The global biometric system market is expected to be valued at USD 47.2 billion in 2024 and is projected to reach USD 84.5 billion by 2029; it is expected to grow at a CAGR of 12.3% from 2024 to 2029. Increasing adoption of consumer electronics enhances security and user convenience, therefore driving the demand for the systems. On the other hand, increased adoption of Biometric-as-a-Service is an opportunity since it offers scaled solutions at less cost without heavy upfront investments. However, data security concerns and a lack of technical expertise are major issues since organizations struggle to protect sensitive data and manage complex systems effectively.
This is made possible because they have the ability to ensure constant performance and high accuracy. The stability and durability of fixed systems make them ideally suited for a host of environments where it is paramount to have constant and reliable biometric authentication.The reason they dominate this market is that they can easily be integrated into the existing security structure and support a large number of users. Nevertheless, fixed systems continue to become preferred applications by a lot of sectors due to their history of high performance and depth of features, even amidst growing interest in portable biometric solutions.
Single-factor authentication segment accounts for the largest share in the biometric system market
Single-Factor Authentication dominates the biometric system market because of its usage, simplicity, and cost-effectiveness. Of all single-factor authentication methods, fingerprint recognition occupies the largest share. This dominance is attributed to its high reliability and ease of use, integration into a myriad of devices and applications ranging from smartphones to access control systems. Fingerprint recognition technology is within a hair's breadth of becoming ubiquitous in consumer electronics, banking, and government ID programs because of its accuracy and quick response time. On the other hand, improvements to fingerprint sensors and algorithms have increased security and efficiency, holding their position at the top of the single-factor authentication type in the biometric system market.Fixed biometric systems based on mobility to hold the largest share in the biometric system market.
Fixed biometric systems occupy the largest market share in the biometric system market because of their enhanced security and reliability in high-traffic environments. They include devices installed in one fixed position, usually for access control, surveillance, and identity verification in several locations such as offices, airports, and government facilities.This is made possible because they have the ability to ensure constant performance and high accuracy. The stability and durability of fixed systems make them ideally suited for a host of environments where it is paramount to have constant and reliable biometric authentication.The reason they dominate this market is that they can easily be integrated into the existing security structure and support a large number of users. Nevertheless, fixed systems continue to become preferred applications by a lot of sectors due to their history of high performance and depth of features, even amidst growing interest in portable biometric solutions.
Based on vertical, the BFSI to hold second largest the biometric system market
The Banking, Financial Services, and Insurance (BFSI) has the second largest market share in the global biometric system market because of its nature as a backbone sector for secure and efficient customer authentication as well as fraud prevention. Biometric systems with fingerprint, facial, and voice recognition are being applied more and more in banking and financial transactions to improve security and ease of use. These systems bring down cases of identity theft, secure transactions, and enhance access control to online and in-branch services. It is expected to capture a substantial market share in the BFSI sector with its increasing adoption of biometric technologies within ATMs, mobile banking applications, and customer verification procedures. The high market share of the sector in terms of biometric systems is also supported by the strong emphasis on security and compliance with regulations.On-premises deployment segment to hold the largest share in the biometric system market
On-premises deployment has the largest market share of the biometric system market due to improved control, security, and customization. This is a preferred solution for organizations, especially in the government, healthcare, and financial sectors that require full control over infrastructure and data in view of tight regulations and privacy requirements. This mode of deployment allows for more personalization to meet specific organizational needs and more enhanced security by keeping information that is sensitive in biometrics within the premises. In addition, on-premises systems provide more reliable performance and faster response times, which are critical in high-security applications. As much as interest in cloud versions has widely taken over, demand for the on-premise version has still remained quite strong due to these advantages, thereby maintaining its top position in the marketplace.Asia Pacific region to exhibit highest growth rate in the biometric system market.
