Contactless Biometric Market Overview
As per MRFR analysis, the Contactless Biometric Market Size was estimated at 14.25 (USD Billion) in 2022. The Contactless Biometric Market Industry is expected to grow from 16.22(USD Billion) in 2023 to 52.25 (USD Billion) by 2032. The Contactless Biometric Market CAGR (growth rate) is expected to be around 13.87% during the forecast period (2024 - 2032).
Key Contactless Biometric Market Trends Highlighted
The contactless biometric market is witnessing a surge in demand due to the rising concerns over security and data privacy in various industries. Key market drivers include the growing adoption of biometric technologies for authentication and access control, the increasing need for touchless solutions in healthcare and public spaces due to the COVID-19 pandemic, and the advancements in biometric sensor technologies. Furthermore, the integration of contactless biometrics with mobile devices and the Internet of Things (IoT) is creating new opportunities for market growth.
Recent trends in the contactless biometric market include the integration of facial recognition and iris recognition technologies, which offer highly accurate and reliable authentication methods. The use of contactless biometrics for remote identification and verification is also gaining popularity, driven by the increasing adoption of mobile banking and online services. Additionally, the development of multi-modal biometric systems that combine different biometric modalities is expected to enhance the accuracy and security of biometric solutions.
Figure1: Contactless Biometric Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Contactless Biometric Market Drivers
Rising Demand for Enhanced Security and Convenience
The contactless biometric market is primarily driven by the increasing demand for enhanced security and convenience across various sectors. Contactless biometric technologies, such as facial recognition, fingerprint scanning, and iris recognition, offer a more secure and user-friendly alternative to traditional authentication methods, such as passwords and PINs. The rising concerns over data breaches, identity theft, and unauthorized access have led organizations and individuals to adopt contactless biometric solutions to safeguard their sensitive information and assets. Additionally, the convenience factor associated with contactless biometric systems, which eliminate the need for physical contact or the use of cards or tokens, has further fueled the market growth.
Advancements in Biometric Technology
The Contactless Biometric Market Industry has witnessed significant advancements in biometric technology, leading to improved accuracy, reliability and speed of biometric recognition. The development of sophisticated algorithms, machine learning techniques, and high-resolution sensors has enhanced the capabilities of contactless biometric systems to capture and analyze unique biometric characteristics, such as facial features, fingerprints, and iris patterns. These technological advancements have made contactless biometric solutions more effective and efficient, contributing to their wider adoption across various applications.
Government Initiatives and Regulations
Government initiatives and regulations play a crucial role in driving the growth of the Contactless Biometric Market Industry. Governments worldwide are increasingly recognizing the importance of strong authentication and identity management systems to ensure national security, prevent fraud, and enhance public safety. The implementation of regulations and standards related to biometric data collection, storage, and usage has created a favorable environment for the adoption of contactless biometric technologies. Government initiatives, such as the establishment of national biometric databases and the promotion of digital identity programs, have further stimulated the market demand for contactless biometric solutions.
Contactless Biometric Market Segment Insights
Contactless Biometric Market Component Insights
The component segment of the Contactless Biometric Market is segmented into sensors, smart cards, readers, and software. Among these, the sensors segment is expected to hold the largest market share in 2023, owing to the increasing demand for fingerprint and facial recognition sensors in various applications such as smartphones, laptops, and access control systems. The smart cards segment is also expected to witness significant growth, driven by the rising adoption of contactless payment solutions in the retail and transportation sectors. The readers segment is expected to grow steadily, supported by the increasing deployment of contactless biometric readers in government facilities, corporate offices, and healthcare institutions.
The software segment is expected to gain traction, driven by the growing need for advanced software solutions for managing and analyzing biometric data. The Contactless Biometric Market is expected to witness substantial growth in the coming years, driven by the increasing demand for secure and convenient biometric authentication solutions across various industry verticals. The rising concerns regarding data privacy and security, along with the growing adoption of biometric technologies in various applications, are expected to fuel the market growth.
Figure2: Contactless Biometric Market, by Component, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Contactless Biometric Market Deployment Insights
The deployment segment of the Contactless Biometric Market is categorized into on-premise, cloud, and hybrid. Among these, the cloud segment is projected to witness the fastest growth during the forecast period. The growing adoption of cloud-based solutions due to their scalability, cost-effectiveness, and ease of deployment is driving the segment's growth. The cloud deployment model eliminates the need for organizations to invest in and maintain on-premise infrastructure, making it an attractive option for small and medium-sized businesses.
