Biometrics Global Market Report 2024

The biometrics market size has grown rapidly in recent years. It will grow from $39.12 billion in 2023 to $45.89 billion in 2024 at a compound annual growth rate (CAGR) of 17.3%. The growth observed in the past period stemmed from security concerns, government-driven initiatives, escalating cyber threats, greater integration into smart devices, and an expanding level of acceptance.

The biometrics market size is expected to see rapid growth in the next few years. It will grow to $83.23 billion in 2028 at a compound annual growth rate (CAGR) of 16.0%. The anticipated growth in the upcoming period is linked to the rise of Biometric-as-a-Service (BaaS), an increased presence in healthcare, border control, and immigration, as well as the integration of biometrics within financial services. Key trends projected for this period involve the integration of AI and machine learning, rapid technological advancements, expanded use of mobile biometrics, and a heightened focus on data privacy and regulatory compliance.

The escalating adoption of biometric technology in consumer electronics for authentication and identification applications is a driving force in the biometrics market. Biometric sensors are emerging as a ubiquitous security feature in smartphones and other devices, facilitated by the cost-effectiveness of the technology, enabling manufacturers to integrate it across a broader spectrum of products. Consumer electronic devices, including access door locks, security systems, home automation, IoT devices, automobiles, game consoles, and mobile devices, are increasingly leveraging biometric technology to fortify their security features. Fingerprint, face, and voice recognition methods are gaining prominence as preferred means of authenticating individuals for access and payments. These methods offer advantages such as speed, simplicity, and heightened security compared to conventional credentials or PINs, known for their susceptibility to forgetfulness and theft. According to a Visa survey conducted in May 2022, 86% of consumers express interest in utilizing biometrics to authenticate their identity for making payments. Moreover, 70% of consumers find biometrics more user-friendly, and 46% perceive them as more secure than passwords or PINs. Consequently, the increasing integration of biometric technology in consumer electronics for authentication and identification applications is poised to propel the biometrics market during the forecast period.

The surging demand for smartphones is anticipated to drive the expansion of the biometrics market in the foreseeable future. Smartphones, being sophisticated mobile devices that amalgamate the functionality of traditional cellular phones with various features akin to computers, have become integral to modern living. Biometrics, particularly fingerprint recognition, is widely employed in smartphones, typically integrated into the device's home button or back panel. This biometric feature enables users to securely unlock their phones, make payments, and access sensitive applications. As an illustration, in February 2023, Uswitch Limited, a UK-based financial conduct authority, reported a substantial increase in mobile connections in the UK. In 2022, there were 71.8 million mobile connections, marking a 3.8% growth (approximately 2.6 million) from the previous year. Projections indicate that the UK's population is expected to reach 68.3 million by 2025, with approximately 95% (or around 65 million individuals) owning smartphones. Consequently, the escalating demand for smartphones is identified as a key driver propelling the growth of the biometrics market.

The biometrics market is witnessing a notable trend of increasing strategic partnerships among companies, as they aim to enhance their product development initiatives and broaden their business reach. Operating within this market, companies are actively seeking collaboration with technology partners to leverage synergies. A case in point is NEXT Biometrics, a Norway-based company specializing in delivering high-security fingerprint sensors to device and product manufacturers. In August 2021, NEXT Biometrics forged a strategic partnership with Paravision, a US-based computer vision firm specializing in face recognition. This partnership aims to offer clients dual authentication techniques, combining face and fingerprint biometric solutions. Such collaborations exemplify the industry's growing inclination towards strategic partnerships as a means to advance technological capabilities and cater to evolving market demands.

Prominent companies within the biometrics market are actively engaged in the introduction of cutting-edge solutions, exemplified by the incorporation of palm vein biometric scanners, as part of their strategy to maintain a strong market position. Palm vein biometric scanners utilize near-infrared light to capture the unique vein pattern in an individual's palm, generating a distinctive biometric template. An illustrative example is Keyo, a US-based company specializing in biometric identification software. In July 2023, Keyo introduced the Keyo Wave+, a handheld palm vein biometrics scanner designed for diverse applications such as payments, access control, ticketing, identification, and time and attendance in the automotive sector. The Keyo Wave+ features a smartphone-sized screen, service organization control type 2 (SOC2)-compliant data protection, and adaptability to support customized applications. It is versatile enough to be mounted on a countertop or wall and is engineered to accommodate a vast user base, supporting billions of users. This strategic move underscores the industry's commitment to innovative solutions, positioning palm vein biometrics as a key element in the evolving landscape of biometric technology.

In March 2022, LexisNexis Risk Solutions, a data and analytics company providing services across various sectors, successfully acquired BehavioSec for an undisclosed amount. This strategic acquisition aims to integrate BehavioSec's solutions into LexisNexis' risk solution business services, enhancing the company's capabilities in the realms of device and digital identity. This includes strengthening services such as LexisNexis ThreatMetrix. BehavioSec, based in Sweden, is a behavioral biometrics company that employs end users' activities with online and mobile apps to deliver continuous authentication.

Major companies operating in the biometrics market report are Hitachi Corporation, Siemens AG, 3M Company, Fujitsu Limited, NEC Corporation, Thales Group, Leidos Holdings Inc., IrisGuard Ltd., NEXT Biometrics Group ASA, Nuance Communications Inc., Advent International, GB Group plc, M2SYS Technology, Fingerprint Cards AB, Suprema Inc., Paravision, BioEnable Technologies Pvt. Ltd., Cognitec Systems GmbH, Authentix, Aware Inc., Assa Abloy AB, Innovatrics s.r.o., Biokey International, FaceFirst Inc., BioID AG, Crossmatch Technologies Inc., ImageWare Systems Inc., Phonexia SRO, IDEX Biometrics ASA, S.I.C. Biometrics Global Inc.

North America was the largest region in the biometrics market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the biometrics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the biometrics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary categories of biometrics encompass IRIS recognition, hand geometry, facial recognition, signature verification, fingerprint scanning, voice recognition, and palm vein identification. IRIS recognition devices capture distinctive patterns within the eye's colored circle, offering a means to verify and authenticate identity. Biometric technologies, including contact, non-contact, and hybrid devices, find application across various sectors such as government, military, banking, finance, consumer electronics, healthcare, commercial safety & security, as well as logistics for purposes of authentication and security measures.

The biometrics market research report is one of a series of new reports that provides biometrics market statistics, including biometrics industry global market size, regional shares, competitors with a biometrics market share, detailed biometrics market segments, market trends and opportunities, and any further data you may need to thrive in the biometrics industry. This biometrics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The biometrics market consists of the sale of speech recognition, finger vein recognition, ear authentication, and retinal scanning. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.