|Status : Published||Published On : Jun, 2021||Report Code : VRSME9037||Industry : Semiconductor & Electronics||Available Format :||Page : 150|
The global biometrics technology market size is projected to reach USD 62.14 billion by 2027, experiencing a CAGR of 20.1% during the forecast period 2021-2027. Biometrics technology is used for identification, authentication, and recognition of individuals based on their traits- fingerprints, vascular pattern, iris, hand geometry, face, and palm veins or behavioral characteristics- signature, voice, and typing pattern. Thus, it is a significant industry that forms an important part of the biometrics market. Biometrics technology provides progressive techniques over traditional PIN-based techniques. This technology is used to secure sensitive or personal data from fraudulent use such as a PIN or password could be forgotten or a key could be lost but biometric traits are difficult to steal or forget. However, biometric technology has certain limitations, such as high initial investments and high cost of biometric devices, and technological limitations.
The COVID-19 pandemic has affected the demand for contact-based biometric systems and even after the pandemic gets over the demand for contact-based biometric systems will fall drastically to avoid coronavirus spread. Furthermore, the development and acceptance of contactless biometric systems such as face recognition, iris recognition, and voice recognition, are anticipated to stimulate the demand post-COVID-19.
Insight by Authentication
Based on authentication, the market is divided into single-factor authentication and multi-factor authentication. Multi-factor authentication is anticipated to be the fastest-growing segment during the forecast period 2021-2027. The increasing demand for multi-factor authentication is associated with the increase in need for additional security against the theft of sensitive data, especially in the government and defense sector. The multiple-factor authentication includes multiple identifiers that will add an extra level of security, thus, making the system effective, accurate, and reliable.
Insight by Application
Based on application, the biometrics technology market is segmented into physical characteristics and behavioral characteristics. Physical characteristics are subdivided into fingerprint recognition, iris recognition, hand geometry recognition, palm recognition, and others (DNA, Ear). Behavioral characteristics are categorized into signature recognition, voice recognition, middleware recognition, and others (keystroke and handwriting). Contactless biometric technology such as hand geometry recognition and palm recognition is expected to have substantial growth over the forecast period 2021-2027. Fingerprint recognition is the most prominent segment because of its use in law enforcement, civil applications, real estate, defense, and in the private sector for attendance and background checks of employees. The increasing usage of fingerprint recognition in tablets, mobiles, e-commerce, and cloud computing is anticipated to generate high demand in the biometrics technology market because of its easy usage and affordable price.
Iris recognition is the most acknowledged technology because of its speed of operation and resistance to false matches. It is used in countries for security purposes at crucial places such as airports, government buildings, points of entry and exits in the country, and other applications. The demand for iris recognition is going to increase because of convenience, safety, and adoption in multiple end-user industries.
Insight by Functionality
Based on functionality, the biometrics technology market is divided into contact-based biometric systems, contactless biometric systems, and hybrid biometric systems. Hybrid biometric systems are anticipated to be the fastest-growing segment during the forecast period 2021-2027 as it is efficient and reliable biometrics. Multimodal biometric provide safety against spoofing and forgery through multi-level authentication. Moreover, many countries such as the US, India, and the UK are adapting multimodal authentication i.e., a combination of two or three biometric techniques, using contact-based or contactless systems. These are used at security checkpoints at country borders due to the increase in the threat of terrorist attacks.
Insight by Offering
Based on offering, the market is divided into hardware and software. Software is anticipated to be the fastest-growing market during the forecast period. Software plays an important role in ensuring compatibility in biometric devices. The growing use of biometric devices in cloud computing and AI will accelerate the need for associated software, thus providing compatibility in devices and operating systems among different applications. Software in biometric systems will integrate add-on features in the hardware and will store and recall spatial data.
Insight by Vertical
Based on vertical, the market is segmented into consumer electronics, government, military & defense, healthcare, banking & finance, travel and immigration, and others. There is a wide scope of biometric technology in consumer electronics to improve customer experience. Government organizations and the defense sector is anticipated to have a sharp rise in the demand for biometrics technology like the use of the biometric system in elections to reduce frauds in the form of fake or bogus voting. Biometrics technology is widely accepted for e-passport programs and to check illegal migrations.
The healthcare segment is expected to have a high CAGR due to technological advancements, protecting patient privacy, stopping false insurance claims, and other healthcare frauds. In addition, biometrics technology is used in banking & finance to increase efficiency and prevent frauds. Thus, it will have a positive effect on the growth of the market.
There is an increase in the use of biometric technology in enterprises to provide convenience, secure identity management, and superior human resource management which is expected to drive the demand for the biometrics technology market. Furthermore, the use of biometrics systems in the BFSI sector for securing financial transactions globally will augment the growth of the market. Also, an increase in acceptance of advanced authentication and recognition systems in smartphones and tablets will surge the demand for biometrics technology globally.
Biometrics Technology is easy-to-use and implement, cost-effective solution for high-end security and assurance. There is a rising concern regarding internal and external security which will augment the growth of the market during the forecast period. Biometrics technology is one of the initiatives taken by the government to restrict illegal entry. Biometrics technology has gained popularity as e-passports are introduced and use in criminal identification. Moreover, the use of biometrics technology in the government and private sector for employee identification and attendance will drive the growth of the market All these factors will impact the biometrics technology market in near future.
The implementation of biometrics technology is expensive for any organization which will challenge the growth of the market. High initial investment, high cost of biometric devices, and technology limitations such as image resolution matching accuracy with physical characteristics, low-quality capture devices, etc. will be the challenges for the implementation of biometric systems.
Technological developments, for instance, the evolution of multimodal biometrics technology, use in e-commerce, and cloud computing will create lucrative opportunities for the growth of the market. There is rapid development in sensing technologies and widespread implementation of mobile-based access control solutions are poised to provide growth opportunities for biometric authentication.
Geographically, APAC is one of the fastest-growing markets for biometrics technology in terms of infrastructure, electronics industry, and other technological developments. The unique geographical location, airport hubs, and increasing passenger traffic make it a hub for the growth of biometrics technology. In Asia-Pacific regions, China and India will witness high growth rates. Initiatives such as the UIDAI project in India, e-KTP electronic ID initiatives in Indonesia will provide new business opportunities for the growth of the biometrics market.
North America is anticipated to hold the largest market share over the forecast period. This is attributed to the increasing applications of biometrics technology in various departments such as defense, commerce, homeland security, and justice.
The global biometrics market consists of many small and large manufacturers. Key players are entering into mergers and acquisitions, strategic partnerships, and alliances to sustain themselves in the global biometrics technology market. They are also focusing on product launches and product expansion in the biometrics technology market.
In May 2020, NEC developed a touchless, multimodal biometric authentication terminal with the world's highest level of precision. It has been ranked number one in identification technology benchmark tests conducted by the US National Institute of Standards and Technology (NIST).
In April 2020, FUJITSU FRTONTECH LIMITED acquired Fulcrum Biometrics, the Texas-based biometric hardware, software, and solutions provider. The companies aimed to develop the industry's premier provider of biometric authentication and access management solutions.
Some of the leading players operating in the global biometrics technology market Thales Group, Safran S.A., NEC Corporation, FUJITSU FRONTECH LIMITED, 3M Company, SUPREMA, BIO-key International, Precise Biometrics, FaceFirst, Inc., and Assa Abloy AB.
Source VynZ Research
Source VynZ Research