Growing Rate of Biometrics in Consumer Electronics Fuels the Market
One of the major drivers for the biometric system market is the rise in use of biometrics such as iris recognition, face recognition or fingerprint recognition for security purposes in the consumer electronics. From early smartphones and tablets to recent implementation of biometric systems on other consumer electronics such as laptops, biometrics are considered secured mode of access due to data security and effortless user experience. For instance, in October 2023, Fingerprints announced the launch of complete biometric system for PC makers and evaluation by several PC OEMs. The system consists of Fingerprints’ in-house microcontroller unit (MCU) combined with a fingerprint sensor optimized for PC requirements. Using a customized MCU further refines Fingerprints’ biometric Match-on-Chip PC solution, which was added to Microsoft’s approved vendor list (AVL) for Windows Hello Enhanced Sign-in Security in 2022. Biometrics technology is tending towards AI and cloud-based solutions such as deep neural networks and genetic algorithms further escalating the demand for software-based biometrics authentication.
In recent technological and medical developments, biometrics solutions are increasingly being used in healthcare industry adding to the demand of biometrics technology. For instance, in August 2024, a team of researchers of the Idiap Research Institute in collaboration with Global ID had developed a new contactless biometric sensor platform namely sweet. An Open Source Modular Platform for Contactless Hand Vascular Biometric Experiments for vascular and surface biometrics, such as both palm veins and palm prints, to collect a new dataset for research into vein biometrics accuracy and fraud attacks. It supports biometric data acquisition through multi-spectral near-infrared (NIR), RGB-colour, stereo vision and photometric stereo scanning. Similarly, in March 2023, Japan helped Kenya to implement a biometric system for holding and managing patients’ medical records and scale up a system with NEC technology for vaccine management.
In recent technological and medical developments, biometrics solutions are increasingly being used in healthcare industry adding to the demand of biometrics technology. For instance, in August 2024, a team of researchers of the Idiap Research Institute in collaboration with Global ID had developed a new contactless biometric sensor platform namely sweet. An Open Source Modular Platform for Contactless Hand Vascular Biometric Experiments for vascular and surface biometrics, such as both palm veins and palm prints, to collect a new dataset for research into vein biometrics accuracy and fraud attacks. It supports biometric data acquisition through multi-spectral near-infrared (NIR), RGB-colour, stereo vision and photometric stereo scanning. Similarly, in March 2023, Japan helped Kenya to implement a biometric system for holding and managing patients’ medical records and scale up a system with NEC technology for vaccine management.
Increasing Implementation of Biometrics-as-a-Service (BaaS) Fuels the Market
Increasing adoption of Biometrics-as-a-Service (BaaS), a game-changing approach that democratizes access to biometric authentication, is a huge opportunity for biometric systems market by scaling cost-effective solutions for business of all sizes. The demand of the service is on the rise as it ends the need for extensive infrastructure or in-house expertise and mainly works on subscription model. This model gives flexible and on-demand access to latest biometric technology according to user requirements. As more organizations realise the benefits of adopting BaaS, the demand for the service will surge in turn expanding biometrics system market. For instance, in August 2024, Checkout.com announced that it had become the first digital payments provider to integrate Google Pay’s secure biometric authentication service into its payment processing service for merchants. It would offer Google Pay’s biometric authentication for increased efficiency and conversion rates. Similarly, in January 2024, Palm biometrics became available on Anonybit’s infrastructure platform through a strategic partnership with Armatura, Atlanta-based biometric algorithm developer specializing in face and touchless palm recognition affiliated with ZKTeco, which gave Anonybit decentralized multi-modal biometric capabilities.
Recent Trends in the Biometric System Industry:
- Rising demand for contactless authentication.
- Increasing application in payment solutions.
- Incorporation of biometric technology with AI&ML algorithms to improve accuracy.
- Adoption of Biometric-as-a-Service.
- Increasing use of multimodal biometric authentication for user identification.
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Data Breaches May Hamper the Biometric Systems Market
The major concern that pose challenge to the biometric systems market is data insecurity and insufficient technical expertise. As biometric systems hold very sensitive personal information, they are always under threat of cyberattacks and data breaches. Hence, lack of implementation of strong security measure may hamper the growth of the market. For instance, in January 2024, the East Valley Institute of Technology (EVIT), a career training school, had experienced a cybersecurity incident that exposed the personal data including biometric and military ID numbers of 208,717 individuals, including students, faculty and parents. Such breaches which can lead to severe situations such as identity theft might hinder the growth of the biometric systems market.
