Biometric System Market (2022-2029)

Growing demand for mobile biometrics devices, rising government initiatives for biometrics technology, increasing use of biometric technology in consumer electronics for authentication and identification applications, and growing need for security measures are the key factors driving the growth of the biometric systems market. However, the substantial costs associated with biometric systems and misconceptions and lack of knowledge pertaining to biometric systems are notable restraints affecting the growth of this market.

The COVID-19 pandemic adversely impacted the global economy. Nationwide lockdowns and social distancing norms were imposed across several countries, negatively affecting multiple industries, including the biometrics industry. Uncertainty regarding the duration of the lockdowns made it difficult for the key market players to anticipate the recovery of the biometric systems market. Numerous biometrics providers were under immense pressure across various fronts due to the COVID-19 pandemic.

However, economies are shifting their focus from responding to the pandemic to economic recovery, and hence, various growth opportunities are expected to emerge for the biometric systems market players due to the growing demand for biometric technology-based surveillance and security solutions and the rising need for contactless biometric systems.

Government and private sector organizations started undertaking initiatives to keep people safe and combat the spread of COVID-19. Contactless biometrics systems emerged as vital solutions as social distancing became a global norm. Biometrics technology companies viewed this crisis as a new opportunity to restructure and revisit existing strategies and product portfolios. The current scenario has created tremendous demand for biometric technologies in the healthcare sector due to their capacity to be easily integrated with various healthcare devices & platforms to enhance patient safety and support staff & patient workflows. Increased investments in the healthcare sector have also contributed to the growing demand for biometric technologies. Organizations in the BFSI sector were also focused on running essential business operations during the pandemic, which helped biometric companies bring revenues back on track.

Over the years, the requirement to control access to data, premises, and systems has grown. Many organizations rely on passwords, PINs, or cards to confirm people’s identities for access. However, this traditional approach poses severe challenges in terms of security. For instance, loss, data breaches, or theft of cards causes security risks. With the correct combination of PIN and card, anyone could be granted access to restricted areas or data. Thus, increasing the application of mobile biometrics for security purposes is expected to positively impact the market growth.

Mobile biometric devices provide multi-factor authentication (MFA) approach to verify an individual's identity by using mobile devices. This technology has become popular for its user-friendliness to leverage the facilities of online transactions, authentication, and many other services. Consumers are adopting advanced connected devices and digital technologies with biometric technology to process critical information and keep it secure. Some major banks leverage biometric technologies in various scenarios, such as cash withdrawals at the ATM, authenticating mobile banking apps using fingerprint signing, or a combination of face and voice verification. Thus, biometric technology-based smartphones are increasingly being used for security and better user experience.

In addition, the benefits associated with biometrics hardware, such as accurate identification, high performance, accountability, reliability, and high security & assurance, further augment the growth of this segment.

Several providers are investing in R&D to improve the hardware capabilities and make them more affordable for small and medium-scale enterprises.