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The biometrics market size is expected to grow by USD 38.11 billion at a CAGR of 15.2% between 2023 and 2028. Biometrics is a dynamic market, fueled by increasing demand for secure identification and authentication solutions, heightened security concerns, government initiatives, and technological advancements. Biometrics as a service refers to the use of unique physical or behavioral characteristics, such as fingerprints, facial recognition, iris scanning, or voice recognition, to verify or identify individuals. This market is experiencing significant growth due to its ability to offer enhanced security and convenience compared to traditional methods. Government initiatives, including the implementation of biometric identification systems for border control and national ID programs, are driving demand. Technological advancements, such as improved accuracy and speed of biometric sensors, are further boosting market growth. The biometrics market is poised for continued expansion as it adapts to evolving industry dynamics and meets the increasing demand for secure and efficient digital identity and security and authentication solutions.
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The biometrics market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market share by the government segment will be significant during the forecast period. This segment is the largest user of biometric technologies such as voice recognition biometrics and gait biometrics. Governments around the globe use biometric technology for various purposes. Governments across the globe are committed to rising spending on security measures, including Biometrics-as-a-Service, and are placing greater funding on technology to address the rising security concerns. This helped to increase the demand among local, state, and national governments.
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The government segment showed a gradual increase in the market share of USD 12.12 billion in 2018. Various government initiatives, such as the introduction of e-passports and e-visas, the implementation of election administration, and the use in criminal identification (ID), are government initiatives that require biometric technologies, including personal identity management, for the verification of their identity. Besides, governments of some countries are planning for biometric digital ID cards. Governments across the globe are implementing to track the information of their citizens, which is one of the prime factors driving the growth. Because of these government initiatives, the segment is expected to drive the growth of the market during the forecast period.
Hardware is a critical component in the market, and market segmentation by hardware segment is an important factor that shows the rapid growth of the market. Biometric scanners are mainly used to capture fingerprints, iris patterns, facial features, and voice prints, signifying the importance of mobile biometrics. Fingerprint scanners are the most used biometric scanners, followed by facial recognition scanners. The market is expected to grow rapidly due to the rising adoption of biometric authentication across various industries. Owing to the rising demand for biometric authentication, the hardware segment in the market is expected to grow during the forecast period.
North America is estimated to contribute 35% to the growth of the global biometrics market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In North America, the use of biological technology, such as facial recognition, fingerprint scanning, and iris recognition, to identify and authenticate individuals and gaining popularity in recent years owing to its effectiveness in enhancing security and reducing fraud in various industries. The rising concern over security threats and the need for secure authentication systems.
Moreover, biometric technology provides a high level of security as it is difficult to forge or replicate biological characteristics, and the rising adoption of biometric technology in various applications. in 2022 the governments of major countries in North America imposed stringent regulations to secure the sensitive biometric data of users. Besides, several airports are implementing iris recognition technology in e-passports and visas to identify travelers and reduce the crime rate. Several consumer electronics are being integrated with iris recognition technology to ensure their safety. These factors will drive the growth of the region during the forecast period.
The market is rapidly expanding across various sectors, including automotive verticals and home automation devices, integrating advanced features like surveillance solutions and biometric systems. Biometric technologies such as sensors and cameras enable precise authentication based on physiological traits, ensuring enhanced security in tablets, laptops, and mobile phones. Technological advances in machine learning and sensing technologies bolster multifactor authentication capabilities, mitigating additional costs associated with preventive maintenance. Raw materials and subcomponents crucial for biometric system development continue to evolve, supporting robust growth in the market. As demand from customers for secure access and data protection increases, biometrics play a pivotal role in safeguarding sensitive information across diverse applications. The market's future lies in continuous innovation and adaptation to emerging security challenges, driving advancements in biometric solutions worldwide.
