February 3, 2016 -
The biometrics-as-a-service market is expected to grow at a compound annual growth rate (CAGR) of close to 13 percent until 2020, according to a recent market research report released by Technavio.
The market size has been projected based on revenues generated from previous sales of biometrics-as-a-service, which includes cloud-based biometrics solutions and third-party managed solutions.
“Due to the current lack of awareness about biometrics-as-a-service, the market is still in its nascent stage,” said Amrita Choudhury, lead industry analyst for Technavio who monitors automation and identification systems. “Owing to these market conditions, the demand for biometrics-as-a-service is expected to grow moderately until 2020.”
With growing awareness, Technavio believes organizations in the U.S. and Canada will continue to be the leading adopters of biometrics-as-a-service until 2020 and aid market growth. The report however notes that the most promising growth markets for biometrics-as-a-service will be the Asian-Pacific region.
The biometrics-as-a-service market in the Asian-Pacific region is predicted to reach over US$2.22 million in 2020. The research study predicts that many small to mid-sized businesses in Asian-Pacific countries, such as Australia, will be at the forefront of adopting biometrics-as-a-service during the forecast period. Governments of other countries in the Asian-Pacific region are also likely to adopt biometrics-as-a-service for enhancing border control and maintaining homeland security.
The report also predicts accelerating growth in the Middle East and African markets.
“Biometrics-as-a-service provides pay-per-use solutions, which help end-users save costs significantly by reducing the cost of setting up an entire system and hiring professional experts,” said Choudhury.
Since governments in this region tend to spend less on IT than those in other regions, Technavio expects quicker adoption of these services, when compared to the establishment of in-house biometric systems.