Biometric System Market by Offering, Biometrics Type (Fingerprint Recognition, Voice Recognition), Contact Type, Authentication Type, Platform, Application, End User (Government, Military & Law Enforcement, and Other End Users) - Global Forecast to 2029

The Biometric System Market is expected to reach $51.6 billion by 2029, at a CAGR of 12.4% during the forecast period of 2022 to 2029. Growing demand for mobile biometrics devices, rising government initiatives for biometrics technology, increasing use of biometric technology in consumer electronics for authentication and identification applications, and growing need for security measures are the key factors driving the growth of the biometric systems market. However, the substantial costs associated with biometric systems and misconceptions and lack of knowledge pertaining to biometric systems are notable restraints affecting the growth of this market.

Impact of COVID-19 on the Biometric System Market

The COVID-19 pandemic adversely impacted the global economy. Nationwide lockdowns and social distancing norms were imposed across several countries, negatively affecting multiple industries, including the biometrics industry. Uncertainty regarding the duration of the lockdowns made it difficult for the key market players to anticipate the recovery of the biometric systems market. Numerous biometrics providers were under immense pressure across various fronts due to the COVID-19 pandemic.

However, economies are shifting their focus from responding to the pandemic to economic recovery, and hence, various growth opportunities are expected to emerge for the biometric systems market players due to the growing demand for biometric technology-based surveillance and security solutions and the rising need for contactless biometric systems.

Government and private sector organizations started undertaking initiatives to keep people safe and combat the spread of COVID-19. Contactless biometrics systems emerged as vital solutions as social distancing became a global norm. Biometrics technology companies viewed this crisis as a new opportunity to restructure and revisit existing strategies and product portfolios. The current scenario has created tremendous demand for biometric technologies in the healthcare sector due to their capacity to be easily integrated with various healthcare devices & platforms to enhance patient safety and support staff & patient workflows. Increased investments in the healthcare sector have also contributed to the growing demand for biometric technologies. Organizations in the BFSI sector were also focused on running essential business operations during the pandemic, which helped biometric companies bring revenues back on track.

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Growing Demand for Mobile Biometrics Devices is Driving the Biometric System Market

Over the years, the requirement to control access to data, premises, and systems has grown. Many organizations rely on passwords, PINs, or cards to confirm people’s identities for access. However, this traditional approach poses severe challenges in terms of security. For instance, loss, data breaches, or theft of cards causes security risks. With the correct combination of PIN and card, anyone could be granted access to restricted areas or data. Thus, increasing the application of mobile biometrics for security purposes is expected to positively impact the market growth.

Mobile biometric devices provide multi-factor authentication (MFA) approach to verify an individual's identity by using mobile devices. This technology has become popular for its user-friendliness to leverage the facilities of online transactions, authentication, and many other services. Consumers are adopting advanced connected devices and digital technologies with biometric technology to process critical information and keep it secure. Some major banks leverage biometric technologies in various scenarios, such as cash withdrawals at the ATM, authenticating mobile banking apps using fingerprint signing, or a combination of face and voice verification. Thus, biometric technology-based smartphones are increasingly being used for security and better user experience.

Key Findings in the Global Biometric Systems Market Study:

In 2022, the Hardware Segment is Expected to Dominate the Biometric System Market

Based on offering, the hardware segment is expected to account for the largest share of the biometric system market in 2022. The growing demand for mobile biometrics devices, increasing focus on hardware-centric security capabilities, and increasing use of biometric technology in consumer electronics for authentication and identification applications are some of the factors driving the growth of this segment.

In addition, the benefits associated with biometrics hardware, such as accurate identification, high performance, accountability, reliability, and high security & assurance, further augment the growth of this segment. Several providers are investing in R&D to improve the hardware capabilities and make them more affordable for small and medium-scale enterprises.

The Contactless Segment to Grow at the Highest CAGR During the Forecast Period

Based on contact type, the contactless segment is expected to grow at the highest CAGR during the forecast period. The rising security concerns and hygiene issues among users due to touch-based systems are driving the faster growth of this segment. Also, the growing adoption of face recognition in the public and commercial sector, strong government initiatives, and the increasing adoption of contactless biometrics technology post the pandemic are expected to support the growth of this segment.

The Mobile Devices Segment to Grow at the Highest CAGR During the Forecast Period

Based on platform, the mobile devices segment is expected to grow at the highest CAGR during the forecast period. The rising trend of mobile transactions, growing adoption of biometrics features in smartphones, and rising use of mobile biometrics in e-commerce and online gaming are expected to support the growth of this segment.

The Healthcare Segment to Grow at the Highest CAGR During the Forecast Period

Based on end user, the healthcare segment is expected to grow at the highest CAGR during the forecast period. The growing incidence of healthcare data breaches and medical identity theft, adoption of contactless biometrics authentication, and integration of biometric solutions in healthcare set-ups in emerging economies are expected to support the growth of this segment.

Asia-Pacific: The Fastest-growing Regional Market

In 2022, Asia Pacific is expected to account for the largest share of the biometric systems market, followed by North America, Europe, Latin America, and the Middle East & Africa. However, Asia-Pacific is expected to witness rapid growth during the forecast period. The rapid growth of this region is mainly driven by the presence of prominent biometric system manufacturers and the increasing adoption of contactless biometrics technology. Besides, favorable government initiatives, rising e-commerce and virtual payment trends, and rising digital identity security concerns are expected to help the region grow rapidly over the coming years.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key strategic developments adopted by the leading market participants in the biometrics system industry over the last four years. The key players profiled in the global biometric systems market are NEC Corporation (Japan), CardLogix Corporation (U.S.), Fujitsu Limited (Japan), Thales Group (France), Integrated Biometrics LLC (U.S.), Iris ID, Inc. (U.S.), Suprema, Inc. (South Korea), HID Global Corporation (U.S.), Precise Biometrics (Sweden), Aware, Inc. (U.S.), Daon, Inc. (U.S.), M2SYS Technology (U.S.), BIO-key International (U.S.), Cognitec Systems GmbH (Germany), BioRugged (South Africa), DERMALOG Identification Systems GmbH (Germany), IDEMIA (France), and ImageWare Systems, Inc. (U.S.).

Scope of the Report

Biometric System Market, by Offering                                      

• Hardware
  • Scanners                               
  • Cameras                
• Software

Biometric System Market, by Biometric Type

• Fingerprint Recognition
• Face Recognition
• Voice Recognition
• Iris Recognition
• Signature Recognition
• Vein Recognition
• Palm Print Recognition
• Other Biometrics Types (Heartbeat Reader and Hand Geometry)

Biometric System Market, by Authentication Type

• Single Factor Authentication
• Multifactor Authentication

Biometric Systems Market, by Contact Type

• Contact-based
• Contactless
• Hybrid

Biometric System Market, by Platform

• On-site
• PC
• Mobile Devices
• Wearable Devices

Biometric Systems Market, by Application

• Digital Identification
• Access Control & Authentication
• Security & Surveillance
• Other Applications (Border Control and Law & Enforcement)

Biometric System Market, by End User             

• Information Technology & Telecom
• Government
• Retail
• Finance & Insurance
• Healthcare
• Military /Law Enforcement
• Recreation
• Education
• Transportation & Warehousing
• Other End Users (Hotel & Food Services and Constructions)

Biometric System Market, by Region

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Vietnam
  • Indonesia
  • Rest of Asia-Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa

Key questions answered in the report: