Biometrics Market

Global Biometrics Market:

The global biometrics market size reached US$ 39.0 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 144.0 Billion by 2032, exhibiting a growth rate (CAGR) of 15.2% during 2024-2032. The growing advancements in technology and innovation, rising maintenance of border control and travel security, and increasing focus on maintaining workplace security to reduce the risk of unauthorized access are some of the major factors propelling the market growth.

Biometrics Market Analysis:

• Major Market Drivers: The rising adoption of mobile devices to make online transactions, surging integration of biometrics in the healthcare sector, growing security concerns, etc., are some of the key factors proliferating the market growth. Moreover, the increasing regulations and compliance requirements, particularly in sectors handling sensitive data like finance and defense, have spurred the adoption of biometric authentication systems.
• Key Market Trends: The growing adoption of multimodal biometric systems, continuous advancements in AI and machine learning, and improving authentication processes, are expected to escalate the market growth. Moreover, the integration of biometric authentication into smartphones and other mobile devices continues to expand, driven by the growing demand for secure and convenient authentication methods. Mobile biometrics, including fingerprint scanners, facial recognition cameras, and iris scanners, enable users to unlock devices, authorize payments, and access sensitive applications with ease, thereby driving the biometrics market demand.
• Geographical Landscape: According to the report, Asia Pacific accounted for the largest market share. The growth of the region is attributed to rising technological advancements in security maintenance processes. Many countries in the Asia Pacific region have implemented biometric systems for various purposes, such as national identity cards, border control, law enforcement, etc. Government initiatives to enhance security and streamline administrative processes have boosted the demand for biometric solutions. Moreover, the Asia Pacific region has witnessed rapid smartphone adoption, especially in emerging economies like India, China, Singapore, Indonesia, etc.
• Competitive Landscape: Some of the leading biometrics market companies are Accu-Time Systems, BIO-Key International, Inc., Cognitec Systems, GmbH, Fujitsu Limited, 3M Cogent, Inc., IDTECK, NEC Corporation, Siemens AG, RCG Holdings, Ltd., Suprema, Inc., Lumidigm, Inc., IrisGuard, Inc., Daon, Inc., DigitalPersona, Inc., and Morpho SA (Safran), among many others.
• Challenges and Opportunities: Rising privacy concerns, security risks, cost and complexity, and bias issues are some of the challenges that the market is facing. However, continuous advancements in biometric technology, including improved algorithms, sensors, and processing capabilities, present numerous biometrics market opportunities for innovation and differentiation. Companies that invest in R&D activities and stay at the forefront of technological developments can gain a competitive edge.

Biometrics Market Trends:

Growing Advancements in Technology and Innovation

The growing advancements in technology and innovation are exerting a positive influence on the biometrics market. Moreover, continuous upgradations in biometric algorithms, sensor technologies, and processing capabilities are leading to significant improvements in the accuracy, reliability, and performance of biometric systems. For instance, in 2022, the Transportation Security Administration introduced an identity management roadmap for biometrics, which is followed by Credential Authentication Technology (CAT). These units can scan a traveler's photo ID and match it with their flight details. These advancements enable more precise identification and authentication of individuals. Furthermore, the widespread adoption of smartphones equipped with biometric sensors, such as fingerprint scanners, facial recognition cameras, and iris scanners, has fueled the growth of mobile biometrics. Mobile biometric authentication enables secure and convenient access to devices, applications, and digital services, driving its integration into mobile banking, e-commerce, and identity verification solutions. For instance, in October 2023, Google upgraded face authentication in its new smartphone that allows users to verify sign-in apps and make payments. The Pixel 8 and Pixel 8 Pro's selfie cameras combine AI and machine learning to offer secure Face Unlock that meets the highest Android biometric class criteria. In line with this, the adoption of multimodal biometric systems, which combine two or more biometric modalities, such as fingerprint, facial, iris, voice, and behavioral biometrics, is increasing. Also, multimodal systems offer higher accuracy and reliability by leveraging multiple biometric traits for authentication, enhancing security and usability across various applications. For instance, in December 2023, Rank One Computing (ROC.ai) launched an iris solution, multimodal biometrics. These factors are further positively influencing the biometrics market outlook.

