic ultrasonic fingerprint recognition module shipments exceeding 120 million units in 2023, a year-on-year increase of 150% and a market penetration rate of 25% [5] Industry Supply Chain - The upstream of the ultrasonic fingerprint recognition module industry includes raw materials and production equipment, while the midstream involves the manufacturing of the modules, and the downstream encompasses applications in consumer electronics, automotive electronics, smart home, industrial manufacturing, and healthcare [8] Market Size - The global development of ultrasonic under-display fingerprint recognition technology has progressed slowly, with Qualcomm being an early player in the field [12] - The domestic ultrasonic fingerprint recognition technology has made significant strides, with companies like Goodix breaking Qualcomm's technological monopoly [12] Key Companies' Performance - The market remains in a blue ocean stage, with Qualcomm and Goodix holding over 90% market share, with Goodix leveraging its advantages in optical under-display fingerprint recognition and cost-effective domestic products [15] - Goodix's revenue from fingerprint recognition chips reached 1.679 billion yuan in 2024, with a market share exceeding 40% [16] - O-film Technology, a leader in optical and biometric recognition, has also made significant contributions to the industry, with a revenue of 4.882 billion yuan in Q1 2025 [18] Industry Development Trends - The technology iteration is accelerating, with a focus on precision improvement and scene penetration, aiming for 100% screen area recognition by 2025 [20] - Leading companies are integrating the entire supply chain from chips to algorithms to modules, enhancing competitive advantages [21] - The domestic market is driven by policies and market demand, with expectations for smartphone shipments to reach 320 million units by 2025, and ultrasonic fingerprint penetration rates to exceed 35% [23]

Investment Rating - The report does not explicitly state an investment rating for the ultrasonic fingerprint recognition module industry Core Insights - The ultrasonic fingerprint recognition module market size is projected to grow from 18.45 billion CNY in 2022 to 109.83 billion CNY by 2029, reflecting a compound annual growth rate (CAGR) of approximately 28.5% [8] - The market size for ultrasonic fingerprint recognition modules in smartphones is expected to increase from 10.81 billion CNY in 2021 to 76.88 billion CNY by 2029, indicating a significant growth trajectory [25] - The penetration rate of ultrasonic fingerprint recognition modules in smartphones is anticipated to rise from 5.58% in 2021 to 47.72% by 2029 [16] - The unit value of ultrasonic fingerprint recognition modules is projected to decrease from 56.48 CNY in 2021 to 44.26 CNY by 2029, suggesting a trend towards cost reduction [21] Summary by Sections Market Size - The ultrasonic fingerprint recognition module market size is forecasted to grow significantly, reaching 22.44 billion CNY in 2023 and 26.97 billion CNY in 2024, with further increases in subsequent years [8][9] Smartphone Shipment Volume - China's smartphone shipment volume is expected to show a slight increase from 2.64 billion units in 2022 to 3.64 billion units by 2029, indicating a stable demand for smartphones [12] Penetration Rate - The penetration rate of ultrasonic fingerprint recognition modules in smartphones is projected to increase steadily, reaching 10.71% in 2023 and 12.85% in 2024 [16] Unit Value - The unit value of ultrasonic fingerprint recognition modules is expected to decline gradually, with estimates of 53.14 CNY in 2023 and 51.55 CNY in 2024 [21] Smartphone Application Proportion - The proportion of smartphones utilizing ultrasonic fingerprint recognition modules is expected to remain stable at 70% throughout the forecast period from 2021 to 2029 [30]

Investment Rating - The report indicates a positive investment outlook for the ultrasonic fingerprint recognition industry in China, highlighting significant growth potential and opportunities for domestic manufacturers [5][8]. Core Insights - The ultrasonic fingerprint recognition technology has a promising market outlook, driven by increasing consumer demand for secure and convenient biometric solutions in smartphones and other electronic devices [5][6]. - The market for ultrasonic fingerprint recognition is still considered a blue ocean, with major players like Qualcomm and Goodix holding over 90% market share, indicating ample room for growth and competition [7][8]. - The industry is expected to experience substantial growth, with the market size projected to increase from 3.57 billion yuan in 2025 to 14.53 billion yuan by 2030, reflecting a compound annual growth rate (CAGR) of 32.41% [8][37]. Summary by Sections Industry Overview - The report provides a comprehensive overview of the ultrasonic fingerprint recognition industry in China, detailing the supply chain and market size development [2][5]. Market Dynamics - The demand for high-quality biometric solutions is rising, with ultrasonic fingerprint recognition poised to become a leading technology following optical fingerprint recognition [5][6]. - The core component of ultrasonic fingerprint recognition modules is the ultrasonic sensor, which plays a crucial role in identity verification by analyzing three-dimensional images of fingerprints [6][14]. Competitive Landscape - The current market is dominated by Qualcomm and Goodix, which together account for over 90% of the market share, indicating a concentrated competitive environment [7][8]. - The report notes that the domestic production of ultrasonic sensors is accelerating, which will support the development of downstream module packaging manufacturers [12][19]. Market Growth Projections - The ultrasonic fingerprint recognition module market is expected to grow significantly, driven by the acceleration of domestic production processes and decreasing costs, which will expand market applications [8][37]. - The market size is projected to grow from 3.57 billion yuan in 2025 to 14.53 billion yuan by 2030, with a CAGR of 32.41% [37][38]. Application Trends - Smartphones are identified as the primary application area for ultrasonic fingerprint recognition modules, with a notable trend towards higher screen-to-body ratios in devices, creating opportunities for this technology [29][30]. - The penetration of ultrasonic fingerprint recognition technology is gradually moving from high-end to mid-range smartphones, indicating a broadening market reach [35].