The biometric system market is skyrocketing at a rapid pace in recent times and is expected to evolve to greater heights in the near future. The estimated valuation of the global biometric system market will reach approximately USD 33 billion by the end of the year 2023, with a CAGR of around 15.10 percent during the forecast period (2021-2027).
Biometric systems refer to the technology that uses biological data to identify the person. Such systems are widely used for the statistical analysis of the behavioral and physical characteristics of people in an organization. The biometric industry produces biometric authentication to show that every individual physical and behavioral traits are different and unique. Most organizations use these systems and boost the growth of the global biometric system market. The easy and unique biometric operation is one of the primary reasons for the expansion of biometric system market size.
As per the biometric system analysis, the prevalence of a greater number of terror attacks and the rising crime rates has led to the increased adoption of biometric systems. Over the years, the cases of terror attacks have been surging, which demands better and advanced systems. With the help of biometric systems, the rate of terror attacks can be reduced, which in turn propels the growth of the biometric system market share. Fingerprint recognition biometrics technology has the most implementation in e-passports, e-visas, travel and immigration, and driving license, which is escalating the biometric system market growth. The fingerprint biometrics technology is also used in computers, laptops, and smartphones these days, which is fuelling the biometric system industry.
The report describes the in-depth insights of the biometric system market and provides the forecasted market valuation and growth rate. A brief description is provided on the impact of COVID19 on the biometric system industry and covers the dynamics of the biometric system market along with the drivers and restraints of the market. It gives an idea about different segments and sub-segments of the biometric system market and explains the key market players. It contains biometric system market analysis on several geographies that can influence the market growth in the forecast period.
The coronavirus epidemic has pulled down the growth rate of the global economy. The COVID19 outbreak not only created a health crisis worldwide but also created havoc in the financial sectors. The lockdown restrictions forced companies to shut down their operational work and heavily disrupted the complete supply chain. As people stayed mostly at home, the dependence on electronics devices and gadgets increased rapidly. The increase in usage of electronics systems enabled the rise of biometric systems, which elevated the biometric system market demand.
During the pandemic, several industries shifted towards automation systems and immensely implemented biometric systems in the organizations. The rising demand for biometric systems in several sectors helped in maintaining a steady growth even in these difficult circumstances.
The global biometric system market is surging rapidly over the years, and the rising implementation of biometric systems is propelling the growth of the biometric system industry. Its unique features and easy operations are boosting the rise of biometrics systems. With the recent developments in the biometric system market trend, the progress in the adoption and implementation of these systems are largely witnessed. The usage of biometrics technology to reduce terror attacks has soared up the biometric system market growth. As per the biometric system market forecast, the rising crime rates require more advanced and secure systems, due to which the implementation of biometric systems is also escalating. The growing prevalence of crime rates drives the biometric system market growth.
There are various authentication methods provided by the biometric system industry which can be used in electronics gadgets as well as in the traveling and immigration industry. According to the biometric system market analysis, the wide range of applications of biometric systems is resulting in the expansion of the biometric system market.
The implementation of biometrics technology in the organization is exponentially increasing over the past couple of years. These organizations or enterprises utilize the biometric systems for internal investigation and regulatory purposes, which leads to escalating the biometric system market demand. The utilization of these systems for reducing the terror attacks and declining the crime rates raises the requirement for biometric systems.
The increased requirement of these systems prompts the biometric companies to produce more and more systems to elevate their profits. The implementation of these systems in electronics gadgets and in other sectors enables the growth of biometric system market in the upcoming years.
The COVID19 outbreak has severely impacted the biometric system market and restricted the growth of the market. During the pandemic, industrial operations were put to a halt, and working premises remained closed for an uncertain time period which incurred heavy financial losses. However, the increased shift of industries towards the adoption of advanced security systems helped to balance the growth of the biometric system market size. The rise in the utilization of electronic devices has also sustained the biometric system market growth even in difficult times.
The wide range of authentication methods raises the growth of the biometric system market, but certain limitations hamper the biometric system market growth. One of such limitations is the cost of biometric systems. For some people, the cost of these systems may seem higher, which can hinder the expansion of the biometric system market size. The lack of technical awareness can also restrict the biometric system market growth.
Value Chain Analysis
As per the biometric system market forecast, the revenue generated from the biometric system market over recent years has reached stupendous heights. Towards the end of 2023, the value of the biometric system market share will be way higher than any historical values and will attain optimum levels.
The global biometric system market is fragmented into several segments on the basis of authentication type, component, application, and function. The biometric system market segment on the basis of authentication type includes single-factor authentication and multiple-factor authentication. Single print authentication includes face recognition, fingerprint recognition, iris recognition, vein recognition, palm print recognition, voice recognition, signature recognition, DNA recognition, gait recognition, keystroke recognition, and other biometric technologies. Multiple factor authentication consists of biometrics combined with pin technology, biometrics combined with smart card technologies, three biometric factor authentication, and two biometric factor authentication.
Among all the authentication methods, fingerprint recognition methods are widely used and have the highest market share. It is implemented in the travel and immigration industry, e-passports, e-visas, driving licenses, usage in laptops, smartphones, and computers for security purposes. It provides excellent service, low operational cost, and easy authentication in the travel and immigration industry, which is raising the hold of fingerprint recognition methods in the biometric system market share.
On the basis of components, the biometric system market segment involves the hardware and software section. The hardware section includes scanners like palm vein scanners and live scanners, fingerprint readers, cameras like eye, face, iris, retina cameras, microphones, and speakers.
By application, the biometric system market segmentation comprises healthcare, government, BFSI, consumer electronics, military and defense, commercial, home, security, travel and immigration, and others. The travel and immigration industry holds the largest biometric system market share globally out of all the applications. The biometric system market size segmentation on the basis of functions involves contact, non-contact, and other functions.
The biometric system market analysis is done on different geographies such as North America, Europe, Asia-Pacific, and the remaining parts of the world. The North American region is anticipated to account for the largest biometric system market share due to the higher implementation of biometrics technology by security and government agencies. In the US, the wider range of fingerprint recognition applications has escalated the growth of the biometric system market in that region.
Asia-Pacific region will also progress with a high CAGR in the forecast period owing to the rising implementation in security purposes for protecting national heritage and for e-passport verification.
Competitive Landscape of the market
The biometric system market major players are:
Frequently Asked Questions (FAQ) :
The factors pushing the market growth for biometric system include the easy operation of biometric system, rise in terror attacks and surging crimes across the globe.
The market for biometric system can reach an approximate valuation of USD 33 Billion by the year 2027.
Biometric System Market has been covered in the report with respect to segments like component, authentication type, function and application.
The fingerprint recognition technology forms the largest portion of the global market.
North America is projected to take the lead in the global biometric system market.