ICT-IOT

Biometrics Market

Global Industry Analysis and Forecast 2023-2030

Pages : 120

Base Year : 2022

Released Year : September 2023

Format :Pdf Ppt Xls

Report ID:KR253

Author : Shreya S.

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Base Year

2022

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Forecast Year

2023-2030

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Historical Years

2018-2021

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Market Value (2022)

USD 8.84 Billion

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Forecasted Value (2030)

USD 31.24 Billion

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CAGR (2023 – 2030)

15.06%

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Fastest Growing Region (2023 - 2030)

Asia Pacific

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Largest Region

North America

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By Authentication Type

Single-Factor Authentication (SFA), Multi-Factor Authentication (MFA)

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By Component

Hardware, Software

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By Functionality

Contact Based, Non-Contact Based, Combined

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By Technology

Face Recognition, Voice Recognition, Signature Recognition, Iris Recognition, Fingerprint Recognition, Hand Geometry Recognition, Others

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By Application

Site Access Control, Time Recording, Mobile Application, Workplace, Others


Biometrics Market Size

The global Biometrics Market size was valued at USD 8.84 billion in 2022 and is projected to reach USD 31.24 billion by 2030, growing at a CAGR of 15.06% from 2023 to 2030. Rapid digital transformation and the widespread use of mobile devices has contributed to the growth of biometrics. Mobile devices such as smartphones or tablets are equipped with biometric sensors such as fingerprint scanners or facial recognition cameras, which facilitate the implementation of biometric authentication methods. Advances in technology, such as improvements in biometric sensor accuracy, processing power, and algorithm development, have made biometric data more accurate, reliable, and easier to use.

These advances have also led to the integration of biometric authentication into various devices and applications, driving its adoption. The growing need for enhanced security, convenience, fraud prevention, regulatory compliance, digital transformation, and technological advances is increasing the adoption and growth of biometric authentication. However, the storage and transmission of biometric data is vulnerable to data breaches. The use of biometric technology raises ethical and legal challenges. Concerns about privacy, security, and potential misuse of biometric data can cause people to resist or be reluctant to adopt biometric technology.

Analyst’s Review

Advances and innovations in biometric technology have greatly improved its capabilities and expanded its applications. Multimodal biometrics combines multiple biometric methods such as fingerprints, iris scanning, face recognition, voice recognition, and gait analysis to improve accuracy and reliability. Deep learning and artificial intelligence technologies have revolutionized biometric identification systems.

These techniques make it possible to develop stronger and more accurate biometric models by analyzing large amounts of data and learning complex patterns. Biometric sensors embedded in wearables viz., smartwatches, and fitness trackers enable continuous monitoring of physiological and behavioral characteristics such as heart rate, sleep patterns, and activity levels. Cloud-based biometric systems enable centralized storage and processing of biometric data.

This approach reduces hardware costs, enables scalability, and facilitates cross-platform and remote access to biometric authentication services. These advances and innovations in biometric technology continue to improve the security, user experience, and scalability of authentication in a wide range of applications, including access control, identity verification, financial transactions, healthcare, and law enforcement.

Market Definition

Biometrics refers to the measurement and analysis of unique physical characteristics that can be used for identification or authentication. This includes the use of biometric features such as fingerprints, facial features, iris patterns, voice patterns, or behavioral patterns such as writing rhythms or gait analysis. Biometrics is a secure and reliable method of identity verification and is widely used in various industries and applications, including access control, financial transactions, border control, and law enforcement.

Biometric authentication offers convenience and a smooth user experience. Using its biometric features, such as fingerprints or face scanning, users can authenticate themselves quickly and easily, reducing the hassle of managing multiple credentials. Biometric keys are used to encrypt the data, and the data can only be decrypted by an authorized user with the corresponding biometric characteristics.

Biometrics Market Dynamics

The introduction of biometric technology in smartphones has significantly improved the security and convenience of using the devices. Manufacturers of consumer electronics, smartphones, tablets, laptops, and home automatic equipment integrate additional functions and feature products to attract more customers and expand their customer base. Biometric technology-based smartphones used to secure credentials for access buildings, doors, and IT systems provide a better user experience and offer new options to supplier’s portable access control solutions. These smartphones use biometric data such as fingerprints, facial features, iris patterns, or palm veins to authenticate and confirm the user's identity.

Similarly, facial recognition-based smartphones use front-facing cameras and advanced algorithms to analyze and verify the user's face as an authentication factor. Furthermore, users can authenticate a variety of applications, including mobile payments, app logins, secure file access, and even authorization of payment transactions. Smartphones based on biometric technology have become increasingly common among major mobile phone manufacturers, and the technology continues to evolve. Therefore, more smartphones now have biometric authentication methods that provide users with a secure and user-friendly experience.

Biometric authentication methods offer stronger and more personal access compared to traditional password or PIN-based methods. However, large capital investments are required to implement these methods. The market growth is hindered by the high implementation costs, security issues, and concerns about false positive data and inaccuracy are some of the major factors expected to restrain the growth of the global biometrics market during the forecast period.

Biometric sensors and components are expensive because the entire technology is designed to enable more accurate measurement and statistical analysis of a person's unique physical and behavioral characteristics, and the solution minimizes the risk of fraudulent activity. In addition, the cost of biometric applications may increase depending on the type of sensor used in the device, which is expected to slow down the biometrics market growth during the forecast period.

Segmentation Analysis

The global market is segmented based on authentication type, component, functionality, technology, application, and geography.