Increasing demand and enhanced security is the key driver of biometrics market growth. Compared to traditional methods such as passwords or ID cards, biometric technology provides a more secure way to authenticate an individual's identity. There is a high demand for high security in various sectors such as the financial, government, transportation, healthcare, and defense. Also, it is important to protect confidential data and information in sectors such as the BFSI, retail, and defense.
Moreover, due to the advances in technology, cybercriminals and hacker activities are targeting retail POS transactions. The increasing number of credit card payments at retail stores has also raised instances of fraud, which has compelled credit card companies and the BFSI sector to adopt to secure the confidential details of users. Stronger security measures such as fingerprint recognition, face recognition, and iris recognition are to be installed in the above-mentioned sectors. Such activities are set to increase the implementation of biometric authentication and commercial safety and security to enhance behavioral traits and facial recognition technology factors and are expected to raise growth in the market during the forecast period.
The increasing adoption of facial recognition technology is the key trend shaping global biometrics market growth. The increasing adoption of facial recognition technology is rising due to the need for security and biometric surveillance measures. Facial recognition is becoming more popular in various applications such as law enforcement, security, and authentication. This technology has gained popularity due to its accuracy and convenience. Furthermore, this technology is incorporated in industries like banking and finance, healthcare, and retail for customer identification and fraud prevention.
Furthermore, facial recognition technology is a type of biometric technology that uses artificial intelligence to analyze and compare facial features to identify individuals. The market has shown a significant surge in the adoption of facial recognition technology in the last few years owing to its accuracy, speed, and convenience. Also, the rising use of smartphones and other mobile devices driving the adoption of facial recognition technology is the increasing use of smartphones and other mobile devices. Due to these factors, the market will grow during the forecast period.
Regulatory compliance associated with biometric technology is the major challenge impeding biometrics market growth. Biometric data is subject to laws and regulations such as the General Data Protection Regulation (GDPR) and other privacy regulations. vary with these regulations can be a challenge for businesses and organizations. Major market players like 3M Cogent, BIO-key International, Fujitsu, HID Global, etc., must follow various stringent regulations and standards while manufacturing, supplying, and marketing biometric solutions. Compliance with industry and government security standards is necessary to ensure the integrity of biometric solutions and protect the privacy of consumers using such solutions.
Furthermore, some government agencies, such as the Federal Bureau of Investigation (FBI), mandate certain standards solutions must obey. Such as Personal Identity Verification (PIV) standards, such as PIV-071006, are lower-level standards designed to support one-to-one fingerprint verification. Appendix F has stringent image quality conditions, focusing on human fingerprint comparison and facilitating large-scale machine many-to-many matching operations. Failure to obey applicable regulatory requirements can result in the revocation of licenses. Hence, regulatory compliance and standards are hindering the growth of the global market during the forecast period.
The biometrics market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the biometrics market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The biometrics market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The biometrics market is integral in safeguarding sensitive data across diverse sectors, from defense verticals to banking and insurance. With a client base increasingly reliant on connected devices, biometric systems secure access to bank accounts, email accounts, and medical records through personalized verification methods like fingerprint readers and biometric smart cards. This technology extends to electronic locking systems for buildings and doors, ensuring the protection of IT systems and confidential information from data breaches and unauthorized access. As regulatory fines for data breaches increase, biometrics play a crucial role in compliance, enhancing system reliability and defense against copying or downloading personal information by third parties. The market continues to expand into identification purposes across international boundaries, supporting visa applications and immigration databases with biometric samples for precise individuality verification and criminal record checks.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.2% |
Market Growth 2024-2028 |
USD 38.11 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.86 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 35% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advent International Corp., ASSA ABLOY AB, Aware Inc., BIO key International Inc., Cognitec Systems GmbH, Daon Inc., Facebanx, Fujitsu Ltd., Furukawa Electric Co. Ltd., Iris ID Systems Inc., M2SYS, NEC Corp., NEXT Biometrics Group ASA, Precise Biometrics AB, Qualcomm Inc., secunet Security Networks AG, Securiport LLC, Suprema Inc., Thales Group, and Veridium IP Ltd. |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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