Biometric ATM Market Size was valued at USD 35.2 Billion in 2022. The Biometric ATM Market industry is projected to grow from USD 36.3 Billion in 2023 to USD 46.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.20% during the forecast period (2023 - 2032). Numerous countries worldwide are taking proactive measures to embrace emerging technologies. The development of innovative authentication methods is underway to ensure the security of both online and offline resources. Biometric ATMs have emerged as a focal point for addressing fraud prevention and authentication concerns, prompting various enterprises to actively implement advanced authentication solutions for their consumers are expected to be a significant market driver for the Biometric ATM Market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for Biometric ATMs is being driven by the pressing need for advanced security measures in the face of escalating cyber threats. Biometric authentication methods, encompassing fingerprint scanning, facial recognition, and iris scanning, present an elevated security standard compared to traditional PINs and card-based methods. The escalating cybersecurity threats and financial fraud instances have prompted financial institutions to strategically invest in advanced security solutions, thereby fostering a heightened demand for biometric ATMs. In 2022, organizations worldwide detected a substantial 493.33 million ransomware attacks. The prevalence of phishing, evidenced by approximately 3.4 billion daily spam emails, remains a primary cyber threat. The global average cost of a data breach reached $4.35 million in the same year. The Federal Trade Commission’s (FTC) Consumer Sentinel Network received over 5.1 million reports in 2022, with 46 percent related to fraud and 21 percent to identity theft. Within identity theft, credit card fraud constituted 43.7 percent, with miscellaneous identity theft, covering online shopping, payment account fraud, email and social media fraud, and other forms, following closely at 28.1 percent.
The adoption of biometric authentication emerges as a strategic response to mitigate the risks associated with unauthorized access, fraudulent transactions, and identity theft in the context of ATM operations. The inherent ability of biometric systems to uniquely identify individuals based on their biological traits introduces an additional and crucial layer of protection to the realm of ATM transactions.
As a result, it is anticipated that throughout the projection period, demand for the Biometric ATM Market will increase due to the pressing need for advanced security measures in the face of escalating cyber threats. Thus, driving the Biometric ATM Market revenue.
The Biometric ATM Market segmentation, based on Application includes Withdrawals and Deposits. The Withdrawals segment dominated the market, accounting for 58% of market revenue (20.4 Billion). Withdrawals entail fund transfers, and safeguarding the security of these transactions is of utmost importance. Biometric authentication methods, such as fingerprint scanning or facial recognition, introduce an additional layer of security, mitigating the potential for unauthorized access and fraudulent activities in the withdrawal process. This heightened security measure aligns with business imperatives to ensure the integrity and protection of financial transactions.
The Biometric ATM Market segmentation, based on Product-Type includes Iris Recognition, Fingerprint Biometrics, Voice Recognition, Facial Recognition, And Others. The fingerprint biometrics segment dominated the market, accounting for 58% of market revenue (20.4 Billion). Fingerprint recognition technology has undergone significant advancements, achieving a high level of accuracy and reliability. These improvements in sensor technology and algorithms guarantee precise identification, minimizing the occurrence of false positives and negatives. The enhanced accuracy plays a pivotal role in fostering trust in fingerprint biometrics for securing financial transactions. Moreover, fingerprint biometrics streamline transaction times by obviating the necessity for manually entering passwords or PINs. This heightened speed is especially critical in the context of ATM transactions, where users prioritize swift and efficient access to their funds.
The Biometric ATM Market segmentation, based on Components includes Hardware, Software, and Services. The software segment dominated the market, accounting for 58% of market revenue (21.1 Billion). The software assumes a crucial role in the seamless integration of biometric authentication into established banking systems. This integration fosters a unified and efficient user experience, guaranteeing the secure linkage of biometric data to individual accounts and transactions. The user interface stands as a pivotal element within biometric ATM systems. Software development concentrates on crafting user-friendly interfaces that elevate the overall customer experience. This encompasses the design of intuitive screens and prompts for biometric authentication, thereby enhancing the convenience and fostering acceptance of the technology.