Rising Focus on Security and Identity Management

With the increasing risk of cyber threats, data breaches, and identity theft incidents, organizations across various sectors are prioritizing security measures to protect sensitive information and prevent unauthorized access. For instance, in 2023, there were more than 2,300 cyberattacks, totaling around 343,338,964 victims. Data breaches increased by 72% in 2023, surpassing the previous all-time record set in 2021. In line with this, in May 2024, the mega-health system, Ascencion, was hit by a cyberattack amidst growing concerns about cybersecurity in healthcare and an alarming surge in breaches. Biometric authentication offers a more secure and reliable method of verifying identities compared to traditional authentication methods like passwords or PINs, making it an essential component of modern security strategies. In addition, the proliferation of online transactions, digital payments, and e-commerce platforms has led to an increase in fraudulent activities, including identity theft, account takeover, and financial fraud. Biometric solutions, such as fingerprint recognition, facial recognition, and behavioral biometrics, help mitigate fraud by accurately verifying users' identities and detecting suspicious behavior patterns. For instance, in 2023, a total of 1.13 million cases of financial cyber fraud were reported. Moreover, in numerous industries such as banking, finance, healthcare, and government, accurate identity verification is essential for regulatory compliance, fraud prevention, and risk management purposes. Biometric technologies enable organizations to establish a robust identity verification process by verifying individuals based on unique physiological or behavioral characteristics, reducing the risk of identity fraud and impersonation. For instance, ID-PAL, a biometric, document, and database checks provider, launched a new document fraud detection tool. In line with this, in April 2024, Mastercard introduced Scam Protect, a suite of AI-driven tools. The Scam Protect tool offers protection against scams by combining digital identity with biometrics, AI, and open banking capabilities to safeguard the consumers. These factors are proliferating the industry’s growth.

Increasing Government Investments

Governments worldwide are investing in biometric technologies to strengthen border security and improve immigration control. Biometric systems, such as facial recognition, iris scanning, and fingerprint identification, enable automated and accurate verification of travelers' identities, helping authorities identify potential threats, criminals, or individuals with fraudulent travel documents. For instance, in May 2024, the UK Government announced that it would spend US$ 295 million on biometrics for police. In line with this, in June 2023, the Canadian government declared that biometric data submission would be a mandatory component of the application process for all candidates seeking permanent residence. The purpose of this new regulation is to improve border security and expedite immigration screening. Besides this, biometric authentication streamlines passenger processing and reduces wait times at border checkpoints, airports, and other travel hubs. Automated biometric systems enable rapid and frictionless identity verification, allowing travelers to move through checkpoints more efficiently while maintaining high levels of security. For instance, in January 2024, the Government of India announced that it is planning to implement a biometrics-based system for international passengers and accelerate immigration checks. The biometrics-based system will use fingerprints or face recognition to verify passenger identities, as well as automatic immigration clearances that would eliminate the requirement for physical passport verification. In addition, the adoption of e-passports and smart border initiatives facilitates the integration of biometric technologies into travel documents and border control systems. E-passports store biometric data, such as facial images and fingerprints, enabling automated identity verification at border crossings. Smart border solutions leverage biometrics for seamless and secure border management, including visa processing, immigration control, and traveler tracking, which is augmenting the market growth. For instance, by the end of 2025, foreign visitors will be able to utilize India's Digi Yatra biometric airport ID system. The non-profit Digi Yatra Foundation (DYF), which is in charge of the facial recognition project, is awaiting certain extended use cases as well as the introduction of electronic passports in India to expedite access for visitors from abroad. This is further expected to proliferate the demand for biometrics.

Biometrics Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global biometrics market report, along with forecasts at the global and regional levels for 2024-2032. Our report has categorized the market based on technology, functionality, component, authentication, and end-user.

