Global Biometric Authentication Systems Market

The Global Biometric Authentication Systems Market is at the inflection point of growth and is poised for promising growth in the forecast period which is expected to grow at a CAGR of 15% to reach a Market Size of US$ 102,959.6 Million in 2028 from a value of US$ 42, 691.6 million in 2021.

The Rising use of biometric technology in enterprises, Surging popularity of Biometric Systems and Integration of Biometrics with IoT Devices are the prime factors driving the growth of the Global Biometric Authentication Systems Market.

Definition / Scope
Market Overview
Market Risks
Top Market Opportunities
Market Drivers
Market Restraints
Industry Challenges
Technology Trends
Pricing Trends
Regulatory Trends
Post COVID-19 Recovery
Market Size and Forecast
Market Outlook
Technology Roadmap
Competitive Landscape
Competitive Factors
Key Market Players
Strategic Conclusion
References
Appendix

Definition / Scope

Biometric authentication is a technique that uses your unique biological attributes, such as fingerprints, to identify you. Biometrics are becoming increasingly common in access control systems. Biometric access control systems match your biometrics to a previous version of stored data. If both versions of your features are identical, the biometric authentication system can authenticate your identity. This type of access control is typically used to manage physical and digital assets, as well as to safeguard buildings, rooms, and computer equipment.

Types of Biometric Authentication Systems

Traditional access methods have flaws: cards can be stolen, pins or keys might be forgotten, and so on. Because biometric authentication methods rely on your biological characteristics, biometric devices can take any of the following forms:

Identification, verification, and authentication are the three domains of biometrics technology. When the system needs to know who the user is, identification is utilized. Verification is the process of using biometric data to see if the user has any additional information associated with them. Finally, authentication aims to determine whether the user’s claimed identity is correct and that they are permitted to access the services and data they are requesting.

Advantages of biometric data

Whatever the method, what all these biometric techniques have in common is that they all collect human characteristics:

Universal, as they can be found in all individuals.
Unique, as they make it possible to differentiate one individual from another
Permanent, as they don’t change over time
Recordable (with or without consent)
Measurable, allowing for future comparison
Forgery-proof (a face, a fingerprint)

The Biometrics Authentication Systems Market is segmented

By Type

Hardware,
Software, and
Services

By Biometric Type

IRIS Recognition
Hand Geometry
Facial Recognition
Signature Verification

Fingerprint
Voice Recognition
Palm Vein

By Contact Type

Contact-based,
Non-contact Based

By End User

Government and Law Enforcement
Commercial and Retail
Healthcare
BFSI
Travel, and Immigration

By Geography

North America
Latin America
Europe
Asia-Pacific and
Middle-East & Africa

Market Overview

The global biometrics market is expected to reach $102,959.6 million in sales between 2022 and 2028, up from $42,691.6 million in 2021, with a high CAGR of 15.0 percent. The biometrics market is expected to increase at a high rate, owing to the rising frequency of terrorist attacks and increasing theft of critical data and information, both of which have generated worries about national security.

A model change in corporate discourse toward more privacy and fewer security hazards is one of the primary trends observed in the industry analyzed. Rather than relying on traditional ways, end-users are increasingly seeking integrated solutions.

With the rising popularity of mobile devices, consumer biometric applications have grown quickly in recent years. Because of the widespread use of biometric systems, the consumer electronics sector is dominated by security and access control technologies. As a result, it is assisting the market’s expansion. For example, on the Android platform, WhatsApp, a popular messaging software, has added a new privacy feature. Users will soon be able to secure their accounts using biometric authentication using fingerprint sensors, according to the business.

In addition, multi-model or hybrid biometric systems have lately emerged as an important authentication tool. The multi-model biometric recognition system authenticates users using a variety of traits (facial, iris, and fingerprint). This enables higher authentication reliability, speed, and precision in large-scale systems that must respond to a range of physical attributes, as well as in usage scenarios requiring tight identity verification.