Figure 1: Biometric ATM Market, by Components, 2022 & 2032 (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 the Rest of the World. The anticipated expansion of the Biometric ATM market in North America can be attributed to several key factors. North America demonstrates a robust commitment to security and regulatory compliance within the financial sector. The integration of biometric authentication into ATMs aligns seamlessly with the region's dedication to facilitating secure and compliant financial transactions. Notably, the market revenue for Automated Fingerprint Identification Systems (AFIS) reached nearly 9 billion U.S. dollars in 2022. This financial commitment underscores the region's proclivity for embracing technological advancements, a key driver in the growth of the biometric ATM market. As biometric technology undergoes continuous evolution, financial institutions in North America may find increased willingness to invest in these cutting-edge systems as part of their strategic efforts to maintain competitiveness in the industry.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: BIOMETRIC ATM MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Biometric ATM Market accounts for the second-largest market share as European consumers consistently prioritize trust and convenience in their financial transactions. The incorporation of features like fingerprint or facial recognition in Biometric ATMs provides an elevated level of security and streamlines the overall user experience. As per the European Central Bank, a substantial 74% of all cash withdrawals are primarily conducted through automated teller machines (ATMs). This alignment with the preferences of European consumers creates a potential impetus for the increased adoption of biometric technologies within the ATM market. Further, the German Biometric ATM Market held the largest market share, and the UK Biometric ATM Market was the fastest-growing market in the European region
The Asia-Pacific Biometric ATM Market is expected to grow at the fastest CAGR from 2023 to 2032. The Asia Pacific region consistently exhibits a swift uptake of emerging technologies, reflecting a proactive approach to innovation. This penchant for cutting-edge solutions finds resonance in the adoption of biometric ATMs, aligning seamlessly with the region's affinity for technological advancements. The surge in the adoption of biometric ATMs is propelled by escalating concerns around security, especially in the realm of financial transactions. Biometric authentication methods, notably fingerprint and facial recognition, provide an elevated level of security, effectively mitigating the escalating challenges posed by fraud and identity theft in the region. Moreover, China’s Biometric ATM Market held the largest market share, and the Indian Biometric ATM Market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Biometric ATM market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Biometric ATM industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Biometric ATM industry to benefit clients and increase the market sector. In recent years, the Biometric ATM industry has offered some of the most significant advantages to the banking and financial sector. Major players in the Biometric ATM Market, including Miaxis, Techshino, Safran, Synaptics, Infineon Technologies, NEC Corporation, Bioenable, Crossmatch Technologies, Fulcrum Biometrics, Suprema are attempting to increase market demand by investing in research and development operations.
NEC Corp (NEC) is a leading provider of information and network technology solutions, offering a comprehensive product portfolio that includes servers, telecommunication equipment, ATMs, storage devices, video systems, supercomputers, personal computers, aerospace systems, fire and disaster prevention systems, and software. Additionally, NEC provides electronic components like lithium-ion rechargeable batteries, LCD panels, and lighting equipment. The company extends services such as system integration, support, and outsourcing to a diverse range of industries, including aviation, healthcare, agriculture, retail, broadcasting, logistics, finance, government, hospitality, manufacturing, transportation, and telecom. Operating globally, with a presence in the Americas, Europe, the Middle East Africa, and Asia-Pacific, NEC is headquartered in Minato-ku, Tokyo, Japan. In May 2020, NEC Corporation announced the development of a state-of-the-art multimodal biometric authentication terminal incorporating face and iris recognition technologies, recognized as world-leading by the U.S. National Institute of Standards and Technology (NIST). These technologies are integral to NEC's "Bio-IDiom" multimodal biometric authentication brand.
Suprema stands as a prominent global provider of access control, time & attendance, and biometrics solutions. Leveraging world-renowned biometric algorithms and top-notch engineering, Suprema has been at the forefront of introducing innovations to the security industry over the past decades. The extensive portfolio offered by Suprema encompasses biometric access control systems, time & attendance solutions, fingerprint live scanners, mobile authentication solutions, and embedded fingerprint modules. Recognized among the world's top 50 security manufacturers, Suprema boasts a widespread global presence, with a sales network spanning over 140 countries and holding the leading market share in biometric access control within the EMEA region.
May 2022: In May 2022, MIAXIS, a pioneering and industry-leading manufacturer specializing in biometric devices and systems, introduced its Mobile ID FAP30 optical fingerprint authentication scanner SM-93 and SM-93M OEM module, both FBI-PIV certified. These cutting-edge contact single fingerprint scanners and modules are specifically designed for large-scale identity authentication, catering to diverse applications such as KYCs, banking, and law enforcement.
Feb 2019: In February 2019, E. SUN Commercial Bank, a Taiwanese financial institution, implemented biometric ATMs in collaboration with NEC Corporation to enhance the security and safety of transactions. Leveraging NEC's facial biometric authentication technologies, powered by artificial intelligence (AI), the system verifies the authenticity of individuals, effectively preventing fraudulent activities.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 35.2 Billion |
| Market Size 2023 | USD 36.3 Billion |
| Market Size 2032 | USD 46.7 Billion |
| Compound Annual Growth Rate (CAGR) | 3.20% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Application, Product, Component, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Miaxis, Techshino, Safran, Synaptics, Infineon Technologies, NEC Corporation, Bioenable, Crossmatch Technologies, Fulcrum Biometrics, Suprema |
| Key Market Opportunities | High Demand for Advanced Security ATMs |
| Key Market Dynamics | Increased Incidences of ATM Hacks |
Frequently Asked Questions (FAQ) :
The Biometric ATM Market size was valued at USD 35.2 Billion in 2022.
The Biometric ATM Market is projected to grow at a CAGR of 3.20% during the forecast period, 2023-2032.
North America had the largest share of the global market
The key players in the market are Miaxis, Techshino, Safran, Synaptics, Infineon Technologies, NEC Corporation, Bioenable, Crossmatch Technologies, Fulcrum Biometrics, Suprema
The Fingerprint Biometrics segment dominated the market in 2022.
The Withdrawals segment had the largest share in the global market.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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