Biometric System Market

According to Stratistics MRC, the Global Biometric System Market is accounted for $33.7 billion in 2022 and is expected to reach $81.7 billion by 2028 growing at a CAGR of 15.9% during the forecast period. A biometric system is a digital technique of verification that uses a person's unique physical traits to confirm or authenticate their identity. To verify a user's identity, this system analyses their distinct biometric features, including their voice, iris, face, and fingerprint pattern.

According to the Center for Strategic & International Studies Report (CSIS) 2021, China is at the forefront of the global digital payment revolution.



Market Dynamics:

Driver:

Increasing demand for security and surveillance

Biometric technology was initially used to strengthen security and authenticate a criminal's identification. Biometric features like the iris, voice, fingerprint, signature, DNA, hand geometry, and vein patterns were mostly scanned to identify criminals. Enabling biometric systems is mostly performed to reduce crime and terrorist attacks. With the aid of biometric technology, millions of criminal cases have already been solved. Using biometric technologies for surveillance is another alternative. In a CCTV device, a face recognition system is implemented, which records and retains the facial features of people the camera captures. Then, with the support of this information, criminals involved in any crime or terrorist action can be identified.

Restraint:

Heavy initial investments in biometric devices

Systems for biometric recognition are in high demand across a variety of industry sectors. The primary cost of the face recognition-based security system and the IRIS identification devices, however, is significantly higher than the cost of traditional security systems in the case of facial, iris, and vein biometry. The cost of the transmitters, scanners, and sensors used in face recognition systems drives up the overall cost of biometric recognition systems. Additionally, SME enterprises and individual users may afford to upgrade their CCTV surveillance systems from traditional CCTV cameras to modern biometric technology-based cameras.

Opportunity:

Rise in demand for biometric technology for authentication in retail and e-commerce

The use of biometric technology, with a particular emphasis on the supply chain, is a developing method for improving the consumer experience during the predicted period. In response to rising consumer demand for contactless solutions, COVID-19 has seen a change in the influence of biometric technologies. Consumers are still using touchless biometric technologies because of rising hygiene awareness. For instance, as of April 2020, Strawhecker Group and the Electronic Transactions Association indicate that 27% of small and medium-sized firms have prioritised contactless card payments and mobile wallets since the COVID-19 pandemic's commencement. These contactless biometric payment cards allow for biometric payment card transactions by requiring users to confirm their fingerprint or face identity using previously saved data.

Threat:

Data security and high cost

However, high biometric system prices and the significant risk of coronavirus transmission offered by touch-based biometric solutions are anticipated to restrain market expansion. Furthermore, throughout the forecast period, the market for biometric systems is expected to face challenges related to data security and limitations in identifying authorised and unauthorised users.

Covid-19 Impact:

The coronavirus pandemic had some negative effects on the biometric system industry, similar to those that were experienced by other industry sectors. The COVID-19 epidemic has an unexpected effect on daily life. The touch-based time and attendance system was suspended in all business and government workplaces as a direct result of the COVID-19 outbreak. The increasing use of masks, social distance, and refraining from touching metal and other surfaces in public spaces are instances of behavioural changes that have a detrimental effect on fingerprint-based biometric authentication systems.

The multi-factor authentication segment is expected to be the largest during the forecast period

For check-in at hotels, airports, and sea ports, multi-factor authentication methods like facial recognition and iris verification are being more frequently used; therefore, the multi-factor authentication segment had the largest revenue and is expected to dominate the market throughout the forecast period. Moreover, the travel and tourism industry is witnessing growth in the multi-factor authentication sector.

The consumer electronics segment is expected to have the highest CAGR during the forecast period

The consumer electronics segment is anticipated to have the highest CAGR over the forecast period because of the numerous advantages of biometric systems in the security of consumer electronic devices, including the use of voice biometrics, biometric fingerprint sensors, and face recognition systems in smartphones, tablets, and laptops. Moreover, the industry is expanding globally as a result of numerous consumer electronics manufacturers choosing biometric solutions for hardware security and data protection.

Region with largest share:

Due to APAC's dominance of the worldwide market during the forecast period, the size of the Asia Pacific region is anticipated to rise. The region's market expansion will be fueled by the expanding use of biometric technology-based signature recognition and access control in the consumer electronics, government & public, and automotive industries. Moreover, companies dealing are also acquiring different marketing techniques, which is aiding in the expansion of the market.

Region with highest CAGR:

The Asia Pacific region is predicted to have the highest CAGR in the biometrics system market, due to increasing mobile payment transactions, rising private enterprises, and rising government initiatives to adopt biometric authentication systems. On the other hand, the rising demand for biometric authentication systems from a variety of end-users, such as the retail, gaming, banking, and financial sectors, hospitals, etc., is having a big impact on the expansion of the market in the region. Moreover, customers can also connect their face and palm vein recognition data using the smartphone application's multi-biometric authentication technology.



Key players in the market

Some of the key players in Biometric System market include NEC Corporation , Aware Inc., Leidos Holdings Inc., ImageWare Systems Inc., Fujitsu Limited, BioEnable Technologies Pvt. Ltd, Gemalto NV (Thales Group), Nuance Communications Inc., S.I.C. Biometrics Global Inc., IDEMIA France SAS, Cognitec Systems GmbH, M2SYS Technology, BioID AG, Assa Abloy AB, Phonexia SRO, Hitachi Corporation, Fulcrum Biometric Inc., Bio key international, HID Global Corporation, Precise Biometric, Qualcomm Technology, Dreamlog Identification System Inc. and Daon Inc..

Key Developments:

In October 2021, Thales partnered with Inetum to expand the deployment of its Automated Border Control (ABC) system to three Spanish airports for biometric authentication of travelers.

In October 2021, ImageWare Systems developed a biometrically enabled Blockchain-Powered Self Sovereign Identity solution and entered the Self Sovereign Identity market. Adding biometric protection to the identity blockchain provides the final layer of protection the data is secure in digital wallets and only accessible to authorized users.

In June 2021, Phonexia developed new software for audio investigations - Phoenixia Orbis by leveraging its experience from hundreds of public security projects worldwide. This on-premises solution enables law enforcement agencies to extract complex insights from substantial amounts of audio automatically and efficiently, making investigations effortless and straightforward.

Authentication Types Covered:
• Single Factor Authentication
• Multi-Factor Authentication

Contact Types Covered:
• Hybrid
• Contact Less System
• Contact-Based System

Mobilities Covered:
• Portable
• Fixed

Offering Types Covered:
• Hardware
• Software

Technologies Covered:
• Fingerprint Recognition
• Vein recognition
• Voice recognition
• Iris Recognition
• Face Recognition
• Palm Print Recognition
• Signature Recognition
• Automated Fingerprint Identification System
• Non-AFIS (Automated Fingerprint Identification System)
• Hand Geometry
• Other Technologies

End Users Covered:
• Government & Public
• Smart Home
• Commercial
• Travel & Transport
• Consumer Electronics
• Military & Defense
• Banking, Financial Services and Insurance (BFSI)
• Healthcare
• Banking & Finance
• Automotive
• Security
• Law Enforcement
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o 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
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o 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