IRIS RECOGNITION MARKET ANALYSIS

The global iris recognition market size was valued at USD 3422.4million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 18.5% from 2022 to 2030. Increasing awareness about personal authentication is propelling the growth of the global iris recognition market. The demand for the market is expected to increase significantly over the next few years. The iris recognition market has also been influenced by the increasing use of smart technologies and automation. North America is expected to have the largest share during the forecast period. The growth of the market in this region is mainly driven by increasing industrialization and the introduction of government initiatives.

Global Iris Recognition Market: Regional Insights

North America is expected to witness significant growth in the global iris recognition market over the forecast period. This is attributed to rise in data breaches in the region leading to adoption of biometrics in various industries to get another layer of security for users. Moreover, government bodies in the regions are implementing iris scanning devices, which is also driving growth of the regional market. For instance, The Federal Bureau of Investigation (FBI) has partnered with state, local, federal and tribal agencies for collaborative development of programs such as the Next Generation Identification (NGI) systems and the National Crime Information Center (NCIC).

Moreover, Asia Pacific is expected to witness robust growth in the global iris recognition market over the forecast period due to end-user industries such as healthcare and BFSI implementing strict regulations for ensuring the safety of their sensitive customer data with the use of new technology. Moreover, rise in government and private corporation initiatives towards adoption of biometric authentication systems in the region is driving growth of the market in Asia Pacific.

Figure 1. Global Iris Recognition Market Share (%), by Region, 2021

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Global Iris Recognition Market Drivers:

Rise in cases of fraudulent activities is expected to drive growth of the global iris recognition market during the forecast period. The development of cashless payments and digital businesses are facing a rise in cybersecurity threats. In digitized society, all the activities are online and emergence of cybercrime is threatening the security of organizations and individuals, which further causes financial losses. Thus, demand for new technology is leading to development of novel eye scan systems for security, which is anticipated to boost the market growth over the forecast future.

Furthermore, rise in integration of multi-factor authentication is projected to augment growth of the global iris recognition market over the forecast period. For the enhancement of security in authentication systems, multi-factor authentication (MFA) is introduced. There are various factors combined for controlling access. The rise in demand for applications with high security is diving the demand of biometrics, due to which many multi-factor authentication systems consist biometric authentication. Thus, these factors are driving growth of the global iris recognition market over the forecast period.

Global Iris Recognition Market Opportunities:

Growing popularity of iris-based identification technology is likely to create growth opportunities for players in the global iris recognition market during the forecast period. The popularity of identity identification has increased among people as the social economy has progressed in various regions. Biometric technology is the foundation of identity authentication, due to which it has received lot of attention over the past years and iris-based identification technology has become a hotspot of research. It offer several advantages of stability, uniqueness, non-invasiveness, and collectability as major identification traits. This is further expected to offer growth opportunities in the market.

Increasing penetration of Cognitive Internet of Things (CIoT) and its growing applications are expected to offer growth opportunities in the global iris recognition market over the forecast period. The growing CIoT applications are supported by wide development of cloud, linked sensors, ubiquitous sensing, and big data analytics technologies. The human life has witnessed a significant impact of the CIoT, researchers are still investigating integration of biometric technologies such as iris in a CIoT-oriented framework, to use iris-based biometric recognition for authentication or verification. Thus, it is expected to support growth of the market in the near future.

Global Iris Recognition Market Trends:

Growing demand for authentication due to rise in cyberattacks is a growing trend in the global iris recognition market, which is likely to drive the market growth over the forecast period. For instance, as per the survey of TransUnion, 83% of people in the United States face concerns regarding identity theft, moreover, the levels of distress among people has increased since the pandemic by one-third (32%). Thus, organizations are using iris recognition software solutions for gaining trust of the customers, and this trend is expected to continue in the market over the forecast period.

