Tractica report projects global biometrics market revenue to hit $15.1B by 2025
Tractica has published a new research report that finds that the biometrics market has reached a tipping point, forecasting that the annual global biometrics hardware and software revenue will grow from $2.4 billion in 2016 to $15.1 billion by 2025.
During that 10-year forecast period, Tractica anticipates that the global biometrics market revenue will reach an cumulative total $69.8 billion.
The “Biometrics Market Forecasts” report states that the biometrics market has been driven largely by the convergence of firms’ move to better authenticate or identify users and users’ dissatisfaction for knowledge-based systems, such as password and security questions.
“Growth in the biometrics market is driven by use cases,” Tractica principal analyst Keith Kirkpatrick said. “While there has traditionally been a demarcation between consumer and enterprise use cases, this dynamic is starting to change, as seen in financial institutions’ use of biometrics to allow consumer and corporate users to authenticate to online banking systems with their voices or with their eyes, in place of keying a personal identification number, to name just one example.”
He added that fingerprint recognition, voice recognition, iris recognition, and facial recognition will be the biometric modalities representing the largest revenue segments.
In addition, the largest application markets for these biometric technologies will be consumer, finance, healthcare, government, and enterprise.
The market is driven by use cases, with consumer-facing use cases encompassing authentication, and identification uses being divided into the enterprise or government segments.
However, the report explains that this dynamic is slowly shifting as financial institutions are increasing their use of biometric technologies to allow consumer and corporate users to authenticate to online banking systems.
The report states that the Asia Pacific region will be the largest market as a result of its massive population, several strong or strongly growing economies, and a growing demand for biometric solutions to manage large initiatives, such as national ID programs.
The 20-page report is based on a comprehensive analysis of 142 biometrics use cases, each of which includes business function, industry, and modality.
The report further analyzes each use case by world region and is based on organization for economic cooperation and development (OECD) income levels for each country in a given region.