The Global Next-Gen Biometric Authentication Market size is expected to reach $187.18 billion by 2031, rising at a market growth of 20.7% CAGR during the forecast period.
Voice recognition technology analyzes vocal characteristics to authenticate users, offering a hands-free and convenient biometric authentication method. It is widely used in call centers, mobile banking, and smart home devices for voice command-based authentication. Thus, the voice recognition segment held 11% revenue share in the market in 2023. The technology’s ability to integrate with natural language processing and AI capabilities has enhanced its utility and application scope. The rising adoption of voice-activated virtual assistants and the need for secure voice-based transactions have driven the growth of the voice recognition segment in the market.
The major strategies followed by the market participants are partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In July, 2024, Fingerprint Cards AB announced a partnership with IN Groupe, a French company specializing in the production of secure documents, and launched a safe component for contactless biometric payment cards. This partnership aims to streamline production, improve reliability, and reduce costs, supporting global manufacturers in scaling next-generation card production for mass adoption. Additionally, In November, 2023, IDEMIA SAS signed a partnership agreement with Home Team Science and Technology Agency (HTX), the science and tech arm of the Ministry of Home Affairs, in Singapore. Under this partnership, the company will work with HTX on research and development in biometrics and forensics technologies.
The adoption of biometric authentication in mobile devices is expected to grow as more manufacturers embrace these technologies. With companies like Apple, Samsung, and Google leading the way, biometric solutions have become standard in flagship mobile phones. This widespread integration of biometric technology is fueling growth in the next-gen biometric authentication market, making it a critical driver as the demand for secure, frictionless mobile experiences grows globally. Hence, the rising adoption of biometric solutions in mobile devices is propelling the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
The next-generation biometric authentication market is highly competitive, fueled by advancements in AI and the demand for secure, contactless solutions. Innovations in facial recognition, iris scanning, and voice authentication are driving adoption across industries, including finance, healthcare, and government. Increasing cyber threats and stringent regulatory requirements further intensify competition. Vendors focus on AI-powered analytics, multi-modal authentication, and integration with IoT to differentiate their offerings, while growing privacy concerns and interoperability challenges shape market dynamics.
Voice recognition technology analyzes vocal characteristics to authenticate users, offering a hands-free and convenient biometric authentication method. It is widely used in call centers, mobile banking, and smart home devices for voice command-based authentication. Thus, the voice recognition segment held 11% revenue share in the market in 2023. The technology’s ability to integrate with natural language processing and AI capabilities has enhanced its utility and application scope. The rising adoption of voice-activated virtual assistants and the need for secure voice-based transactions have driven the growth of the voice recognition segment in the market.
The major strategies followed by the market participants are partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In July, 2024, Fingerprint Cards AB announced a partnership with IN Groupe, a French company specializing in the production of secure documents, and launched a safe component for contactless biometric payment cards. This partnership aims to streamline production, improve reliability, and reduce costs, supporting global manufacturers in scaling next-generation card production for mass adoption. Additionally, In November, 2023, IDEMIA SAS signed a partnership agreement with Home Team Science and Technology Agency (HTX), the science and tech arm of the Ministry of Home Affairs, in Singapore. Under this partnership, the company will work with HTX on research and development in biometrics and forensics technologies.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal matrix; Fujitsu Limited, Thales Group S.A., HID Global Corporation, and NEC Corporation are the forerunners in the Next-Gen Biometric Authentication Market. In September, 2023, HID Global Corporation teamed up with CERTIFY Health, which provides modern solutions to enhance patient care and experience and focuses on patient engagement and facial recognition. This offer aims to transform healthcare operations and deliver improved patient service at every touchpoint. Companies such as Aware, Inc., Fingerprint Cards AB, and IDEMIA SAS are some of the key innovators in Next-Gen Biometric Authentication Market.
Market Growth Factors
As private and public sectors strive to ensure greater security and data protection, biometric technologies offer a much-needed solution. The digital transformation of businesses across various industries, combined with heightened security threats, establishes biometrics as an essential tool for identity verification and fraud prevention. Therefore, the increasing demand for higher levels of security is one of the primary drivers of the next-gen biometric authentication market.The adoption of biometric authentication in mobile devices is expected to grow as more manufacturers embrace these technologies. With companies like Apple, Samsung, and Google leading the way, biometric solutions have become standard in flagship mobile phones. This widespread integration of biometric technology is fueling growth in the next-gen biometric authentication market, making it a critical driver as the demand for secure, frictionless mobile experiences grows globally. Hence, the rising adoption of biometric solutions in mobile devices is propelling the market's growth.
Market Restraining Factors
Privacy concerns also lead to regulatory scrutiny, with many governments worldwide introducing stricter regulations regarding collecting and using biometric data. The lack of universal standards and differing regulations across regions complicates compliance for businesses and may hinder their ability to deploy biometric authentication systems on a global scale. As these concerns grow, the next-gen biometric authentication market may face significant resistance from users and regulators, limiting its growth potential. Thus, privacy and data security issues hinder the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
Driving and Restraining Factors
Drivers- Increasing Security Concerns and the Need for Enhanced Authentication
- Rising Adoption of Biometric Solutions in Mobile Devices
- Expansion of E-commerce and Digital Transactions Worldwide
- High Costs Associated with the Implementation of Biometric Authentication Systems
- Privacy Concerns and Data Security Issues
- Growing Demand for Contactless Authentication Systems
- Government Mandates and Regulations on Biometric Data Utilization
- Slow Standardization and Lack of Unified Protocols
- Complexity in Biometric System Design and Implementation Requiring Skilled Workforce
Authentication Type Outlook
On the basis of authentication type, the market is segmented into single-factor authentication and multi-factor authentication. The single-factor authentication segment recorded 60% revenue share in the market in 2023. Single-factor authentication relies on one method of verifying identity, such as a fingerprint, facial recognition, or iris scan. This type of authentication is widely adopted due to its simplicity and ease of use. It is commonly used in various applications, from unlocking smartphones and accessing secure facilities to verifying identities in financial transactions.Technology Outlook
Based on technology, the market is categorized into fingerprint recognition, facial recognition, iris recognition, voice recognition, palm vein recognition, signature recognition, and others. The facial recognition segment witnessed 21% revenue share in the next-gen biometric authentication market in 2023. Facial recognition technology has gained substantial traction due to its convenience and ability to perform passive identification without physical contact. It is increasingly used in surveillance systems, border control, and user authentication for devices and applications.
Component Outlook
Based on component, the market is divided into software and services. The services segment held 37% revenue share in the market in 2023. This segment encompasses various services, including installation, maintenance, consulting, and managed services related to biometric authentication systems. Service providers are crucial in helping organizations implement and optimize their biometric systems, ensuring seamless integration with existing IT infrastructure and compliance with regulatory standards.End User Outlook
By end user, the market is divided into government, BFSI, travel & immigration, home security, healthcare, defense, and others. In 2023, the government segment registered 28% revenue share in the market. The need for enhanced security, efficient identification, and authentication processes drives the government’s adoption of biometric authentication. Biometric technologies are utilized in various government applications, including national ID programs, voter registration, law enforcement, border control, and public services. Implementing biometric systems helps streamline administrative processes, reduce fraud, and improve service delivery to citizens.Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 36% revenue share in the market in 2023. The high revenue share in North America can be attributed to the widespread adoption of advanced biometric technologies across various sectors, including government, BFSI, healthcare, and defense. The presence of major biometric solution providers and the increasing emphasis on enhancing security measures and reducing fraud further bolsters the market growth in this region.Market Competition and Attributes
The next-generation biometric authentication market is highly competitive, fueled by advancements in AI and the demand for secure, contactless solutions. Innovations in facial recognition, iris scanning, and voice authentication are driving adoption across industries, including finance, healthcare, and government. Increasing cyber threats and stringent regulatory requirements further intensify competition. Vendors focus on AI-powered analytics, multi-modal authentication, and integration with IoT to differentiate their offerings, while growing privacy concerns and interoperability challenges shape market dynamics.
Recent Strategies Deployed in the Market
- Sep-2024: NEC Corporation has launched a biometric authentication system that uses advanced facial recognition technology to identify large groups of people in motion swiftly. This innovation aims to improve efficiency and reduce congestion, reflecting broader trends in the biometric market, including AFIS.
- Jun-2024: Fingerprint Cards AB announced the partnership with Valid S.A., a Brazilian engraving company to create a biometric payment card for Brazil, integrating FPC’s second-generation T-Shape (T2) sensor module and software. This card enhances security, convenience, and hygiene in contactless payments. Valid will produce the cards using Fingerprint Cards' biometric technology.
- Mar-2024: Thales Group S.A. and Garanti BBVA announced their partnership with Fingerprint Cards and unveiled Türkiye's first biometric payment cards. This innovation enhances payment security and convenience by integrating fingerprint authentication directly into the card, allowing users to verify transactions with their fingerprint instead of a PIN or signature.
- Feb-2024-: Fingerprint Cards AB signed a distribution agreement with Ansal Component, a Tukiye-based provider of component supply services. Through this partnership with Ansal Component, the company aims to extend its presence in the Turkish market for access control solutions and biometric technology. Additionally, the collaboration will streamline the regional development of secure devices that incorporate advanced fingerprint sensors and software technologies.
- Dec-2023: Fingerprint Cards AB came into partnership with Tag Systems, an IT Services and IT Consulting company in Europe. Through this partnership, Fingerprint Cards AB would provide biometric cards to the market.
List of Key Companies Profiled
- Fujitsu Limited
- Thales Group S.A.
- HID Global Corporation
- NEC Corporation
- Aware, Inc.
- Fingerprint Cards AB
- IDEMIA SAS
- M2SYS Technology, Inc.
- CardLogix Corporation
- Touchless Biometric Systems AG
Market Report Segmentation
By Component- Software
- Services
- Single-factor Authentication
- Multi-factor Authentication
- Fingerprint Recognition
- Facial Recognition
- Iris Recognition
- Voice Recognition
- Palm Vein Recognition
- Signature Recognition
- Other Technology
- Government
- BFSI
- Travel & Immigration
- Home Security
- Healthcare
- Defense
- Other End Users
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Next-Gen Biometric Authentication Market by Component
Chapter 6. Global Next-Gen Biometric Authentication Market by Authentication Type
Chapter 7. Global Next-Gen Biometric Authentication Market by Technology
Chapter 8. Global Next-Gen Biometric Authentication Market by End User
Chapter 9. Global Next-Gen Biometric Authentication Market by Region
Chapter 10. Company Profiles
Companies Mentioned
- Fujitsu Limited
- Thales Group S.A.
- HID Global Corporation
- NEC Corporation
- Aware, Inc.
- Fingerprint Cards AB
- IDEMIA SAS
- M2SYS Technology, Inc.
- CardLogix Corporation
- Touchless Biometric Systems AG
Methodology
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