This study intends to unfurl the multiple facets of global biometrics market. The insights offered in the report aid in market growth examination during the forecast period.
Widespread Utilization of FRT to Address Security Concerns Fuels Biometrics Market
Biometrics contrast an individual's identity with the biometric template already preserved in the database. Biometric IDs fall under the two categories of physiological and behavioral characteristics. Physical traits like fingerprints, palm veins, palm prints, faces, DNA, iris, and hand shape contrast with behavioral traits like typing habits and voice and signature recognition. Based on a person's unique facial traits, Facial Recognition Technology (FRT) plays a significant role in identifying and authenticating them. It can simplify the sign-in and sign-out processes for patients in healthcare institutions. The use of FRT has been widespread in financial institutions, which primarily drives the progress of global biometrics market. 15% to 20% of the 11,000 financial institutions in the U.S. utilize selfie photo imaging for document and user identification verification, according to the advising firm Aite-Novarica. According to Aite-Novarica, 600–700 financial institutions will use FRT for security reasons in 2020. The expansion of the biometric sector is anticipated to be aided by such extensive FRT usage.
With the extensive use of biometrics for identity validation in public and private organizations, the market for the next generation of biometrics is predicted to develop. Online shopping, mobile banking, and e-commerce websites use biometric technology, including facial recognition, voice and speech recognition, gesture detection, and fingerprint identification. The security industry is predicted to experience technological breakthroughs, leading to more effective monitoring systems that can track the rise in fraud, crime, and terrorist activity. This is likely to accelerate the growth of global biometrics market.
Biometrics Market: COVID-19 Impact
COVID-19 may or may not have had an impact on the global population's standard of living. There is a growing need for contactless biometric systems due to the virus's potential for spreading through touching objects. The use of palm-print and fingerprint recognition systems has decreased over time. However, because the end users do not want to risk security, contactless systems like voice, IRIS, and facial biometrics have taken their place. The security vulnerabilities affecting various biometric systems vary in severity. Since the coronavirus pandemic is here to stay and these contactless technologies can track the user's identification more effectively, the industry will experience lucrative growth throughout the anticipated period. However, the manufacturing sector is anticipated to pick up gradually in the upcoming months, and the biometrics market is anticipated to recover by mid-2022 due to eased lockdown in nations like China, India, the US, and Germany, as well as the widespread use of vaccines since December 2020.
Increase in Continuous Biometric Authentication Use to Drive Biometrics Market Growth
Continuous biometric authentication reduces the danger of hacking and data breaches by providing real-time authentication. Due to the surge in cybercrimes, and data breaches worldwide, both individuals and businesses are using this technology. Along with face recognition and voice authentication, continuous biometric authentication examines user behaviors like typing technique, interactive gestures, finger pressure, and key holding duration on the keyboard. It determines the user's authentication score using biometric data and then requests more information, such as a password, fingerprint, ID, or retina scan, before granting access to the system. This will continue to drive the growth of biometrics market growth. Continuous biometric authentication improves security without interfering with users' daily tasks and aids in preventing credential stuffing and phishing. It employs behavioral biometrics, which stops bots, imposters, and fraudsters from accessing systems in real time, preventing them from conducting criminality. Continuous biometric authentication is a feature that businesses are integrating into their cybersecurity systems because prospective partners need confirmation of appropriate security measures before engaging with them. To maintain high-security standards and compliance, the BPO industry is rapidly implementing continuous biometric authentication to confirm the identification of employees, partners, and contractors.
Significant Improvements in Biometric Technologies for Applications Like Identification and Authentication Drive Biometrics Market Growth
Recent years have seen major technology advancements in biometric solutions. With the development of sensing technologies and the ubiquitous use of gadgets like computers and smartphones, there are more options to record human physiological and behavioral characteristics and analyze the resulting data for biometric authentication. Biometric technologies powered by machine learning, and AI are opening up new opportunities to detect anomalous activity and, if necessary, offer an extra layer of authentication. Multi-factor authentication biometric solutions are becoming more popular to prevent potential data breaches. Biometric system manufacturers are encouraged to consistently spend on R&D operations to increase their range of advanced biometric systems by the growing demand for contactless systems and to expand the applications areas. This will in turn expedite the growth of biometrics market.
Costs Related to Biometric Technologies Will Hamper Biometrics Market Growth
The needs for specialized applications in the government, banking, financial services, and insurance (BFSI), consumer electronics, automotive, and several other verticals are satisfied by biometric system providers. High capital expenditure is required for the advanced biometric system's R&D, production, installation, maintenance, and shipping. High-performance biometric systems have expensive software and hardware (fingerprint readers, electronic locking systems, scanners, sensors, cameras) that require installation and maintenance. Modernized raw materials and parts are needed for more advanced biometric technology, raising costs. Users are responsible for paying for delivery, installation, and routine maintenance. Thus, the demand for substantial capital expenditure restrains the expansion of the biometric system industry. However, the faster adoption rate of these advanced technologies suggests that the cost will drop soon, influencing the performance of biometrics market.