Moreover, the increasing demand for remote work and the proliferation of Internet of Things (IoT) devices are further fueling the growth of the cloud segment in the Contactless Biometric Market. In terms of market share, the on-premise segment currently holds the largest share. However, its dominance is expected to diminish over the forecast period as more organizations adopt cloud-based solutions. Hybrid deployments, which combine the benefits of both on-premise and cloud deployments, are also expected to gain traction in the coming years. The Contactless Biometric Market is witnessing significant growth, with the market revenue expected to reach USD 26.44 billion by 2024. The increasing demand for contactless biometric solutions for enhanced security and convenience across various industry verticals is driving the market growth.
Contactless Biometric Market Industry Vertical Insights
Industry Vertical The Contactless Biometric Market is segmented by industry vertical into healthcare, financial services, government, transportation, and retail. The healthcare segment is expected to hold the largest market share in 2023, owing to the increasing adoption of contactless biometric technologies for patient identification and authentication. The financial services segment is also expected to witness significant growth, driven by the need for secure and convenient payment authentication solutions. The government segment is expected to grow steadily, driven by the increasing use of contactless biometrics for border control and national security applications. The transportation segment is also expected to witness growth, driven by the adoption of contactless biometrics for ticketing and passenger screening. The retail segment is expected to grow at a moderate pace, driven by the increasing use of contactless biometrics for customer loyalty programs and checkout automation.
Contactless Biometric Market Authentication Type Insights
The Authentication Type segment of the Contactless Biometric Market is segmented into Fingerprint Recognition, Facial Recognition, Iris Recognition and Voice Recognition. Fingerprint Recognition held the largest market share in 2023 and is expected to continue to dominate the market through 2032. The growth of this segment is attributed to the increasing adoption of fingerprint recognition technology in various applications, such as smartphones, laptops, and door locks. Facial Recognition is expected to be the fastest-growing segment during the forecast period due to the increasing adoption of this technology in various applications, such as surveillance systems and access control systems.
Iris Recognition and Voice Recognition are also expected to witness significant growth during the forecast period due to the increasing adoption of these technologies in various applications, such as border control systems and healthcare systems. The Contactless Biometric Market revenue is expected to reach $25.68 billion in 2024 and is projected to grow at a CAGR of 14.2% from 2024 to 2032.
Contactless Biometric Market Form Factor Insights
The Contactless Biometric Market is segmented by Form Factor into Contactless Cards, Wearables, Mobile Devices, and Standalone Devices. Among these, Contactless Cards are projected to lead the market over the forecast period, owing to the increasing adoption of contactless payment solutions and government initiatives promoting digital payments. Wearables are expected to witness significant growth due to the rising popularity of fitness trackers and smartwatches. Mobile Devices are also gaining traction as they offer convenience and ease of use for biometric authentication. Standalone Devices, such as fingerprint scanners and facial recognition systems, are anticipated to have a niche market share due to their high accuracy and security. The Contactless Biometric Market revenue is projected to reach USD 20.45 billion by 2024, growing at a CAGR of 14.2% from 2023 to 2032.
Contactless Biometric Market Regional Insights
The regional segmentation of the Contactless Biometric Market showcases distinct growth patterns across various regions. North America holds a significant market share, driven by the early adoption of advanced technologies and a robust healthcare sector. Europe follows closely, with a focus on data protection and privacy regulations. The APAC region exhibits high growth potential, fueled by rapid urbanization, increasing disposable income, and government initiatives promoting digitalization. South America and MEA are emerging markets with a growing demand for contactless biometric solutions due to increasing security concerns and the need for efficient identity management.
Figure3: Contactless Biometric Market, by Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Contactless Biometric Market Key Players And Competitive Insights
Major players in Contactless Biometric Market are focusing on developing innovative solutions to cater to the evolving needs of the industry. Leading Contactless Biometric Market players are investing in research and development to enhance the capabilities of their products and services. The Contactless Biometric Market industry is witnessing the emergence of new players, bringing fresh ideas and innovative technologies to the market. This competitive landscape is expected to intensify in the coming years as companies strive to gain a competitive edge and expand their market share. The development of the Contactless Biometric Market is driven by factors such as the increasing adoption of contactless technologies, the growing awareness of security concerns, and advancements in biometric technologies. Notable players in the Contactless Biometric Market include HID, Suprema, 3M Cogent, and Fujitsu.
These companies offer a wide range of contactless biometric solutions, including facial recognition, fingerprint recognition, and iris recognition. HID, for instance, provides a comprehensive suite of contactless biometric solutions for various applications, including access control, time and attendance, and identity management. Suprema, on the other hand, specializes in the development of advanced fingerprint recognition technologies and offers a range of contactless fingerprint scanners and readers. Another key player in the Contactless Biometric Market is 3M Cogent. The company offers a broad portfolio of biometric solutions, including facial recognition, fingerprint recognition, and voice recognition. 3M Cogent's contactless biometric solutions are designed to provide high levels of accuracy and security, making them ideal for applications such as border control, law enforcement, and financial transactions
Fujitsu is another prominent player in the Contactless Biometric Market. The company offers a range of contactless biometric solutions, including facial recognition, fingerprint recognition, and palm vein recognition. Fujitsu's contactless biometric solutions are known for their high performance and reliability, making them suitable for a variety of applications, including healthcare, banking, and retail.
