The Biometric-as-a-Service Market Size was valued at USD 0.5 billion in 2022. The biometric-as-a-service market industry is projected to grow from USD 0.6 Billion in 2023 to USD 1.7915 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 20.00% during the forecast period (2023 - 2030). One of the primary drivers driving the market's favorable perspective is the growing requirement for comprehensive authentication systems and the increasing acceptance of cloud-based services by organizations worldwide. To combat security breaches and identity theft, both government and commercial businesses are implementing sophisticated BaaS systems are the primary market drivers boosting market expansion.
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
The typical biometric approach for integrating biometric capabilities into commercial applications is costly and time-consuming. Biometrics-as-a-service is provided through a cloud-based platform that combines cloud capabilities and technologies with biometrics infrastructure. This enables biometric onboarding and authentication on the cloud platform while removing the expense of the database, network, and storage components. The only hardware component required is a biometric capture device to record individual biometric input, making these solutions easier to implement and increasing their acceptance across many sectors. Furthermore, most biometrics-as-a-service companies provide integration services to assist customers in integrating biometrics capabilities into their existing systems. This decreases the requirement for technical resources to integrate the service even more. Businesses always need such low-cost solutions, fueling market CAGR globally in recent years.
Furthermore, the growing usage of these solutions in the banking, healthcare, and retail sectors is boosting market development. For example, banking service providers provide mobile-based applications for virtual transactions and digital wallets, which are very sensitive and can only be accessed via advanced authentication methods such as fingerprint scanning and face or voice recognition, which is another factor driving the growth of the biometric-as-a-service market revenue.
Based on components, the Biometric-as-a-Service Market segmentation includes Solutions and Services. The services sector is expected to dominate the market throughout the Biometric-as-a-Service Market revenue forecast period. The increasing demand for upgrade and maintenance services drives the segment's expansion throughout the predicted period. Furthermore, the growing need for integration services in sophisticated business systems will increase the segment's demand. Services sector revenue is predicted to expand quickly over the projection period due to the rising BaaS technology maintenance or upgrade requirement. Increased use of this technology by the BFS and IT industries and manufacturing firms will fuel revenue development in this area.
Based on the deployment, the Biometric-as-a-Service Market segmentation includes Cloud-Based and On-Premise. The cloud-based segment held the majority share in 2022, contributing to around ~65-67% of the Biometric-as-a-Service Market revenue. The Cloud-Based segment is currently dominating the Biometric-as-a-Service Market. Cloud-based solutions can be easily accessed from anywhere with an internet connection, and businesses can easily scale up or down their usage depending on their needs.
For instance, SkyBiometry upgraded the version of its cloud-based face detection and identification algorithm in July 2019 with major advancements that make the system considerably more accurate and enable a larger variety of facial traits to be detected. Fujitsu has collaborated with ImageWare Systems (IWS) to offer Biometric-as-a-Service solutions. Enterprises may be prepared for a BYOD working environment and security-enhanced services for mobile transactions by combining Fujitsu's cloud Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS) with IWS' biometrics authentication technology.
Based on the organization size, the Biometric-as-a-Service Market data includes large, small, and Medium Enterprises. The large enterprises segment dominates the Biometric-as-a-Service Market. Large enterprises typically have greater financial resources and are more likely to have complex security needs. As a result, they are more inclined to invest in biometric authentication systems. Additionally, large enterprises often have more extensive IT infrastructures, making it easier for them to implement and manage biometric-as-a-service solutions.
However, the small and medium enterprises (SMEs) segment is expected to grow faster than the large enterprises segment in the coming years. This is due to the increasing awareness of the benefits of biometric authentication solutions and the growing availability of cost-effective cloud-based biometric-as-a-service solutions that are easy for SMEs to implement and manage.
For instance, Qopper, a US-based IoT network startup, announced two new solutions, The Occupancy Monitor and the Temperature Kiosk, in June 2020 to assist retail and commercial establishments in securely reopen following the relaxation of COVID-19 limitations.
Based on vertical, the global biometric-as-a-service industry includes BFSI, IT & Telecom, Hospitality & Travel, Media & Entertainment, and Healthcare. The BFSI (Banking, Financial Services, and Insurance) segment will dominate the Biometric-as-a-Service Market in 2022. BFSI companies are subject to stringent regulatory requirements and are particularly vulnerable to cyber-attacks and fraudulent activities. Biometric authentication solutions provide a reliable and convenient way to verify the identities of customers, employees, and partners, reducing the risk of unauthorized access and fraudulent activities.
However, the healthcare segment is expected to grow faster in the coming years. The adoption of biometric authentication solutions in healthcare is increasing due to the growing need to secure patient data and comply with regulatory requirements such as HIPAA (Health Insurance Portability and Accountability Act). Additionally, biometric authentication solutions are being used to improve patient identification, reduce medical errors, and prevent fraud and identity theft in the healthcare industry, positively impacting the market growth.
