The global biometric system market is expected to be valued at $47.2 billion (£38bn) in 2024 and is projected to reach $84.5 billion (£68bn) by 2029; it is expected to grow at a CAGR of 12.3% from 2024 to 2029, according to a new report by MarketsandMarkets™. Increasing integration of biometrics in consumer electronics is fuelling the growth of the biometric system market.
The rapid adoption of biometric technologies in automotive applications market growth. These factors collectively propel the expansion of the biometric system market, highlighting Its critical role in enhancement. product launches, partnerships, expansions, investments, and acquisitions strategies are the major growth strategies adopted by companies in the biometric system market. These strategies have enabled key players to expand their global footprint by offering products major regions and meeting the ever-changing industry demand. Based on authentication type, single factor is expected to dominate the biometric system market.
This method relies on a single biometric trait, such as a fingerprint, facial recognition, or iris scan, to verify an individual’s identity. Single-factor authentication is widely adopted due to its simplicity, ease of use, and cost effectiveness It provides a robust security solution for various applications, from smartphones and laptops to access control systems and financial transactions. Its widespread implementation and user-friendly nature make it the preferred choice for many organizations and consumers, driving its dominance in the biometric system market.
Based on type, contactless biometric systems are anticipated to hold the largest share of the biometric system market. This growth is driven the increasing demand for more convenient and efficient security solutions. Contactless biometrics, such as facial, iris, and voice recognition, provide a seamless user experience by eliminating the need for physical interaction, thereby speeding up authentication process. These systems are increasingly integrated into smartphones, airports, and various public and private sector applications, enhancing security and user convenience.
The government sector is projected to dominate the biometric system market based on the vertical. Governments worldwide are increasingly adopting biometric systems for various applications, including national ID programs, border control, voter registration, and law enforcement The need for enhanced security, accurate identification, and efficient management of large populations drives this adoption. Biometric technologies provide robust solutions for preventing identity fraud, ensuring secure access to sensitive information, and improving public safety. As governments continue to invest in modernising their security’ infrastructure, the demand for biometric systems in this sector is expected to grow significantly.
According to MarketsandMarkets, based on region, Asia Pacific is expected to hold the largest share of the biometric system market. Rapid technological advancements, a large population base, and significant investments in security infrastructure by both government and private sectors drive the region’s dominance. Countries like China, India, and Japan are leading the adoption of biometric technologies for various applications, including national identification program, border security, and consumer electronics. The increasing focus on enhancing security measures supportive government initiatives, and major system manufacturers’ presence further the market growth in Asia Pacific. As a result, the region is poised to maintain its leading position in the global biometric system market.
Trends and disruptions impacting customer business
The rapid deployment of contactless technologies during the coronavirus pandemic has paved the way for deploying biometric systems in multiple sectors such as government, BFSI, military and defence, and consumer electronics. Major use cases include General Data Protection Regulation (GDPR) compliance, attendance management, identity protection, border control, and airport The integration of sophisticated software has brought about new changes. A few applications deemed impossible, such as automotive and travel & immigration, to be handled by the biometric system have now become possible.
In contrast, many end users in developing countries are still trailing in leveraging the opportunities created by introducing new technologies, such as Al and machine learning, and end users located in developed economies such as US, France, Germany, China, and Japan. Biometrics has replaced traditional identification methods used across various industries such as government, automotive, consumer electronics, and healthcare. It has become a preferred option to authenticate and identify people based on their unique physical or behavioral characteristics. Earlier, government organizations only used biometrics for identification and authentication purposes.
However, a gradual rise in the adoption of technologies such as face recognition, fingerprint recognition, and iris recognition, as well as a high level of security offered by biometric systems, have resulted in the rapid adoption of biometrics in commercial applications. Biometric systems, based on different authentication including facial recognition and hand geometry, are increasingly used in various sectors, such as retail, healthcare, industrial, IT & telecom, gaming, hospitality, education, financial services, and manufacturing.
Traditional security measure of identifying humans through identity documents (IDs) and personal identification numbers (PINs) have several limitations and do not offer high security. Organisations and enterprises worldwide are keen on implementing stringent security measures to protect personal/critical data (such as medical details and financial transactions) and restrict malicious access to their equipment and systems.
All these factors provide a high-growth opportunity for the players in the biometric system market. Introducing the smart city’ concept driven by rapid urbanisation is expected to attract substantial investments by governments to deploy smart security solutions such as intelligent and multimodal biometric systems. The sector is likely to be the dominant user of a biometric system to understand customer buying patterns, which will help retailers maintain a sufficient stock of the products they sell and provide personalised services to their customers.
Currently, fingerprint recognition is the most preferred authentication method due to reasons such as high accuracy, ease of use, and wide availability of sensors. It is very convenient and cost-effective for secure authentication; however, facial recognition, voice recognition, palm vein recognition, and finger vein recognition have high-growth opportunities in the short- and mid-term future.
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