Key Market Overview:
Biometric systems market is estimated to reach over USD 126.21 Billion by 2030 from a value of USD 45.21 Billion in 2022, growing at a CAGR of 15.9% from 2022 to 2030.
A biometric system is a technology that uses biological characteristics such as fingerprints, iris patterns, or facial recognition, to identify individuals and grant or deny access to secure systems or devices. The goal of biometric systems is to provide more secure and convenient methods of identification and authentication compared to traditional methods such as passwords, security tokens, or physical keys.
Biometric systems are being used increasingly in the financial services industry to improve security and enhance the customer experience which includes applications such as mobile banking and ATM transactions. Customers use fingerprints, facial recognition, or voice recognition to access accounts and perform transactions. For instance, in 2022, NEC Corporation launched a biometric authentication solution recognized by the US National Institute of Standards and Technology (NIST) as the worlds no. 1 iris and face recognition. Such a solution has a false acceptance rate of less than 1 in 10 billion and allows high-precision and high-speed authentication just by having the user to direct the face toward an authentication device.
Biometric Systems Market Scope:-
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)|| 126.21 billion|
|CAGR (2022-2030)||15.9 %|
|By Component||Hardware, Software, and Service|
|By Authentication Type||Single-factor and Multi-factor|
|By Type||Contact, Contactless, and Hybrid|
|By Mobility||Fixed and Portable|
|By Application||Face Recognition, Iris Recognition, Fingerprint Recognition, Hand Geometry, Signature Recognition, and Voice Recognition|
|By End-User||Healthcare, Automotive, Banking and Finance, Security, Government, Consumer Electronics, and Others|
|By Geography||Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] |
Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
North America [United States, Canada, Mexico]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Apple Inc., Fujitsu Limited, NEC Corporation, Suprema Inc., Crossmatch, Synaptics Inc., HID Global, 3M Cogent, Bio-Key International, ZKTeco|
The growing demand for biometrics in crime and theft by law enforcement agencies to identify suspects and criminals is 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 data breach is the most common restraint in the biometric systems market. Since biometric data is highly sensitive and valuable and if compromised, the data will be used for unlawful purposes such as identity theft, financial fraud, and other types of cybercrime. The data breach of a biometric database results in the exposure of millions of records, putting individuals and organizations at risk. Cybercrime is also common in the biometric systems market and the market is frequently targeted by attackers who aim to manipulate biometric data. Such crimes result in false matches or false rejections, making the systems unreliable and causing harm to individuals which hinders the growth of biometric systems market.
Biometric systems are expected to play a key role in revolutionizing the healthcare industry by enabling remote patient monitoring and diagnostics, particularly for patients suffering from chronic diseases such as asthma that require ongoing monitoring. Biometric systems such as wearable devices and smartwatches are used to track vital signs, including heart rate, blood pressure, and oxygen levels, and provide real-time health data to healthcare providers. Therefore, tracking of vital signs is expected to provide better outcomes, as healthcare workers are more likely to be proactive in managing the health having access to real-time data.
Biometric Systems Market Segmentation:
The component segment is classified into hardware, software, and service. The software segment has dominated the market by generating maximum revenue due to the increasing need for advanced software to process and analyze biometric data. The application of Artificial Intelligence and cloud-based services has increased the demand for related software to operate the devices. 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 services segment is expected to register the highest CAGR during the forecast period since security is a major concern for biometric systems. Organizations are looking to deploy biometric systems securely and require the expertise of professional service providers to ensure that the systems are properly installed, configured, and maintained.
By Authentication Type
The authentication type is bifurcated into single-factor and multi-factor. The single-factor holds the largest share of the market as single-factor requires a single action such as placing a finger on a scanner that is largely adopted in day-to-day life. Single-factor biometric systems are less expensive, easier, and quicker to implement than multi-factor biometric systems. The convenience of operating single-factor by consumers makes them a more attractive option for many organizations and individuals to verify identity. For instance, in February 2021, Aratek launched A700 Fingerprint Scanner that allows to capture high-quality fingerprint images at 400 by 500 pixels with a distortion rate less than one percent.
The multi-factor segment is expected to register the highest CAGR during the forecast period. The growth is attributed to the rising need for additional security in government banks and defense sectors against the theft of sensitive data. Multi-factor biometric systems provide a higher level of security compared to single-factor systems, due to the use of multiple biometric characteristics to verify a persons identity. The employment of strict security makes it difficult for an attacker to steal the data, as the attacker needs to defeat multiple biometric modalities.
The type segment is trifurcated into contact, contactless, and hybrid type. The contact segment dominates the market due to the ease of operation of contact biometric such as a fingerprint scanner making contact biometrics a popular choice for organizations. The use of contact type in consumer electronics such as mobile phones and laptops to unlock the devices and in offices to monitor the in and out timings of the employees is also driving the market growth.