Figure 1 Biometric-as-a-Service Market, by Vertical, 2022 & 2030 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. In 2022, North America dominated the biometric-as-a-service industry, with approximately 45.80% of global revenue due to its technologically savvy region with many early adopters and important industry competitors. Large-scale sponsored investments and staff access monitoring in buildings are driving revenue development in this region.
Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2 REAL ESTATE SOFTWARE MARKET SHARE BY REGION 2022 (%)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Asia Pacific biometric-as-a-service market is predicted to be the fastest-growing regional market during the forecast period due to its early adoption of new technology. Increasing cyber-attacks and the incapacity of large and small businesses in this sector to manage and mitigate the risks connected with identity-related attacks are driving revenue growth in this sector. Further, the China biometric-as-a-service market held the largest market share, and the India biometric-as-a-service market was the fastest-growing market in the region.
Europe biometric-as-a-service market is expected to grow at the fastest CAGR from 2022 to 2030 due to its growing adoption of digital transformation in European businesses and organizations. This has led to an increasing demand for cloud-based BaaS solutions, which are scalable, flexible, and cost-effective. Moreover, Europe has stringent data privacy and security regulations, such as the General Data Protection Regulation (GDPR), which requires businesses to ensure the security of personal data. Further, the Germany biometric-as-a-service market held the largest market share, and the UK biometric-as-a-service market was the fastest-growing market in the European region.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the biometric-as-a-service market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the biometric-as-a-service industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
Manufacturing locally to reduce operating costs is one of the primary business strategies manufacturers adopt in the global biometric-as-a-service industry to benefit clients and expand the market sector. The biometric-as-a-service industry has provided medicine with some of the most significant benefits in recent years. The biometric-as-a-service market major player such as Idemia, NEC, Thales, M2SYS, Fujitsu, and others are working on expanding the market demand by investing in research and development activities.
Thales is a global leader in advanced technologies and solutions for the aerospace, defense, security, and transportation industries. Thales offers a biometric-as-a-service (BaaS) solution that provides businesses and organizations with secure, scalable, and cost-effective biometric authentication. For instance, in October 2022, Thales, a global leader in border and travel management, introduced a new multimodal biometric solution that streamlines border authorities' procedures and user experiences. This revolutionary Pod incorporates iris and face recognition and provides a multimodal biometric collection and authentication solution to enroll and validate passengers' IDs.
Also, Fujitsu is a global technology company that offers a wide range of advanced IT solutions and services. One of their offerings is a biometric-as-a-service (BaaS) solution that provides businesses and organizations with secure, convenient, and cost-effective biometric authentication. Fujitsu BaaS solution offers a range of biometric modalities, including fingerprint, face, and voice recognition. The solution is designed to be flexible and scalable, enabling businesses to integrate biometric authentication into their applications and services easily. For instance, in November 2022, Fujitsu, a Japanese technology conglomerate, announced intentions to establish a data and security research centre in Israel to boost its R&D strategy and expand its presence in the nation. Fujitsu's goals are to address the data security and trust needs of enterprises and businesses when more people are doing more transactions online.
January 2023Â Ingenico, a French PayTech company, has partnered with Fujitsu Frontech North America to create a biometric payment system based on palm vein identification. The advancement allows companies to improve the checkout experience while reducing fraud threats. The system, built on Ingenico's AXIUM platform, allows contactless payments, minimizes lines, and changes in-store commerce.
December 2022Â Thales has introduced a new multimodal biometric pod that combines face and iris biometrics to enable travelers and border officials to ease border and immigration operations. The pod is a biometric enrollment and authentication system comprised of a camera and a high-resolution LCD screen that, according to the business, identifies pre-enrolled travelers' iris and facial biometrics from a distance of half a meter and as far as 1.5m with high accuracy.
North America
Europe
Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 0.5 billion |
| Market Size 2023 | USD 0.6 billion |
| Market Size 2030 | USD 1.7915 billion |
| Compound Annual Growth Rate (CAGR) | 20.00 % (2023-2030) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2030 |
| Historical Data | 2019 - 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Components, Deployment, Organization Size, Vertical, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Idemia, NEC, Thales, M2SYS, Fujitsu, Aware, Leidos, Nuance, Certisign, HYPR, BioID |
| Key Market Opportunities | Growing adoption of cloud-based security solutions |
| Key Market Dynamics | Convenience and ease of use Cost-effective security testing |
Biometric-as-a-Service Market Highlights:
Frequently Asked Questions (FAQ) :
The Biometric-as-a-Service Market size was valued at USD 0.5 Billion in 2022.
The global market is projected to grow at a CAGR of 20.0% during the forecast period 2022-2030.
North America had the largest share of the global market
The key players in the market are Idemia, NEC, Thales, M2SYS, Fujitsu, and Aware.
The Services category dominated the market in 2022.
The BFSI segment had the largest share of the global market.
Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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