The fastest growing CAGR for hybrid biometric systems can be attributed to the increased acceptance of reliable and efficient biometrics. Multimodal biometric technologies give improved security against spoofing or falsification through multi-level authentication. Hybrid biometric systems now include a variety of modalities (voice, facial, and iris), and they are used by government agencies all over the world for a variety of security-related tasks, including border control, law enforcement, human resources, national defense, healthcare, and enterprise security.

For instance, to facilitate data flows, the EU adopted interoperability rules for multi-model biometric systems in August 2021. The Multiple Identity Detector (MID) databases checks a number of different databases to see if the identity data for which the search was conducted is present in multiple databases.

Market Risks

The Prime Risk Factor for the growth of the Global Biometric Authentication Systems Market is

High Fragmentation

The Global Biometrics Authentication Systems Market is largely fragmented, with a number of conglomerates and medium-sized and small start-up companies accounting for the majority of global market share. Lower entry barriers, a lack of economies of scale, and fierce market competition are all factors contributing to the Global Biometrics Authentication Systems Market’s fragmentation. Businesses with lower margins and higher costs will benefit from a fragmented market. When interacting with other countries, they also lack the benefit of size.

Top Market Opportunities

The Key Opportunities for Market Players in the Global Biometric Authentication Systems Market are

Advancements in biometric identification technology

In recent years, biometric solutions have seen tremendous technological advancements. Advances in sensing technology, as well as the ubiquitous usage of devices like computers and cellphones, have opened up new possibilities for capturing physiological and behavioral aspects of humans and analyzing the data for biometric authentication. Machine learning and artificial intelligence technologies are introducing new options for identifying any odd behavior intelligently and automatically, as well as providing an additional layer of authentication, if necessary, to increase behavioral biometrics.

Amalgamation of mobile biometric technology with cloud-based biometric solutions

To speed up the verification process, software developers are integrating mobile biometric technologies with cloud-based biometric solutions. Saving biometric data on the cloud is a safer option than saving it locally. Cloud computing technology allows companies to effortlessly scale up or down their IT needs as needed. This enables businesses to meet their expanding needs without having to make costly adjustments to their existing IT systems.

Progressions in edge AI hardware and software

Edge AI hardware and software advancements present a substantial opportunity to improve the accuracy and security of biometric identification technologies by processing data closer to where it is created.

By reducing latency, edge computing can increase the performance of video analytics and other applications. Edge computing is used in biometrics for a variety of purposes, including data management and privacy. While the answer is increasingly “on the device itself,” understanding how cameras, voice, and hand recognition technologies will connect with surrounding systems to give expanded functionality and improve accuracy is still useful.

Market Drivers

The Primary Factors driving the growth of the Global Biometric Authentication Systems Market are

Rising use of biometric technology in enterprises

Biometric systems are considered to be more quick, convenient, and secure solutions compared to traditional security systems that rely on passwords, PINs, or smart cards. These systems have aided in overcoming key security challenges such as international terrorism, organized crime, and illegal migration associated with identity theft and document fraud. Furthermore, biometric systems are simple to set up and do not require highly skilled skills to operate.

Surging popularity of Biometric Systems

Biometrics systems are gaining a lot of traction throughout the world because they are simple to use and install, and they are a cost-effective way to ensure high-end security and assurance. Aside from that, biometrics are widely employed in governmental and corporate companies, as well as institutional settings, for door access, employee identification, and attendance tracking. They’re also used in high-security zones to protect the facility and lessen the chance of intrusion by automatically recognizing unfamiliar people using biometrics. Furthermore, many businesses are forming partnerships in order to extend their operations around the world.

Microsoft, for example, recently evaluated and qualified BIO-three Key’s new small USB fingerprint reader accessories, SideSwipe, SideTouch, and EcoID, to enable Windows 10’s latest biometric authentication sign-in option. Aside from that, the emergence of multimodal biometrics, which use many behavioral or physiological characteristics for authentication, is expected to increase recognition and security. Furthermore, the emergence of the coronavirus disease (COVID-19) has prompted a move toward contactless biometrics devices that assess face, gait, and voice recognition for identification verification.

