CONTACTLESS BIOMETRICS TECHNOLOGY MARKET SIZE

Contactless Biometrics Technology Market size was valued at USD 20.4 billion in 2023 and is expected to grow at a CAGR of over 20% between 2024 and 2032.

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The market is expanding owing to the growing need for safe authentication techniques. A growing number of industries including banking, healthcare, and government are realizing the drawbacks and weaknesses of using passwords or PINs for traditional authentication.

The contactless biometrics technology market is also benefitting from developments in biometrics. Contactless biometric systems now have far higher accuracy, dependability, and efficiency owing to ongoing advancements in biometric algorithms, sensor technology, and Artificial Intelligence (AI). With increasing sophistication, biometric algorithms are now able to reliably identify and validate people using their distinct physiological or behavioral traits such as speech patterns, face features, or fingerprints.
In a similar vein, developments in sensor technology have led to the creation of more resilient and sensitive biometric sensors that can record accurate biometric data under a range of environmental circumstances. Additionally, by enabling adaptive learning and ongoing development based on data, the integration of AI and Machine Learning (ML) techniques improves the performance of contactless biometric systems.
For instance, in June 2023, DERMALOG identity Systems GmbH, a manufacturer of face, iris, and fingerprint identification technology, acquired JENETRIC GmbH, a provider of biometric identity technology. JENETRIC’s optical Thin-film Transistor (TFT) technology offers contactless fingerprint capture of superior quality.
Concerns about data security & privacy pose serious obstacles for the contactless biometrics technology market. Biometric information is private and sensitive, comprising distinct physiological or behavioral traits such as fingerprints, facial features, or iris patterns. As biometric data is extremely personal, there are greater risks of identity theft or privacy violations from any unauthorized use, access, or compromise of this data. It can be misused for financial fraud, identity theft, and other types of exploitation.

Furthermore, the growing usage of contactless biometric solutions in a variety of industries raises concerns around the openness of data collecting procedures, user permission procedures, and the potential for surveillance or tracking. As a result, ensuring robust security measures, implementing stringent data protection protocols, and complying with relevant privacy regulations are paramount for gaining user trust and acceptance of contactless biometrics technology. Addressing these privacy concerns is essential for fostering wide adoption and realizing the full potential of contactless biometrics in enhancing security and user experience across industries.

CONTACTLESS BIOMETRICS TECHNOLOGY MARKET TRENDS

The contactless biometrics technology industry is witnessing several significant trends that are shaping its evolution and driving innovation across industries. Firstly, multimodal biometric solutions—which include many biometric modalities such as fingerprint scanning, iris recognition, and facial recognition—are becoming increasingly popular as they improve accuracy, dependability, and security. Multimodal biometrics offer the advantages of various biometric features, reducing the drawbacks of single modalities and offering a more thorough and dependable identification procedure.

Secondly, the use of ML techniques and AI in contactless biometric systems is growing. AI-powered biometric systems enable adaptive learning, ongoing development, and dynamic modifications based on real-time data analysis and feedback. These developments improve contactless biometric systems’ functionality, effectiveness, and adaptability, allowing for more precise and trustworthy verification in a range of settings and situations.

The incorporation of contactless biometric technologies into wearable and mobile devices is another noteworthy trend. Users may now authenticate easily and conveniently owing to the extensive usage of wearable technology, tablets, and smartphones with biometric sensors. The increasing prevalence of mobile biometrics, such as fingerprint scanning and facial recognition, in consumer products is propelling contactless biometrics into the mainstream and changing user expectations regarding security and simplicity of identification.

CONTACTLESS BIOMETRICS TECHNOLOGY MARKET ANALYSIS

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Based on type, the contactless biometrics technology market is divided into face, fingerprint, palm, iris, voice, and others. The face segment held the global market share of over 20% in 2032.

In the market for contactless biometrics technology, the face category is dominated by facial recognition systems, which use distinctive facial traits to authenticate and validate identities. This section covers the creation, implementation, and use of software programs, cameras, and face recognition algorithms intended to record, examine, and contrast facial patterns to verify an individual’s identification.

