Market Overview
The Global
Contactless Biometrics Technology Market is expected to reach a value of
USD 15.2 billion in 2023, and it is further anticipated to reach a market value of
USD 71.3 billion by 2032 at a
CAGR of 18.8%. The market has seen significant growth over the past few years and is predicted to grow significantly during the forecasted period as well.
Contactless biometrics technology includes capturing & securely storing an individual's distinctive physical traits within a database, which allows identification by comparing the stored characteristics with on-time data obtained through a handheld scanner. The core principle of contactless biometrics joints on the uniqueness of each person's physical attributes, making duplication or forgery virtually impossible. Its attributes include fingerprints, hand geometry, iris patterns, & facial recognition, each offering varying levels of security & authentication precision.
Contactless Biometrics Technology Market is quickly expanding in response to an increased need for secure, hygienic and efficient identification systems. Banking, healthcare and transportation sectors have seen greater adoption of contactless biometric technology to increase user experiences while simultaneously increasing security measures. Technologies like facial recognition, iris scanning and touchless fingerprint sensors are becoming more mainstream and providing improved experiences while increasing security measures.
Recent events demonstrate how biometric technology can be integrated into smart cities, airports and public services to increase efficiency and safety. Both governments and enterprises alike are using contactless biometric systems for access control, border security management and workforce management - not to mention creating secure ecosystems.
Contactless Biometrics Technology has seen widespread use across industries, with facial recognition accounting for more than 50% of global applications. Airports have made contactless biometric systems part of their passenger processing, processing millions every year with over 75% using such systems for faster and secure identity verification.
Banks and financial institutions are rapidly adopting contactless biometrics; over 60% use them for digital onboarding, fraud prevention, healthcare patient identification and data access purposes; while smartphone penetration has further increased this adoption with over 85% offering contactless authentication capabilities onboard now.
Market Dynamic
The global contactless biometrics market is experiencing significant growth owing to the increase in adoption of contactless devices. Various banks have introduced applications that include touchless authentication systems, using technologies like voice recognition & voice data analysis to securely identify customers in telephone banking applications. Major financial institutions like Santander, Barclays, HSBC, & digital bank Atom are actively developing similar applications to expedite customer authentication.
However, the market does face challenges, majorly the cost associated with implementing contactless biometrics systems, which includes expenses related to hardware, software, & ongoing maintenance, which can act as a substantial barrier to the global contactless biometrics technology market's expansion.
Research Scope and Analysis
By Component
The market components include hardware, software, and services of which the market is primarily led by the software segment in 2023, and this dominance is expected to persist throughout the forecast period. The growth in adoption of cloud-based services,
Artificial Intelligence, &
Machine Learning within contactless biometrics solutions is driving the demand for software, which plays a critical role in improving the compatibility of devices for different applications. The growing need for rapid & secure access controls, efficient border crossings, queue-free passenger verifications, and quick individual identification for growing convenience & security is driving the market demand.
Manufacturers are actively developing advanced contactless biometric sensor systems using rapid software algorithms & machine-learning techniques to ensure fast & secure identity verifications. Software updates allow users to integrate the latest features, while e-commerce companies like Amazon are also creating image recognition software to better their user experiences, exemplified by Amazon Rekognition's capabilities in detecting faces, objects, & scenes for photo organization & filtering.
By Application
As an application, the face biometrics technology segment dominates the global market in 2023, with facial recognition technology playing a major role in security & access control across both public & private sectors, which extends to applications in government facilities, airports, & private organizations for authentication & surveillance, ensuring strong market presence. In addition, the iris technology segment is anticipated to have significant growth in the forecast period owing to its speed, accuracy, & convenience, efficiently curbing issues like payroll fraud, like buddy punching, as the rising demand for iris biometrics within organizations to streamline payroll processes & manage various benefits, like health, disability, and vacation, is expected to fuel the growth of this segment.
Also, the global response to the COVID-19 pandemic in the recent past, which led to its emphasis on reducing physical contact with shared surfaces, has further driven the adoption of iris identification technology, which offers secure authentication solutions, facilitating national & civil ID programs, access control, time attendance, & other applications. In addition, state & local agencies highly turn to iris technology to enhance border security, contributing to the overall growth trajectory of the segment.
By End User
The government sector maintains its prominent position as the dominant force in the Contactless Biometrics Technology Market in 2023 and is expected to persist in the coming future, as it entails the application of contactless
biometric systems by several governmental entities for diverse purposes, focused on enhancing security, streamlining processes, & improving overall operational efficiency. In addition, contactless biometrics technologies like facial recognition & iris scanning play important roles at border control points & immigration checkpoints, ensuring traveler identity verification & the detection of fraudulent documents.
