Biometrics Market size was valued at USD 42.1 billion in 2023 and is poised to reach USD 406.5 billion by the end of 2036, registering a CAGR of 20.8% during the forecast period., i.e., 2024-2036. In 2024, the industry size of biometrics is estimated at USD 50.8 billion.
With the rapid increase in digitization globally, the need for robust security features have increased. The rising awareness of data privacy and security concerns are the primary drivers of the biometrics market. In recent years, more governments and companies have actively invested in biometrics for security and population identification concerns, leading to market growth. In August 2024, FINGERPRINTS released their new biometric system, FPC AllKey, which is designed to bring smooth and secure authentication to multiple end uses such as peripherals, padlocks, cryptocurrency wallets, FIDO tokens, residential and workplace locks.
Manufacturers across the globe are focused on improving biometrics to cater to rising demands for greater data privacy and combat security threats. Manufacturers are trying to integrate behavioral biometrics and liveness detection techniques for enhanced security. For instance, in April 2023, Innovatrics released MagnifEye, capable of multimodal liveness detection within seconds without hampering user experience.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
20.8% |
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Base Year Market Size (2023) |
USD 42.1 billion |
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Forecast Year Market Size (2036) |
USD 406.5 billion |
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Regional Scope |
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Type (Hardware, Software, Services)
The hardware segment is expected to account for a market share of 45.2% during the forecast period. The physical devices used to process biometric data such as facial recognition cameras, fingerprint scanners, and iris scanners are growing in demand. The continuous rise in security risks has led to a boost in the growth of this segment. The manufacturing trend in the hardware segment is to reduce complexity and boost ease of use, and improve accuracy of the biometrics. With innovations in biometrics such as emotion detection, vein recognition, and heartbeat detection the hardware segment is expected to witness significant growth going ahead.
The software segment is also growing rapidly in the biometrics market owing to rising security threats, including spoofing. To combat security risks, commercial and government entities seek advanced software for behavioral and physiological recognition. The current trend in this segment is to fix any gap in identifications by the software by updating their machine learning. For instance, in 2023, Aware released a biometric liveness detection software that can conduct identity proofing along with biometric authentication by using liveness detection.
Biometric Type (Fingerprint, Iris Recognition, Facial Recognition, Signature Verification, Hand Geometry, Palm Vein, Voice Recognition)
In biometrics type, the fingerprint segment accounted for the largest market share in 2023. Fingerprint authentication analyzes the unique fingerprint patterns of an individual to authenticate them. The primary driver in the segment is the large-scale integration of fingerprint recognition in smartphones. Each smartphone released today has fingerprint sensors embedded in it. With the development of faster and more accurate fingerprint identifications and increased use in personal and commercial spaces, this segment is poised to witness rapid growth during the forecast period.
The iris recognition segment is poised to grow at a staggering rate during the forecast period. Iris recognition authenticates individuals based identifying the unique patterns in the iris of individuals. The iris segment saw a boost during the COVID-19 pandemic due to its non-intrusive nature. The scalability and flexibility of the iris recognition method will continue to boost its growth.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Biometrics Type |
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Contact Type |
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North America Market Statistics
North America biometrics market is expected to account for the largest revenue share of 32.7% during the forecast period. The rapid growth can be attributed to innovations, high-quality technological infrastructure, a high rate of government investments, increased focus on security risks, and leading manufacturers. The large scale of investment in the research and development of advanced biometric systems positions North America as a lucrative market.
The market in the U.S. is expected to hold a significant market share during the forecast period due to the considerably high rate of biometrics usage in government, commercial, and private entities along with the growing demand for advanced biometrics to address security concerns. For instance, the Department of Homeland Security (DHS) has been actively using biometric systems to secure the US borders. Since the U.S. is the largest investor in defense, the investment in advanced biometric technologies is immense boosting the market growth as demands for advanced biometrics rise.
In Canada, the market is expected to grow at a rapid pace owing to large investments in defense and border security, increased use in the healthcare sector, and integration in government services. The government uses biometrics for immigration by setting up various biometric collection sites. For instance, Canada invested USD 4 million in a new biometric app, ReportIn, that will ensure that two photos of an individual match. The rising focus on immigration surveillance and border security boosts the market.
Asia Pacific Market Analysis
Asia Pacific is expected to have significant growth in the biometrics market owing to greater security concerns, increased integration with government programs, and growing digitization of services. In addition, countries such as India, China, and Japan are integrating biometrics into national identification programs and border security.
In India, the Unique Identification Authority of India (UIDAI) issues an Aadhar card that stores the biometric data of the citizens to eliminate duplicates under various welfare schemes to improve the efficiency of delivery mechanisms. India has invested in biometric use in identification documents such as driving licenses and permanent account numbers (PAN). Due to the large population, there is a continuous demand for fingerprint sensors in India, leading to considerable market growth. The government has launched the next generation of biometric standards i.e. L1 which opens up the market to replace all previous biometric components that were certified LO. The high demand for advanced biometrics will continue to drive the market growth.
China is a major player in the global biometrics market owing to the widespread use of facial recognition across several sectors. As per Research Nester, in 2023 facial recognition was used in public services such as to activate tissue dispensers. The increasing use of biometrics integrated with big data and artificial intelligence in China is poised to grow the market rapidly during the forecast period.
The biometrics market has witnessed drastic changes owing to constant innovation in technology. The rapid integration of biometrics in national identification programs, healthcare, security uses, and for commercial devices such as smartphones has led to a significant demand various segments of the market. The market is highly competitive with several global and regional players seeking to innovate and meet the changing demands for biometrics.
The key players in the market are focused on improving their production capabilities, investing in research, and enhancing product qualities to ensure ease of integration of biometrics. Various strategies such as mergers, acquisitions, partnerships, and product launches are done to retain their market position and enter new emerging markets. Here are some key players dominating the global biometrics market:
Author Credits: Abhishek Verma
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