Facial recognition technology has been increasingly popular because of its high accuracy, non-intrusiveness, and versatility in a range of applications, such as customer verification, access control, and surveillance. Facial recognition systems can now reliably identify people in real-time even in difficult situations like changing lighting and facial expressions thanks to developments in artificial intelligence and machine learning.
Innovations in deep learning algorithms, infrared imaging, and 3D facial recognition are propelling the face segment’s expansion throughout various industries and sectors. Facial recognition systems are also being created with built-in privacy features and compliance mechanisms to ensure responsible and ethical use of biometric data, as privacy concerns and legal obligations grow. All things considered, the face sector is crucial to the contactless biometrics technology market because it provides reliable, practical, and effective identity verification solutions for a variety of uses.

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Based on offerings, the market is divided into hardware, software, and services. The software segment is expected to register a CAGR of over 20% during the forecast period.

The software segment offers a variety of applications and solutions to make contactless biometric system development, implementation, and maintenance easier. Biometric recognition algorithms, middleware platforms, authentication software, and data management systems are important parts of the software market. Biometric data can be extracted, analyzed, and compared using algorithms for biometric recognition to effectively verify an individual’s identity. Middleware platforms facilitate smooth interoperability and connectivity by offering the tools and infrastructure needed to integrate biometric technologies into current applications and systems. To provide safe and convenient authentication experiences across a range of devices & situations, authentication software acts as an interface between biometric sensors and end-user apps.
Furthermore, data management systems are essential for safely processing, storing, and managing biometric data, ensuring adherence to privacy laws, and protecting sensitive data. With improvements in AI, ML, and cloud computing, the software market is still developing. This allows for the development of more complex and dependable contactless biometric solutions that cater to a wide range of applications and sectors.

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North America dominated the global contactless biometrics technology market in 2023, accounting for a share of over 35%. The North America market is expanding rapidly owing to the favorable environment for the adoption of contactless biometric solutions with its advanced technological infrastructure and high degree of digitalization across several industries. Also, as the number of data breaches and identity theft cases rise, there is a greater focus on security and identity verification in industries such as banking, healthcare, and government. Contactless biometrics provide a safe and practical method of authentication to tackle these concerns.

Additionally, the adoption of contactless biometric technology among consumers has accelerated due to the wide use of smartphones and wearable devices containing biometric sensors. Consumer devices are increasingly being equipped with mobile biometrics, such as facial recognition and fingerprint scanning, which is changing user expectations around the ease and security of login. To reduce physical touch and improve hygiene practices, the COVID-19 pandemic has also expedited the use of contactless technology such as biometrics.

The contactless biometrics technology market in the U.S., Japan, South Korea, and China is expanding significantly owing to several regionally specific variables. These solutions are in high demand in the U.S. across sectors, such as government, healthcare, and finance, due to a mature technology environment, strict security laws, and an increase in data breaches. Companies, such as Apple and Google, are setting the standard for the integration of biometric technology, and the country leads the world in technological innovation and R&D spending.

Japan is one of the countries where contactless biometrics technology is most widely used owing to its highly developed economy and commitment to technological advancement. The need for biometric solutions in healthcare and senior care applications is fueled by the country’s aging population and sophisticated healthcare system. Furthermore, the adoption of contactless biometric solutions is facilitated by Japan’s strict data protection regulations and emphasis on privacy & security, which guarantee compliance and foster consumer trust.

The contactless biometrics technology market is fueled by South Korea’s technologically advanced society and the country’s broad use of smartphones and other smart gadgets. Leading biometric technology innovators including South Korean firms, Samsung and LG are incorporating facial recognition and fingerprint scanning into their products. Furthermore, the government’s endeavors to encourage digitization and the development of smart cities expedite the acceptance of contactless biometrics across a range of applications such as public services, banking, and transportation.

