| Status : Published | Published On : Jan, 2024 | Report Code : VRSME9008 | Industry : Semiconductor & Electronics | Available Format :
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Page : 200 |
Global Biometric System Market – Analysis and Forecast (2025-2030)
Industry Insights by Authentication Type (Single-Factor Authentication, and Multifactor Authentication), by Component (Hardware, and Software), by Functionality Type (Contact Functionality, Combined Functionality and Noncontact Functionality), by Application (Government, Healthcare, Automotive, Banking & Finance, Travel & Immigration, Military & Defense, Consumer Electronics, Security, and Others) and by Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)
Industry Overview
The global biometric system market currently is valued at USD 41.2 billion in 2023 and is expected to reach USD 83.79 billion by 2030, at a CAGR of 13.6% during the forcast period 2025 - 2030.
A biometric system refers to a specific tool that uses biological information to identify people. It uses specific technology to read the face, fingerprints, iris, or DNA of people and even analyze typing patterns.
This tool is used in different industries such as banking, transportation, government, consumer electronics, healthcare, defence, commercial safety, and security.
The global biometric system market is expected to grow at such a high rate due to the increasing number of government initiatives for the adoption of the tool and the growing need for higher security and better surveillance. It is also influenced by different authentication mechanisms.
Due to the increasing number of government initiatives to use biometrics and the rising demand for security and surveillance, the market for biometric systems is expanding significantly on a global scale. The market size for biometric systems was influenced by various authentication mechanisms.
Market Segmentation
Insight by Authentication Type
The global biometric system market is divided into single-factor authentication and multifactor authentication, according to the authentication type. Out of these two segments, the former is expected to account for the larger market share during the forecast period due to its affordability, simplicity, and high speed of installation.
The single-factor authentication segment can be further divided into vein recognition, voice recognition, face recognition, signature recognition, IRIS recognition, and fingerprint or palm print recognition.
Out of these SFA segments, the widespread use of fingerprint recognition technology in several areas such as e-visas, e-passports, travel and immigration, and driving licenses accounts for the largest share of it in the market. It is also attributed to its growing adoption in laptops, computers, and smartphones for security reasons.
On the other hand, the voice or speech recognition category is expected to grow at a higher rate during the forecast period due to the growing demand in the banking, finance, and healthcare industries.
As for the multifactor authentication category, it is further broken down into multimodal biometrics, a smart card with biometrics, and a pin with biometrics. Out of all these categories, the pin with the biometrics section accounts for the larger share of the market due to its low cost and safe mechanism.
Insight by Component
The biometric system market is split into hardware and software depending on the components used in their making. Out of these two segments, the hardware segment is expected to grow at a higher rate than the other during the forecast period. This is mainly attributed to its larger coverage including cameras, scanners, fingerprint readers, and others that need specific hardware for them to function.
Insight by Functionality Type
The functionality of the biometric systems helps classify the global biometric system market into integrated functionality, contact functionality, and non-contact functionality. Out of these three segments, the contact functionality segment is expected to grow at a faster rate due to the extensive acceptance and use of fingerprint recognition systems across several industry verticals.
Insight by Application
The global biometric system market is classified into government, automotive, healthcare, banking & finance, military & defense, travel & immigration, security, consumer electronics, and others based on its diverse applicability.
Out of all these categories, the travel & immigration category accounts for the largest proportion of the global biometric system market during the forecast period mainly due to the rising demand for security at the crossing points in the border region.
On the other hand, the automotive segment is expected to grow at a higher rate in the analysis period due to the significant rise in car theft incidents, which has encouraged automobile makers to equip biometric security systems in their vehicles to ensure higher client security standards.
Insight by Mobility
The global biometrics system market is split into fixed and portable categories based on the mobility factor.
Out of these two categories, the fixed category accounts for the higher growth rate and will also contribute more in terms of revenue during the forecast period. This is mainly due to the extensive use of biometric systems such as scanners in specific industry verticals like BFSI, smart homes, and other commercial and public sectors.
On the other hand, the portable biometric system category is expected to grow at a higher rate during the forecast period due to the extensive use of voice recognition and fingerprint recognition systems especially in consumer electronic goods.
Global Biometric System Market Report Coverage
|
Report Metric |
Details |
|
Historical Period |
2018 - 2023 |
|
Base Year Considered |
2024 |
|
Forecast Period |
2025 - 2030 |
|
Market Size in 2023 |
U.S.D. 41.2 Billion |
|
Revenue Forecast in 2030 |
U.S.D. 83.79 Billion |
|
Growth Rate |
13.6% |
|
Segments Covered in the Report |
By Authentication Type, By Component, By Functionality Type, By Application. |
|
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
|
Regions Covered in the Report |
North America, Europe, Asia-Pacific, Middle East, and the Rest of the World |
Industry Dynamics
Industry Trends
The major players in the market are coming up with newer and better products to make the best out of the growth potential of the biometric system market on a global scale. For example, the integration of better technologies such as Artificial Intelligence and Machine learning into the biometric systems allows effective identification of unusual behavior by a user and enhances the security layer of authentication.
The key players in the market also tend to have a significant advantage due to the higher investments made in the development and adoption of these systems as well as collaboration and acquisition of the smaller companies and new entrants who face difficulty in stepping into the market due to high investment requirements.There is a growing concern over data breaches all over, which demands better, contactless, and foolproof biometric systems with multifactor authentication. This is gaining traction in the industry as well as the users which is resulting in higher investments by the major players in the industry in research and development activities to create a better and more reliable portfolio of more advanced and efficient biometric systems.