The increasing growth in the biometric system market is likely to be established in the Asia Pacific region, driven by rapid urbanization, technological advancement, and increasing government initiatives. India and China are the two fast-paced countries having large-scale biometric projects; for example, Aadhaar in India has enrolled more than one billion citizens. Additionally, the boom in the tech industry in the region and the wide acceptance of smartphones that integrate biometric features act as fuel for the market. The increasingly strict demands from the financial transaction side, healthcare, and border control drive demand for biometric systems. Together with the rise of the middle class, escalating investment in smart city projects, and proactive regulatory support, this provides a fertile environment for an accelerated expansion of the biometric market in Asia Pacific region.The study contains insights from various industry experts, from component suppliers to Tier 1 companies and OEMs. The break-up of the primaries is as follows:
- By Company Type: Tier 1 - 26%, Tier 2 - 32%, and Tier 3 - 42%
- By Designation: C-level Executives - 40%, Directors - 30%, and Others - 30%
- By Region: North America - 35%, Europe - 30%, Asia Pacific - 25%, and RoW - 10%
Research Coverage:
The research reports the Biometric System Market, by Authentication Type, (Single-Factor Authentication [Fingerprint Recognition, Iris Recognition, Palm Recognition, Face Recognition, Vein Recognition, Signature Recognition, Voice Recognition, Other Single-factor Authentication Type], Multi-Factor Authentication [Two-factor Authentication, Three-factor Authentication, Four-factor Authentication, Five-factor Authentication]) by Offering (Hardware [Fingerprint Sensors, Readers and Scanners, Cameras, Other Biometric Hardware], Software), by Mobility (Fixed, Portable), By Type (Contact-Based, Contact-less, Hybrid), By Deployment Mode (On-premises, Cloud-based, Integrated Deployment), By Vertical (Government, Defense, Healthcare, BFSI, Consumer Electronics, Travel & Immigration, Automotive, Security [Home Security, Commercial Security], Other Verticals and Region (North America, Europe, Asia Pacific, and Rest of the world (RoW)). The scope of the report covers detailed information regarding the major factors, such as drivers, restraints, challenges, and opportunities, influencing the growth of the biometric system market. A thorough analysis of the key industry players has been done to provide insights into their business overviews, products, key strategies, Contracts, partnerships, and agreements. New product launches, mergers and acquisitions, and recent biometric system market developments. This report covers a competitive analysis of upcoming biometric system market ecosystem startups.Key Benefits of Buying the Report
- Analysis of key drivers (Growing adoption of biometric technology in consumer electronics for authentication and identification, Growing government focus on enhancing governance and welfare delivery with biometrics, Increasing demand for biometric surveillance and security due to heightened terrorism threats, Rapid increase in adoption of biometric technologies in automotive applications aims to enhance safety and security, Increasing focus on smart infrastructure and smart city), restraints (Significant costs associated with biometric systems, Strict regulations regarding the use and storage of biometric data), opportunities (Advancements in biometric solutions tailored for authentication and identification, Collaborative strategies among participants in the supply chain, Rising implementation of Biometric-as-a-Service (BaaS), Integration of IoT and cloud computing technologies), and challenges (Concerns about data security and insufficient technical expertise, Challenges in detecting authorized and unauthorized users, Challenges in system integration) influencing the growth of the biometric system market.
- Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product launches in the biometric system market
- Market Development: Comprehensive information about lucrative markets - the report analyses the biometric system market across varied regions.
- Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the biometric system market
- Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like Thales (France), IDEMIA (France), NEC Corporation (Japan), ASSA ABLOY (Sweden), and Fujitsu (Japan) among others in the biometric system market.
Table of Contents
1 Introduction
2 Research Methodology
4 Premium Insights
5 Market Overview
6 Biometric System Market, by Authentication Type
7 Biometric System Market, by Offering
8 Biometric System Market, by Mobility
9 Biometric System Market, by Type
10 Biometric System Market, by Deployment Mode
11 Biometric System Market, by Vertical
12 Biometric System Market, by Region
13 Competitive Landscape
14 Company Profiles
15 Appendix
List of Tables
List of Figures
Companies Mentioned
- Thales
- Idemia
- Nec Corporation
- Assa Abloy
- Fujitsu
- Precise Biometrics Ab
- Secunet Security Networks AG
- Aware Inc.
- Cognitec Systems GmbH
- Anviz Global Inc.
- Daon, Inc.
- Dermalog Identification Systems GmbH
- Neurotechnology
- Innovatrics
- Veridos GmbH
- Zetes
- Jumio
- Onfido
- Iproov
- Facetec, Inc.
- Id R&D Inc.
- Beijing Kuangshi Technology Co. Ltd. (Megvii)
- Sensetime
- Facebanx
- David-Link Corporation
- Bio-Key International
- Securiport
- M2Sys Technology
- Suprema Inc.
- Fulcrum Biometrics
- Onespan
- Qualcomm Technologies, Inc.
- Integrated Biometrics
- Leidos
- Imageware
- Papillon
- Nuance Communications, Inc.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 306 |
| Published | August 2024 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value ( USD | $ 47.2 Billion |
| Forecasted Market Value ( USD | $ 84.5 Billion |
| Compound Annual Growth Rate | 12.3% |
| Regions Covered | Global |
| No. of Companies Mentioned | 37 |