Further, the healthcare sector is anticipated to have significant growth during the forecast period, as the fast evolution of technology & the introduction of AI-powered face & iris identification systems allow healthcare facilities to track patients without the need for physical tracking devices. In addition, the emergence of real-time emotion detection, a face-to-face recognition in healthcare, is gaining traction, as it is employed to gauge patient emotions during their hospital stay, providing valuable insights into their well-being and aiding in identifying areas where patients require additional attention, especially when in pain.
The Contactless Biometrics Technology Market Report is segmented on the basis of the following
By Component
- Hardware
- Software
- Services
By Application
- Face
- Fingerprint
- Iris
- Voice
- Hand Geometry
- Others
By End User
- Government
- Healthcare
- BFSI
- Consumer Electronics
- Defense & Security
- Transport & Logistics
- Others
Regional Analysis
In 2023, North America stands as the major driving force in the contactless biometrics technology market,
holding a substantial 33.0% market share, which can be attributed to the region's strong presence of technology providers. Moreover, the increasing demand for contactless biometrics solutions, mainly from payment solution providers focusing on enhancing transaction security, is a key driver of regional growth. The adoption of contactless biometrics in defense & government applications further contributes to the market's growth in North America. Government initiatives, like the implementation of facial recognition & fingerprint biometrics at Canadian airports, illustrate the region's commitment to enhancing traveler clearance procedures & improving airport security, highlighting the strong regional demand.
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The global contactless biometrics technology market is highly competitive, dominated by a few key players who hold significant market share. The main emphasis within the market rotates around innovation & strategic collaboration among these key industry leaders. These companies are constantly looking to develop new & advanced products while also working together to shape the future of the contactless biometrics technology landscape, ensuring that the industry remains dynamic & responsive to changing needs & challenges.
In January 2022, IDEMIA introduced two new-gen contactless fingerprint terminals, MorphoWave XP & MorphoWave SP, which are equipped with software integration capabilities, allowing seamless compatibility with different access control platforms. In addition, they feature physical integration options with prominent gate & access manufacturers, improving their adaptability & usage for secure access control systems. IDEMIA's innovation in these products provides improved & flexible solutions for biometric access control needs.
Some of the prominent players in the global Contactless Biometrics Technology Market are
- IDEMIA
- Thales
- NEC
- ASSA Abloy
- Safran
- Aware Inc
- Fingerprint Cards
- nViaSoft
- Touchless Biometric Systems
- HID Global
- Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global Contactless Biometrics Technology Market
The COVID-19 pandemic increased the adoption of contactless biometrics technology as a safer & more hygienic means of authentication, driving market growth. Businesses and institutions sought touchless solutions to reduce physical contact and improve security, with applications in access control, payment systems, & healthcare. However, the economic recession caused by the pandemic led to budget constraints, impacting investment in technology. The market's resilience was driven by the growing demand for touchless solutions, though at a slower pace owing to financial constraints. In the long term, the global contactless biometrics technology market is anticipated to rebound & continue its growth trajectory as the world transitions to a post-pandemic era with a growth emphasis on security & convenience.
Report Details
| Report Characteristics |
| Market Size (2023) |
USD 15.2 Bn |
| Forecast Value (2032) |
USD 71.3 Bn |
| CAGR (2023-2032) |
18.8% |
| Historical Data |
2017 - 2022 |
| Forecast Data |
2023 - 2032 |
| Base Year |
2022 |
| Estimate Year |
2023 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Component (Hardware, Software, and Services),
By Application (Face, Fingerprint, Iris, Voice, Hand
Geometry, and Others), By End User (Government,
Healthcare, BFSI, Consumer Electronics, Defense &
Security, Transport & Logistics, and Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
IDEMIA, Thales, NEC, ASSA Abloy, Safran, Aware Inc,
Fingerprint Cards, nViaSoft, Touchless Biometric
Systems, HID Global, and Other Key Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Contactless Biometrics Technology Market size is estimated to have a value of USD 15.2
billion in 2023 and is expected to reach USD 71.3 billion by the end of 2032.
North America has the largest market share for the Global Contactless Biometrics Technology Market
with a share of about 33.0% in 2023.
Some of the major key players in the Global Contactless Biometrics Technology Market are IDEMIA,
Thales, NEC, and many others.
The market is growing at a CAGR of 18.8 percent over the forecasted period.