However, the contactless segment is projected to register the highest CAGR during the forecast period. The rise in hygiene issues and security concerns among consumers due to touch-based issues is expected to fuel the growth of the non-contact biometric system. Also, the integration of digital disruptive technologies such as artificial intelligence into biometric systems is boosting the market growth. For instance, in September 2020 Aware Inc., launched Knomi Version 2.6. The latest version comprises robust passive facial liveness and authentication with voice biometric capability for speaker recognition to offer secure, cost-effective, and convenient access to applications and networks.
The mobility segment is classified into fixed and portable. The fixed segment dominates the market and generates the maximum revenue due to the application of fixed biometric systems at key locations such as buildings and security checkpoints. The employment of fixed biometrics at the entrances of government areas allows only selected officials to enter and hence protects the leakage of any sensitive data. Also, the application of fixed biometrics at security checkpoints in airports is used to verify the identity of travelers at immigration control points and prevent the entry of individuals with criminal records. For instance, in December 2020, NEC facial recognition was adopted by Star Alliance Biometrics platform using which passengers pass through security access and boarding gates by registering face images and passport information.
Moreover, the portable segment is projected to register the highest CAGR during the forecast period. The rise of remote work and telecommuting has increased the demand for biometric systems and is not limited to a specific location and allows the individuals to authenticate themselves from anywhere. For instance, the rising trend of mobile transactions requires secure authentication such as facial recognition reducing the risk of fraud and unauthorized access.
The application segment is divided into face recognition, iris recognition, fingerprint recognition, hand geometry, signature recognition, and voice recognition. The fingerprint segment accounts for the largest revenue due to the heavy use of fingerprint biometrics by organizations in time and attendance tracking. Fingerprint recognition systems are used to accurately track employee attendance and working hours. Such a system helps companies to monitor the workforce and ensure that the employees are being paid for the correct amount of time they have worked. For instance, 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.
The iris recognition segment is expected to witness the highest CAGR during the forecast period as iris recognition provides an effective and secure method of biometric authentication, an increasingly popular tool for government agencies and organizations. For instance, iris recognition technology is used in India to provide citizens with identity proof such as an aadhar card.
The end-user healthcare, automotive, banking and finance, security, government, consumer electronics, and others. Consumer electronics account for the largest market share as the biometric system is widely employed in smartphones, laptops, and wearable devices such as smartwatches. Hence, the rising demand for consumer electronics globally is fueling the adoption of the biometric system. For instance, according to Gartner Inc. the sales of smartphones accounted for 1,433,859.4 thousand units in 2021 as compared to 1,351,836.5 thousand units in 2020.
The banking and finance segment is expected to register the fastest CAGR during the forecast period to control access to secure areas, such as server rooms and data centers, to ensure the safety of sensitive financial information. For instance, 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.
North America accounted for the largest share contributor to the market growth due to the high adoption of biometrics in the healthcare sector. Biometric systems are used to securely access electronic medical records, that contain patient\'s sensitive information, and to ensure that only authorized personnel have access to this information. Biometric systems are also used in telemedicine to securely identify patients and their medical records during remote consultations with healthcare providers. Such adoption of biometrics in the healthcare sector is driving the growth of the market in North America.
Asia-Pacific is expected to register the fastest CAGR during the upcoming period due to the presence of key players including NEC Corporation and Fujitsu operating in the market. Also, the growing adoption of virtual payments in the countries including India, China, Japan, and South Korea requires secure authentication of the user to prevent the risk of fraud and unauthorized access.
Biometric Systems Market Competitive Landscape:
The Biometric Systems Market is highly competitive, with a large number of manufacturers and suppliers operating in the market. The companies compete in terms of product innovation, technology, quality, reliability, and price. Some of the key strategies used by market players include mergers and acquisitions, partnerships, collaborations, and investments in research and development. Companies are also focusing on expanding the product portfolios and strengthening the distribution networks to increase the market share and reach new customers. Key companies are:-
• Apple Inc.
• Fujitsu Limited
• NEC Corporation
• Suprema Inc.
• Synaptics Inc.
• HID Global
• 3M Cogent
• Bio-Key International
• In February 2023, Google Chrome added a new biometric authentication feature on the desktop asking the users for fingerprint verification for entering saved passwords.
• In January 2023, Rank One Computing (ROC) announced a partnership with the Modular Open Source Identity Platform (MOSIP). Rank One Computing is a technology company and MOSIP is an open-source platform that provides a comprehensive solution for identity management and verification. The partnership between the two companies aims to bring the respective expertise and resources together to deliver innovative solutions in the field of identity management.