BIOMETRICS TECHNOLOGY MARKET ANALYSIS

The Biometric Technology Market size was valued at US$ 47,672.9 Million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 8.9% from 2022 to 2030 Biometrics is a technical term used for body measurements and calculations and refers to metrics related to human characteristics. It analyzes and measures the human body characteristics such as DNA, iris, voice, fingerprints, hand measurements, and so on. for authentication purposes. The captured biometric template is stored in an extracted format in the database. Once the user is registered to the biometric machine, they are asked to give their biometric template for authentication purposes where their original template gets compared with the one that is stored in the database. This comparison is done using a pattern-matching algorithm. Furthermore, if both the templates match then, the user is granted access to secure areas.

Biometrics Technology Market: Regional Insights

The Biometric technologies are widely used in the U.S. in a variety of areas, including state, homeland security, business, and justice. A growing number of safety and security requirements are being satisfied by biometric technology as a result of the increased threat of terrorism on a global scale. Efforts integrating face, fingerprint, and eye biometrics, for instance, UIDAI project in India and the e-KTP electronic ID initiative in Indonesia, are also anticipated to open up new commercial prospects.

The banking sector has moved forward with replacing traditional systems with biometric systems since many financial firms have adopted or are presently employing biometric identification technologies. Stricter staff and client identification measures are still needed in the banking industry, which is quickly digitizing, in order to combat identity theft and fraud. Because of these elements, biometric identification has the best chance of becoming a strategic, essential part of global banking security platforms. A trustworthy authentication method that safeguards Atms, in-person purchases, and online purchases while boosting customer confidence and brand reputation is provided by the use of biometrics in banking. Banks have already begun integrating biometric data-based technologies to enhance customer experience and strengthen transaction security.

Figure 1: Global Biometrics Technology Market Share (%), in terms of Value, By Region, 2022

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Biometrics Technology Market Drivers:

Increasing security concerns owing to rising terror attacks to drive growth of the  biometric technology market during the forecast period

Biometric security has gained major traction in the recent past, owing to rising terror attacks worldwide. According to the National Consortium for the Study of Terrorism and Responses to Terrorism, in 2012 in U.S. , 6,771 terror attacks took place globally, which resulted in over 11,000 deaths and 21,600 injuries. Moreover, 1,280 people were kidnapped or taken hostage. In such situations, biometric technology helps to improve public safety in various ways. Currently, badges and tokens are being used to authorize access to controlled areas. These ways of authentication are not as secure as if the card can be easily stolen or misused. The reading system assumes that anyone who possesses the card is the right person who should be granted access, which makes it less secure. Therefore, biometric identification is being adopted to improve access control such as sensitive areas. Thus, these factors are expected to drive growth of the market during the forecast period.

Ease of usage offered by biometrics to propel the global biometric technology market growth over the forecast period

The major advantage of biometrics technology is that it uses the physiological and behavioral characteristics of a person, in order to provide access to restricted areas. Forgetting a password is a human tendency, which is nullified by biometrics to enter controlled areas. As a result, they help to reduce the documentation cost, which is associated while maintaining a password system, since the information pertaining to a particular person is stored in the central database or server. Therefore, these factors are expected to propel the global biometric technology market growth over the forecast period.

Biometrics Technology Market Opportunities:

Development of multimodal biometrics solutions can present lucrative growth opportunities

The choice of biometrics technology for implementation depends on the level of security and the type of application required. Even though biometrics is a useful tool, which addresses the newfound concerns of the clients, not a single biometric technology has the ability to fully satisfy the customer demand. Hence, to improvise the security of biometric technology, multimodal biometrics is used. Multimodal biometrics uses one or more than one behavioral or physiological characteristic for verification and enrollment or identification, hence, providing the best security.

