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The biometric point-of-sales (POS) terminal market is anticipated to experience substantial growth, projected at a Compound Annual Growth Rate (CAGR) of 13.9% between 2023 and 2028, with an estimated market size to increase by USD 5.29 billion. This market is structured in a fragmented manner, exhibiting a Year-over-Year (YoY) growth of 13.9% in 2023-2024. In the regional breakdown, this analysis includes North America, Europe, APAC, Middle East and Africa, and South America with North America contributing significantly, standing at 35%. Key countries propelling this market include the US, China, Japan, Germany, and UK.
Biometric POS terminals comprise point-of-sale (POS) devices that use biometrics-based data like fingerprints, retina scans, or even facial recognition to authenticate the identity of a customer or employee. These terminals replace PINs or passwords to verify the identity of the individual. Biometric POS terminals are often used to prevent fraud and theft or in key industries where security is critical. The retail, medical and healthcare, food service (restaurants), financial, logistics, government, and entertainment industries are some of the major end-users of biometric POS terminals.The growth of the market depends on several factors, including the increasing adoption of EMV standards, the rising popularity of contactless biometrics, and the growth in demand for biometric POS terminals from end-users.
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Growth in demand for biometric POS terminals from end-users is the key factor driving market growth. Many credit and debit card transactions among consumers are encouraging retailers and other end-users to adopt biometric POS terminals. Many small-sized retailers in various developing countries, such as China and India, are also adopting POS terminals for secure and convenient payments. Furthermore, there is a high demand for wireless and mobile POS terminals among SMEs.
Furthermore, since many of the end-users are beginning to demand a wide variety of payment solutions, POS terminal providers will be focusing on meeting their needs to retain existing customers and attract new ones. This will eventually lead to rapid innovations. Some of the market players are focusing on offering products with advanced features. Hence, the availability of such products is likely to fuel the growth of the market during the forecast period.
Growth in adoption of self-service kiosks is the primary trend shaping market growth. The self-service market includes retail check-outs and kiosks. A self-service kiosk is an interactive kiosk that consists of specialized software and hardware computer terminals. With the rapid growth of the self-service market, there will be an increased need for secure transactions, which need to be quick and accurate.
In addition, the growth of the self-service market will clearly aid in the growth of the biometric POS terminals market. Card transactions using smart cards add to the security of the transaction. The self-service market also reduces the costs to the end-user company and adds to the list of benefits that a biometric POS terminal offers. Therefore, the growth in the self-service market will drive the growth of the market during the forecast period.
The absence of uniform standards is the key factor driving market growth. Standardization is needed to ensure interoperability among technologies from multiple biometric POS terminal market players. Standardization simplifies the integration process and allows biometric point-of-sales terminal market players to easily upgrade to new technologies with minimal change in their existing infrastructure. Since biometric POS terminals lack standardization, it becomes an issue for firms that opt for these devices since the operations get affected until the issues are fixed. In biometrics, there are two types of standard organizations: formal and informal.
In addition, biometric point-of-sales terminal market players usually form consortiums to decide upon a standard that has to be followed while manufacturing biometric POS systems. Furthermore, different biometric technologies, such as fingerprint identification and palm vein identification, have different technical specifications, but the blueprint (the algorithm) is the same. The lack of standardization is a barrier to interoperability. Therefore, the absence of uniform standards is hindering market growth during the forecast period.
The market share growth by the retail segment will be significant during the forecast period. The retail segment of the biometric point-of-sales (POS) terminal market refers to the use of biometric POS terminals in retail outlets, such as grocery stores, department stores, and specialty stores. The use of biometric POS terminals in the retail segment offers several benefits to businesses, including increased efficiency in transaction processing, the ability to track inventory and sales data, and the ability to offer a variety of payment options to customers.
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The retail segment showed a gradual increase in the market share of USD 1.42 billion in 2018. Additionally, newer biometric POS terminals in the retail segment may include features such as barcode scanners, touchscreens, and integration with customer relationship management (CRM) systems, which can improve the customer experience and provide end-users with valuable insights into customer behavior and preferences. Therefore, such factors will drive the retail segment of the biometric point-of-sales terminal market during the forecast period.
The fingerprint identification segment is a technology that makes use of the biological properties of fingerprints to validate credentials and enhance security. Fingerprint identification biometric technology consists of three stages, including capture, verification, and authentication. One of the major reasons for the high use of fingerprint identification technology in biometric POS terminals is their ease of installation and use. Furthermore, using biometric technology in POS systems is the most secure technology as per industry standards. Hence, owing to such factors, the fingerprint identification segment of the market is expected to grow significantly during the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America holds a significant share of the global biometric POS terminals market. North America is a developed region, and credit and debit cards are used extensively in the region. The high use of credit and debit cards increases the chances of fraudulent activities in the region.
Furthermore, the market in North America is witnessing continuous installations of biometric POS terminals because of the rising incidents of insider fraud, data breaches, and hacking. The multi-tenant environment in the cloud has become an increasing concern for enterprises because other companies and competitors can use the same cloud, which may lead to data privacy issues. The increasing instances of data breaches and cyberattacks are driving the demand for biometric POS terminals in North America. Hence, such factors are expected to drive biometric POS terminal market growth in this region during the forecast period.
The outbreak of COVID-19 in 2020 had a negative impact on the biometric POS terminal market in North America. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. As a result of this, the biometric POS terminal demand and usage are expected to surge across the retail sector in the region, supporting the growth of the market in focus in this region substantially. Thus, the biometric POS terminals market in North America will grow during the forecast period.
The Biometric POS Terminals Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Biometric POS Terminals Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The biometric POS terminals market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2022.
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Biometric POS Terminals Market Scope |
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Report Coverage |
Details |
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Page number |
172 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 13.9% |
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Market Growth 2024-2028 |
USD 5.29 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
12.9 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 35% |
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Key countries |
US, Canada, China, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aratek Biometric, BIYO LLC, CiVinTec Global Co. Ltd., DERMALOG Identification Systems GmbH, EKEMP Intl Ltd., ePortation Inc., Fujitsu Ltd., HID Global Corp., IDEMIA France SAS, Ingenico, International Secure Environments PTY LTD., M2SYS, Mantra Softech India Pvt. Ltd., PayTango Inc., SmartMetric Inc., Sthaler Ltd., Telepower Communication Co. Ltd., VeriFone Inc., Zvetco LLC, and Zwipe AS |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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