Face Recognition Based Smart Car Lock System: Market Report

This report presents a smart car lock system that uses face recognition technology to enhance vehicle security. It discusses the potential market for this technology, focusing on high-end cars and security-conscious customers in regions like Germany, a hub for the automotive industry. The report includes a SWOT analysis, highlighting the system's strengths (advanced technology), weaknesses (initial cost), opportunities (future adoption), and threats (potential hacking). A PEST analysis considers political, economic, social, and technological factors influencing the system's success. The report also provides a financial forecast, estimating capital costs, startup costs, operating costs, and anticipated profit margins for a biometric equipment manufacturing unit. It concludes with a discussion of the break-even point and overall feasibility, emphasizing the potential for growth and innovation in the automotive security market.

1
SMART CAR LOCK USING FACE RECOGNITION
SMART CAR LOCK USING FACE RECOGNITION
Introduction
Using of biometric techniques for the security purpose has been increased in the past few
years. We can now see it on door locks, security cases, as well as on the Smartphone too. Using
this technique in the automotive industry can be a very revolutionary step. The Smart Car Lock
using Face Recognition (SCLFR) will change the way we unlock our automobiles right now.
This will help the owner of the vehicle so that no unauthorized person gets the access of their
vehicle. The vehicle will only unlock if it will see the owners face and matches it with the
database. If any unauthorized person forcefully enters into the vehicle, then the system will send

2
SMART CAR LOCK USING FACE RECOGNITION
the message to the owner of the vehicle about the attempt of theft. This system can be further
improved by using the stereoscopic cameras which can generate the 3D image rather than 2D, so
that no one can fool it by showing the picture of the author.
Market and customers, market size and trend
The market for this smart car lock using face recognition technology will be initially the
high end cars that belong in the executive category. In the initial phase, we cannot install this
system into the budget cars. Therefore, we will be targeting the cars above this category. The
customers who are willing to pay more money for the security feature like this without any
hesitant and can easily afford extra couple of thousand dollars will be ideal for this. Currently we
are witnessing many kinds of new technology in the automobiles for enhancing the security of
the car as much as possible. These security features are not only there to protect the passengers in
the car but also to protect the car itself. But, we have not noticed much revolution in the method
of entry into the vehicle. To the time the automobiles were introduced to the world till now, we
are still using that key entry method to get inside our cars. Although, the feature of central lock is
being introduced into the automobile industry which enables the keyless entry, but still, we need
to have that central locking remote in our pocket if we want to unlock our car.
In past two to three years, the only company that is bringing revolution in the automobile
industry is Tesla. Tesla has introduced new card system for entering into the vehicle. In that
system, the owner has to carry the credit-card looking card with him, and the door will open on
itself. But by our smart car lock using face recognition system, we can simply remove the need
of any equipment to carry with us. This technology will be the future of the automobile industry
and can be adopted by all the car companies. We can see this system soon in budget cars too.

3
SMART CAR LOCK USING FACE RECOGNITION
Target market & customer
For starting the business the most appropriate location will be Germany. Germany is the
hub for automobile industry. All the new technology first comes in Germany and then to the rest
of the world. All the big automobile company like BMW, Mercedes, Audi, and Volkswagen has
their headquarters located in Germany. Along with that, the people who live there also have
automobiles in their culture. Therefore, if we would be able to sell our technologies to these
companies then it would be going to very beneficial for us. All these companies do possess the
most of the market of the entire world, and out of them, most of these car companies are selling
executives cars (Pons, 2006). There is a very high potential in the market in this geographical
region. The strategies for this market will be to pitch the technology to these companies. These

4
SMART CAR LOCK USING FACE RECOGNITION
companies will not only help in the promoting this technology to the entire world but they will
help in enhancement of this technology as they have huge amount of resources both financial as
well as technological. This market will expand under the influence of these companies a lot.
There is a very high potential for the growth of this technology.
Competitive analysis and estimated market share
SWOT analysis
Strength: the strength of this technology will be its being more advance as compared to
the current technologies. Currently there is no technology exists in the production cars in which
the owner can enter in his vehicle without any device weather it is a key or card or even a
Smartphone. This technology will be enabling us to enter into the vehicle and drive it with by
just using our face or unlocking purpose.
Weakness: the weakness of this system is being costly in the initial phase which will
going to make out of reach from the budget cars (Caldwell, 2015). This can only be use in the
high end cars. Along with that, as all the other new technologies, there might be happen some
flaws in this technology too. These flaws can only be highlight when it is being used in the
production cars.
Opportunity: there is no doubt in the possible opportunity of this technology. It will not
be surprising that we can see this technology in almost every car in the near future (Giné, et. al.,
2010).
Threat: the only threat this technology will have from the potential hackers.