Breakup by Technology:

• Face Recognition
• Hand Geometry
• Voice Recognition
• Signature recognition
• Iris recognition
• AFIS
• Non-AFIS
• Others
   

Voice recognition dominates the market

The report has provided a detailed breakup and analysis of the market based on the technology. This includes face recognition, hand geometry, voice recognition, signature recognition, iris recognition, AFIS, non-AFIS, and others. According to the report, voice recognition represented the largest segment.

Voice recognition, also known as speaker recognition, is a biometric technology that involves the identification or verification of individuals dependent on their unique voice patterns. It can be used to provide secure authentication for devices, systems, or accounts. Users can gain access by simply speaking a passphrase or a specific phrase. It can also be used as part of a multi-factor authentication process, adding an extra layer of security alongside passwords or other biometric methods. Voice recognition can identify callers and provide personalized services based on their previous interactions and preferences. For instance, in May 2024, the Bank of Ireland declared that it is planning to invest US$ 36 Million to develop its phone and CRM systems, including voice biometrics for verification to decrease customer wait times while enhancing fraud prevention. It is also adopted by doctors to transcribe their spoken notes into text, saving time, and improving accuracy in medical documentation.

Breakup by Functionality:

• Contact
• Non-contact
• Combined
   

Non-contact holds the largest share in the market

A detailed breakup and analysis of the market based on the functionality have also been provided in the report. This includes contact, non-contact, and combined. According to the report, non-contact accounted for the largest market share.

The non-contact feature in biometrics refers to the ability to collect and analyze biometric data without physical contact between the sensing equipment and the individual being authenticated. In situations where physical contact can transmit diseases or infections, non-contact biometrics offer a safer alternative. Non-contact biometric methods are more convenient for users as individuals don't need to touch any surfaces or devices, making the authentication process faster and more user-friendly. Moreover, traditional contact-based biometric methods like fingerprint scanners might be uncomfortable or inconvenient for some individuals, especially if they have certain skin conditions or cultural preferences. Non-contact methods can provide a more inclusive and pleasant user experience. Furthermore, non-contact biometric systems can process a larger number of people quickly, making them suitable for high-traffic areas like airports, stadiums, and event venues. For instance, in December 2023, the Eastern Bank in Bangladesh launched a metal biometric payment card to authenticate contactless payment at the point of sale using the fingerprint.

Breakup by Component:

• Hardware
• Software
   

Hardware holds the biggest share in the market

A detailed breakup and analysis of the market based on the component has also been provided in the report. This includes hardware and software. According to the report, hardware accounted for the largest market share.

As per the biometrics market outlook, hardware plays a crucial role in the field of biometrics, providing the necessary tools for capturing, processing, and storing biometric data. It comprises sensors and scanners which are used to capture the unique physiological or behavioral characteristics of individuals. Biometric hardware ensures accurate data capture by minimizing noise and interference. It is commonly used for authentication and access control purposes as systems equipped with fingerprint scanners, iris recognition cameras, or facial recognition cameras can grant or deny access to secured areas, devices, or data based on the biometric traits of individuals. It is employed in workplace environments to track employee attendance and working hours accurately.

Breakup by Authentication:

• Single-Factor Authentication
• Multifactor Authentication
   

Multifactor authentication holds the maximum share in the market

A detailed breakup and analysis of the market based on the authentication have also been provided in the report. This includes single-factor authentication and multifactor authentication. According to the report, multifactor authentication accounted for the largest market share.

Multifactor authentication (MFA) refers to a security process that requires users to provide two or more different authentication parameters to verify their identity before gaining access to a system, application, or data. When combined with biometrics, which involves the use of unique physical or behavioral traits for identification, MFA becomes an even more robust and secure authentication method. Besides this, combining biometrics with other authentication factors (a password or token) adds an extra layer of security. Biometric traits like fingerprints, facial features, iris patterns, and voice characteristics are unique to everyone, making it complicated for unauthorized users to gain access. Biometric authentication is user-friendly and convenient, as users don't need to remember complex passwords or carry additional hardware tokens. They can simply use their unique biometric traits to access their accounts or systems. For instance, in February 2024, MinkasuPay, a biometric authentication solutions provider, received a patent in India for its biometric 2-factor authentication technology.

