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The biometrics market size is forecast to increase by USD 27.44 billion at a CAGR of 12.85% between 2022 and 2027. Market growth depends on several factors, including rising demand, heightened security concerns, government initiatives, and technological advancements. Increased demand for products and services, a focus on security measures, government support through initiatives, and ongoing technological progress influence the market's trajectory. These factors shape the market landscape, driving growth and innovation to meet evolving industry dynamics. The market is responsive to these factors, adapting to meet consumer needs and regulatory requirements while leveraging technological advancements to improve efficiency and effectiveness. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This market report extensively covers market segmentation by end-user (government, healthcare, BFSI, and others), component (hardware and software), and geography (North America, APAC, Europe, Middle East and Africa, and South America).
The market share by the government segment will be significant during the forecast period. This segment is the largest user of biometric technology. Governments around the globe use biometric technology for various purposes. Governments across the globe are committed to rising spending on security measures and are placing greater funding on technology to address the rising security concerns. This helped to increase the demand among local, state, and national governments.
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The government segment showed a gradual increase in the market share of USD 10.96 billion in 2017. Various government initiatives, such as the introduction of e-passports and e-visas, the implementation of election administration, and the use in criminal identification (ID), are government initiatives that require biometric technologies for the verification of their identity. Besides, governments of some countries are planning for biometric digital ID cards. Governments across the globe are implementing to track the information of their citizens, which is one of the prime factors driving the growth. Because of these government initiatives, the segment is expected to drive the growth of the market during the forecast period.
Hardware is a critical component in the market, and market segmentation by hardware segment is an important factor that shows the rapid growth of the market. Biometric scanners are mainly used to capture fingerprints, iris patterns, facial features, and voice prints. Fingerprint scanners are the most used biometric scanners, followed by facial recognition scanners. The market is expected to grow rapidly due to the rising adoption of biometric authentication across various industries. Owing to the rising demand for biometric authentication, the hardware segment in the market is expected to grow during the forecast period.
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North America is estimated to contribute 34% 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. In North America, the use of biological technology, such as facial recognition, fingerprint scanning, and iris recognition, to identify and authenticate individuals and gaining popularity in recent years owing to its effectiveness in enhancing security and reducing fraud in various industries. The rising concern over security threats and the need for secure authentication systems.
Moreover, biometric technology provides a high level of security as it is difficult to forge or replicate biological characteristics, and the rising adoption of biometric technology in various applications. in 2022 the governments of major countries in North America imposed stringent regulations to secure the sensitive biometric data of users. Besides, several airports are implementing iris recognition technology in e-passports and visas to identify travelers and reduce the crime rate. Several consumer electronics are being integrated with iris recognition technology to ensure their safety. These factors will drive the growth of the region during the forecast period.
The market is witnessing rapid expansion driven by advancements in biometric authentication technology, which utilizes unique behavioral traits and biological features for identification purposes. Moreover, biometric authentication is a crucial aspect of commercial safety and security and government operations. It offers convenience and ease of use by leveraging biometric solutions such as facial recognition and hand geometry. However, concerns arise regarding identity fraud and impersonation, driving the need for robust biometric security measures. These technologies are also widely used in consumer electronics and the healthcare sector for identity management and border control.
Increasing demand and enhanced security is the key driver for the growth of the market. Compared to traditional methods such as passwords or ID cards, biometric technology provides a more secure way to authenticate an individual's identity. There is a high demand for high security in various sectors such as the financial, government, transportation, healthcare, and defense. Also, it is important to protect confidential data and information in sectors such as the BFSI, retail, and defense.
Moreover, due to the advances in technology, cybercriminals and hacker activities are targeting retail POS transactions. The increasing number of credit card payments at retail stores has also raised instances of fraud, which has compelled credit card companies and the BFSI sector to adopt to secure the confidential details of users. Stronger security measures such as fingerprint recognition, face recognition, and iris recognition are to be installed in the above-mentioned sectors. Such activities are set to increase the implementation of biometric authentication and commercial safety and security to enhance behavioral traits and facial recognition technology factors and are expected to raise growth in the market during the forecast period.
The increasing adoption of facial recognition technology is the key trend for the growth of the market. The increasing adoption of facial recognition technology is rising due to the need for security and biometric surveillance measures. Facial recognition is becoming more popular in various applications such as law enforcement, security, and authentication. This technology has gained popularity due to its accuracy and convenience. Furthermore, this technology is incorporated in industries like banking and finance, healthcare, and retail for customer identification and fraud prevention.
Furthermore, facial recognition technology is a type of biometric technology that uses artificial intelligence to analyze and compare facial features to identify individuals. The market has shown a significant surge in the adoption of facial recognition technology in the last few years owing to its accuracy, speed, and convenience. Also, the rising use of smartphones and other mobile devices driving the adoption of facial recognition technology is the increasing use of smartphones and other mobile devices. Due to these factors, the market will grow during the forecast period.
Regulatory compliance associated with biometric technology is the major challenge for the growth of the market. Biometric data is subject to laws and regulations such as the General Data Protection Regulation (GDPR) and other privacy regulations. vary with these regulations can be a challenge for businesses and organizations. Major market players like 3M Cogent, BIO-key International, Fujitsu, HID Global, etc., must follow various stringent regulations and standards while manufacturing, supplying, and marketing biometric solutions. Compliance with industry and government security standards is necessary to ensure the integrity of biometric solutions and protect the privacy of consumers using such solutions.
Furthermore, some government agencies, such as the Federal Bureau of Investigation (FBI), mandate certain standards solutions must obey. Such as Personal Identity Verification (PIV) standards, such as PIV-071006, are lower-level standards designed to support one-to-one fingerprint verification. Appendix F has stringent image quality conditions, focusing on human fingerprint comparison and facilitating large-scale machine many-to-many matching operations. Failure to obey applicable regulatory requirements can result in the revocation of licenses. Hence, regulatory compliance and standards are hindering the growth of the global market during the forecast period.
The Market industry 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 market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global 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 market research and growth report forecasts market growth analysis by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The global biometrics market is rapidly expanding across various sectors, such as the healthcare sector, defense services, and transport/visa/logistics. With increasing concerns over data breaches and unauthorized access, biometric solutions offer reliability and accuracy rates in access control systems. Technologies like iris scanning and voice recognition ensure physiological traits and voiceprints are utilized for multifactor authentication, enhancing security in financial transactions and online transactions. Employing deep learning and machine learning, biometric systems continuously evolve to combat emerging threats and safeguard against unlawful activities and spoofing attacks.
Furthermore, the market is witnessing rapid growth with advancements in technologies like AFIS and iris scans. These solutions offer contactless and non-contact methods for identification, ensuring security in various applications such as travel security and workplace security. Employing liveness detection techniques and feature extraction, biometrics enhances authentication methods like signature recognition and typing patterns, mitigating risks associated with medical identity theft and mobile transactions. Additionally, biometric systems provide cost savings and aid in decision-making processes by utilizing physical attributes and driver preferences for personalized experiences in vehicles and remote work environments.
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.85% |
Market growth 2023-2027 |
USD 27.44 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
12.08 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advent International Corp., ASSA ABLOY AB, Aware Inc., Daon Inc., Furukawa Electric Co. Ltd., M2SYS, NEC Corp., Qualcomm Inc., Suprema Inc., Thales Group, BIO key International Inc., Cognitec Systems GmbH, Facebanx, Fujitsu Ltd., Iris ID Systems Inc., Precise Biometrics AB, Securiport LLC, Veridium IP Ltd., secunet Security Networks AG, and NEXT Biometrics Group ASA |
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. |
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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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 Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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