Global biometrics market predicted to reach $82.9 B by 2027

The global biometric system market is expected to grow from USD 42.9 billion in 2022 to USD 82.9 billion by 2027, at a CAGR of 14.1%, according to a new report from Marketsandmarkets. Increased advancements in biometric technology across various sectors and rising demand for authentication and identification solutions as well as security and surveillance solutions in various application areas are the primary factors driving the market growth. Growing adoption of biometric systems in consumer electronics, BFSI and automotive verticals are factors that will drive the demand for this technology in the near future.

The researchers found that the market declined slightly in 2020, mainly due to the impact of Covid-19. The supply chains were disrupted in March and April 2020 due to the lockdowns imposed by various governments and labour shortages in these industries due to travel restrictions. However, the analysts expect the sector to fully recover by mid 2022.

Single factor authentication takes the major share

Single-factor biometric systems are cost-effective and fast. The systems with single-factor authentication are much faster and simplified, although they can be prone to high-security risks. Nevertheless, technologically improving hardware and software solutions and biometric systems integrated with AI have increased the level of accuracy and security offered by single-factor authentication in recent times. Fingerprint recognition technology is the most used modality. The growth of the market for fingerprint recognition is attributed to the increasing demand for solutions based on this technology in travel and immigration security verticals for e-passports and e-visas, as well as in the government sector for issuing driving licences.

Biometrics in consumer electronics

Biometrics in the consumer electronics sector is a strong area, owing to its security and cost-effectiveness. In the consumer electronics industry, smartphones are significantly contributing to the growth of the adoption of biometrics technology. Consumer electronic companies are increasingly developing and deploying advanced and cost-effective biometric security features. There have been rapid advancements in the designs of chips and algorithms of voice and facial recognition. Also, the declining cost of biometric technologies installed in consumer electronics is playing a key role in driving market growth.

Asia Pacific predicted for high growth

The market in APAC will grow at the highest CAGR during the forecast period, according to Marketsandmarkets. The biometric system market in APAC is segmented into China, Japan, India, Australia, South Korea, and the Rest of APAC. The presence of prominent biometric system manufacturers including Fujitsu and NEC Corporation, is expected to contribute to the revenue share of this region owing to the rapid economic growth in major countries such as China, Japan, India, and South Korea The growth of the biometric system market in APAC is also attributed to technological advancements, increased awareness among the masses regarding the use of biometric systems for security purposes, and lowered the cost of devices based on these technologies.

Major players in the biometric system market include Thales Group, Idemia, Assa Abloy, NEC, Fujitsu, Precise Biometrics Secunet Security Networks, Stanley Black & Decker, Aware Inc., and Cognitec Systems amongst others.

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