Biometric System Market

Growing need for security and surveillance as a result of rising crime rates is driving the market growth

Biometric technology was initially used to strengthen security and confirm a criminal's identification. Biometric features like iris, voice, fingerprint, signature, DNA, hand geometry, and vein patterns were mostly scanned to identify criminals. Putting up biometric systems is mostly done to lessen crime and terrorist attacks. Millions of criminal cases have already been resolved with the aid of biometric technology. Using biometric technologies for surveillance is another option. In a CCTV device, a face recognition system is implemented, which records and retains the facial features of people the camera captures.

Then, with the aid of this information, criminals involved in any crime or terrorist action can be located and verified. The growing adoption of technology-based CCTV cameras in developing nations like India, China, and Japan is fueling the expansion of the biometric system market CAGR during the coming years.

Controlling access to information, locations, and systems has become increasingly necessary. Organizations frequently use passwords, PINs, or cards to verify users' identities before granting access. However, there are significant security issues with this conventional method. Security concerns include, for instance, loss, data breaches, or card theft. Anyone can access restricted locations or data with the proper PIN and card combination. Thus, expanding the use of mobile biometrics for security purposes is anticipated to benefit market expansion. Multi-factor authentication (MFA) is a method that mobile biometric devices use to validate a person's identification.

This technology has gained popularity because it makes it easy to use the features of online transactions, authentication, and many other services. Consumers are embracing cutting-edge linked devices and digital technologies with biometric technology to process sensitive data and maintain its security. Some large banks use biometric technologies in various contexts, including cash withdrawals from ATMs, fingerprint signatures for mobile banking app authentication, and voice and face verification combined. As a result, smartphones with biometric technology are being utilized more frequently for security and enhanced user experience.

With a strong emphasis on the supply chain, biometric technology is an emerging technique to enhance the consumer experience during the projection period. Due to rising consumer demand for contactless solutions, COVID-19 saw a surge in the use of biometric technologies. Consumers are continuing to utilize touchless biometric technology due to rising hygiene awareness. For instance, a poll conducted in April 2020 by the Strawhecker Group and the Electronic Transactions Association revealed that 27% of small and medium-sized firms had concentrated on contactless card payments and mobile wallets ever since the COVID-19 pandemic had begun.

These contactless biometric-based payment cards authorize biometric payments by requiring users to confirm their identification using previously saved data to validate their face or fingerprint. Biometric payment cards use fingerprints and chip technologies to verify the cardholder's identification. The biometric information of the customer is safely preserved. In order to increase the security of card payments, fin-tech companies are increasingly using biometric payment cards. The market is driven by the usage of biometric technology in the retail and e-commerce sectors, which is also driven by the rising incidence of fraud and phishing. Thus, driving the biometric system market revenue.

The Global Biometric System Market Industry is experiencing a surge in demand due to increasing security concerns across various sectors. Organizations are increasingly adopting biometric systems to enhance security measures against unauthorized access and identity theft. For instance, the financial sector has implemented biometric authentication methods to secure transactions and customer data. As a result, the market is projected to reach 39.7 USD Billion in 2024, reflecting a growing recognition of the need for robust security solutions. This trend is likely to continue as businesses prioritize safeguarding sensitive information, thereby driving the growth of the biometric systems market.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American biometric system market area will dominate this market. The increase in demand for biometric system solutions in the information and technology sectors is to blame. Large-scale biometric software deployments for monitoring staff attendance, identification verification, or authentication have been documented in the area. Additionally, the regional market is growing in revenue due to the introduction of mobile banking software. Due to their robust economies, both the United States and Canada can make significant investments in public safety.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Biometric System Market SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe biometric system market accounts for the second-largest market share ascribed to the expanding automobile industry's increasing demand for biometric access solutions. The U.K. government has adopted rules for algorithmic openness for AI used in biometric systems. Biometric technologies are constantly being included into multimodal systems in order to improve accuracy since they reduce fraud, bad data quality, and ethical concerns. Further, the German biometric system market held the largest market share, and the UK biometric system market was the fastest growing market in the European region

The Asia-Pacific Biometric system Market is expected to grow at the fastest CAGR from 2023 to 2032. The region's market will increase as a result of the expanding use of access control and signature recognition systems based on biometric technology in the consumer electronics, public & government, and automotive sectors. Additionally, important corporations are obtaining a variety of marketing techniques, which is assisting in the region's market's growth. Moreover, China’s biometric system market held the largest market share, and the Indian biometric system market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the biometric system 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, biometric system 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 system industry to benefit clients and increase the market sector. In recent years, the biometric system industry has offered some of the most significant advantages to market.

Major players in the biometric system market attempting to increase market demand by investing in research and development operations include NEC Corporation (Japan), BIO-Key International Inc. (U.S.), SA (France), Secunet Security Networks AG (Germany), Cross Match Technologies (U.S.), Fujitsu Ltd. (Japan), Cognitec Systems GmbH (Germany), Thales SA (France), Precise Biometrics AB (Sweden) and Aware Inc. (U.S.).

Aware is a top supplier of biometrics software products, services, and solutions worldwide. Its modular software products range from controls and applets to user interface programs for biometric enrollment and forensic analysis. They also include SDKs for fingerprint, face, and iris recognition and authentication, as well as a name matching and identity resolution SDK, an automated biometric identification system (ABIS), and a biometric services platform. These items provide essential biometric capability for a variety of uses, such as border management, law enforcement, intelligence, defense, citizen ID, banking, and payments.

Thales SA provides ground transportation, services, equipment, electronic systems, smart technologies, and software to the aerospace, defense, and security industries. It provides training solutions, electric systems, flight avionics, and air traffic management systems for the aircraft sector. The company also provides weapon systems, protection systems, cybersecurity solutions, network and infrastructure systems, critical information systems, radio communications products, and cybersecurity solutions for the ground, maritime, and air defense industries. Thales additionally offers instruction, upkeep, and repair services. In September 2021, Jordan Kuwait Bank and Thales collaborated to provide biometric payment cards for contactless EMV transactions.

The Jordan Kuwait Bank's fingerprint-enabled cards will make it possible for its customers to authorize transactions using their fingertips, making them the first contactless biometric EMV bank cards in the area.