Integration of Biometrics with IoT Devices

The increasing integration of biometric systems with IoT devices is expected to fuel market revenue growth in the future. Biometric authentication is a new way of safeguarding Internet of Things (IoT) devices. In order to identify a user, behavioral biometrics collects essential data sets from now-common smartphones and IoT devices. As more IoT-connected devices are deployed, the data gets richer, allowing for continuous authentication while the device is in use. In addition, as e-passports become more common, demand for biometric systems is expected to surge, driving market growth in the coming years.

Market Restraints

The Major Factors Restraining the growth of the Global Biometric Authentication Systems Market are

High deployment cost

When choosing and deploying a biometric system, cost is an important consideration. Multi-factor authentication is required for high-security applications, while single-factor biometric solutions are required for low-security applications. The type of sensor employed in the device may affect the cost of implementing multi-factor biometric applications. The high cost of biometric solution components, as well as the high cost of installation, limit the demand for biometric technology among private and public companies.

Complexities in installation of biometric authentication systems

Biometric authentication system installation is a difficult task that necessitates the use of trained personnel. There’s also the risk of a system breach, which could result in the loss of data or information. Furthermore, the entire system installation cannot be readily reset. These are some of the main factors limiting biometric system demand in the defense sector, which requires a high level of security to protect highly private data.

Industry Challenges

The Primary Challenges for Market Players in the Global Biometric Authentication Systems Market are

Data security concerns and lack of technical know-how

Many people are hesitant to use biometrics technologies because to concerns about hygiene and a lack of understanding of the system. Inadequate awareness of how biometric systems work, as well as the potential of data leak, causes anxiety among users, influencing their acceptance and adoption of biometric systems. The accuracy of a biometrics system and its subsequent adoption can be harmed by a lack of collaboration or even hostility to using these technologies. The absence of technological know-how and public awareness are seen as major obstacles to the introduction of biometric systems.

Risk of exposure to Hacking

Personal privacy and human dignity are frequently cited as being harmed by technology, which reduces individual characteristics to collections of prints. Dehumanization, bodily integrity violations, and the exorbitant cost of these technologies may limit industry expansion.

Grave security difficulties arise from possible hackers and thieves misusing the security system, which can lead to the leakage of vital identity-based information. The sector is beset by high technology costs and accuracy difficulties, particularly in the case of emerging technologies like face and physical recognition. Low precision and reproducibility are the outcome of complex and cumbersome procedures, necessitating ongoing technological improvement.

Technology Trends

The Top Technology Trends in the Global Biometric Authentication Systems Market are

Cloud-Based Biometrics

The advancement of cloud technology coincides with that of biometric identification. Cloud-based biometric solutions attempt to integrate many sectors into systems to meet the needs of customers, not just security issues. By merging cloud services with biometric technology, SaaS will be able to develop multi-factor authentication solutions in the next years that will successfully prevent identity theft and data breaches.

Multiple payment use cases

Apple Pay, for example, uses fingerprinting in its Apple TouchID biometric system to validate a user’s identification and ease the online and mobile procedure, making mobile POS purchases via smartphones far safer. Touch ID was formerly restricted to the App Store, iTunes purchases, and device unlocking. Banks were quick to notice the announcement, and we saw Touch ID being used to access mobile banking services. American Express, ING Bank, OutBank DE, and Deutsche Bank are among the banks who have already implemented Touch ID in their mobile banking apps.

Pricing Trends

Increasing adoption rate – decreasing prices

Mass production lowers prices, which is exactly what is happening now with biometric recognition systems. As the number of implementations grew, mass production of biometric systems became necessary, lowering prices. The cost of a biometric system is determined by criteria such as brand, certifications, waterproofing, sensor type, and so on. A simple USB fingerprint scanner can be purchased for as low as $50, while a sophisticated ten-finger scanner with live finger detecting capability can be purchased for as much as $2500. Prices are projected to fall more as production and completion increase. In 2020, the average selling price of global mobile fingerprint sensor volumes is expected to drop to $2 per unit, down from $5.5 in 2014.

