Contactless Biometrics Technology Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component (Hardware, Software, Service), By Application (Face, Fingerprint, Hand Geometry, Iris, Voice, Others), By End-use (Government

Contactless Biometrics Technology Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component (Hardware, Software, Service), By Application (Face, Fingerprint, Hand Geometry, Iris, Voice, Others), By End-use (Government, Banking & Finance, Consumer Electronics, Healthcare, Transport & Logistics, Defense & Security, Others), By Region, By Competition, 2018-2028

Global Contactless Biometrics Technology Market was valued at USD 13.4 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 19.4% through 2028. The Global Contactless Biometrics Technology Market is experiencing rapid growth, driven by the burgeoning demand for secure, convenient, and hygienic identity verification solutions. As organizations and industries across the world prioritize enhanced security and user experience, contactless biometrics technology has emerged as a compelling solution. This technology allows individuals to authenticate their identities through unique biological markers such as fingerprints, facial recognition, or iris scans without the need for physical contact. The ongoing COVID-19 pandemic has further accelerated the adoption of contactless biometrics, as it eliminates the need for shared touchpoints, reducing the risk of disease transmission. Industries such as finance, healthcare, government, and transportation are embracing this technology to fortify security measures and improve customer experiences. In finance, it's enhancing the security of mobile payments and online banking. In healthcare, it's facilitating patient identification and access control. In government, it's streamlining border control and citizen services. The Global Contactless Biometrics Technology Market is poised for continued expansion as it aligns with the evolving need for seamless and secure identity verification in an increasingly digital and health-conscious world.

Key Market Drivers

Growing Demand for Contactless Biometrics Technology

The global contactless biometrics technology market is experiencing a surge in demand, driving its growth and shaping the industry landscape. Organizations across various sectors are recognizing the potential of contactless biometrics solutions to enhance security, convenience, and user experiences. The growing demand for contactless biometrics technology stems from the need to provide a secure and frictionless authentication process. Features such as facial recognition, iris recognition, fingerprint recognition, and voice recognition are becoming essential requirements for organizations seeking to leverage contactless biometrics technology. These advanced features enable users to authenticate themselves without physical contact, providing a more hygienic and convenient user experience. Additionally, organizations are seeking contactless biometrics solutions that seamlessly integrate with other technologies such as access control systems, mobile devices, and payment platforms, enabling them to leverage the full potential of biometric authentication.

Integration with Existing Systems and Processes

Integration with existing systems and processes is a key driver for the growth of the global contactless biometrics technology market. Organizations across various industries are recognizing the potential of contactless biometrics technology to enhance security, streamline operations, and improve user experiences. By seamlessly integrating contactless biometrics solutions into their existing systems, organizations can leverage the benefits of this technology without disrupting their established processes. This integration allows for a smooth transition, minimizing the need for extensive training or reconfiguration of existing systems. Contactless biometrics technology enables users to authenticate themselves quickly and securely, providing a seamless and efficient user experience. Whether it's in banking, healthcare, transportation, or government sectors, contactless biometrics can transform the way organizations authenticate individuals, secure access to facilities, and protect sensitive information.

By integrating contactless biometrics into existing systems, organizations can optimize their operations, improve security, and drive innovation. For example, in the banking sector, contactless biometrics can be seamlessly integrated into mobile banking applications, enabling secure and convenient authentication for transactions. In healthcare, contactless biometrics can enhance patient identification and access control, ensuring the right individuals have access to sensitive medical records and facilities. The integration of contactless biometrics with existing systems also opens up opportunities for data-driven insights and automation, enabling organizations to make more informed decisions and improve overall business performance. As the demand for seamless integration grows, contactless biometrics technology vendors are focusing on developing solutions that are compatible with a wide range of existing systems and technologies, such as cloud computing and IoT. This compatibility ensures that organizations can leverage their existing investments while incorporating the benefits of contactless biometrics.