Based on authentication type, the global biometrics market is segmented into single-factor authentication (SFA) and multi-factor authentication (MFA). The multi-factor authentication segment is expected to account for a comparatively larger revenue share during the forecast period due to the increasing need for users to provide two or more verification factors that provide access to resources such as applications, online accounts, or transactions.

Based on components, the biometrics market is segmented into hardware and software. The hardware segment catered to a significant share of the market in 2022. The segment growth is accelerated by the growing need for hardware that balances convenience, security, and user experience. Biometric systems use a variety of devices, including scanners and sensors, to collect biometric data for identification verification.

Based on functionality, the biometrics market is segmented into contact-based, non-contact-based, and combined. The non-contact-based segment is expected to register a significantly rapid revenue growth rate during the forecast period due to the increasing need to save time and reduce physical contact. The demand for non-contact-based biometric systems is anticipated to increase as private company investment in the implementation of failsafe technology increases. Additionally, factors that are anticipated to fuel the segment's revenue growth include the growing demand to enhance security, operational effectiveness, and the speed at which employees can check in and out at their places of employment.

Based on technology, the market is classified into face recognition, voice recognition, signature recognition, IRIS recognition, fingerprint recognition, hand geometry recognition, and others. The widespread use of fingerprint sensors for biometric authentication in consumer electronics, the increased application of biometrics owing to the rise in the number of identity threats, and the development of touchless fingerprint technologies are fueling the growth of the fingerprint recognition market.

Based on application, the biometrics market is segmented into site access control, time recording, mobile application, workplace, and others. Over the forecast period, the workplace segment is anticipated to dominate the industry in terms of revenue contribution to the global market due to the growing need for enhancing employee safety and workplace security through sensors and surveillance.

Biometrics Market Regional Analysis

Based on regional analysis, the global market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Asia Pacific is expected to account for a relatively larger revenue share over the review timeline owing to the robust presence of leading companies and ongoing technological advancements in biometrics, which provide employee identification and attendance in both the public and commercial sectors. In recent years, biometric solutions have developed significantly with the widespread use of devices such as computers and smartphones.

Biometric technologies and artificial intelligence based on machine learning open new ways to detect abnormal behavior and provide an additional level of authentication when needed. Manufacturers of biometric systems are constantly encouraged to invest in research and development to expand their range of advanced biometric systems as the demand for contactless systems increases. Additionally, rising government initiatives to promote and support the usage of biometric authentication systems, along with an increase in mobile payment transactions, are major drivers anticipated to fuel market revenue growth.

Competitive Landscape

The global biometrics industry study will provide valuable insight with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions.

List of Key Companies in Biometrics Market

  • Aware, Inc.
  • Biometrics Technologies Co., Ltd.
  • Cerence Inc.
  • Fujitsu Limited
  • Hitachi, Ltd.
  • Microsoft
  • Thales Group
  • NEC Corporation
  • BIO-key International
  • Cognitec Systems GmbH

Key Industry Developments

  • In March 2023: Cerence Inc. launched Cerence Assistant, its next-generation AI-powered biometric engine that delivers advanced personalization and security features for mobility. Cerence's next-generation biometric solution is optimized for automotive and mobile applications, putting the user at the forefront of a frictionless user experience and delivering the highest recognition accuracy in a low-footprint embedded solution.
  • In November 2022: NEC Corporation launched its latest multi-modal biometric authentication solution, which represents the flagship of biometric authentication under the brand name Bio-Idiom. This new solution is the first to combine NEC's facial recognition and iris recognition, this solution enables fast and accurate authentication with a false acceptance rate of less than one in 10 billion.

The global Biometrics Market is segmented as:

By Authentication Type

  • Single-Factor Authentication (SFA)
  • Multi-Factor Authentication (MFA)

By Component

  • Hardware
  • Software

By Functionality

  • Contact Based
  • Non-Contact Based
  • Combined

By Technology

  • Face Recognition
  • Voice Recognition
  • Signature Recognition
  • Iris Recognition
  • Fingerprint Recognition
  • Hand Geometry Recognition
  • Others

By Application

  • Site Access Control
  • Time Recording
  • Mobile Application
  • Workplace
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • UK
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
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CUSTOMIZATION OFFERED
  • Check Icon Additional Company Profiles
  • Check Icon Additional Countries
  • Check Icon Cross Segment Analysis
  • Check Icon Regional Market Dynamics
  • Check Icon Country-Level Trend Analysis
  • Check Icon Competitive Landscape Customization
  • Check Icon Extended Forecast Years
  • Check Icon Historical Data Up to 5 Years
Frequently Asked Questions (FAQ's)
The global market is projected to reach USD 31.24 billion by 2030, growing at a CAGR of 15.06% from 2023 to 2030.
The global market was valued at USD 8.84 billion in 2022.
The global market is growing at a significant rate owing to the growing need for enhanced security, convenience, fraud prevention, regulatory compliance, digital transformation are increasing the adoption and growth of biometric market.
Top manufacturers of biometrics are Aware, Inc., Biometrics Technologies Co., Ltd., Cerence Inc., Fujitsu Limited, Hitachi, Ltd., Microsoft, Thales Group, NEC Corporation, BIO-key International, Cognitec Systems GmbH, and others.
Asia Pacific is expected to be the fastest growing region over the forecast period (2023-2030).
By authentication type, multi-factor authentication (MFA) will hold the maximum share in biometrics market with the revenue value by 2030.
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