Regulatory Trends

Despite the unique nature of such information, essentially no legal measures exist to protect biometric data anywhere in the globe. Rather, legal documents rely on rules relating to the protection of personal data and privacy in general. However, such law is not always well-suited to biometric data. Biometric data is addressed in the General Data Protection Regulation (GDPR) for European Member States. It is a big step forward in terms of data protection and privacy, with genuine global implications.

A new regulation has been implemented in twenty-eight countries, including the United Kingdom. There is no one, comprehensive federal legislation in the United States that governs the acquisition and use of biometric data. In 2017, Washington became the third state to approve a biometric privacy law, following Illinois and Texas. California’s privacy protection regulation was strengthened at the end of 2018. The law (CCPA and its new layer, CPRA) is widely cited as a possible model for a data privacy law in the United States. California is now joined by New York State and Virginia. Regulators in the United States are increasingly focused on the usage of biometric data.

In a historic ruling in August 2017, India’s supreme court declared privacy a “fundamental right,” demonstrating that biometric data protection is now at the top of regulators’ agendas in the world’s largest democracy.

Post COVID-19 Recovery

The COVID-19 pandemic has shifted the way firms work around the world, radically altering corporate rulebooks. Almost every company has changed the way they do business; offices have been abandoned, and people have begun working from home. According to the ‘Work from Home After the COVID-19 Outbreak Report’, published in June 2020, the percentage of the workforce in the United States that works totally from home increased to 35.2 percent in May 2020, up from 8.2 percent in February 2020. With the rise of remote work and working from home, businesses have begun to implement complex, multifactor mobile access solutions to protect corporate data and networks.

Although the COVID-19 pandemic has proven to be the catalyst for driving this advancement, the global IT sector is upgrading its security techniques and capabilities quicker. The requirement for sophisticated authentication and technology has risen as the number of cyberattacks and phishing assaults has increased as a result of working from home. It is expected to be a tipping point in the widespread adoption of strong authentication options to protect assets and sensitive data.

During the pandemic, the demand for multifactor authentication systems has skyrocketed due to rising security concerns. The growing use of smartphones, laptops, and tablets for business purposes has boosted demand for mobile access control technology. Along with authentication, the demand for user verification solutions is also skyrocketing. Due to the widespread use of cellphones, many users have switched from multifactor authentication to user verification technology.

Due to the quick shift towards a digital identity management and verification system, demand for these solutions will remain post-pandemic. The demand for multistep verification and authentication solutions is being bolstered by advanced digital infrastructure, which is fueling market expansion. Touchless modalities are expected to increase rapidly, whereas touch-based methods are expected to decline.

Market Size and Forecast

The global biometrics market is expected to reach $102,959.6 million in sales between 2022 and 2028, up from $42,691.6 million in 2021, with a high CAGR of 15.0 percent.

The COVID-19 pandemic has produced major disruptions and changes in a range of industries, as well as a considerable increase in demand for touchless biometric solutions, particularly in healthcare. Advanced multifactor and multimodal biometric technologies are becoming more significant because to their precision and compliance with COVID-19’s social distancing norms.

The fingerprint recognition sub-segment is predicted to have a dominating market share

During the projected period, the fingerprint recognition sub-segment is expected to hold a dominant market share and generate $31,511.3 million in revenue. Factors such as the widespread use of fingerprint sensors for biometric authentication in consumer electronics, the increased adoption of biometric authentication in government buildings, the rise in the number of identity threats, and the emergence of touchless fingerprint technologies are driving the fingerprint recognition sub-segment.

The single-factor authentication sub-segment is anticipated to generate highest revenue during the forecast period

During the forecast period, the single-factor authentication sub-segment is expected to earn the most revenue. The market is expected to earn $71,618.0 million in sales by 2028, up from $25,829.7 million in 2020, with a CAGR of 14.8 percent. Security threats have been progressively rising. Hackers are devising new methods of data theft, and new viruses are being developed to steal sensitive information from businesses and individuals. With the majority of consumers preferring to do transactions online, businesses must have authentication systems that allow for quick and secure access. Single-factor authentication allows a person to confirm their identity with just one factor that matches and validates their identity. This is the most widely used authentication method among users.

