Biometric-as-a-Service Market Growth Analysis - Market Size, Share, Forecast Trends and Outlook Report (2025-2034)

The global biometric-as-a-service market, valued at USD 4.93 Billion in 2024, has experienced significant growth, as it offers advanced authentication methods such as facial recognition, fingerprint scanning, and iris recognition, which enhances security by reducing the risk of identity fraud and unauthorised access. The market is expected to grow at a compound annual growth rate (CAGR) of 20.00% from 2025 to 2034 potentially reaching USD 30.53 Billion by 2034. Businesses can leverage cloud-based biometric solutions to avoid the high upfront costs of infrastructure and maintenance, thereby reducing capital expenditures while gaining access to state-of-the-art technology.

Global Biometric-as-a-Service Market Growth

Biometrics are increasingly being adopted by both public and private organisations worldwide for various applications like access control, contributing to the overall growth of the biometric-as-a-service market. These institutions incorporate biometric data, such as fingerprints and facial recognition, into national identity systems to strengthen security and combat identity theft. In August 2024, the Somali government unveiled plans to introduce a national digital identification system in partnership with the National Identification and Registration Authority (NIRA) and the Somali Bankers Association (SBA), aiming to link the Somali National ID system with the banking sector.

The growth of the biometric-as-a-service market is further accelerated by the growing awareness of cybersecurity and data privacy. Since 2021, countries have increasingly implemented cybersecurity measures, including biometric systems, to protect public and private sector infrastructure, secure personal data, and enable safe access to vital services. This has led to a rise in the global cybersecurity index, reaching an average of 65.7/100 in 2021, according to the International Telecommunication Union.

Key Trends and Recent Developments

Increasing adoption of cloud-based solutions, rising e-commerce and digital transactions, and the expansion of mobile biometric applications are impacting the biometric-as-a-service market revenue.

October 2024

Authorities in Kazan, a major petrochemical hub in Russia, introduced the first phase of biometric facial payment technology through the Russian National Payment Card System (NSPK). This marks the large-scale implementation of biometric payment systems in the Russian transport sector, with plans to expand the technology to shops and restaurants across the country by the end of 2024.

September 2024

NEC Corporation unveiled a new system that employs biometric authentication technology, enabling the rapid verification of large groups of people, even while they are on the move. This system helps streamline entry and reduce congestion at busy events and locations. Initially launched in Japan, the United States, and Singapore, it is now expanding globally.

March 2024

JPMorgan Chase revealed plans to introduce a biometric-based checkout service in collaboration with software company PopID by 2025. A pilot of the service, launched in 2024 with Aramark in Texas, aims to expand with more merchants in the following year, offering a seamless solution for both online and in-person transactions.

January 2024

Mastercard launched its Biometric Authentication Service to improve security and convenience for consumers. The service uses biometrics, including fingerprints, iris scans, and facial recognition, to verify identities. It secures personal data by creating an encrypted key pair stored on users' devices, ensuring only their unique biometrics can unlock the data.

Increasing Adoption of Cloud-Based Solutions is Driving the Biometric-as-a-Service Market Growth

The adoption of cloud-based solutions is a major driver boosting the growth of the biometrics-as-a-service market, as it enables biometric data processing and storage to be handled off-site, making it more cost-effective and scalable for organisations to implement biometric authentication systems. This shift reduces the need for on-site infrastructure, making biometric solutions more accessible to businesses of all sizes while supporting faster deployment, easier updates, and improved security. Additionally, the cloud provides robust data backup and disaster recovery options, ensuring the availability and reliability of biometric systems, even in the case of technical issues. These benefits of scalability and security are making BaaS an increasingly attractive choice for companies seeking secure and efficient identity verification solutions.

Rising E-Commerce and Digital Transactions is Impacting the Biometric-as-a-Service Market Revenue

The growing popularity of online shopping and digital transactions, driven by the expanding B2B e-commerce market, which is expected to grow at a CAGR of 14.5% by 2026 according to the International Trade Administration, is heightening the demand for secure and reliable identity verification. Biometric methods such as fingerprint scanning, facial recognition, and voice recognition are being adopted as they provide a more secure and user-friendly alternative to traditional password-based systems, reducing the risk of identity theft and fraud. As a result, businesses are increasingly turning to BaaS solutions to deliver seamless and secure customer experiences.

Growth of Mobile Biometric Applications is Increasing Opportunities in the Biometric-as-a-Service Market

The widespread use of smartphones and mobile devices, which the International Telecommunication Union (ITU) estimated reached 8.58 billion users in 2022, has significantly boosted the adoption of biometric applications such as fingerprint scanning, voice recognition, and facial recognition for secure access. As biometric features become more integrated into popular mobile apps and services, consumers are increasingly using these technologies for tasks ranging from unlocking phones to making payments. This growing confidence in mobile biometric authentication is encouraging businesses to adopt BaaS solutions for secure identity verification, driving long-term market expansion.