This has also widened the application areas of these sophisticated systems. This is also attributed to the growing consideration and concerns over data privacy and protection. There is also an urgency among the industry players and manufacturers to comply with regulations. The market players and stakeholders are therefore encouraged to invest more to design better solutions that will help prioritize user privacy, data storage, and transmission security, changing regulatory framework alignment, and trust-building in the regulatory authorities and users.
Also, it is noticed that there is a growing integration of biometrics into commonplace devices and applications to meet the growing demand for multimodal biometric solutions. This is mainly due to the consumers and organizations looking for different modalities in the biometric systems that will offer a comprehensive solution to identity verification and enhance security as well as user experience.
Growth Drivers
The primary growth driver of the global biometric system market is the growing initiative taken by the government for the adoption and use of biometrics.
Also, the growing awareness and demand for better security and surveillance among people drive the global biometric system market growth. In this regard, the increasing demand for mobile biometrics devices also promotes the growth of the global biometric system market. In addition, the proliferation of biometric technology in specific industry sectors such as automotive, retail, and financial institutions has also influenced the growth of the global biometric system market. Most importantly, the rising demand for efficient biometric solutions in the healthcare industry also influences the growth of the global biometrics system market.
The growth of e-commerce has also influenced the growth of the global biometrics system market since these services are made more convenient with the use of biometric systems making the process smoother and, at the same time, safeguarding e-commerce by increasing credibility and reducing fraud instances, especially in online shops.
Cloud computing has also impacted the growth of the global biometrics system market indirectly. This is because businesses can choose new options without needing to invest in new infrastructure and therefore can respond to market issues and changes quickly. This promotes the development of a new service ecosystem that includes all e-commerce resources.
Apart from that, other crucial factors drive the growth of the global biometric system market, which include the need for enhanced, secure, and convenient identity and human resource management, rapid technological improvements, ease of use as well as superior characteristics of biometric systems.
Challenges
The growth of the global biometric system market is somewhat hindered due to the threat to data privacy, confidentiality, and the possibility of breach. In addition, the high deployment cost also hinders the expansion of the global biometric system market.
Lack of awareness about the benefits offered by biometric systems such as transparency, privacy, no piracy, and others also hinders the widespread acceptance of these systems.
Apart from that, the concerns over legal and regulatory compliance regarding data privacy, security, and individual rights also hinder the acceptance and sales of biometric systems.
Opportunities
Notable progress in sensing technology and the widespread use of these systems in mobile devices and computers have created new opportunities for the global biometric system market to grow during the forecast period.
AI and ML-integrated biometric systems allow for capturing the behavioral and physiological traits of users and analyzing specific trends or anomalies with the help of relevant data. This creates new possibilities for biometric authentication and pushes the market northward.
Other factors that create new opportunities for the global expansion of the biometrics system market include a rise in mobile payments, growing adoption of cloud-based solutions that offer higher flexibility and scalability, higher smart city initiatives to offer public safety and better traffic management along with other citizen services, growing use of these systems in smart wearable devices, and growing use in educational institutions for attendance tracking and enhanced safety and accountability.
Geographic Overview
North America accounts for the higher share of the global biometric system market due to higher government activities for the adoption of biometric systems. It is also attributed to the rapid technical development and progress in this field. Moreover, the growing concern over safety and security also promotes the growth of the global biometric system market in this region.
On the other hand, the APAC market is also expected to grow quickly at a higher CAGR during the forecast period due to the growth in the travel and tourism sector. It is also attributed to the growing concerns over safety and security and the expanding initiatives of the government for the adoption and use of these useful products.
Major key players in this market include Thales, Fujitsu Ltd., Safran, Secunet Security Networks AG, Precise Biometrics AB, NEC Corporation, Stanley Black & Decker, Assa Abloy
Recent Development by Key Players
HID Global and ASSA ABLOY have collaborated on a self-boarding gate system that uses facial recognition technology for passenger identification that shall focus on improving the airport experience by reducing wait times and workload for airline staff. This system shall incorporate liveness detection technology to ensure a real person is present and not a photo or video used for unauthorized access.
Fingerprints has collaborated with Thales and Garanti BBVA to launch a biometric payment card for customers in the region of Türkiye. The contactless biometric payment card has been certified by multiple major EMV payment schemes. The companies will continue to focus on meeting the needs, preferences, and expectations of customers in an ever-evolving market, while also remaining compliant with the regulatory requirements and laws of the local industry with this partnership.
The Biometric System Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.
Segments Covered in the Report
- By Authentication Type
- Single-Factor Authentication
- Multifactor Authentication
- By Component
- Hardware
- scanners
- fingerprint readers
- cameras
- other
- Software
- Hardware
- By Functionality Type
- Contact Functionality
- Combined Functionality
- Non-Contact Functionality
- By Application
- Government
- Healthcare
- Automotive
- Banking & Finance
- Travel & Immigration
- Military & Defense
- Consumer Electronics
- Security
- Others
Region Covered in the Report
North America
- U.S.
- Canada
- Mexico
Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
Rest of the World (RoW)
- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries
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Source: VynZ Research
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Biometric System Market