Biometric Technology Market Trends

Growth Drivers

• Rapid rise in consumer biometric technology applications: There has been a significant demand for consumer biometric applications due to the high usage of smartphones and mobile devices. With increased digitization, the security threats to user data have been growing. To cater to this, in October 2019, WhatsApp launched a finger and face ID for the app which will serve as an additional layer of security. Other popular messaging apps such as Kakao Talk and Signal too have integrated biometric security.
  
  Trust-based apps like dating apps have seen a surge in biometric verification demands. For instance, in 2023, Tinder integrated video selfies to verify identity via its 3D biometric liveness detection software. With artificial intelligence (AI) and machine learning improving, the user demands for greater security layers will also rise leading to a continuous growth of the biometric technology market during the forecast period.

• Government programs to integrate biometric technology: A key driver to the growth of the market is the increased willingness of governments to integrate biometric technology. This has helped speed the regulatory approvals for biometric systems boosting the market growth. More investments are made by the government in biometric technology to facilitate security and services.  In 2018, China applied biometric technology for visa applications. In 2024, the Ministry of Interior in Kuwait implemented biometric fingerprints. Many European countries such as France, the United Kingdom, and Italy employ ePassport gates that use biometric technology to verify a person’s identity. Emerging economies such as India are integrating biometric technology in large-scale welfare schemes for identity verification. For instance, In June 2024, the Goods and Services Tax (GST) Council of India rolled out a pan-India Aadhar-based biometric system to improve user security. The increasing use of biometric system by governments for various programs is expected to significantly boost the market by inculcating greater investments.

Challenges

• Rising privacy concerns: Privacy concerns regarding the use of biometric systems and the storage of biometric data is a key factor expected to hamper overall market growth during the forecast period. Many users have flagged privacy issues related to biometric technology systems such as function creep, where their data was used for secondary use without user permission. Covert data collection without user consent is also a rising concern, hampering market growth.

• Lack of standardization and high costs: Installation of biometric technology and hardware for iris and facial scans can be costly. Depending on the complexity, the software costs can fluctuate, increasing the overall costs. A major challenge to the market growth is the lack of standardization. As there are no set guidelines, it can create compatibility issues. The lack of standardization also affects cooperation between organizations in integrating different biometric systems.