On one hand, digitalization has successfully enhanced the factor of user convenience, on the other hand, it has also aggravated various concerns related to safety and security. The increasing frequency of thefts and cybercrime cases across the world has resulted to concerns related to privacy and data breaches. These concerns have further fueled the growth of biometric authentication and identification market.
The security and surveillance industry is witnessing a massive boost with the development of biometric technology. The concept of biometric dates back to World War I, where records of the characteristics such as the height and color of a person’s eye or hair were used to identify criminals. Biometric technology identifies the characteristics of an individual, and captures and compares them with the existing records.
In comparison to the traditional authentication techniques such as PIN and passwords, biometric offers high degree of accuracy and reliability. With the incorporation of biometric-based systems in the U.S., the incidence of fraud complaints decreased year-on-year by 4.7% in 2017. Owing to its advantages, biometric technology has successfully managed to seek the attention and interest of various companies and governments.
The escalating demand for biometric technology in consumer goods such as laptops, smartphones, and tablets along with the growing use of biometric technology in anti-money laundering are the key factors driving the growth of the biometric market. According to the latest market intelligence report by BIS Research titled “Global Biometric Authentication and Identification Market – Analysis and Forecast (2018-2023),” the biometric authentication and identification market is projected to grow at a CAGR of 22.54% during the forecast period, 2018-2023, and reach $51.98 billion by 2023.
In terms of modality, the biometric market constitutes several segments namely, fingerprint, facial, voice, eye, and handwritten-based recognition systems. Amongst these, the fingerprint-based recognition system is projected to hold a major share of the market during the forecast period. Due to a surge in the demand of biometric-based systems from various application areas such as government, healthcare, enterprises, and banking institutions. Rising adoption of digital methods such as electronic money transfers and digital banking has also increased the number of criminal activities such as digital threats and frauds which have further fueled the incorporation of fingerprint technology in several organizations.
Among different application areas, banking and financial institutions are heavily investing in the advanced biometric systems to ensure safety. The involvement of Danske Bank, based in Estonia, in the $220 billion money laundering scandal which came into limelight in 2013-2014, raised serious questions associated with the safety and security of money in banks.
The government sector is projected to be the key contributor to the growth of the market. From border security to criminal investigation, biometric systems are deployed in all major forms of applications in the government sector.
Additionally, the report published by BIS Research also examines the global biometric market in terms of region. The biometric technology is being widely adopted globally and Asia-Pacific is anticipated to generate maximum revenue followed by North America during the forecast period.
The enhancements in the present biometric technology with the introduction of features such as facial, iris, and palm recognition, growing importance of conditional access through biometric security, and the expansion of the cybersecurity market are some of the key opportunities that are expected to drive the growth of the biometric authentication and identification market in the coming future.