Key Companies in the Contactless Biometric Market Include
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Fujitsu
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HID
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Lumidigm
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Thales
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Aware
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IDEMIA
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BioEnable
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Suprema
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Precise Biometrics
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M2SYS Technology
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Crossmatch Technologies
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Zwipe
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3M Cogent
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NEC
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Innovatrics
Contactless Biometric Market Industry Developments
The contactless biometric market is projected to reach USD 52.25 billion by 2032, exhibiting a CAGR of 13.87% during the forecast period (2024-2032). The market growth is attributed to the rising demand for enhanced security and convenience in various applications such as banking, healthcare, and government. Recent technological advancements, including the integration of artificial intelligence (AI) and machine learning (ML), are further driving market expansion. Key industry players are focusing on strategic partnerships and product innovations to strengthen their market position. Notable developments include the launch of new contactless biometric solutions by companies like Thales and Fujitsu, addressing the growing need for touchless authentication and identity verification in a post-pandemic world.
Contactless Biometric Market Segmentation Insights
Contactless Biometric Market Component Outlook
- Sensors
- Smart Cards
- Readers
- Software
Contactless Biometric Market Deployment Outlook
Contactless Biometric Market Industry Vertical Outlook
- Healthcare
- Financial Services
- Government
- Transportation
- Retail
Contactless Biometric Market Authentication Type Outlook
- Fingerprint Recognition
- Facial Recognition
- Iris Recognition
- Voice Recognition
Contactless Biometric Market Form Factor Outlook
- Contactless Cards
- Wearables
- Mobile Devices
- Standalone Devices
Contactless Biometric Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
14.25(USD Billion) |
| Market Size 2023 |
16.22(USD Billion) |
| Market Size 2032 |
52.25(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
13.87% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Fujitsu, HID , Lumidigm, Thales, Aware, IDEMIA, BioEnable, Suprema, Precise Biometrics, M2SYS Technology, Crossmatch Technologies, Zwipe, 3M Cogent, NEC, Innovatrics |
| Segments Covered |
Component, Deployment, Industry Vertical, Authentication Type, Form Factor, Regional |
| Key Market Opportunities |
Mobile biometrics proliferationGovernment initiativesGrowing adoption in healthcare |
| Key Market Dynamics |
1 Rising Demand for Enhanced Security2 Advancements in Sensor Technology3 Integration with IoT and AI4 Government Regulations and Initiatives5 Growing Adoption in Healthcare and Finance |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The contactless biometric market is expected to reach USD 16.22 billion in 2023 and is projected to grow at a CAGR of 13.87% from 2024 to 2032, reaching USD 52.25 billion by 2032.
The growth of the contactless biometric market is primarily driven by increasing concerns regarding data security and privacy, rising adoption of smart devices, growing demand for touchless and convenient authentication methods, and government initiatives to promote digital identity management.
North America is expected to hold the largest market share in the contactless biometric market due to the early adoption of advanced technologies, stringent security regulations, and a high concentration of technology companies.
Contactless biometric technology finds applications in various sectors, including healthcare, banking and finance, government, retail, and transportation. It is used for tasks such as identity verification, access control, and payment authentication.
Major players in the contactless biometric market include HID , Gemalto, Fujitsu, NEC, Crossmatch, Suprema, Zwipe, IDEMIA, and DERMALOG.
The Asia-Pacific region is expected to witness the fastest growth in the contactless biometric market due to factors such as rapid urbanization, increasing disposable income, and a growing demand for advanced security solutions.
In healthcare, contactless biometric technology enhances patient safety and streamlines processes by enabling touchless identification, secure access to medical records, and automated patient monitoring.
The contactless biometric market faces challenges related to data privacy and security concerns, interoperability issues between different biometric systems, and the need for robust infrastructure to support large-scale deployments.
Emerging trends in the contactless biometric market include the integration of artificial intelligence (AI) and machine learning (ML) for enhanced accuracy and convenience, the development of multi-modal biometric systems, and the increasing adoption of mobile biometrics.
The COVID-19 pandemic has accelerated the adoption of contactless biometric solutions due to the need for touchless and hygienic authentication methods. This trend is expected to continue in the post-COVID-19 era, driving further growth in the market.
