“Global Contactless Biometrics Technology Market to reach a market value of USD 50.4 Billion by 2031 growing at a CAGR of 16.6%”
The Global Contactless Biometrics Technology Market size is expected to reach $50.4 billion by 2031, rising at a market growth of 16.6% CAGR during the forecast period.
The North America region witnessed 36% revenue share in this market in 2023. This dominance can be attributed to the early adoption and widespread implementation of advanced biometric technologies across various sectors such as government, healthcare, and banking & finance.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In February, 2021, IDEMIA SAS announced the partnership with Federal Bank Limited to implement contactless biometric access control using facial and iris verification. Leveraging IDEMIA's SmartBio SDK, the solution enhances employee management and secure system access. Employees enroll their iris data, enabling touchless access to the bank’s Core Banking System (CBS). Moreover, In July, 2024, Fingerprint Cards AB announced a partnership with IN Groupe, a French company specializing in the production of secure documents, and launched a safe component for contactless biometric payment cards. This partnership aims to streamline production, improve reliability, and reduce costs, supporting global manufacturers in scaling next-generation card production for mass adoption.
Based on the Analysis presented in the KBV Cardinal matrix; Fujitsu Limited, Thales Group S.A., HID Global Corporation, and NEC Corporation are the forerunners in the Contactless Biometrics Technology Market. In September, 2023, HID Global Corporation teamed up with CERTIFY Health, which provides modern solutions to enhance patient care and experience and focuses on patient engagement and facial recognition. This offer aims to transform healthcare operations and deliver improved patient service at every touchpoint. This integrated biometric platform will be unveiled at Becker’s HIT Conference from October 3-6 in Chicago and will also be featured at HLTH 2023 and CHIME23. Companies such as Aware, Inc., Fingerprint Cards AB, and IDEMIA SAS are some of the key innovators in Contactless Biometrics Technology Market.
As organizations seek to enhance their security protocols, the demand for secure identification solutions has surged. Contactless biometrics, which allows for the non-invasive and secure verification of identities, provides reliable authentication while minimizing the risk of unauthorized access. By implementing contactless biometric systems, organizations can address data privacy concerns and meet regulatory requirements, enhancing their overall security posture. Thus, increased focus on data privacy and regulatory compliance drives the market’s growth.
Additionally, As digital transactions and online interactions become commonplace, cybercriminals are increasingly targeting personal and financial data. High-profile data breaches and incidents of identity theft have highlighted the weaknesses in traditional authentication methods, such as passwords and PINs, which are easily compromised. This growing concern has led organizations to seek more secure alternatives, pushing contactless biometric solutions to the forefront as a reliable means of protecting sensitive information. Thus, rising awareness of identity theft and cybersecurity threats is propelling the growth of the market.
However, Implementing this technology often requires substantial upfront capital investment. Organizations must acquire specialized hardware (e.g., biometric scanners, cameras), software licenses, and infrastructure enhancements to support the new systems. This initial financial outlay can be daunting, particularly for SMEs with limited budgets. The high costs can deter potential adopters from exploring contactless biometric solutions, stunting market growth. In conclusion, high implementation costs and initial investment barriers hamper the market’s growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships, Collaborations & Agreements.
By component, this market is divided into hardware, software, and service. The hardware segment procured 33% revenue share in this market in 2023. This segment’s significant share is driven by the increasing deployment of biometric hardware devices across various industries. These devices, including fingerprint scanners, facial recognition cameras, and iris scanners, play a vital role in capturing and verifying biometric data.
Based on application, this market is categorized into face, fingerprint, hand geometry, iris, voice, and others. In 2023, the iris segment held 15% revenue share in this market. Iris recognition technology is renowned for its high accuracy and security, making it ideal for applications requiring stringent identity verification. The deployment of iris recognition systems in government programs, border control, and secure access facilities has driven the adoption of this technology.
On the basis of end use, this market is segmented into banking & finance, government, consumer electronics, healthcare, transport & logistics, defense & security, and others. The banking & finance segment procured 24%t revenue share in this market in 2023. Financial institutions increasingly leverage biometric authentication to enhance security, prevent fraud, and provide a seamless customer experience. The deployment of contactless biometric systems in ATMs, mobile banking apps, and online transactions has gained traction due to their ability to offer robust security while ensuring user convenience.
Free Valuable Insights: Global Contactless Biometrics Technology Market size to reach USD 50.4 Billion by 2031
The Contactless Biometrics Technology Market exhibits intense competition, characterized by numerous small to medium-sized companies innovating rapidly. These players focus on niche applications and regional markets, driving advancements in sensor technology and user authentication. The market's fragmentation fosters diverse solutions, challenging incumbents to differentiate through features, pricing, and customer service, ultimately benefiting end-users with improved options and accessibility.
Region-wise, this market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the Asia Pacific region generated 26% revenue share in this market. The rapid economic growth, increasing digitization, and rising security concerns in countries like China, India, and Japan have significantly contributed to adopting contactless biometric solutions. Government initiatives to enhance security and identity verification, such as implementing national ID programs and smart city projects, have also fuelled the market’s expansion in the region.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 15.5 Billion |
| Market size forecast in 2031 | USD 50.4 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 16.6% from 2024 to 2031 |
| Number of Pages | 300 |
| Number of Tables | 423 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | End-Use, Component, Application, Region |
| Country scope |
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| Companies Included | Fujitsu Limited, Thales Group S.A., HID Global Corporation (Assa Abloy AB), NEC Corporation, Aware, Inc., Fingerprint Cards AB, IDEMIA SAS (Advent International, Inc.), M2SYS Technology, Inc., CardLogix Corporation, and Touchless Biometric Systems AG |
By Component
By Application
By End Use
By Geography
This Market size is expected to reach $50.4 billion by 2031.
Increased Focus On Data Privacy And Regulatory Compliance are driving the Market in coming years, however, High Implementation Costs And Initial Investment Barriers restraints the growth of the Market.
Fujitsu Limited, Thales Group S.A., HID Global Corporation (Assa Abloy AB), NEC Corporation, Aware, Inc., Fingerprint Cards AB, IDEMIA SAS (Advent International, Inc.), M2SYS Technology, Inc., CardLogix Corporation, and Touchless Biometric Systems AG
The expected CAGR of this Market is 16.6% from 2024 to 2031.
The Face segment led the maximum revenue in the Market by Application in 2023, thereby, achieving a market value of $17.6 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $17.5 billion by 2031.
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