Biometric Banking Market Trends

Global Biometric Banking Market Overview

Biometric Banking Market Size was valued at USD 4.8 Billion in 2022. The Biometric Banking market is projected to grow from USD 5.6 Billion in 2023 to USD 18.0 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.80% during the forecast period (2023 - 2032). The increased use of biometric technology across a variety of industries, including consumer electronics, automotive, and aerospace, are the key market drivers enhancing the market growth.

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Biometric Banking Market Trends

The growing adoption of biometric systems in consumer electronics and automotive is driving the market growth

The increasing use of biometric systems in consumer gadgets and automobiles is fueling the demand for biometric banking. The increased use of biometric technology in numerous sectors and the rising demand for authentication, identity, security, and surveillance solutions in a wide range of application domains are the key drivers impacting market growth. Fraud and security breaches are reduced when comparing biometric technologies to more traditional methods like employing tokens and passwords. A biometric system uses a reader, related software, and database to compare fingerprints to provide high security and accuracy. The e-commerce industry's growing adoption of the technology for secure payments is another factor contributing to the predicted growth of the biometric banking market throughout the forecast period. Additionally, it is anticipated that the increased use of technology for employee identification and attendance in both the public and private sectors would increase market demand.

Major players are forming alliances to broaden their activities around the world. For instance, to enable Windows 10's newest biometric authentication sign-in feature, Microsoft recently tested and validated three new compact USB fingerprint reader accessories from BIO-Key, the SideTouch, SideSwipe, and EcoID. Multimodal biometric authentication methods, which incorporate a number of behavioural or physiological attributes, are also expected to improve security and recognition capabilities. The coronavirus disease outbreak has also contributed to a trend towards contactless biometric systems that assess voice, posture, and facial recognition for identity validation.

One of the major developments in the market under study is a paradigm change in business discourse in favour of more privacy and decreased security risks. End users are looking more and more for integrated solutions rather than relying on traditional approaches. Recent years have seen a rapid expansion of consumer biometric applications due to the increased use of mobile devices. Due to the widespread use of biometric systems, security and access control equipment dominates the consumer electronics market. As a result, it helps the market expand. For instance, famous messaging software WhatsApp recently included an additional privacy feature on the Android operating system. According to the corporation, customers will soon be able to protect their accounts using fingerprint sensors for biometric authentication.

In addition, hybrid or multi-model biometric systems have recently emerged as a crucial identifying strategy for authentication needs. The multi-model biometric recognition system authenticates users using a variety of attributes, including fingerprint, iris, and facial traits. In large-scale systems that must respond to a range of physical attributes as well as in usage scenarios that call for stringent identity verification, this enables greater dependability, high-speed, and high-precision authentication. Thus, driving the Biometric Banking market revenue.

Biometric Banking Market Segment Insights:

Biometric Banking Product Type Insights

The Biometric Banking Market segmentation, based on product type, includes hardware and software. Hardware segment accounted for the largest revenue share in 2022. Key reasons influencing the growth of biometric technology include the advent of mobile biometric devices, the increased emphasis on hardware-based security capabilities, and the expanding use of biometric technology in consumer electronics for authentication and identity applications. The benefits of biometric hardware, such as accurate identification accountability, high performance, dependability, and high security & assurance, all help to fuel the expansion of this market. Many vendors are making R&D investments in cutting-edge technologies to improve hardware capabilities and minimise costs for small and medium-sized organisations.

Biometric Banking Product Application Insights

The Biometric Banking Market segmentation, based on finger print, includes facial recognition, hand geometry, iris recognition, and others. Finger print segment dominated the Biometric Banking Market in 2022. This can be attributed to the widespread use of single-factor authentication because it is more efficient, practical, and quick to act. Face and fingerprint recognition are the most widely used single factor technologies, especially in applications for banking, travel, and immigration. The rapid adoption of these technologies in consumer electronic devices has increased the demand for single factor systems.

