Biometrics-as-a-Service Market by Application, Modality, and Geography - Forecast and Analysis - 2023-2027

Biometrics-as-a-Service (BaaS) Market Forecast 2023-2027

The biometrics-as-a-service (BaaS) market size is forecast to increase by USD 2.35 billion, at a CAGR of 15.93% between 2022 and 2027. Market expansion hinges on several critical factors: a heightened demand for surveillance and security, the escalating deployment of biometrics across diverse end-user sectors, and the burgeoning support from governments in implementing biometric technologies. These factors collectively fuel the growth trajectory of the market, fostering innovation and technological advancements in biometric solutions. The imperative for robust surveillance and security measures in various domains amplifies the adoption of biometric technologies, with governments playing a pivotal role through initiatives and policies. This ecosystem propels the market forward, creating opportunities for enhanced security, improved efficiency, and seamless integration of biometric solutions across industries and sectors.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by application (site access control, time recording, mobile application, and web and workplace), modality (unimodal and multimodal), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Market Dynamics and Customer Landscape

The rising trend of working women and nuclear families has led to increased demand for preschool and childcare services, driving the adoption of Biometrics-as-a-Service (BaaS) in early childhood education. BaaS facilitates cognitive, emotional, social, and physical growth in children while enhancing communication and problem-solving skills. The integration of biometric solutions in learning establishments promotes teamwork, compassion, and linguistic capabilities. However, challenges such as privacy concerns and data security remain, requiring robust measures to safeguard children's personal information. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The increasing need for surveillance and security is notably driving market growth. The need for high security to protect critical and confidential data and information is growing across various sectors such as finance, government, transportation, healthcare, and defense. Hackers and cybercriminals are targeting retail POS transactions as a result of technological improvements. The rise in credit card payments at retail outlets has also increased fraud incidents, forcing credit card companies and BFSI departments to adopt BaaS to protect sensitive user data. 

Moreover, stronger security measures such as fingerprint recognition, face recognition, and iris recognition are, therefore, being installed in the finance, government, transportation, healthcare, and defense sectors. Such initiatives are expected to boost the use of biometric security and monitoring technologies to improve security. Such factors are expected to drive the growth of the global biometrics-as-a-service (BaaS) market during the forecast period.

Significant Market Trend

The rise in popularity of face and voice recognition biometrics in the BFSI sector is the key trend in the market.  Facial recognition biometrics is replacing usernames and passwords in banking operations. Three-dimensional (3D) biometrics facial recognition is growing popular in online banking services, ATMs, and mobile payments. Biometrics for face and voice recognition are widely used in the BFSI industry in several developing nations, including China, India, and Indonesia.

Moreover, lenders in India, including the State Bank of India, HDFC Bank, and ICICI Bank, provide voice biometrics in addition to their two-factor authentication system. Therefore, the growing adoption of biometrics is foreseen to benefit the BFSI sector immensely during the forecast period. Such factors are expected to fuel the growth of the global BaaS market during the forecast period.

Major Market Challenge

Privacy concerns related to the use of biometric systems is the major challenge impeding market growth. Spoofing, identity theft, and individual profiling are some of the most frequent dangers where user biometrics can be misused. Biometric credentials cannot be hidden or kept secret, and stolen biometrics cannot be canceled as quickly as tokens or passwords. Customers' biometric information is collected by numerous end users, including banks, government agencies, and hospitals, who then keep it in a database. Fingerprints, retinal scans, and other biometric data may be included in the information. Several database breaches have happened, exposing user credentials belonging to customers.

Moreover, biometrics has immense potential to enhance the security and safety of citizens by protecting and maintaining their identity and privacy. However, there are privacy concerns among people in terms of the development and implementation of biometric technologies. This has prompted government officials, security experts, and regulators to pay attention to addressing threats related to customer data and credentials. Such factors are expected to hamper the growth of the global BaaS market during the forecast period.

Market Customer Landscape

The 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.

Market Customer Landscape

Who are the Major Market Players?

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.

Milestone systems AS - The company offers Biometrics-as-a-Service such as Ayonix, FaceMe Security as its key offerings.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• BioID AG
• Cognitec Systems GmbH
• Fujitsu Ltd.
• HYPR Corp.
• IDEMIA France SAS
• Imageware Systems Inc.
• International Business Machines Corp.
• Iritech Inc.
• Leidos Holdings Inc.
• M2SYS Technology
• NEC Corp.
• Nuance Communications Inc.
• Phonexia Sro
• RELX Plc
• Thales Group

Qualitative and quantitative market growth 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.

What is the Fastest-Growing Segment in the Market?