Developments in Biometric System Market
Most of the leading players in the highly competitive global market of biometric systems are putting an emphasis on product improvements in order to develop a more established global position. For instance, in May 2024, Samsung had been granted a patent for an integrated circuit (IC) for fingerprint reading, storage and processing and biometric cards. Idex Biometrics launched its “biometric-system-on-chip” or BSoC in 2020, which combines everything except the secure element. Fingerprint Cards and Infineon partnered to bring biometric processing within the secure element and eliminate the role of a separate processor a year later, in 2021. Many major companies and organizations come up with strategic investment plans, partnerships, collaborations and mergers and acquisitions to gain upper hand in the market. For instance, in June 2024, ARPA Network, a blockchain-agnostic Layer-2 computation network that develops cryptographic systems to enable more blockchain use cases, has secured US$6 million in strategic investment led by Nomura subsidiary Laser Digital and web3 VC firm DeFiance Capital. Additionally, in August 2024, Experian, Dublin-based data analytics and consumer credit reporting company, had acquired U.S. behavioural analytics firm NeuroID, gaining a new layer of insight into digital behavioural signals and analytics across the customer lifecycle, via real-time monitoring for identity theft, account takeover, bot attacks and fraud rings. Similarly, in April 2022, Lumeo, San Francisco-based computer vision solutions provider, had partnered with Advantech to jointly develop AI Mobile Jetson and DGPU devices which will integrate Lumeo for a smoother deployment, hardware manufacturer Seneca, Microsoft Azure and edge computer vision software expert Cvedia to add the company’s AI models with additional third-party pre-built analytics to the Lumeo Marketplace.
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Europeans are Being the Vanguards in Adopting New Technologies Around Biometric Systems
Europe dominates the biometric systems market mainly due to wide applications of biometric systems in numerous departments including defence, healthcare, home security, commerce, justice, and state. Technological advancements in the region have further accelerated the growth of the market. One of the main sectors that is growing around is banking and payment sector. For instance, in May 2024, bank of Ireland announced to invest more than US$36 million to upgrade its phone and CRM systems, including adding voice biometrics for authentication to improve fraud protection and reduce waiting times for customers. The Asia Pacific becomes the fastest emerging region in the biometrics system market due to rapid economy growth and demand of ease of life. Growing focus of the region towards smart cities and digitalization demands the growth of security solutions including biometrics systems. Strong government policies and initiatives such as IKD electronic ID in Indonesia and the UIDAI project (Aadhar ID) in India, using face, fingerprints, and eye biometric, are also expected to provide new opportunities to the market.
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The report provides a detailed overview of the biometric system market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for biometric system market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the biometric system market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the biometric system market. Some key country and region included in the biometric system market report as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, Switzerland, Belgium, Sweden, Norway, Denmark, Finland, Ireland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Turkey, Egypt, Morocco, Israel, Kenya, Rest of MEA |
Biometric System Market Research Report Covers In-depth Analysis on:
- Biometric system market detailed segments and segment-wise market breakdown
- Biometric system market dynamics (recent industry trends, drivers, restraints, growth potential, opportunities in biometric system industry)
- Current, historical and forthcoming 10 years market valuation in terms of biometric system market size (US$ Mn), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Biometric system market demand analysis
- Biometric system market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in biometric system market
- Regulatory landscape by key regions and key countries
- Biometric system market sales and distribution strategies
- A comprehensive overview of parent market
- A detailed viewpoint on biometric system market forecast by countries
- Mergers and acquisitions in biometric system market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What factors are driving the growth of the biometric system market?
Key factors driving growth include increasing demand for security solutions, advancements in biometric technologies, regulatory compliance requirements and rising incidents of identity theft and fraud.
What are the challenges facing the biometric system market?
Challenges include concerns over privacy and data security, high implementation costs, potential inaccuracies in biometric recognition, and the need for interoperability among different biometric systems.
What is the future outlook for the biometric system market?
The biometric system market is expected to grow significantly over the next decade, driven by technological advancements, increasing adoption across various sectors and growing awareness of security needs in a digital world.