The mobiles sub-segment is anticipated to have the fastest market growth during the forecast period

During the projected period, the mobiles sub-segment is expected to increase at the fastest rate. The market is expected to reach $32,681.1 million in revenue by 2028, up from $10,863.5 million in 2020, with a CAGR of 16.0 percent. An industry consensus on enhancing intelligence in mobile devices has fueled the use of mobile biometric technology. Biometrics-enabled phones have been introduced by the majority of smart phone manufacturers in recent years. While fingerprint identification is currently the focus, advanced biometric technologies such as face, voice, iris, and others are gaining popularity.

The government & defense sub-segment is predicted to have a dominating market share in the global market and register a revenue of $29,222.5 million during the forecast period.

During the projection period, the government & defense sub-segment is expected to have a dominant market share and generate $29,222.5 million in sales. Biometrics have long been employed for military access control (military biometrics), criminal or civil identification, all within a carefully regulated legal and technical framework. For years, agencies like the Federal Bureau of Investigations (FBI) and Interpol have used biometrics in criminal investigations. Law enforcement agencies all over the world are increasingly using biometrics to identify offenders. In 2008, the Chinese Police employed ABIS technology to allow forensic fingerprint examiners to search the database for possible matches between inmate IDs.

The Market for Biometrics in Asia-Pacific to be the Fastest Growing

With a CAGR of 15.8%, Asia-Pacific is expected to be the fastest-growing market during the projected period, reaching $29,787.5 million by 2028. In Asia-Pacific, the biometrics market is now expanding rapidly. Biometrics are employed in access control systems to validate a user’s physical and behavioral characteristics. These characteristics are maintained in the device database, which compares them and grants secure access to devices, systems, or data. Biometrics technologies, such as facial recognition, fingerprint mapping, and retina scanning, are widely utilized in Asia-Pacific because they are dependable, accurate, quick, and secure.

Market Outlook

The global biometrics market is expected to reach $102,959.6 million in sales between 2022 and 2028, up from $42,691.6 million in 2021, with a high CAGR of 15.0 percent.

During the projected period, the fingerprint recognition sub-segment is expected to hold a dominant market share and generate $31,511.3 million in revenue.

The single-factor authentication sub-segment is expected to earn the most revenue during the forecast period. The market is expected to earn $71,618.0 million in sales by 2028, up from $25,829.7 million in 2020, with a CAGR of 14.8 percent.

The mobiles sub-segment is expected to increase at the fastest rate during the projected period. The market is expected to reach $32,681.1 million in revenue by 2028, up from $10,863.5 million in 2020, with a CAGR of 16.0 percent.

During the projection period, the government & defense sub-segment is expected to have a dominant market share and generate $29,222.5 million in sales.

With a CAGR of 15.8%, Asia-Pacific is expected to be the fastest-growing market during the projected period, reaching $29,787.5 million by 2028.

Technology Roadmap

Development of Industry-specialized biometric solutions

Various solutions are created to fulfil the specific needs of various sectors. The solutions are tailored to meet the needs of local and international industry regulations and standards. Adopting a new approach to identification based on digital identity, for example, can improve member experience while also providing data security and cost savings in healthcare organizations. Phone-Centric Identity is a potent proxy for digital identification and trust, as it depends on billions of signals gathered in real-time from authoritative sources, including those on mobile devices and phone numbers. When used in a tokenized form, digital ID reduces the need for members to transmit personal information during each transaction, making the connection more secure.

Competitive Landscape

Due to the existence of many vendors like as NEC Corporation, Fujitsu Limited, Leidos Holdings Inc., Gemalto NV (Thales Group), and others around the world, the Biometrics Market is highly fragmented. Biometrics solutions are becoming increasingly popular in a variety of end-user industries. In order to enhance their market presence, the vendors are also making major product developments. Strategic collaborations and acquisitions are also seen as lucrative expansion avenues by the market.

Key Market Developments

Partnerships, Collaborations, and Agreements

In May 2021 – Jumio and Veridium have announced a collaboration to reduce the fraud cases faced by various organizations while account setup and subsequent access requests. This collaboration will deliver more identity verification capabilities and will offer multiple biometric modalities.

Mergers and Acquisitions

In June 2021 – Trueface a leader in Facial Recognition, Computer Vision, and Artificial Intelligence has been acquired by Pangiam. By this acquisition, Pangiam now has access to technologies of Trueface such as social distancing compliance monitoring and contactless temperature checks.

Product Launches and Product Expansions

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.

Competitive Factors

New Product Launches to Help Key Companies Sustain Their Competence

The market’s leading vendors are constantly working to improve their present product and service portfolios. Companies are launching industry-specific solutions that are based on the needs of the sector. IDEMIA France will unveil the ultimate multi-application biometric tablet caller ID screen in September 2020, which will feature sophisticated connectivity as well as biometric technologies like facial recognition and fingerprint. Furthermore, strategic partnerships and collaboration assist large firms in diversifying their product and business portfolios.

Key Market Players

Some of the Major Players in the Global Biometric Authentication Systems Market are

NEC Corporation is a Japanese business that specializes in system integration and network services. Safety items, network infrastructures, and power storage systems are all provided by the Global section.

Thales SA is a technological corporation based in France. It offers a diverse set of services organized into three categories: aerospace, transportation, and defense and security. Aerospace manufactures onboard electronic equipment to improve flight safety and reliability, as well as civil and military aircraft simulators, onboard connectivity and in-flight entertainment, and onboard equipment and functions for aircraft piloting, navigation, and control, as well as space-related equipment, payloads, satellites, systems, and services. Railway signaling, telecommunications, surveillance systems, and tickets are all services provided by Transport. Radio communications goods, network and infrastructure systems, protection systems, key information systems, and cybersecurity are all available through Defense and Security. It is a multinational company.

Safran SA is a high-technology corporation established in France. Its high-tech activities include research, design, development, testing, manufacture, sales, maintenance, and support. Propulsion and mechanical power transmission systems are designed, developed, produced, and sold by the Aerospace Propulsion segment for commercial aircraft, military transport, training, and combat aircraft, civil and military helicopters, satellites, and drones.

Assa Abloy AB is a firm established in Sweden that specializes in safe door opening systems. Europe, the Middle East, and Africa (EMEA), North and South America (Americas), Asia, Australia, and New Zealand (Asia Pacific), Global Technologies, and Entrance Systems are the five segments. In their various regional markets, the EMEA, Americas, and Asia Pacific segments manufacture mechanical and electromechanical locks, digital door locks, security doors, and hardware. Access control systems, secure card issuance, identification technologies, and hotel locks are all products of the Global Technologies category. The Entrance Systems segment provides products and services related to entrance automation.

Strategic Conclusion

Passwords are becoming obsolete for both organizations and end users because they are difficult to remember, easily hacked, take longer to authenticate, and increase the risk of data breaches. Hacker attacks surged threefold in one year in 2020. Biometric technology improvements are assisting businesses in developing more innovative business procedures that strike a good balance between security and customer experience.

Advanced biometric modalities, such as behavioral biometrics, palm vein biometrics, and AI-powered biometrics, are gaining appeal in high-end deployments because to the need for higher accuracy and faster response times. The emergence of new CX use cases enabled by advances in AI, the Internet of Things (IoT), and digital payments assures a bright future for this segment of the market. Biometric technologies are becoming a critical element for businesses’ digital transformation roadmaps, and the emergence of new CX use cases enabled by advances in AI, the Internet of Things (IoT), and digital payments assures a bright future for this segment of the market.

References

Appendix

SMEs – Small & Medium Enterprises
CAGR – Compounded Annual Growth Rate
USD – US Dollars
BFSI – Banking, Financial Services and Insurance
MID – Multiple Identity Detector
AI – Artificial Intelligence
IoT – Internet of Things
GDPR – General Data Protection Regulation