Growing Concerns over Data Breaches are Driving Increased Demand for the Biometric-as-a-Service Market

As data breaches and cyberattacks become more common, organisations are increasingly adopting biometric authentication as a more secure alternative to traditional systems. The International Trade Union reported that 8 billion data records were affected by privacy breaches in 2023. Biometrics, being unique to individuals and more difficult to compromise, offer an additional layer of security for data protection. With growing concerns about cybersecurity in the coming years, businesses are turning to BaaS solutions to strengthen their security measures, safeguard sensitive information, and comply with stringent data protection regulations.

Global Biometric-as-a-Service Industry Segmentation

The report titled “Global Biometric-as-a-Service Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Scanner Type

• Fingerprint Recognition
• Iris Recognition
• Palm Recognition
• Facial Recognition
• Voice Recognition
• Others

Market Breakup by Application

• Site Access Control
• Time Recording
• Mobile Application
• Web and Workplace

Market Breakup by End Use

• Government
• Retail
• IT and Telecom
• BFSI
• Healthcare
• Others

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Global Biometric-as-a-Service Market Share

According to biometric-as-a-service market analysis, site access control using biometric technology significantly strengthens security by ensuring only authorised individuals can enter sensitive areas. This reduces the risk of unauthorised access, theft, and fraud, while also simplifying entry for users, thus improving operational efficiency and safety in various environments. In March 2024, Nedap introduced a multi-modal biometric access control system combining fingerprint and facial recognition technologies, enhancing security and user convenience in corporate offices and public buildings.

Biometric time recording systems simplify employee attendance tracking by using unique biological traits for authentication. This eliminates issues like buddy punching and inaccuracies seen with traditional methods, ensuring accurate payroll management, and boosting accountability among employees, which leads to improved productivity and reduced administrative workload. In December 2023, Kaba launched an integrated biometric time recording solution combining fingerprint scanning with cloud-based management software, enabling businesses to monitor attendance remotely and streamline HR processes effectively.

The growth of the biometric-as-a-service market is further driven by mobile applications that integrate biometric authentication, offering users convenient access to secure services anytime, anywhere. This improves the user experience by allowing seamless identity verification for transactions or access while boosting security with advanced authentication methods that are difficult to replicate. In May 2024, Gemalto introduced a mobile wallet app featuring biometric authentication for secure transactions and identity verification, aiming to enhance consumer confidence in mobile payments while ensuring data protection.

Web and workplace solutions utilising biometric technology strengthen security for online platforms and physical workspaces. These solutions ensure that only authorised personnel can access sensitive information or areas, protecting data integrity and minimising the risk of breaches, while promoting a secure working environment. In January 2024, Sierra Wireless launched cloud-based biometric solutions for workplace security management, enabling organisations to monitor access in real-time and streamline administrative tasks through centralised data management systems.

Competitive Landscape

The biometric-as-a-service market key players specialise in advanced technologies such as artificial intelligence (AI), biometrics, cloud computing, and cybersecurity. These companies provide a wide range of products and services across industries such as telecommunications, healthcare, finance, transportation, and government. They are well-known for their biometric solutions, including fingerprint and facial recognition technologies, which are widely used for identity verification and security in various sectors.

NEC Corporation

Founded in 1899 and headquartered in Tokyo, Japan, is a global leader in IT and network technologies. The company offers a wide range of solutions including biometric authentication systems, AI, and cloud services to improve security and operational efficiency across various industries globally.

Aware Inc.

Founded in 1986 and headquartered in Bedford, Massachusetts, Aware Inc. is a leading provider of biometric software solutions. The company specializes in fingerprint recognition, facial recognition, and other biometric technologies, offering advanced solutions for law enforcement, government, and enterprise sectors to enhance security and identity management.

Fujitsu Limited

Established in 1935 and headquartered in Tokyo, Japan, Fujitsu Limited is a global IT services and products provider. The company delivers innovative solutions in areas like cloud computing, AI, and biometric authentication, aiming to drive digital transformation and improve business efficiency across a wide range of industries worldwide.

Nuance Communications Inc.

Founded in 1992 and based in Burlington, Massachusetts, is a leading provider of AI-powered speech and language solutions. The company offers cutting-edge technologies in voice recognition, biometric authentication, and conversational AI, serving industries such as healthcare, automotive, and customer service.

Other key players in the biometric-as-a-service market report include Leidos Holdings Inc., IDEMIA Group S.A.S, M2SYS, Smilepass, Certibio, HYPR Corp, and BioID, among others.