Market Fragmentation and Standardization

Market fragmentation and standardization are two key factors influencing the global contactless biometrics technology market. The market is characterized by a diverse range of vendors offering different solutions with varying capabilities and features. This fragmentation poses challenges for organizations as they navigate through a multitude of options to find the most suitable contactless biometrics solution for their specific needs. The lack of standardized interfaces and protocols further complicates matters, as it hinders interoperability between different contactless biometrics systems. This lack of interoperability can result in compatibility issues and limit the seamless integration of contactless biometrics with existing systems and processes. To address these challenges, industry stakeholders need to collaborate and establish common standards and protocols that promote interoperability and simplify the evaluation and selection process for organizations. Standardization efforts would not only enhance compatibility but also foster a more competitive and dynamic market environment. By establishing industry-wide standards, organizations can have greater confidence in the compatibility and reliability of contactless biometrics solutions, leading to increased adoption and market growth. Moreover, standardization can drive innovation by providing a common framework for developers to build upon, enabling the creation of more advanced and feature-rich contactless biometrics solutions. Ultimately, market standardization in the global contactless biometrics technology market is crucial for unlocking the full potential of this technology and ensuring its seamless integration into various industries.

Key Market Challenges

Limited Awareness and Understanding of Contactless Biometrics Technology

One of the primary challenges facing the global contactless biometrics technology market is the limited awareness and understanding among organizations regarding the potential benefits and applications of this technology. Many businesses may not fully grasp the significance of contactless biometrics in enhancing security, improving user experiences, and streamlining processes. This lack of awareness can lead to hesitation in adopting contactless biometrics solutions, leaving organizations at a disadvantage in terms of security and operational efficiency. Addressing this challenge requires comprehensive educational initiatives to highlight the capabilities and advantages of contactless biometrics, showcasing real-world examples and case studies to foster a deeper understanding of its significance.

Complexity of Implementation and Integration

The implementation and integration of contactless biometrics solutions can pose complex challenges for organizations, particularly those with limited technical expertise or resources. Configuring and deploying contactless biometrics systems effectively, and integrating them with existing IT infrastructure and workflows, can be technically demanding. Compatibility issues may arise during integration, leading to delays and suboptimal performance. To address these challenges, it is crucial to simplify the deployment and management of contactless biometrics solutions. User-friendly interfaces and intuitive configuration options should be provided to streamline setup and customization. Additionally, organizations should have access to comprehensive support and guidance, including documentation, tutorials, and technical experts who can assist with integration and troubleshoot any issues. Simplifying these aspects of contactless biometrics implementation can lead to more efficient processes and improved user experiences.

Ensuring Security and Privacy

The global contactless biometrics technology market also faces challenges related to security and privacy considerations. As contactless biometrics systems become more prevalent in various industries, including finance, healthcare, and transportation, there is a growing need to ensure the security and privacy of sensitive data and user interactions. Organizations must navigate evolving regulations and standards to address potential security vulnerabilities and privacy concerns. This challenge requires organizations to stay updated with the latest security practices and invest in robust security frameworks to protect against data breaches and unauthorized access. Collaboration between industry stakeholders, policymakers, and researchers is essential to establish guidelines and standards that promote responsible and secure use of contactless biometrics technology.

Integration with Existing Workflows and Processes

Integrating contactless biometrics solutions seamlessly with existing workflows and processes can be a significant challenge for organizations. Contactless biometrics technology often requires changes in user interfaces and interaction paradigms, which may disrupt established workflows and require employees to adapt to new ways of working. Organizations need to carefully plan and execute the integration process, ensuring minimal disruption and providing adequate training and support to employees. Collaboration between IT departments, business units, and end-users is crucial to identify potential integration challenges and develop strategies to overcome them. By effectively integrating contactless biometrics into existing workflows, organizations can unlock the full potential of this technology and drive security enhancements and operational efficiency gains.

