Biometrics Technology Market Forecasts to 2028 – Global Analysis By Type (Contactless, Contact-Based), Component (Service, Hardware), Authentication Type, End User, and By Geography

Biometrics Technology Market Forecasts to 2028 – Global Analysis By Type (Contactless, Contact-Based), Component (Service, Hardware), Authentication Type, End User, and By Geography

According to Stratistics MRC, the Global Biometrics Technology Market is accounted for $8.36 billion in 2021 and is expected to reach $27.93 billion by 2028 growing at a CAGR of 18.8% during the forecast period. Biometrics technology is used for the recognition and verification of persons by analyzing their fingerprints, voice, face, iris, and hand geometry signatures. The technology presents several advantages such as a high level of security in the private, public, and commercial sectors. It records unique human characteristics for authorization.

Market Dynamics:

Driver:

Increasing demand for consumer electronics

Manufacturers of consumer electronics are interested in integrating advanced features and functionalities into their products to attract additional customers and increase their client base. Consumers prefer utilizing devices that help with biometric authentication to access bank accounts, email accounts, and other personal data. Likewise, biometric technology-based smartphones are progressively being utilized to secure credentials for accessing buildings, doors, and IT systems, thereby delivering a better experience to users and presenting various opportunities to providers of portable access control solutions. All these factors boost the demand for smartphones at present, and a similar trend is likely to observe in the near future.

Restraint:

Costs associated with biometric systems

Production of the advanced biometric system includes high capital investment in R&D, production, installation, maintenance, and transportation. Software and hardware components of high-performance biometric systems incur huge installation and maintenance costs. More sophisticated biometric advancements need modernized raw materials and subcomponents, consequently incurring additional costs. At users’ end, they need to bear the transportation, installation, and preventive maintenance costs. Thus, the need for heavy capital investment restricts the biometric system market growth.

Opportunity:

Advances in biometric solutions

Advances in sensing technologies and the high utilization of devices such as PCs and mobile phones offer new opportunities for capturing the physiological and behavioral traits of human beings and analyzing related information for biometric authentication. Machine learning and artificial intelligence technology-powered biometric systems are carrying new possibilities to successfully recognize any unusual way of behaving and provide an additional layer of authentication if needed. The rising demand for contactless systems and expanding application areas encourage biometric system manufacturers to consistently invest in R&D activities to upgrade their portfolio of advanced biometric systems.

Threat:

Data security concerns

Nowadays, citizens consider privacy as one of the most important rights, and there is a common perception that biometric systems attack these rights because of their confidential data being known to sources. Such data is supposed to be misused by country rivals or criminal prosecutors for unfair practices and manipulating public opinion. Misuse of the lost data might prompt class action lawsuits or regulatory fines against the organization that leaked the data. Protocols such as limitations in copying and downloading of individual data by third parties trying to decrease the likeliness of loss of information for illegal use are needed to be imposed by concerned authorities.

The government segment is expected to be the largest during the forecast period

The government segment is estimated to have a lucrative growth as biometrics helps in dismissing corruption through various government-deployed projects for large-scale identification. Government agencies also utilize biometric solutions for verifying individuality across international boundaries. Government agencies have also started adopting cloud-based biometric technologies, such as a cloud-based automated biometric identification system (ABIS).

The fingerprint recognition segment is expected to have the highest CAGR during the forecast period

The fingerprint recognition segment is anticipated to witness the fastest CAGR growth during the forecast period due to its heightened utilization in law enforcement and civil applications. Fingerprint scanning is the most widely utilized biometric authentication technique. One of the key users of the fingerprint biometric technique in the private sector, where it is utilized for attendance and background checks of employees.

Region with highest share:

North America is projected to hold the largest market share during the forecast period due to owing to the growing demand for biometrics solutions by the information and technology sector, rapidly transforming outdated IT infrastructure and increasing demand for fingerprint-embedded payment cards. The major market growth is driven by the emerging mobile banking sector across North America.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period owing to the presence of prominent biometric system manufacturers, technological advancements, increased awareness among the masses about the use of biometric systems for security purposes, and lowered cost of devices based on these technologies. Countries such as China and India are sights of high growth rates in the region.

Key players in the market

Some of the key players profiled in the Biometrics Technology Market include Thales S.A., Suprema, Inc., BIO-key International, Precise Biometrics, NEC Corporation, Imageware Systems, Inc., Fujitsu Frontech Limited, Safran S.A. (IDEMIA), 3M Company and Secunet Security Networks AG.

Key Developments:

In July 2021, Thales Group launched a new voice biometric solution, a part of the Trusted Digital Identity Service Platform, for onboarding and authentication. It allows detecting fraudsters attempting to mimic customers.

In April 2020, Fujitsu Frontech Limited has announced the acquisition of Fulcrum Biometrics, LLC for strengthening and expanding its biometrics authentication business globally. The acquisition will further strengthen competitiveness in a market where digital innovation is advancing at an unprecedented pace.

Types Covered:
• Hybrid
• Contactless
• Contact-Based

Components Covered:
• Software
• Service
• Hardware

Authentication Types Covered:
• Behavioral Biometrics
• Physiological Biometrics

End Users Covered:
• Military & Defense
• Transport / Visa / Logistics
• Public Sector
• Consumer Electronics
• Medical and Research Labs
• IT and Telecommunication
• Home Safety and Security
• Healthcare
• Government
• Commercial Centers and Buildings
• Banking, Financial Services, and Insurance (BFSI)
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances