International. The biometric systems market is expected to grow from US$36.6 billion in 2020 to US$68.6 billion by 2025, with an estimated CAGR growth of 13.4%, marketsandmarkets' analysis reveals.
The major factors cited by researchers as market drivers include the increasing use of biometrics in consumer electronic devices for authentication and identification purposes, the growing need for surveillance and security with the increased threat of terrorist attacks, and the increasing adoption of biometric technology in automotive applications and, of course, the impact of Covid-19.
The growing demand for multi-factor authentication means that this subsector is projected to show the fastest growth during the period. This is attributed to the growing need for additional security against the theft of sensitive data, especially in the government and defense verticals. The combination of several identifiers adds an additional level of protection, making the system more effective, accurate, and reliable. In addition, a multimodal biometric system can reduce enrollment failure (FTE) and capture failure (FTC) rates. The rapid development of biometric smart cards for payment and identification purposes is expected to drive the growth of the multi-factor authentication segment.
Growth of hybrid systems
Hybrid biometric systems are predicted to grow to the highest level of CAGR, because they offer greater security against spoofing or forgery through multi-level authentication. In addition, many countries, such as the US, India and the UK, have adopted multimodal authentication systems (a combination of two or three biometric modalities, using contact-based or contactless systems) for security checkpoints at countries' borders due to the increased threat of terrorist attacks.
Middle East National Identification Projects
The Middle East, Africa and South America are forecast to show the highest growth in geographical terms. The Middle East is one of the fastest growing economies in the world in terms of infrastructure, electronics industry and other technological advances. The growth of the biometric systems market in the Middle East and Africa can be attributed to its unique geographical location, airport hubs, and increasing passenger traffic.
The government sector is the main investor in the biometric systems market in the Middle East, mainly for national identification projects; the banking sector is another major contributor to market growth in the region. The adoption of biometric technology in other sectors such as residential and commercial security, healthcare, and travel and immigration is comparatively low, but is expected to increase in the coming years.
This latest report from Marketsandmarkets cites some of the major companies involved in the development and supply of biometric systems, including Thales, Safran, NEC, Assa Abloy, and Fujitsu.
