The Biometric System Market is expected to increase from USD 36.6 billion in 2020 to USD 68.6 billion in 2025, with a CAGR of 13.4 percent over the forecast period. The growing use of biometrics in consumer electronic devices for authentication and identification, the growing need for surveillance and security in light of the increased threat of terrorist attacks, and the rapid adoption of biometric technology in automotive applications are all driving the biometric system market forward.
Impact of COVID-19 on the Biometric System Market
The coronavirus will have an impact on worldwide biometric system supply, which will be largely determined by how the situation stabilises globally and when factories begin to operate at full capacity. The breakout of the COVID-19 pandemic has had the greatest impact on demand for contact-based biometric devices. Even after the pandemic has passed, demand for contact-based biometric devices is expected to plummet in order to prevent the spread of the coronavirus. Similarly, demand for contactless biometric technologies like face recognition, iris recognition, and voice recognition is likely to increase following COVID-19.
Market Trends for Biometric Systems
Biometric technology is becoming more widely used in businesses to offer increased convenience, secure identity management, and superior human resource management.
When compared to traditional security systems that rely on passwords, PINs, or smart cards, biometric systems are thought to be more rapid, convenient, and secure. International terrorism, organised crime, and illegal migration linked to identity theft and document fraud have all been facilitated by these systems. Furthermore, biometric systems are simple to set up and do not require highly skilled skills to operate.
Constraints: Expensive deployment
When choosing and deploying a biometric system, cost is an important consideration. Multi-factor authentication is required for high-security applications, while single-factor biometric solutions are required for low-security applications. The type of sensor employed in the device may affect the cost of implementing multi-factor biometric applications. The high cost of biometric solution components, as well as the high cost of installation, limit the demand for biometric technology among private and public companies.
Biometric identification technology advancements provide opportunities.
In recent years, biometric solutions have seen tremendous technological advancements. Advances in sensing technology, as well as the ubiquitous usage of devices like computers and cellphones, have opened up new possibilities for capturing physiological and behavioural aspects of humans and analysing the data for biometric authentication. Machine learning and artificial intelligence technologies are introducing new options for identifying any odd behaviour intelligently and automatically, as well as providing an additional layer of authentication if necessary, to increase behavioural biometrics.
Concerns about data security and a lack of technological expertise are among the challenges.
Many people are hesitant to use biometrics technologies because to concerns about hygiene and a lack of understanding of the system. Inadequate awareness of how biometric systems work, as well as the potential of data leak, causes anxiety among users, influencing their acceptance and adoption of biometric systems. The accuracy of a biometrics system and its subsequent adoption can be harmed by a lack of collaboration or even hostility to using these technologies. The absence of technological know-how and public awareness are seen as major obstacles to the introduction of biometric systems.
Insights into End-Use
The biometrics technology market is divided into government, banking and finance, consumer electronics, healthcare, transportation/logistics, defence & security, and others based on end use. During the projected period, the government sector is expected to hold a significant proportion of the market. Identity theft and illegal migration are two concerns that the technology is commonly utilised to combat. Throughout the forecast period, demand in the transportation/logistics and defence & security categories is expected to remain high.
Biometrics technology adoption can be expensive for any business, offering a hindrance to the market’s growth. However, as technology improves and more people use these technologies, the overall cost of implementation may decrease. Due to increasing technology improvements, the healthcare segment is expected to grow at a significant rate over the same time period. Aside from that, biometrics systems are being used to preserve patient privacy as well as to prevent bogus insurance claims and other types of healthcare fraud.