“Global Next-Gen Biometric Authentication Market to reach a market value of 187.18 Billion by 2031 growing at a CAGR of 20.7%”
The Global Next-Gen Biometric Authentication Market size is expected to reach $187.18 billion by 2031, rising at a market growth of 20.7% CAGR during the forecast period.
Voice recognition technology analyzes vocal characteristics to authenticate users, offering a hands-free and convenient biometric authentication method. It is widely used in call centers, mobile banking, and smart home devices for voice command-based authentication. Thus, the voice recognition segment held 11% revenue share in the market in 2023. The technology’s ability to integrate with natural language processing and AI capabilities has enhanced its utility and application scope. The rising adoption of voice-activated virtual assistants and the need for secure voice-based transactions have driven the growth of the voice recognition segment in the market.
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 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. Additionally, In November, 2023, IDEMIA SAS signed a partnership agreement with Home Team Science and Technology Agency (HTX), the science and tech arm of the Ministry of Home Affairs, in Singapore. Under this partnership, the company will work with HTX on research and development in biometrics and forensics technologies.
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 Next-Gen Biometric Authentication 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. Companies such as Aware, Inc., Fingerprint Cards AB, and IDEMIA SAS are some of the key innovators in Next-Gen Biometric Authentication Market.
As private and public sectors strive to ensure greater security and data protection, biometric technologies offer a much-needed solution. The digital transformation of businesses across various industries, combined with heightened security threats, establishes biometrics as an essential tool for identity verification and fraud prevention. Therefore, the increasing demand for higher levels of security is one of the primary drivers of the next-gen biometric authentication market.
The adoption of biometric authentication in mobile devices is expected to grow as more manufacturers embrace these technologies. With companies like Apple, Samsung, and Google leading the way, biometric solutions have become standard in flagship mobile phones. This widespread integration of biometric technology is fueling growth in the next-gen biometric authentication market, making it a critical driver as the demand for secure, frictionless mobile experiences grows globally. Hence, the rising adoption of biometric solutions in mobile devices is propelling the market's growth.
Privacy concerns also lead to regulatory scrutiny, with many governments worldwide introducing stricter regulations regarding collecting and using biometric data. The lack of universal standards and differing regulations across regions complicates compliance for businesses and may hinder their ability to deploy biometric authentication systems on a global scale. As these concerns grow, the next-gen biometric authentication market may face significant resistance from users and regulators, limiting its growth potential. Thus, privacy and data security issues hinder 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.
On the basis of authentication type, the market is segmented into single-factor authentication and multi-factor authentication. The single-factor authentication segment recorded 60% revenue share in the market in 2023. Single-factor authentication relies on one method of verifying identity, such as a fingerprint, facial recognition, or iris scan. This type of authentication is widely adopted due to its simplicity and ease of use. It is commonly used in various applications, from unlocking smartphones and accessing secure facilities to verifying identities in financial transactions.
Based on technology, the market is categorized into fingerprint recognition, facial recognition, iris recognition, voice recognition, palm vein recognition, signature recognition, and others. The facial recognition segment witnessed 21% revenue share in the next-gen biometric authentication market in 2023. Facial recognition technology has gained substantial traction due to its convenience and ability to perform passive identification without physical contact. It is increasingly used in surveillance systems, border control, and user authentication for devices and applications.
Based on component, the market is divided into software and services. The services segment held 37% revenue share in the market in 2023. This segment encompasses various services, including installation, maintenance, consulting, and managed services related to biometric authentication systems. Service providers are crucial in helping organizations implement and optimize their biometric systems, ensuring seamless integration with existing IT infrastructure and compliance with regulatory standards.
By end user, the market is divided into government, BFSI, travel & immigration, home security, healthcare, defense, and others. In 2023, the government segment registered 28% revenue share in the market. The need for enhanced security, efficient identification, and authentication processes drives the government’s adoption of biometric authentication. Biometric technologies are utilized in various government applications, including national ID programs, voter registration, law enforcement, border control, and public services. Implementing biometric systems helps streamline administrative processes, reduce fraud, and improve service delivery to citizens.
Free Valuable Insights: Global Next-Gen Biometric Authentication Market size to reach USD 187.18 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 36% revenue share in the market in 2023. The high revenue share in North America can be attributed to the widespread adoption of advanced biometric technologies across various sectors, including government, BFSI, healthcare, and defense. The presence of major biometric solution providers and the increasing emphasis on enhancing security measures and reducing fraud further bolsters the market growth in this region.
The next-generation biometric authentication market is highly competitive, fueled by advancements in AI and the demand for secure, contactless solutions. Innovations in facial recognition, iris scanning, and voice authentication are driving adoption across industries, including finance, healthcare, and government. Increasing cyber threats and stringent regulatory requirements further intensify competition. Vendors focus on AI-powered analytics, multi-modal authentication, and integration with IoT to differentiate their offerings, while growing privacy concerns and interoperability challenges shape market dynamics.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 43.16 Billion |
| Market size forecast in 2031 | USD 187.18 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 20.7% from 2024 to 2031 |
| Number of Pages | 350 |
| Tables | 503 |
| 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 | Component, Authentication Type, Technology, End-user, Region |
| Country scope |
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| Companies Included | Fujitsu Limited, Thales Group S.A., HID Global Corporation, NEC Corporation, Aware, Inc., Fingerprint Cards AB, IDEMIA SAS, M2SYS Technology, Inc., CardLogix Corporation, Touchless Biometric Systems AG |
By Component
By Authentication Type
By Technology
By End User
By Geography
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