Figure 1: Biometric Banking Market, by Product Application, 2022 & 2032 (USD Billion)

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Biometric Banking Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Biometric Banking Market dominated this market in 2022 (45.80%). 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. Further, the U.S. Biometric Banking market held the largest market share, and the Canada Biometric Banking market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: BIOMETRIC BANKING MARKET SHARE BY REGION 2022 (USD Billion)

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Europe Biometric Banking market accounted for the healthy market share in 2022. The region's biometrics market is anticipated to be driven primarily by rising mobile payment transactions as well as rising commercial enterprises and government initiatives to embrace biometric authentication systems. Further, the German Biometric Banking market held the largest market share, and the U.K Biometric Banking market was the fastest growing market in the European region

The Asia Pacific Biometric Banking market is expected to register significant growth from 2023 to 2032. Initiatives integrating face, fingerprint, and eye biometrics, like the UIDAI project in India and the e-KTP electronic ID programme in Indonesia, are also anticipated to open up new business prospects. The region has seen widespread adoption of and present use of biometric identification technology, and the banking sector has moved forward with the replacement of traditional systems with biometric ones. Stricter employee and client identification measures are still needed to combat fraud and identity theft in the region's banking industry, which is quickly digitising. Moreover, China’s Biometric Banking market held the largest market share, and the Indian Biometric Banking market was the fastest growing market in the Asia-Pacific region.

Biometric Banking Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Biometric Banking market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Biometric Banking industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Biometric Banking industry to benefit clients and increase the market sector. In recent years, the Biometric Banking industry has offered some of the most significant advantages to medicine. Major players in the Biometric Banking market, including Techshino Technology, Ample trails, Inc, Biometrics Institute, State Grid Corporation of China, BPI Connected Identification, American Safety Council, Inc, Aulich & Co, Digital Persona, FIDO Alliance member, Diebold & Co, Omaha Based First Data Co, Chase & Co, Authentik Solutions, Visa Co, Biolink Solutions, Innoventry Corporation, Auraya Systems Pty Ltd, Baztech Inc, Axon Wireless International, and Charles Schwab And Co, are attempting to increase market demand by investing in research and development operations.

The aerospace, defense, and security markets are served by Thales SA (Thales), which also offers smart technologies, electronic systems, software, ground transportation, services, and equipment. It offers the aircraft industry avionics equipment, electrical systems, training solutions, flight deck, avionics systems, and air traffic management systems. For the ground, marine, and air defence markets, the business also offers weapon systems, protection systems, radio communications products, network and infrastructure systems, vital information systems, and cybersecurity solutions. Additionally, Thales provides training, maintenance, and repair services. The corporation has activities throughout the Middle East, Africa, Asia-Pacific, Europe, and the Americas. The head office of Thales is located in Paris, Ile-de-France, France. In order to expand the implementation of its Automated Border Control (ABC) system for traveller biometric authentication to three Spanish airports, Thales teamed up with Inetum in October 2021.

ImageWare Systems, Inc. is an identification startup that focuses on biometrics first. To revolutionise enterprise security, the company provides a vital identity infrastructure and biometrically confirmed identity-secured access. In the US, ImageWare Systems provides services to the public and government sectors. ImageWare Systems entered the self-sovereign identity market in October 2021 with a biometrically enabled Blockchain-Powered Self Sovereign Identity solution. The final degree of security is added by adding biometric protection to the identity blockchain, which keeps data safe in digital wallets and only available to authorised individuals.

Key Companies in the Biometric Banking market include

• Techshino Technology


• Ample trails, Inc


• Biometrics Institute


• State Grid Corporation of China


• BPI Connected Identification


• American Safety Council, Inc


• Aulich & Co


• Digital Persona


• FIDO Alliance member


• Diebold & Co


• Omaha Based First Data Co


• Chase & Co


• Authentik Solutions


• Visa Co


• Biolink Solutions


• Innoventry Corporation


• Auraya Systems Pty Ltd


• Baztech Inc


• Axon Wireless International


• Charles Schwab And Co

Biometric Banking Industry Developments

June 2021: Utilizing its expertise from hundreds of global public security initiatives, Phonexia created new audio investigative software called Phoenixia Orbis.

September 2021: In order to become value-added resellers, Imageware and TECH5 teamed up. Through this agreement, all TECH5 offerings may be integrated with the current Imageware product range, which includes, among other things, Imageware Proof, Imageware Authenticate, Imageware Identify, and the Imageware Biometric Engine.

May 2021: Through its subsidiary PerVoice, Phonexia teamed with Almawave, a provider of artificial intelligence (AI), natural language processing, and big data services, to add Phonexia speech Verify, a speech biometric solution, to Almawave's portfolio.

Biometric Banking Market Segmentation

Biometric Banking Product Type Outlook

• Hardware


• Software

Biometric Banking Product Application Outlook

• Finger Print


• Facial recognition


• Hand Geometry


• Iris Recognition


• Others

Biometric Banking Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America