Biometric System Market Analysis

Global Biometric System Market Overview:

Biometric System Market Size was valued at USD 34.8 Billion in 2023. The biometric system market industry is projected to grow from USD 39.70 Billion in 2024 to USD 99.97 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.23% during the forecast period (2024 - 2032). One of the key market drivers propelling the expansion of the biometric system market is the development of biometric technology in consumer electronics for identification and authentication applications. The increased focus of governments on eliminating fictitious beneficiary entries, improving governance, and providing welfare payments to people experiencing poverty through biometrics also contributes to the market's rapid expansion.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Biometric System Market Trends

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  Growing need for security and surveillance as a result of rising crime rates is driving the market growth

  
  

Biometric technology was initially used to strengthen security and confirm a criminal's identification. Biometric features like iris, voice, fingerprint, signature, DNA, hand geometry, and vein patterns were mostly scanned to identify criminals. Putting up biometric systems is mostly done to lessen crime and terrorist attacks. Millions of criminal cases have already been resolved with the aid of biometric technology. Using biometric technologies for surveillance is another option. In a CCTV device, a face recognition system is implemented, which records and retains the facial features of people the camera captures. Then, with the aid of this information, criminals involved in any crime or terrorist action can be located and verified. The growing adoption of technology-based CCTV cameras in developing nations like India, China, and Japan is fueling the expansion of the biometric system market CAGR during the coming years.

Controlling access to information, locations, and systems has become increasingly necessary. Organizations frequently use passwords, PINs, or cards to verify users' identities before granting access. However, there are significant security issues with this conventional method. Security concerns include, for instance, loss, data breaches, or card theft. Anyone can access restricted locations or data with the proper PIN and card combination. Thus, expanding the use of mobile biometrics for security purposes is anticipated to benefit market expansion. Multi-factor authentication (MFA) is a method that mobile biometric devices use to validate a person's identification. This technology has gained popularity because it makes it easy to use the features of online transactions, authentication, and many other services. Consumers are embracing cutting-edge linked devices and digital technologies with biometric technology to process sensitive data and maintain its security. Some large banks use biometric technologies in various contexts, including cash withdrawals from ATMs, fingerprint signatures for mobile banking app authentication, and voice and face verification combined. As a result, smartphones with biometric technology are being utilized more frequently for security and enhanced user experience.

With a strong emphasis on the supply chain, biometric technology is an emerging technique to enhance the consumer experience during the projection period. Due to rising consumer demand for contactless solutions, COVID-19 saw a surge in the use of biometric technologies. Consumers are continuing to utilize touchless biometric technology due to rising hygiene awareness. For instance, a poll conducted in April 2020 by the Strawhecker Group and the Electronic Transactions Association revealed that 27% of small and medium-sized firms had concentrated on contactless card payments and mobile wallets ever since the COVID-19 pandemic had begun. These contactless biometric-based payment cards authorize biometric payments by requiring users to confirm their identification using previously saved data to validate their face or fingerprint. Biometric payment cards use fingerprints and chip technologies to verify the cardholder's identification. The biometric information of the customer is safely preserved. In order to increase the security of card payments, fin-tech companies are increasingly using biometric payment cards. The market is driven by the usage of biometric technology in the retail and e-commerce sectors, which is also driven by the rising incidence of fraud and phishing. Thus, driving the biometric system market revenue.

Biometric System Market Segment Insights:

Biometric System Component Insights

The Biometric System Market segmentation, based on component includes Hardware and Software. The hardware segment dominated the market. Some factors influencing this market's growth include the rising demand for mobile biometrics devices, the increased emphasis on hardware-centric security capabilities, and the expanding adoption of biometric technology in consumer electronics for authentication and identity applications.

Biometric System Authentication Type Insights

The Biometric System Market segmentation, based on authentication type, includes Single Factor Authentication and Multifactor Authentication. The single factor authentication category generated the most income. 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.

Biometric System Function Insights

The Biometric System Market segmentation, based on function includes Non-Contact and Others. The non-contact segment dominated the market. The non-contact business is expanding quickly due to consumers' growing worries about the security and hygienics of touch-based technology. Strong government initiatives, an increase in the use of contactless biometrics in the context of the pandemic, and an increase in face recognition in both the public and private sectors are some of the causes driving this industry's predicted growth. The need to stop the spread of COVID-19, which may be transmitted by touching things, has boosted the demand for non-contact biometric devices.

Figure 1: Biometric System Market, by Function, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Biometric System Application Insights

The Biometric System Market segmentation, based on application includes Government, Commercial and Healthcare. The government segment dominated the market. Biometrics enable debasement defense via several government-sponsored programmes for globally recognizable proof, like biometric common IDs. The effective receipt of government benefits, reimbursements, and incentives by eligible residents while avoiding any potential framework restrictions is made possible by biometric distinguishing proof. Government agencies commonly utilize biometric technologies to validate differences across borders.

Biometric System Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American biometric system market area will dominate this market. The increase in demand for biometric system solutions in the information and technology sectors is to blame. Large-scale biometric software deployments for monitoring staff attendance, identification verification, or authentication have been documented in the area. Additionally, the regional market is growing in revenue due to the introduction of mobile banking software. Due to their robust economies, both the United States and Canada can make significant investments in public safety.