Breakup by End-User:

• Government
• Defense Services
• Banking and Finance
• Consumer Electronics
• Healthcare
• Commercial Safety and Security
• Transport/Visa/Logistics
• Others
   

Banking and finance hold the largest share of the market

A detailed breakup and analysis of the market based on the end-user has also been provided in the report. This includes government, defense services, banking and finance, consumer electronics, healthcare, commercial safety and security, transport/visa/logistics, and others. According to the report, banking and finance accounted for the largest market share.

The banking and finance sector uses biometrics for a variety of reasons, primarily to enhance security, streamline processes, and refine the overall user experience. Biometric authentication offers better security compared to traditional authentication methods like passwords. It minimizes the risk of fraud, as biometric traits are difficult to forge or replicate. This helps in preventing unauthorized individuals from accessing accounts, conducting fraudulent transactions, or stealing sensitive information. Biometric technologies consisting of fingerprint recognition, facial recognition, and iris scanning offer a reliable way to verify the identity of a customer before granting access to accounts or conducting financial transactions. This helps ensure that the person performing the transaction is indeed the authorized account holder. For instance, in April 2024, Mutual Trust Bank (MTB), a Bangladesh-based bank, collaborated with IDEX Pay, the biometric solution from IDEX Biometrics and launched biometric payment cards.

Breakup by Region:

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America
   

Asia Pacific exhibits a clear dominance, accounting for the largest biometrics market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. According to the report, Asia Pacific accounted for the largest market share.

According to the biometrics market overview, Asia Pacific held the biggest market share due to rising technological advancements in security maintenance processes. Besides this, the increasing integration of biometrics in the financial sector to enhance security and streamline customer authentication processes is contributing to the growth of the market. Additionally, the rising utilization of online payment platforms to make cashless transactions and pay for online purchases is supporting the growth of the market. For instance, in January 2024, the Indian Government announced plans to deploy a biometrics-based system for foreign passengers to speed up immigration processes.

Competitive Landscape:

Key market players are investing in research and development (R&D) activities to innovate and create more advanced and accurate biometric technologies, which include improving the accuracy, speed, and security of their authentication methods. They are also expanding their product and service portfolios to offer a broader range of biometric solutions that cater to different industries and use cases. Top companies are integrating artificial intelligence (AI) and machine learning (ML) into biometric solutions to enhance accuracy, adapt to changing conditions, and better distinguish between real users and fraudulent attempts. They are also focusing on making their solutions more user-friendly and convenient, reducing false rejections, and minimizing friction during authentication. Leading companies are forming partnerships with other technology companies, solution providers, and integrators to expand their reach and offer comprehensive solutions. They are also tailoring their solutions to meet the specific demands of different industries and organizations.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Accu-Time Systems, Inc. 
• BIO-Key International, Inc.
• Cognitec Systems, GmbH
• Fujitsu Limited
• 3M Cogent, Inc.
• IDTECK
• NEC Corporation
• Siemens AG
• RCG Holdings, Ltd. 
• Suprema, Inc. 
• Lumidigm, Inc. 
• IrisGuard, Inc. 
• Daon, Inc.
• DigitalPersona, Inc.
• Morpho SA (Safran)
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Biometrics Market Recent Developments:

• May 2024: Niobium raised US$ 5.5 Million in venture capital to create a fully homomorphic encryption (FHE)-specific accelerator processor. Homomorphic encryption is used in order to ensure unlinkability, irreversibility, and renewability for biometric template protection techniques. 
• May 2024: Fingerprint Cards AB collaborated with Lapa Electric, an Indian-based premium electric mobility start-up, to introduce India’s first biometric-enabled electric scooter.
• December 2023: Eastern Bank (EBL) and IDEX Biometrics teamed to develop biometric metal cards in Bangladesh, with the goal of improving security and facilitating transactions.

Biometrics Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the biometrics market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global biometrics market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the biometrics industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.