For instance, in June 2024, Korean Digital Payment Solution Provider KONA I Co., Ltd. established a Japanese subsidiary. The company pioneers the digitization of Korea’s transportation card system and has launched Asia’s first global standard prepaid payment platform. It develops, manufactures, and provides IC cards, IC modules, metal cards, electronic cards, and prepaid card systems, which will become increasingly important in the future.

China is the largest biometric market in the world owing to its ambitions for digital transformation and rising urbanization. The country’s sizable population and expanding middle class offer promising prospects for the use of biometric technology in sectors such as public security, e-commerce, and banking. Chinese tech behemoths, such as Tencent, Alibaba, and Huawei, are making significant investments in biometric R&D, spurring innovation and domestic and international market expansion.

Overall, in the U.S., Japan, South Korea, and China, the contactless biometrics technology market is experiencing rapid growth driven by factors such as technological innovation, regulatory environment, consumer preferences, and government initiatives. As these regions continue to prioritize digitalization and security, the adoption of contactless biometric solutions is expected to further accelerate, reshaping the landscape of identity verification and authentication across various sectors.

CONTACTLESS BIOMETRICS TECHNOLOGY MARKET SHARE

IDEMIA and HID Global Corporation hold a market share of over 3% in the contactless biometrics technology industry. Leading the way in identification solutions and biometrics technology globally, IDEMIA is well-known for its cutting-edge contactless biometric solutions that improve security and user ease. The company offers a wide range of fingerprint scanning, iris recognition, and facial recognition biometric identification and authentication solutions. It caters to the government, banking, and transportation sectors, offering reliable and fast identification verification. IDEMIA prioritizes R&D, consistently improving its biometric algorithms and sensor technology to produce contactless biometric solutions that are accurate and dependable.

HID Global Corporation is a well-known company in the contactless biometrics technology sector, providing a wide range of biometric identification and authentication options. It caters to access control, identity verification, and secure transaction applications. The company specializes in fingerprint, facial, and iris recognition technology. Its products are widely utilized in sectors where strong security measures are crucial such as healthcare, finance, and government.

HID Global is renowned for its creative methodology, fusing cutting-edge biometric technologies with well-established identity management and security solutions. To fulfill the changing needs of its global clientele, HID Global provides scalable and efficient contactless biometric solutions that prioritize user convenience while adhering to strict security standards.

CONTACTLESS BIOMETRICS TECHNOLOGY MARKET COMPANIES

Major players operating in the contactless biometrics technology industry are

HID Global Corporation
IDEMIA
Aware Inc.
Fingerprint Cards AB
Fujitsu Limited
M2SYS Technology
NEC Corporation

CONTACTLESS BIOMETRICS TECHNOLOGY INDUSTRY NEWS

In January 2022, IDEMIA launched two new generations of contactless fingerprint terminals, MorphoWave XP & MorphoWave SP. Both versions are enabled with software integrations with access control platforms and physical integrations with leading gates/turnstiles manufacturers.
In August 2021, Fingerprint Cards AB collaborated with Seshaasai to develop, launch, market, and sell contactless biometric payment cards in India and APAC. The card will feature Fingerprints’ T-Shape module and software platform, which has ultra-low power consumption and is tailored to be integrated in payment cards using standard automated manufacturing processes.

THE CONTACTLESS BIOMETRICS TECHNOLOGY MARKET RESEARCH REPORT INCLUDES IN-DEPTH COVERAGE OF THE INDUSTRY WITH ESTIMATES & FORECASTS IN TERMS OF REVENUE (USD MILLION) FROM 2021 TO 2032, FOR THE FOLLOWING SEGMENTS

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Market, By Offerings

Hardware
Software
Services

Market, By Type

Face
Fingerprint
Palm
Iris
Voice
Others

Market, By Application

Access control and security
Identity verification and authentication
Payments and transactions
Surveillance and monitoring
Others

Market, By End-use Industry

Government
BFSI
Consumer electronics
Healthcare
Retail and e-commerce
Defense & security
Hospitality and tourism
Others