Key Market Trends

Increased Awareness and Understanding

The global Contactless Biometrics Technology Market is experiencing a surge in demand across various industries as organizations become more acquainted with the capabilities and potential applications of this technology. Contactless biometrics technology enables secure and convenient identity verification through unique biological markers such as fingerprints, facial recognition, or iris scans without physical contact. As organizations gain a better understanding of the benefits of contactless biometrics, there is a growing recognition of its value in enhancing security, user experiences, and operational efficiency. This has led to an increased demand for contactless biometrics solutions in sectors including finance, healthcare, government, transportation, and more. In finance, contactless biometrics enhance the security of mobile payments and online banking. In healthcare, it streamlines patient identification and access control. In government, it facilitates border control and citizen services. The growing awareness of contactless biometrics technology and its versatile applications is expected to drive market expansion, with a focus on developing advanced features and seamless integration with various industries.

Complexity of Implementation and Integration

The implementation and integration of contactless biometrics solutions can present complexities for organizations due to the multifaceted nature of this technology. Successful deployment requires meticulous planning, encompassing factors such as compatibility with existing systems, scalability, and user training. Integrating contactless biometrics into established workflows and processes may necessitate adjustments to user interfaces and interaction paradigms, posing challenges for organizations. Adapting to these changes requires careful consideration and effective change management strategies to ensure a smooth transition. Organizations must assess the impact on users and provide adequate training and support to facilitate the adoption of new authentication methods. This may involve redefining user roles, comprehensive documentation, and ongoing assistance to address any issues during integration. Additionally, organizations should prioritize user feedback and engagement to continuously improve the user experience and optimize the benefits of contactless biometrics. Addressing these challenges and effectively managing implementation and integration will help organizations unlock the full potential of contactless biometrics technology.

Security and Privacy Considerations

Security and privacy considerations are paramount in the contactless biometrics landscape, as it involves the collection and processing of sensitive biometric data. Organizations must prioritize robust security measures to protect against potential threats and breaches. This includes encryption of biometric data, strong authentication mechanisms, access controls, and regular security testing. Implementing secure coding practices is essential to identify and address potential weaknesses in the system. Furthermore, organizations should establish clear data privacy policies and obtain user consent for biometric data collection and processing activities. Transparent communication with users about how their biometric data is used and protected is crucial for building trust. Regular reviews and audits of data handling practices ensure compliance with relevant privacy regulations, such as GDPR or CCPA. Prioritizing security and privacy considerations will help organizations mitigate risks and maintain user trust in contactless biometrics technology.

Integration with Existing Workflows

Seamless integration of contactless biometrics technology with existing workflows and processes is a key trend in the global market. Organizations across various industries recognize the potential of contactless biometrics to enhance security and efficiency in their day-to-day operations. By integrating contactless biometrics into existing workflows, organizations can streamline processes, improve security, and enable more convenient and efficient authentication methods. One of the primary benefits of integration is the ability to simplify complex authentication tasks. Contactless biometrics solutions offer intuitive interfaces, eliminating the need for traditional authentication methods like passwords and PINs. For example, in healthcare, contactless biometrics can facilitate secure access to patient records, enhancing data security and simplifying access control. The ability to seamlessly integrate contactless biometrics with existing workflows and processes is expected to drive market growth, promoting security and efficiency across various sectors.

Segmental Insights

Component Insights

The software segment dominated the market with a share of over 44.5% in 2022 and is expected to maintain its dominance over the forecast period. Growing adoption of cloud-based services, Artificial Intelligence (AI), and Machine Learning (ML) for contactless biometrics solutions are expected to drive the demand for software to strengthen the compatibility of devices for different applications. Based on components, the market is segmented into hardware, software, and service. The service segment is further segmented into professional services and managed services.

Growing demand for fast and secure access controls, queue-less passenger checks, seamless border crossing, and fast identification of individuals for better convenience and security is accelerating the market demand. Manufacturers are developing contactless biometric high-tech sensor systems through fast software algorithms and machine-learning methods for fast and secure identity checks. The software also allows users to integrate the latest add-on features by updating the software/application. Furthermore, various e-commerce companies such as Amazon.com, Inc. are also developing and marketing image recognition software, Amazon Rekognition, for users of the Prime Photos service. The software allows users to detect faces, objects, and scenes to organize and filter their photos.

