Key Market Overview:
Biometric market is estimated to reach over USD 137.9 Billion by 2030 from a value of USD 34.5 Billion in 2022, growing at a CAGR of 18.9% from 2023 to 2030
The biometric market refers to the market for technology and products that use biometrics for identification and authentication purposes. Biometrics involves the use of physical or behavioral characteristics, such as fingerprints, facial features, iris patterns, and voice, to verify a person’s identity. The biometric market is a rapidly expanding sector that leverages technological advancements to verify individuals by analyzing the unique physical or behavioral traits. Some of the key factors driving the growth of the market include increasing security concerns, rising adoption of biometric technology in various end-use industries such as banking & finance, and technological advancements in biometric technology.
Technological advances in the market such as the development of more advanced sensors and algorithms are driving the growth of the market in countries including the US and Canada. Growing security concerns such as the threat of cybercrime and the need for secure authentication methods are further boosting the growth of the market. The increasing utilization of biometric technologies for user authentication in smartphones and other mobile devices ensures the confidentiality of customer information and propels market expansion. Increased government investments in biometric technologies globally for border control and national security, have enormously spurred the demand of the market worldwide.
The increasing need for secure authentication methods to accurately verify the user’s identity has driven demand for biometric technologies. The growing demand for biometrics in crime and theft by law enforcement agencies to identify suspects and criminals is also driving the growth of the market. For instance, fingerprints and facial recognition are used to match suspects with previous criminal records or to identify suspects from surveillance footage. Also, the use of biometrics at borders and airports to verify the identity of travelers coming from other countries is of great importance. For instance, in August 2020, Secureye has launched 6 in 1 Contactless Thermal Facial Recognition to verify the identity of travelers at immigration control points and to prevent the entry of individuals with criminal records.
The cost of implementing biometric technologies is high, particularly for small and medium-sized businesses which hinder the growth of the market. The growth of the market is hampered by the high manufacturing expenses along with the costly installation and maintenance fees borne by the end-users. Privacy concerns are another restraining factor for the market growth as many people are concerned about the storage and use of their biometric information and worry about the potential for misuse of their personal information.
There is a growing opportunity for biometric technologies to be integrated into existing systems, such as financial services and government services, to enhance security and improve the user experience. This will help to overcome resistance to change and increase the adoption of biometrics. Also, the increasing demand for biometric security in the Internet of Things (IoT) provides an opportunity for companies to develop new biometric solutions for IoT devices, such as smart home devices and wearable technology.
Biometric Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||137.9|
|By Component||Hardware, Service, and Software|
|By Mobility||Fixed and Portable|
|By Deployment||Contact, Contactless, and Hybrid|
|By Type||Physiological Biometric and Behavioral Biometric|
|By Authentication Type||Single-Factor Authentication and Multi-Factor Authentication|
|By End-User||BFSI, Healthcare, Government, IT and Telecommunication, Transportation & Logistics, and Others|
|By Geography||North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa|
|Key Players||3M Cogent, NEC Corporation, Fujitsu Limited, Crossmatch Technologies, Safran Identity & Security, Bio-Key International, Inc., M2SYS Technology, IRIS recognition Systems, HID Global Corporation, Gemalto NV|
The component segment is separated into hardware, software, and service. The software segment contributes the largest revenue share in 2021. This segment includes the software used to process and analyze biometric data, such as biometric algorithms, matching software, and security software. The growing demand for cloud-based biometric solutions has driven growth in the biometric software market. Biometric software is easily integrated into existing systems, such as financial services, government services, and healthcare systems, providing a more secure and efficient authentication process. For instance, in September 2021 Gnani Ai launched ‘Armour 365’ Voice Biometrics Software to cater to new and emerging risks in fraud prevention and information security. The software is equipped with “replay attack detection” and an “anti-spoof layer” to provide the highest security in banks, defense, and healthcare.
The hardware segment includes the physical components used in biometric systems, such as cameras, sensors, and biometric readers. The physical components are used for capturing and storing biometric data and are critical for the effective functioning of biometric systems. The service segment includes the support and maintenance services provided by biometric technology companies, such as installation, training, and customer support services. It also includes consulting services, such as biometric system design and implementation services which fuels the market growth.
The mobility segment is bifurcated into fixed and portable. The portable segment is anticipated to grow at the fastest CAGR and contribute majorly to the market growth during the forecast period. The portable segment includes biometric systems that are designed for mobile use, such as systems that are found in smartphones and tablets. Portable biometric systems are designed for convenience and enable individuals to use biometric authentication from anywhere, at any time, boosting the growth of the market. Additionally, the rise of cloud-based solutions that are easily integrated into existing systems is also driving the growth of the portable biometric market. The aforementioned information is based on the portability of the biometric system and reflects the growing trend toward portable biometric solutions. As mobile devices become increasingly popular, the demand for portable biometric solutions is growing globally.
The fixed segment includes biometric systems that are installed in specific locations, such as banks, government agencies, and healthcare facilities. Fixed biometric systems are typically used for high-security applications and require an individual to physically visit the location to use the system, propelling the market growth.
The deployment segment is divided into contact, contactless, and hybrid. The contactless segment contributes the largest share to the industry growth in terms of revenue in 2021. Contactless biometric systems, such as facial recognition and iris scanning, do not require physical contact with the biometric device, making contactless system more convenient for users. Contactless systems often provide improved accuracy and faster authentication compared to contact-based systems, and are less susceptible to errors caused by factors such as dirty sensors or incorrect positioning. For instance, in May 2022, IDEMIA launched a new generation of MorphoWave contactless fingerprint terminals allowing a faster, more secure, and barrier-free biometric authentication.
The contact segment includes biometric systems that require physical contact with the biometric device, such as fingerprint scanners. The most common application is in banking and financial services to provide secure authentication for online transactions. Contact systems, are also used by government agencies and law enforcement to securely identify individuals, including immigration control, criminal investigations, and border control.The hybrid segment includes biometric systems that use a combination of contact and contactless biometric technologies and are used in applications that require high levels of security and accuracy.
The type segment is bifurcated into physiological biometric and behavioral biometric types. The physiological segment dominates the biometric market in 2021 due to its higher level of accuracy and security compared to behavioral systems. Physiological biometric systems are based on the measurement and analysis of physical characteristics, such as fingerprints, iris patterns, and facial features. These characteristics are unique to each individual and are difficult to replicate or alter, making physiological biometric systems highly secure. This is the major factor that flourishes the growth of the market. The physiological system is highly secure and ideal for applications in finance, government, and healthcare, where the highest levels of security are required. For instance, in November 2020, Fingerprint Cards AB launched a new slim and curved capacitive touch sensor for biometric authentication. The product is expected to improve the user experience with a seamlessly integrated sensor. Further, the sensor is coated with a wide range of colors to enhance the aesthetic of smartphone design.
Behavioral biometric systems are based on the measurement and analysis of behavioral characteristics, such as gait, typing patterns, and speech patterns. The behavioral Biometric segment is growing rapidly and is expected to gain market share in the coming years, driven by the increasing adoption of behavioral biometric systems in mobile devices and cloud-based biometric systems. Behavioral biometric systems are less intrusive than physiological biometric systems and are often used in applications where privacy concerns are a concern, such as mobile devices.
By Authentication Type
The authentication type segment is bifurcated into single-factor authentication and multi-factor authentication. The multi-factor authentication contributes the largest share to the industry growth in terms of revenue in 2021 and dominates the market. This is due to the increasing demand for more secure biometric systems that are less prone to fraud. Multi-factor systems use multiple biometric characteristics, such as a combination of fingerprints and iris patterns, for authentication. This makes multi-factor systems more secure than single-factor authentication systems, which rely on a single biometric characteristic. In addition, multi-factor systems are becoming increasingly popular where the highest levels of security are required, such as in finance, government, and healthcare. This is because multi-factor authentication provides a higher level of assurance that a person’s identity has been correctly verified. However, single-factor authentication systems are still widely used due to the simplicity and convenience. Single-factor authentication is quick and easy, making it ideal for applications where convenience is a concern, such as mobile devices. As a result, the single-factor authentication segment still holds a significant market share and is expected to continue to grow in the coming years.
The end-users of the market comprise BFSI, Healthcare, Government, IT and Telecommunication, Transportation & Logistics, and Others. The government segment currently dominates the market, driven by the increasing demand for secure identification systems and border security. Governments around the world are investing in biometric systems to enhance national security and improve the efficiency of the immigration and border control systems.
However, the healthcare and BFSI segment is expected to grow at a rapid pace, driven by the increasing demand for secure identification systems. The healthcare segment includes hospitals, clinics, and other healthcare providers that use biometric systems for patient identification, access control, and medical record management. Further, BFSI (Banking, Financial Services, and Insurance) segment includes financial institutions, banks, and insurance companies that use biometric systems for secure transactions, customer authentication, and access control. For instance, in May 2022, Fingerprint Cards AB and Transcorp collaborate to bring cutting edge biometric technology to India. The biometric cards launched feature Fingerprints’ T-Shape module, which is tailored to be integrated in biometric payment cards using standard automated manufacturing processes.
Based on region, North America accounts for the largest revenue in 2021 and is a leading market for biometric systems driven by the demand for secure identification systems in healthcare services. The healthcare sector uses biometric authentication, such as fingerprint or iris scans, allowing healthcare providers to identify patients accurately and eliminate errors caused by manual data entry. Biometric authentication is also used to secure electronic medical records (EMRs) and ensure that only authorized personnel have access to sensitive patient data. For instance, in December 2022, Movano Health announced the launch of Smart Ring Beta Program with Novant Health. In the program, approximately thirty Novant Health team members will evaluate the functionality and wearability of Movano Health’s first commercial product, a smart ring designed to track and analyze medical grade data and deliver insights to consumers across a wide spectrum of healthcare needs.
The Asia-Pacific market will register the fastest CAGR during the forecast period. This region includes China, India, Japan, and Australia, and is a rapidly growing market for biometric systems driven by the growing popularity of mobile devices and digital payments. The presence of prominent players in the region such as NEC Corporation and Fujitsu is expected to contribute to the revenue share. The adoption of biometric devices by financial institutions is also fueling market growth.
Biometric Market Competitive Landscape:
The market is highly competitive, with a large number of players offering a range of biometric systems. The companies compete based on factors such as product quality, price, innovation, and customer support. Many companies collaborate and form partnerships to enhance their offerings and expand their reach. Additionally, several new players are entering the market, driven by the increasing demand for biometric systems. Key players in the market include-
- NEC Corporation
- Fujitsu Limited
- Bio-Key International, Inc.
- Safran Identity & Security
- Crossmatch Technologies
- 3M Cogent
- M2SYS Technology
- IRIS Recognition Systems
- HID Global Corporation
- Gemalto NV
- In January 2022, MinkasuPay collaborated with Axis Bank for easy biometric-based net banking payments. Such collaboration has reduced the time to execute net banking payments from about 50-60 seconds currently, to just 2-3 seconds.
- In June 2021, Aratek launched the A900 ten-print fingerprint scanner designed specifically for heavy-duty use in large-scale implementations. The product comes in a rugged IP65 enclosure rendering it impervious to dust and moisture making the A900 the ideal fingerprint solution in all conditions.
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