“Global Retail Biometrics Market to reach a market value of 40.0 Billion by 2031 growing at a CAGR of 31.7%”
The Global Retail Biometrics Market size is expected to reach $40.0 billion by 2031, rising at a market growth of 31.7% CAGR during the forecast period.
Biometric technology offers robust fraud detection and prevention capabilities by accurately verifying the identity of individuals and detecting unusual patterns or behaviours. This technology is being used to protect retailers and customers from fraud, including identity theft, account takeovers, and payment fraud. The effectiveness of biometrics in mitigating fraud risks has made it an essential component of modern retail security strategies. Thus, in 2023, the fraud detection and prevention segment attained 13% revenue share in the retail biometrics market. The growing sophistication of fraud schemes and the financial losses associated with fraudulent activities have prompted retailers to invest in advanced biometric solutions.
Retailers are facing many incidents related to theft, shoplifting, and fraud. According to various studies, shrinkage—inventory loss due to theft, fraud, and administrative errors significantly affects the retail sector. This situation requires more effective security measures to protect assets, reduce losses, and ensure a safer shopping environment for customers and employees. Traditional security methods, such as CCTV surveillance and security personnel, often fall short in preventing crime or identifying culprits. Additionally, by recognizing loyal customers through facial recognition, retailers can personalize their shopping experience while maintaining a secure environment. This dual benefit encourages retailers to adopt biometric solutions. Thus, the rising demand for enhanced security measures in retail environments propels the market's growth.
However, this initial outlay can deter smaller retailers or those operating on tight margins from adopting biometric technologies. Introducing biometric systems with existing retail infrastructure, such as point-of-sale (POS) systems and customer relationship management (CRM) software, can be complex and expensive. The need for specialized IT support and customization can further increase costs, making transitioning to biometric solutions more challenging for retailers. Hence, the high implementation and maintenance costs of biometric systems 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 Acquisitions, and Partnerships & Collaborations.
Based on type, the market is divided into fingerprint recognition, facial recognition, iris recognition, voice recognition, vein recognition, and others. In 2023, the fingerprint recognition segment garnered 32% revenue share in the market. This segment's dominance can be attributed to the widespread adoption of fingerprint recognition technology across various retail applications.
On the basis of application, the market is segmented into payment authentication, customer identification and loyalty programs, access control and security, fraud detection and prevention, workforce management, and others. The payment authentication segment recorded 37% revenue share in the market in 2023. The increasing need for secure and efficient payment solutions drives this segment's prominence in the retail industry.
Based on deployment mode, the market is categorized into on-premises and cloud-based. The cloud-based segment witnessed 45% revenue share in the market in 2023. The growing adoption of cloud technology across various industries has influenced retailers to consider cloud-based biometric solutions for their flexibility, scalability, and cost-effectiveness. Cloud-based deployment enables retailers to access advanced biometric technologies without significant upfront investment in hardware and infrastructure.
By component, the market is divided into hardware, software, and services. The software segment procured 35% revenue share in the market in 2023. Biometric software solutions are crucial for processing, analyzing, and managing biometric data. The software's ability to integrate with various retail systems, provide real-time analytics, and ensure secure data handling has made it a vital component of biometric implementations.
Based on retail type, the market is divided into supermarkets & hypermarkets, specialty stores, department stores, e-commerce platforms, and others. In 2023, the department stores segment procured 13% revenue share in the market. Department stores, which offer various products across various categories, leverage biometric technologies to enhance their security measures and provide personalized customer service.
Free Valuable Insights: Global Retail Biometrics Market size to reach USD 40.0 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the Asia Pacific region generated 28% revenue share in the market. The rapid economic growth, increasing disposable income, and expanding retail sector in countries like China, India, and Japan have fuelled the demand for advanced biometric solutions.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 4.6 Billion |
| Market size forecast in 2031 | USD 40.0 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 31.7% from 2024 to 2031 |
| Number of Pages | 361 |
| Tables | 590 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Deployment Mode, Type, Component, Application, Retail Type, Region |
| Country scope |
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| Companies Included | Cognitec Systems GmbH (Salto Systems, S.L.), IDEMIA SAS (Advent International, Inc.), NEC Corporation, Fujitsu Limited, Thales Group S.A., BIO-key International, Inc., Anviz Global Inc., HID Global Corporation (Assa Abloy AB), M2SYS Technology, Inc., and Fingerprint Cards AB |
By Deployment Mode
By Type
By Component
By Application
By Retail Type
By Geography
This Market size is expected to reach $40.0 Billion by 2031.
Rising demand for enhanced security measures in retail environments are driving the Market in coming years, however, High implementation and maintenance costs associated with biometric systems restraints the growth of the Market.
Cognitec Systems GmbH (Salto Systems, S.L.), IDEMIA SAS (Advent International, Inc.), NEC Corporation, Fujitsu Limited, Thales Group S.A., BIO-key International, Inc., Anviz Global Inc., HID Global Corporation (Assa Abloy AB), M2SYS Technology, Inc., and Fingerprint Cards AB
The expected CAGR of this Market is 31.7% from 2024 to 2031.
The On-Premises segment is leading the Market by Deployment Mode in 2023; thereby, achieving a market value of $21.5 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 $9.8 billion by 2031.
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