End-use Insights

The government segment dominated the market with a revenue share of 25.1% in 2022 and is expected to maintain its dominance over the forecast period. The government segment of the Contactless Biometrics Technology Market refers to the application of contactless biometric systems and solutions by various government agencies and entities for a wide range of purposes. Contactless biometrics technology in the government sector is used to enhance security, streamline processes, and improve the efficiency of various government functions. For example, Contactless biometric systems, such as facial recognition and iris scanning, are used at border control points and immigration checkpoints to verify the identity of travelers and detect fraudulent documents.

The healthcare sector is expected to register considerable growth over the forecast period. The rapid technological advancements and AI-powered face and iris identification systems allow hospital facilities to track patients without using physical tracking devices. Furthermore, the emergence of real-time emotion detection, which is an application of face recognition in healthcare, is also gaining popularity. It is used to detect emotions that patients exhibit during their stay in the facility. The data is used to determine how patients are feeling and also helps to identify where the patients need more attention in case, they’re in pain.

Application Insights

The face biometrics technology segment dominated the market with a revenue share of 28.4% in 2022. Facial recognition technology is widely used for security and access control in both the public and private sectors. This included applications in airports, government facilities, and private organizations for authentication and surveillance. Moreover, the iris segment is expected to register significant growth over the forecast period. An iris-based system is accurate, fast, and convenient while eliminating payroll frauds such as buddy punching. The growing demand for iris biometrics technology within an organization to process payroll and calculate other benefits such as disability, health, and vacation is expected to drive the demand for the iris segment.

The growing COVID-19 pandemic across the globe is pushing everyone to minimize physical contact with a common surface. Iris identification provides authentication solutions in national and civil ID programs, access control, and time attendance, among others. Furthermore, the increasing adoption of iris technology by state and local agencies for border security is further expected to drive growth. For instance, El Paso Police Department, U.S., started using biometrics technology which combines iris-scanning, facial recognition, and fingerprint identification capabilities to increase border security.

Regional Insights

North America dominated the market with a share of over 32.0% in 2022. This dominance can be attributed to the presence of technology providers, such as nVIAsoft Corporation, HID Global, M2SYS Technology, and BioConnect, in the region. Increasing demand for contactless biometrics solutions by payment solution providers to offer secure transactions to their customers in the region is further expected to drive regional growth. For instance, in October 2019, SnapPay, Inc., a provider of payment solutions, announced the availability of facial recognition-based payment technology for merchants in North America.

The rising adoption of contactless biometrics solutions in defense and government applications is also expected to drive the demand for the market in North America. Furthermore, increasing government initiatives to implement contactless biometrics solutions to deal with an increasing number of travelers and to increase security at airport facilities are expected to drive regional demand. For instance, the Canadian Border Services Agency installed kiosks that utilize facial recognition technology at airports. The new technology utilized both facial recognition and fingerprint biometrics to facilitate clearance procedures for travelers at airports in Canada.

Key Market Players

NEC Corporation

Gemalto N.V. (Thales Group)

IDEMIA

Fingerprint Cards AB

Aware, Inc.

HID Global Corporation

Suprema Inc.

BIO-key International, Inc.

M2SYS Technology

Crossmatch

Report Scope:

In this report, the Global Contactless Biometrics Technology Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Contactless Biometrics Technology Market, By Component:
• Hardware
• Software
• Service
• Contactless Biometrics Technology Market, By End-use:
• Government
• Banking & Finance
• Consumer Electronics
• Healthcare
• Transport & Logistics
• Defense & Security
• Others
• Contactless Biometrics Technology Market, By Application:
• Face
• Fingerprint
• Hand Geometry
• Iris
• Voice
• Others
• Contactless Biometrics Technology Market, By Region:
• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Belgium
• Asia-Pacific
• China
• India
• Japan
• Australia
• South Korea
• Indonesia
• Vietnam
• South America
• Brazil
• Argentina
• Colombia
• Chile
• Peru
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE
• Turkey
• Israel

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Contactless Biometrics Technology Market.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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