Biometrics-as-a-Service (BaaS) is reshaping the landscape of childcare services and early childhood education, particularly within the framework of nuclear families where working women rely on external support for preschool and childcare. This innovative approach to biometrics is not only enhancing cognitive, emotional, social, and physical growth in young learners but also streamlining communication and problem-solving within learning establishments. By integrating biometric authentication into education systems, children are exposed to a holistic development model that hones their social skills, emotional skills, and linguistic capabilities while bolstering their basic motor skills and cognitive abilities. Moreover, biometric solutions foster a sense of teamwork and compassion through interactive team-building exercises, nurturing well-rounded individuals from an early age.

The market share growth of the site access control segment will be significant during the forecast period. The growth of the biometric site access control systems segment is driven by factors, such as the rise in the number of security threats, data breaches, and criminal activities globally. In addition, rising surveillance and security activities have further enhanced the demand for biometric site access control systems.

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The site access control segment was valued at USD 761.27 million in 2017 and continued to grow until 2021. The application of biometric site access control systems has increased across various end-user industries such as healthcare, BFSI, transportation, and the government. Furthermore, government initiatives for implementing biometric site access control systems for preventing security breaches in countries such as India, Australia, China, the UK, and the US, have also gained momentum. These factors are likely to fuel the growth of the biometric site access control systems segment of the global biometric as a service market during the forecast period.

Which are the Key Regions for the Market?

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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. The market in North America is expected to grow significantly during the forecast period, primarily due to the adoption of biometrics due to the importance of security in the BFSI sector. Another major reason for the growth of the market in the region is the increasing number of instances of cyberattacks and data theft in enterprises. Such incidents have prompted governments to increase spending on biometric technologies, which in turn drives the growth of BaaS market in North America. 

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest market trends and growth opportunities from 2017 to 2027. 

• Application Outlook 
  • Site access control
  • Time recording
  • Mobile application
  • Web and workplace

• Modality Outlook 
  • Unimodal
  • Multimodal

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • APAC
    • China
    • India
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The biometrics demand is surging globally, driven by imperatives such as counteracting terrorist and theft activities and safeguarding crucial data for national security. Government backing, like the e-passport program, further bolsters this trend, emphasizing contactless biometric solutions for enhanced security systems and criminal identification across law enforcement and government institutions. Biometric advancements like passport-free automated border crossings and biometric-as-a-service solutions are pivotal in handling identity information efficiently. These integrated solutions are replacing traditional methods in various domains, from consumer biometric applications in mobile devices to secure locations like offices and airports, revolutionizing access control and attendance systems.

Terrorist activities have prompted governments to invest in advanced technologies for security, including support for Android platform. Fingerprint sensors on mobile devices aid in authentication, while cloud services store vast data for analysis. Face detection and recognition algorithms enhance surveillance, supplemented by contact-free sensing solutions amidst coronavirus concerns. Touch-based technologies are augmented by companies like Sensormatic Solutions, which provide innovative security solutions. In border security, such advancements aid Border Patrol agents in identifying threats and ensuring public safety. Government support backing for these technologies reflects a commitment to counter-terrorism efforts while addressing contemporary challenges such as the pandemic. As technology evolves, collaboration between governments and tech firms remains crucial in safeguarding communities and borders from evolving threats.

Moreover, in retail, biometric shopper analytics and loss prevention solutions are transforming customer experiences while ensuring data integrity and fraud detection. Advanced authentication services in the payment and banking sectors bolster personal data security, leveraging AI technologies like face, fingerprint, and iris scans. As COVID-19 accelerates demand for touchless biometric identification technologies, IoT network start-ups are driving innovative solutions like Temperature Kiosks and Entry/Exit systems with low latency data processing. The market, with its cloud-based, cost-effective, and multi-modal offerings, is rapidly evolving to meet diverse industry needs, from healthcare to financial services and beyond.

Market Scope
Report Coverage	Details
Page number	159
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 15.93%
Market growth 2023-2027	USD 2.35 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	13.43
Regional analysis	North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution	North America at 35%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Accenture Plc, Affectiva Inc., Aware Inc., Bayometric, BioID AG, Cognitec Systems GmbH, Fujitsu Ltd., HYPR Corp., IDEMIA France SAS, Imageware Systems Inc., International Business Machines Corp., Iritech Inc., Leidos Holdings Inc., M2SYS Technology, Milestone systems AS, NEC Corp., Nuance Communications Inc., Phonexia Sro, RELX Plc, and Thales Group
Market dynamics	Parent market analysis, Market forecasting, 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.
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.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, APAC, Europe, South America, and Middle East and Africa
• Thorough market research report analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market growth and forecasting analysis of factors that will challenge the growth of market companies

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