Furthermore, major players in the market along startup companies are increasingly focusing on investment and innovations, which another trend in the global iris recognition market. Due to rise in digitization along with increasing fraud threats around the world, many of the startup companies and major organizations in the market are involved in innovations and investments in biometric authentication. This trend is anticipated to continue in the market supporting the market growth in the forecast future.

Global Iris Recognition Market Restraints:

Rise in data privacy concerns regarding use biometric authentications is one of the factors expected to hinder growth of the global iris recognition market. Iris recognition technology is expected to offer better security in terms of biometric authentication; however, the technology has various technical complexities, complex process, and policy challenges regarding security and privacy. The biometric data is gathered and processed, it is posed to risk of hacking, majorly owing to increasing fraud capabilities. Iris scanning is mainly threatened by danger of national database that can be used for tacking people covertly, without their consent or knowledge. Thus, these factors are anticipated to restrain growth of the global iris recognition market.

Another factor expected to hamper growth of the global iris recognition market is presence of competing biometric technologies. There are different biometric technologies such as fingerprint recognition, face recognition, voice recognition among others available in the market. Depending on their disadvantages and advantages, their acceptability varies in the market. Fingerprint and face recognition technologies are posing high competition to iris recognition technology, mainly due to high cost. Thus, these factors are expected to obstruct growth of the global iris recognition market over the forecast period.        

Figure 2. Global Iris Recognition Market Share (%), by Component Type, 2021

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Global Iris Recognition Market Segmentation:

The global iris recognition market report is segmented into Component, End-User Industry and Region.

Based on Component, the market is segmented into Hardware, Software & Services. Out of which, Hardware is expected to dominate the global market over the forecast period and this is attributed to the rise in demand for iris recognition systems due to various benefits offered by these systems such. Components such as iris recognition cameras, modules, and readers are the hardware used in iris recognition systems. Demand for these hardware and other components is high in the market, which further drives growth of the segment.

Software & Services segment is also expected to witness significant growth in the near future and this is owing to the major role of software and services in iris recognition systems. Due to these software, devices, computers as well as scanning networks can be connected to operate together. Moreover, these software offer accuracy needed for capturing and managing large size of data. Thus, demand for this segment is high in the market, which is further fueling the market growth.

Based on End-User Industries, the market is segmented into Consumer Electronics, Healthcare, BFSI, Government and Law Enforcement, and Other End-user Industries. Out of which, Consumer Electronics is expected to dominate the global market over the forecast period and this is attributed to the higher disposable income, leading to rise in demand for consumer electronic devices as well as smart gadgets. With increasing research and development, iris biometrics has become prominent in several vertical markets, which in turn is driving growth of the segment.

Healthcare segment is also expected to witness significant growth in the near future and this is owing to the rise in inclination of healthcare management applications towards biometric iris recognition technology. The reasonable costs of multi-layered authentication systems is contributing to the growth of this segment in the iris recognition market.

Global Iris Recognition Market: Key Developments

In March 2022, IriTech Inc. partnered with compliance program of MOSIP. This program offers eligibility of working with adapters at early-phase, and opportunities to align as well as work with MOSIP for contributing to different technology initiatives.

In January 2022, Aware Inc. announced the launch of Aware ABIS. This is a new automated biometric identification system developed for large-scale biometric identification as well as duplication.

Global Iris Recognition Market: Key Companies Insights

The global iris recognition 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 key players in the global iris recognition market are IDEMIA, Iritech Inc., IrisGuard UK Ltd., BioEnable Technologies Pvt. Ltd., NEC Corporation, Aware Inc., Gemalto NV (Thales Group), Iris ID Inc., Princeton Identity Inc., HID Global, and EyeLock LLC.

*Definition:

Iris recognition technology can provide unique identification for every individual with the use of the unique mathematical patterns of the iris. Iris data acts as a biometric characteristic, which is free from ethnic and gender bias. It provides safe, contactless authentication. It is also used for e-government services and automated border-crossings.