Recent News — On August 1, 2025, biometrics giant FPC announced a strategic cooperation with Smart Eye, a leader in automotive vision technology. A technology licensing agreement worth 50 million Swedish kronor marks the official entry of iris recognition technology into the automotive sector.
This collaboration is a perfect match. As a global leader in biometrics, FPC has provided fingerprint recognition solutions for billions of smartphones, and its 4th-generation iris recognition algorithm has reached the industry pinnacle in terms of security and convenience. Smart Eye, on the other hand, is a hidden champion in the automotive DMS (Driver Monitoring System) field, supplying driver monitoring systems to over 20 international automakers including BMW and Audi, with a cumulative installation volume exceeding 2 million vehicles.
Innovative Cooperation Model: The partnership adopts an innovative two-way licensing model. FPC licenses its core iris recognition IP to Smart Eye for exclusive use in the automotive sector, while gaining access to Smart Eye’s facial recognition and eye-tracking technologies to expand into non-automotive markets. This complementary cooperation not only reduces technical risks but also maximizes the commercial value for both parties.
Notably, the deployment plan of this technology is clever. The iris recognition function will run directly on existing DMS infrared cameras, requiring no additional hardware costs for automakers. This means that ordinary driver monitoring cameras can gain identity recognition capability through software upgrades alone.
The timing of this cooperation is extremely precise. The new EU General Safety Regulation stipulates that all new vehicles must be equipped with the ADDW (Advanced Driver Drowsiness Warning) system from July 2026. This system requires direct monitoring of the driver’s eye movements, rather than relying solely on steering wheel operation patterns for judgment. This creates a perfect market window for iris recognition technology.
It is estimated that 18 million new vehicles in Europe will be mandatorily equipped with this function annually, while major automotive markets such as the United States, China, and Japan are also formulating similar regulations. This means that iris recognition technology is not an optional feature but a standard feature required by law.
The application of iris recognition technology in automobiles goes far beyond identity verification. Future cars will be able to identify each driver’s identity, automatically adjust seat positions, rearview mirror angles, air conditioning temperatures, and even play personal favorite music. In in-vehicle payment scenarios, whether it is parking fees, toll fees, or fuel fees, transactions can be completed through eye confirmation.
For ride-sharing vehicles and fleet management, iris recognition can accurately record each driver’s behavioral data, providing a basis for personalized insurance and precision services. This not only enhances user experience but also opens up new business models for automakers.
The impact of this deal extends far beyond the two companies. Analysts predict that the global DMS market size will grow from the current $1.5 billion to $5.2 billion by 2030, with a compound annual growth rate (CAGR) of 28.3%. Iris recognition technology is expected to account for 30-40% of this share.
Strong Market Reaction: After the announcement of the agreement, FPC’s stock price rose by 15%, while Smart Eye’s increased by 22%. Morgan Stanley raised FPC’s target price to 45 Swedish kronor, and Goldman Sachs upgraded Smart Eye’s rating to "Buy." The entire automotive biometrics industry chain will benefit from this.
As planned, the two parties will complete the proof of concept in the second quarter of 2025 and jointly release a commercial solution with Forvia in the third quarter. The first models equipped with iris recognition will officially roll off the production line in the first half of 2026, just in time for the effective date of the new EU regulations.
From a longer-term perspective, this cooperation may become a key milestone in the intelligent transformation of the automotive industry. When iris recognition becomes a standard feature in automobiles, vehicles will truly evolve from a means of transportation to an intelligent companion, ushering in a new era of mobile internet.
