Biometrics research notes: banking, systems, Asian retail and smart tickets
Biometrics systems will generate over $65B by 2024, according to new research, with growth in different areas for different regions. Signs are also positive for the industry in banking and securities, Asian retail, and smart ticketing, with significant investments anticipated in each.
The drive to eliminate passwords is a major motivation behind 83 percent of global CIOs in the banking and securities sector planning to invest as much or more in biometrics over the next two years, according to the latest report from Gartner, Live Mint reports.
Seven out of ten financial services firms in India have already experimented with or deployed biometrics, and biometric technology will impact up to 20 percent of banking organizations in India in the next two to five years, the research firm’s new CIO survey shows.
Total IT spending in the sector will grow nine percent to reach $20 billion in 2020, with significant investment in emerging digital technologies, including blockchain and artificial intelligence. AI and machine learning were identified as the top game-changing technology by Gartner CIO survey respondents, followed by data analytics.
“CIOs in this sector continue to adopt digital technologies that will improve existing products and services. Technologies such as biometric authentication, machine learning, chatbots are increasingly preferred by CIOs to deliver an enhanced user experience and enable digitalization of the sector,” says Gartner Senior Research Director Ali Merji.
Biometrics use in India is particularly boosted by Aadhaar.
The global market for biometric systems will grow form an estimated $33 billion in 2019 to $65.3 billion in 2024, a CAGR of 14.6 percent.
The “Biometric System Market by Authentication Type (Single-Factor: Fingerprint, Iris, Palm Print, Face, Voice; Multi-Factor), Offering (Hardware, Software), Functionality (Contact, Noncontact, Combined), End User, and Region – Global Forecast to 2024” report shows growth in multi-factor and multi-modal authentication methods, based on the rapid development of biometric smart cards for payment and identification applications and the need to reduce enrollment and capture failures, respectively.
Contact-based systems are expected to have the largest market share during the forecast period, while the market share of the “rest of the world” region will grow at the fastest rate, with deployments at border crossings and for banking and financial services.
The report considers the market by authentication, offering, and functionality type, end user group, and region.
Personalization and facial recognition are among the areas where AI implementations in customer-facing applications are benefiting retailers in Asia, 65 percent of whom use Ai for marketing, and 60 percent of whom use the technology for online operations, according to research from Tofugear and reported by WARC.
More than half of retailers in Asia plan to invest in ecommerce platforms (53 percent) and point of sale (POS) solutions (51 percent) this year. For AI investments, machine learning (55 percent) and chatbots (54 percent) are both ahead of image and video analytics (45 percent).
Interestingly only 36 percent believe they set the standard for digital transformation, compared to 51 percent who say their competitors do so.
Smart ticketing is expected to grow in global revenue by a CAGR of 13 percent, or $9.77 billion, from 2019 to 2024, as the concept of biometric ticketing has a positive impact on the market, according to a new report from Technavio.
“Smart Ticketing Market by Application and Geography – Forecast and Analysis 2020-2024” shows growth will be driven in large part by an increase in global travel and tourism.