Research and development activities can provide major business opportunities

Key players in the market are focused on research and development activities, in order to launch novel products. For instance in January 2022, Idemia a multinational technology company headquartered in Courbevoie, France, provides identity-related security services, and sells facial recognition and other biometric identification products and software to private companies and government  collaborated with Microsoft Corporation to deliver next  generation eSimand better connectivity solutions for customer and iot devices.

In July 2021, Thales group launched a new voice bimetric solution, a part of the trusted digital identity serivces platform, for onboarding and authentication. It allows detecting fraudsters attempting to mimic customer.

The biometrics technology market was valued at US$ 47,672.9 Million in 2022 and is estimated to reach US$ 184,890.7 Million by 2030 exhibiting a CAGR of 18.4% between 2023 and 2030.

Biometrics Technology Market Trends:

Increasing security concerns

Rising security concerns and increasing dependence on computers to store important data are expected to drive the biometrics technology market in the upcoming years. Furthermore, prices of basic biometric machines such as fingerprint recognition devices, and others have reduced significantly over the last decade. The minimum cost of a fingerprint attendance system is between US$ 70 to 80. Moreover, improving financial position of the people, as they aspire to safeguard their property has helped this technology to explore new markets across the globe.

Growing adoption of biometric technology in Asia Pacific region

Biometrics technology market in the Asia Pacific region is expected to see rapid growth in the upcoming years in countries like China, Japan and India due to stringent government regulations and projects such as Aadhar, e-passport, and others. Furthermore, biometric market in Central and North Caucus regions of Russia is also expected to grow at a high pace in the upcoming years with the effect from the scheduled Sochi winter Olympics in 2014.

Biometric Technology Market Restraints:

High cost of installation to restrain growth of the global biometric technology market during the forecast period

Although biometrics technology is efficient and consistent, its installation cost is significantly high and not affordable for small scale industry players. There are different costs for each biometric technology such as iris recognition systems that cost between US$ 105 and US$ 200. There are several cost-effective alternatives to biometrics technology, which include username and password, authentication tokens such as smart cards, standalone-tokens, knowledge-based authentication systems, and others. Therefore, these factors are expected to restrain growth of the global biometric technology market during the forecast period.

Unreliability of biometric technology to hamper the global biometric technology market growth over the forecast period

Biometrics such as iris recognition and voice recognition cannot be identified properly in the case of sickness. If a person suffers from an eye defect, for example, the eyes of people get affected with diabetes, which results in differences. Moreover, it is often found that the voice of a person differs with age or if the person has a throat infection, biometrics technology finds it difficult to identify the person. Moreover, people working in the chemical sector cannot use fingerprint recognition authentication purpose as the fingerprints of people working there often get affected. Therefore, these factors are expected to hamper the market growth in the near future.

Figure 2: Global Biometrics Technology Market Share (%), in terms of Value, By Component, 2022

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Biometric Technology Market Segmentation:

The biometric technology market is segmented on the basis of component and end user On the basis of Component, it is segmented into Face, Hand geometry, Voice, Signature, Iris, AFIS, Non-AFIS, and Others. On the basis of End user, it is segmented into Government, Defense Services, Banking and Finance, Consumer Electronics, Healthcare, Home Safety and Security, Transport / Visa / Logistics, and Others (Retail, hospitality, gaming and automobile).

Biometric Technology Market: Key Companies Insights

The Biometric Technology Market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the important players of the market are Accu-Time Systems, Inc., Daon, Inc., BIO-Key International, Inc., IrisGuard, Inc., Fujitsu Limited, Lumidigm, Inc., IDTECK, Suprema, Inc., 3M Cogent, Inc., RCG Holdings, Ltd., and NEC Corporation.

*Definition: Biometrics allows a person to be identified based on physical characteristics that can be used to identify individuals. For example fingerprint mapping, facial recognition, retina scans. Biometrics identifiers include unique ways, for individual identification such as DNA, fingerprints, voice for authentication purposes.  Moreover, biometrics data can be used to access information in devices such as smartphones.