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 System Market SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe biometric system market accounts for the second-largest market share ascribed to the expanding automobile industry's increasing demand for biometric access solutions. The U.K. government has adopted rules for algorithmic openness for AI used in biometric systems. Biometric technologies are constantly being included into multimodal systems in order to improve accuracy since they reduce fraud, bad data quality, and ethical concerns. Further, the German biometric system market held the largest market share, and the UK biometric system market was the fastest growing market in the European region

The Asia-Pacific Biometric system Market is expected to grow at the fastest CAGR from 2023 to 2032. The region's market will increase as a result of the expanding use of access control and signature recognition systems based on biometric technology in the consumer electronics, public & government, and automotive sectors. Additionally, important corporations are obtaining a variety of marketing techniques, which is assisting in the region's market's growth. Moreover, China’s biometric system market held the largest market share, and the Indian biometric system market was the fastest growing market in the Asia-Pacific region.

Biometric System 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 system 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 system 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 system industry to benefit clients and increase the market sector. In recent years, the biometric system industry has offered some of the most significant advantages to market. Major players in the biometric system market attempting to increase market demand by investing in research and development operations include NEC Corporation (Japan), BIO-Key International Inc. (U.S.), SA (France), Secunet Security Networks AG (Germany), Cross Match Technologies (U.S.), Fujitsu Ltd. (Japan), Cognitec Systems GmbH (Germany), Thales SA (France), Precise Biometrics AB (Sweden) and Aware Inc. (U.S.).

Aware is a top supplier of biometrics software products, services, and solutions worldwide. Its modular software products range from controls and applets to user interface programs for biometric enrollment and forensic analysis. They also include SDKs for fingerprint, face, and iris recognition and authentication, as well as a name matching and identity resolution SDK, an automated biometric identification system (ABIS), and a biometric services platform. These items provide essential biometric capability for a variety of uses, such as border management, law enforcement, intelligence, defense, citizen ID, banking, and payments.

Thales SA provides ground transportation, services, equipment, electronic systems, smart technologies, and software to the aerospace, defense, and security industries. It provides training solutions, electric systems, flight avionics, and air traffic management systems for the aircraft sector. The company also provides weapon systems, protection systems, cybersecurity solutions, network and infrastructure systems, critical information systems, radio communications products, and cybersecurity solutions for the ground, maritime, and air defense industries. Thales additionally offers instruction, upkeep, and repair services. In September 2021, Jordan Kuwait Bank and Thales collaborated to provide biometric payment cards for contactless EMV transactions. The Jordan Kuwait Bank's fingerprint-enabled cards will make it possible for its customers to authorize transactions using their fingertips, making them the first contactless biometric EMV bank cards in the area.

Key Companies in the biometric system market include

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  NEC Corporation (Japan)

  
  


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  BIO-Key International Inc. (U.S.)

  
  


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  SA (France)

  
  


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  Secunet Security Networks AG (Germany)

  
  


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  Cross Match Technologies (U.S.)

  
  


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  Fujitsu Ltd. (Japan)

  
  


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  Cognitec Systems GmbH (Germany)

  
  


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  Thales SA (France)

  
  


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  Precise Biometrics AB (Sweden)

  
  


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  Aware Inc. (U.S.)

  
  

Biometric System Industry Developments

September 2022: On the Genesys AppFoundry platform, Daon Inc., a developer of biometric solutions, has made its biometric identity access management solution "Identity X" available. Customers of Genesys Cloud X benefit from increased security thanks to the integration of Identity X with Genesys Platform.

June 2022: The new MOQI A1 Pro contact-free biometric scanning system was introduced by Moqi, an AI startup. This product enables customers of biometric solutions to fulfil their post-COVID-19 requirements. In order to verify user information, this device uses iris and facial recognition technology.

January 2022: Infineon Technology has teamed with Precision Biometrics, a biometric software and services provider. Precision Biometrics' Precise BioMatch product leverages the Infineon biometry fingerprint algorithm through this collaboration. The driver seat in cars can now be adjusted automatically due to this solution.

December 2021: Iemia, a company offering biometric solutions to business and household users, has teamed up with Bosche Building Solutions. Through this joint venture, Idemia offers fingerprint integration services for Bosche Building technologies' smart home technologies.

Biometric System Market Segmentation:

Biometric System Component Outlook

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  Hardware

  
  


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  Software

  
  

Biometric System Authentication Type Outlook

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  Single Factor Authentication

  
  


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  Multifactor Authentication

  
  

Biometric System Function Outlook

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  NON-CONTACT

  
  


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  Others

  
  

Biometric System Application Outlook

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  Government

  
  


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  Commercial

  
  


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  Healthcare

  
  

Biometric System Regional Outlook

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  North America

  
  
  
  
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    US

    
    
  
  
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    Canada

    
    
  
  
  
  


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  Europe

  
  
  
  
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    Germany

    
    
  
  
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    France

    
    
  
  
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    UK

    
    
  
  
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    Italy

    
    
  
  
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    Spain

    
    
  
  
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    Rest of Europe

    
    
  
  
  
  


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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America