Mobile Biometrics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Mobile Biometrics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Mobile Biometrics Market was valued at USD 18.63 billion in 2020 and is expected to reach USD 74.58 billion by 2026, at a CAGR of 26% over the forecast period 2021 - 2026. Over the years, the requirement to control access to data, premises, and systems has grown. Presently, many organizations rely on passwords, PIN numbers, or cards to confirm people’s identity for access. However, this traditional approach poses severe challenges. Biometric on mobile devices has become popular in recent years. The technology moved toward user-friendliness and also became much more affordable for consumers. This technology has been leveraged to facilitate online transactions, authentication, and many other services.

Key Highlights

• Some major banks leverage biometric technologies in a variety of scenarios, such as cash withdrawals at the ATM, authenticating mobile banking apps using fingerprint signing, or a combination of face and voice verification. For instance, the Bank of America rolled out fingerprint authentication and Touch ID in 2015 and more than half of the bank’s customer used the biometric for mobile access by the middle of 2017.
• Facial recognition, also poised for growth across industries, is witnessing a boost from the launch of Apple’s Face ID system. Tesco Bank is one of the banks that updated its mobile banking app to make it compatible with Apple's Face ID, letting customers log into their accounts and make payments by using facial recognition.
• Biometrics has also brought a radical change in security operations in places, such as airports and international borders. Many countries across the world deployed biometric identification at their borders. Also, numerous airports are using automatic facial recognition boarding system which saves time and keeps the customers happy. UK police officers are exploring the potential of automated facial recognition technology (AFR) and how this technology can be adopted on their smartphones in the future.

Key Market TrendsMobile Banking is Expected to Hold a Significant Share

• The utilization of banking and financial services through online portals is increasing at a high pace, which creates a demand for advanced authentication to protect the vital data of consumers associated with the banking organization. Furthermore, with the rise in online transaction and banking, the risk for fraud and potential exposure of personal information are ascending.
• Owing to the adoption of online banking, mobile and e-banking are being increasingly used daily to transfer and perform a transaction, which creates potential avenues for cybercriminals to compromise a user’s account to extract money. With banking service providers investing in mobile app service to operate, the pressure to provide safe banking services through mobile apps persists. This is expected to influence the demand for the mobile biometrics market.
• Facial recognition is expected to emerge owing to the release of mobile phones with facial recognition software (iPhone X). A few used cases are evident across the United Kingdom, by people who have upgraded their mobile banking apps compatible with the new iPhone facial recognition software. Banking giants like HSBC (HSBCnet app) have extended their touch ID biometric authentication to voice recognition, Selfie ID, and even log-in with a photo.

Asia-Pacific is Expected to Witness Rapid Growth

• Growing mobile transaction in countries, such as India and China is expected to be one of the significant drivers for the mobile biometrics market in the region.
• China is witnessing a high mobile transactional volume, which is expected to create a demand for authentication solutions, such as biometrics. For instance, as of October 2017, the mobile payment was recorded at CNY 81 trillion as compared to CNY 58.8 trillion in 2016.
• The State Bank of India is planning to launch a multi-mode biometric authentication for its mobile applications. It will comprise of either fingerprint or face recognition or by using voice recognition software. In addition to this, the bank is also planning to use biometrics for various mobile banking products, including Unified Payment Interface transactions. With other banks to follow suit, it is expected to bolster the demand of the market in the region.

Competitive Landscape

The mobile biometrics market is highly competitive and consists of several players. Many companies are increasing their market presence by introducing new products or solutions or by entering into strategic mergers and acquisitions.

• March 2019 - AppGuard launched TRUSTICA Mobile, which is a consumer mobile device communication app with military-grade security, including iris, facial, and fingerprint biometrics for user authentication and encryption keys that change for each interaction.
• August 2018 - Ipsidy Inc. launched its Access mobile biometric identity solution for physical access management. Access works with the company's Concierge tablet-based application, which provides the site attendant with real-time monitoring of enrolled people, as well as registration, reporting, and analytical tools.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Aware Inc.
Mobbeel Solutions SLL
Veridium Ltd
M2SYS Technologies
Fingerprint Cards AB
Nuance Communications Inc.
Precise Biometrics AB
ValidSoft Limited
VoiceVault Inc.
IDEMIA (Safran Identity & Security SAS)

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