Contactless Biometrics Technology Market Trends

Growth Drivers

• Growing Usage of Contactless Biometrics in Banking Firms – On account of the increasing concern for the protection of financial transactions, the market is expected to expand more in the upcoming years. As of 2020, contactless transactions increased by more than 30% across the globe.

• Rising Rate of Air Travelers – Growth in the economy and in the population across the globe is estimated to drive market growth.  The use of biometrics verifies a traveler's identification at both entrance and departure points and helps in verifying if passengers are on the right plane, match luggage from the right person to the right aircraft, check passport and visa information. For instance , in 2022, India's air passenger traffic increased by over 40%.

• Increasing Adoption of Automated Identification and Data collection (AIDC) Technologies in the Retail and E-Commerce Sectors– The retail industry's growing concern over data security is anticipated to drive the market growth. The use of biometric technology in retail can increase sales by enhancing shop security and improving the accuracy and dependability of transactional data. Furthermore, retailers use biometric technology to create a database of potential shoplifters. Approximately, 4000 data security risks are experienced by the retail industry each year.

• Growing Internet Accessibility around the Globe – As of 2021, there were over 4 billion internet users globally.

Challenges

• Exorbitant Price of Contactless Biometrics Solutions - The high cost of contactless biometrics solutions mostly in emerging economies, is one of the major factors predicted to slow down the market growth. For instance, the type of sensor employed in the biometric device determines how much a fingerprint recognition system will cost.  Additionally, the cost of iris and retina scanners is greater than that of other biometric devices.
• High Probability of Identity or Data Theft
• Frequent Changes in Human Face, Pose, and Expressions