5
SMART CAR LOCK USING FACE RECOGNITION
PEST analysis
Political: This technology needs to be tested very well for getting the approval of the
government. The framework of the technology will need to be made with full care so that it can
get the approval from international legislation.
Economic: This technology should take into consideration inflation rate, economic
growth, exchange rate and interest rate so that its impact on the technology can be known.
Social: There is a requirement of providing full knowledge to the people about this
technology so that, they can understand that this technology is fully safe and fool proof (Liou &
Bhashyam, 2010).
Technological: There is a updating the technology on the regular basis by looking at the
data that has been collected from the system after the use of it.
Section 8
According to the recent survey made the market of the Biometricc market system
working out in the segment of different authentication type, for instance signature, voice, face,
fingerprint etc. will be having approx market size of USD 32.73 Billion revenue by the year
ending 2022. It will have approx CAGR of 16.79 between the period 2012 & 2022.
For a single manufacturing unit working at medium level in the North America in the
particular segment can be setup at a initial cost of around USD $ 5 million. The overheads will
be mainly related to the manufacturing and marketing aspect which amounts to the 35% of the
revenue. Rest all is the prime cost to the company.

6
SMART CAR LOCK USING FACE RECOGNITION
Section 9 & 10 Finance Forecast (Cash Flow)
The below table showcase the list of different financial forecast in the USD $ after the
setting up a manufacturing unit in the segment of Biometrics
1 Capital cost The initial capital required to set up a unit in the
particular segment is $ 5 million approximately.
2 Start up cost The startup cost can be funded from the bank loans or
the seed funding from the venture capitalist if the idea is
different and promising
3 Fixed cost The fixed cost is mainly related to the machinery, plant
and building which amounts to 70 % of the initial capital
investment.
4 operating cost Remaining 30 % relates to the operating cost
5 Cost/unit The cost per unit differentiates as regards with the type
of biometric equipment. Cost of manufacturing per unit
ranges from USD 10$ to 30 $ per unit
6 Anticipated profit margin Company can attain out the approximate profit of 18 %
of the sales turnover.

7
SMART CAR LOCK USING FACE RECOGNITION
7 Sale price/unit Sales price of the goods will be 50 % above the basic
cost of the goods produced
8 Sale volume/month or per year Annual sales volume – 25000 units (approx)
Monthly sales volume – 2000 – 2200 units (approx)
Section 10 Finance Forecast
The break even is the point of the sales at which the prospective biometric device manufacturing
unit comes at the situation of no profit and no loss. In the case of particular industry, the
organisation in the mid-segment generally attains a breakeven point at 2000 units or generating
revenue of USD $ 30,000.
The below mentioned chart clearly explains the situation of breakeven in the case of operating a
biometric equipment manufacturing unit.

8
SMART CAR LOCK USING FACE RECOGNITION
Conclusion
In the current report, researcher has explained about the detailed analysis of setting up a
biometric equipment manufacturing unit. The analyst has worked out both on the market and
financial feasibility in order to create better understanding of the industry.

9
SMART CAR LOCK USING FACE RECOGNITION
References
Pons, A. P. (2006). Biometric marketing: targeting the online consumer. Communications of the
ACM, 49(8), 60-66.
Al-Harby, F., Qahwaji, R., & Kamala, M. (2008). The feasibility of biometrics authentication in
e-commerce: User acceptance. In IADIS International Conference WWW/Internet.
Caldwell, T. (2015). Market report: border biometrics. Biometric Technology Today, 2015(5), 5-
11.
Giné, X., Goldberg, J., & Yang, D. (2010). Biometric Technology in Rural Credit Markets: The
Case of Malawi. IFPRI, Focus, 18.
Liou, J. C., & Bhashyam, S. (2010, June). A feasible and cost effective two-factor authentication
for online transactions. In Software Engineering and Data Mining (SEDM), 2010 2nd
International Conference on (pp. 47-51). IEEE.