Frequent Employment of Biometric Technologies Uphold Primacy of Consumer Electronics Industry in Biometrics Market
Consumer electronics manufacturers, including smartphones, tablets, laptops, and home automation equipment, are eager to include cutting-edge features and functions into their goods to draw in more buyers and broaden their clientele. End users become more concerned about security as customers adopt cutting-edge linked gadgets and digital technologies to process vital information. To access their bank accounts, email accounts, and other sensitive data like financial and medical records, consumers of today prefer using gadgets that offer biometric authentication, warranting the incessant growth prospects of biometrics market. Similarly, biometric smartphone technology is increasingly used to protect credentials for entering doors, buildings, and IT systems, providing users with a better experience and opening up several options for providers of portable access control solutions. All of these elements contribute to the current increase in smartphone demand, and a similar trend will likely be seen soon.
With Increased Consumption of Biometric Technology, Software Category Dominates Biometrics Market
In the forecast period, the software segment held the largest market share, and it is anticipated that it will continue to rule the global biometrics market during the forecast period. Biometric software enables communication and operation between biometric devices, computers, and networks to which they are connected. Additionally, it permits efficient connectivity and interoperability between various programs running on various operating systems. Software is an essential part of biometric systems. Software, for instance, compares signatures and determines the integrity of signature verification systems. Since human operators may not always be able to discern whether a signature is phony, it can be difficult for the human eye to successfully detect fraudulent signatures. As a result, more people are using signature verification software because it lessens the possibility of fraud, saves time, and protects against human error while signing documents. Biometric software combines cutting-edge technology like AI. to detect fraud. For instance, IntelliVision's face recognition software is a deep learning-based facial recognition option for integrators and developers capable of detecting and identifying faces of all ethnicities from a database of photographs without regard to race. It offers facial recognition accuracy of roughly 99.5% on open standard data sets. Additionally, it can be used in the cloud and on servers.
Asia Pacific to Dominate Bimetrics Market Owing to Technology Advancements in Biometric Systems
During the projection period, the market in Asia Pacific will experience the fastest CAGR growth. The market here is divided into China, South Korea, India, Japan, Australia, and the rest of Asia Pacific in the biometrics market. Due to the swift economic growth of important nations like China, India, Japan, and South Korea, this region is likely to benefit from the presence of leading biometric system manufacturers like Fujitsu, and NEC Corporation. Technological improvements, greater public awareness of the use of biometric systems for security, and decreased device costs based on these technologies are all factors in the biometric system market in Asia Pacific. The market is anticipated to be driven primarily by rising mobile payment transactions and rising government and private sector attempts to use biometric authentication technologies. The Center for Strategic & International Studies Report (CSIS) 2021 claims that China is leading the world's transition to digital payments.
Based on the global digital commerce and mobile payment market with a transaction value of US$5.4 Tn, Chinese businesses are expected to create US$2.9 Tn in transaction value in 2020. A more authoritarian approach to digitization may result from China's emphasis on influencing global e-commerce, digital infrastructure, and new initiatives like the digital yuan and the proposed new IP. The biometrics market here is anticipated to be driven primarily by rising mobile payment transactions, and rising government and private sector attempts to use biometric authentication technologies.
Global Biometrics Market: Competitive Landscape
In January 2022, To provide next-generation eSIM and connection solutions for consumer and M2M/IoT devices, IDEMIA worked with Microsoft. Moreover, in July 2021, Thales Group introduced a new speech biometric solution for authentication and onboarding as part of the Trusted Digital Identity Service Platform. It makes it possible to catch fraudsters who impersonate customers.
A few of the players in biometrics market include Papillon Systems (Russia), Thales Group(Paris), ASSA ABLOY (Sweden), Idemia (France), NEC Corporation(Japan), Precise Biometrics(Sweden), Fujitsu(Japan), Secunet Security Networks AG (Germany), Aware Inc (US), Stanley Black & Decker, Inc.(France), Cognitec Systems GmbH(Germany), DERMALOG Identification Systems GmbH (Germany), Daon, Inc. (US), Neurotechnology (Lithuania), Innovatrics(slovakia), ZETES (Belgium), Veridos GmbH (Germany), Jumio (US), iProov (UK), Onfido (UK), BIO-key International (US), Facetec, Inc (US), ID R&D Inc (US), SenseTime (China)Nuance Communications, Inc (US), Beijing Megvii Technology Co., Ltd.(China), Facebanx (UK), David Link Manila Corporation (Philipines), Securiport (US), SUPREMA (South Korea), M2SYS Technology (US), Fulcrum Biometrics, Inc, (US), OneSpan (US), Integrated Biometrics (US), Qualcomm Technologies, Inc. ( US), Imageware (US), Leidos (US), and Sonda (Chile).
Global Biometrics Market is Segmented as Below:
By Authentication Type
Key Elements Included In The Study: Global Biometrics Market
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