Global Biometrics Market Anticipated to Generate a Revenue of $104,959.6 Million, Growing at a CAGR of 15.0% from 2021 to 2028Download Sample Reports Overview
The global biometrics market size is estimated to be valued at $104,959.6 million by 2028, surging from $37,123.1 million in 2020, at a CAGR of 15.0%.
COVID-19 Impact on the Biometrics Market
During the COVID-19 pandemic, the industry's expansion was delayed by the temporary closure of manufacturing units and R&D facilities, which hampered worldwide supply networks. The short downturn in the aerospace, automobile, retail, and consumer electronics industries hampered biometrics demand in these industries. The restart of industrial activities will help to streamline supply chains and enhance the development of new identifying technologies. Companies are also working on developing contactless identification solutions to safeguard public safety (especially healthcare biometrics) and to pave the way for a big transition toward contactless biometrics solutions like iris, facial, and voice recognition.
Global Biometrics Market Analysis
Biometrics as a service have become almost common in smartphones and tablets. A significant increase in smartphone usage, as well as a larger need for easy and rapid biometric security in smartphone and tablet devices, have been major impulsive elements in the market's expansion. Smartphone makers have been heavily investing in the research and development of various biometric approaches, as well as their implementation in smartphones and tablets. Biometrics provide unique information that can be used to identify individuals, verify data, and validate personal biometry. Privacy or data discretion, users' data integrity, personal authentication, authorization or access control by the administrator, and non-repudiation are among the main benefits of biometric technology that are driving its widespread use.
The high development cost of various biometric sensors is a major industry barrier. Consumers are finding it difficult to afford sensors because of the costs associated with the complete manufacturing process. The cost of producing raw materials for biometric sensors has also risen significantly, limiting consumers' access to these functionalities. Furthermore, due to the high expense of R&D operations, manufacturers have very little room to keep prices down.
In the coming years, developing trends in IoT-based biometric technology and the surge in use of fingerprint sensors in smartphones are projected to provide attractive potential for market expansion. Furthermore, as e-passports become more widely used, demand for biometric systems is likely to rise, boosting market growth in the future years.
Global Biometrics Market, Segmentation
The global biometrics market is segmented based on technology, authentication type, component, end-users, and region.
The technology sub-segment is further classified into face recognition, fingerprint recognition, iris recognition, voice recognition, and others of which the fingerprint recognition type sub-segment is projected to generate the maximum revenue during the forecast period. The fingerprint recognition sub-segment is predicted to register a revenue of $31,511.3 million during the forecast period.
The rise in the usage of fingerprint sensors in IoT-based devices, the introduction of biometric smartcards in BFSI applications, and the newest trend of in-display fingerprint sensors in smartphones are all anticipated to present profitable prospects for fingerprint sensor market competitors.
The authentication type segment is further bifurcated into single-factor authentication and multifactor authentication sub-segments of which the single-factor authentication sub-segment is projected to generate highest revenue during the forecast period. It is predicted that the single-factor authentication sub-segment shall generate a revenue of $71,618.0 million by 2028, growing from $25,829.7 million in 2020, with a CAGR of 14.8%.
Security threats have been progressively rising. Hackers are devising new methods of data theft, and new viruses are being developed to steal sensitive information from businesses and individuals. With the majority of consumers preferring to do transactions online, businesses must have authentication systems that allow for quick and secure access. Single-factor authentication allows a person to confirm their identity with just one factor that matches and validates their identity. Among the others, this is the most commonly used authentication mechanism.
The component segment is further divided into mobile, PC, payments, and access. Among these, mobile sub-segment is expected to be the fastest growing. It is predicted that the market shall generate a revenue of $32,681.1 million by 2028, growing from $10,863.5 million in 2020, with a CAGR of 16.0%.
An industry consensus on boosting intelligence in mobile devices has fueled the use of mobile biometric technologies. Biometrics-enabled phones have been introduced by the majority of smart phone manufacturers in recent years. While fingerprint identification is currently the focus, advanced biometric technologies such as face, voice, iris, and others are gaining popularity.
The end-user segment is further divided into government & defense, healthcare, BFSI, consumer electronics, and others of which the government & defense type sub-segment is projected to generate the maximum revenue during the forecast period. The government & defense sub-segment is predicted to register a revenue of $29,222.5 million during the forecast period.
Military biometrics have been employed for access control, criminal or civil identification in the past, all within a carefully regulated legal and technical framework. For years, agencies like the Federal Bureau of Investigations (FBI) and Interpol have used biometrics in criminal investigations. Law enforcement agencies all over the world are increasingly using biometrics to identify offenders. In 2008, the Chinese Police employed ABIS technology to allow forensic fingerprint examiners to search the database for possible matches between inmate IDs.
The Biometrics market demand in Asia-Pacific is anticipated to be the fastest growing market during the forecast time period and reach $29,787.5 million by 2028, with a CAGR of 15.8%.
In Asia-Pacific, the biometrics market is now expanding rapidly. Biometrics are employed in access control systems to validate a user's physical and behavioral characteristics. These characteristics are maintained in the device database, which compares them and grants secure access to devices, systems, or data. Since biometrics systems such as facial recognition, fingerprint mapping, and retina scanning are dependable, accurate, rapid, and safe, they are widely used throughout Asia-Pacific.
Top 10 Major Key Players in the Global Biometrics Market are -
- Accu-Time Systems
- BIO-Key International Inc.
- Cognitec Systems GmbH
- Fingerprints cards AB
- Fujitsu Limited
- NEC Corporation
- Siemens AG
- RCG Holdings, Ltd.
- Thales Group
Along with the key players of the biometrics companies in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Biometrics Market:
- Bargaining Power of Suppliers: Biometrics market contains huge concentration of distributors and suppliers and hence, the distributors and supplier control are expected to be moderate, resulting in moderate bargaining power of dealers.
Hence, the bargaining power of the supplier is moderate.
- Bargaining Power of Buyers: Buyers will have high bargaining power, significantly because of high players operating in the biometrics market.
Hence, the bargaining power of the buyer is high.
- Threat of New Entrants: In the modern world, new entrants may face multiple new barriers, like legal and government policies.
Hence, the threat of the new entrants is moderate.
- Threat of Substitutes: There are few alternate products for biometrics.
Thus, the threat of substitutes is moderate.
- Competitive Rivalry in the Market: Robust presence of key players such as BIO-Key International Inc., Cognitec Systems GmbH, and Fujitsu Limited is creating massive rivalry in the local as well as international market. Also, high spending on business expansion and strategic tie-ups are some of the main factors rising competitive rivalry among the companies.
Thus, the competitive rivalry in the market is high.