Global biometrics market forecast to surpass $82B by 2027 despite pandemic
The global biometrics market is forecast to reach $82.8 billion by 2027, growing at a 19.3 percent CAGR from an estimated $24.1 billion in 2020, according to a report from Global Industry Analysts.
The 176-page ‘Biometrics – Global Market Trajectory & Analytics’ report says non-AFIS systems will reach $34.7 billion, but AFIS systems are also expected to grow at a 20.6 percent CAGR over the next seven years.
The U.S. market is estimated to be worth $7.1 billion this year, half of the market size China is expected to represent in 2027 after growing at an 18.5 percent CAGR. The Asia-Pacific region not including China is expected to be worth $10.1 billion by 2027.
Iris recognition will grow at an 18.8 percent CAGR, according to GIA, and reach $10.3 billion by the end of the forecast period.
The impact of the pandemic is also considered in the report.
The mobile biometrics market is expected to be neutrally-impacted by COVID-19, with an increasing number of mobile payment transactions as banks rapidly digitize, a new Technavio report suggests.
The ‘Mobile Biometrics Market by Technology, Application, and Geography – Forecast and Analysis 2020-2024’ report explores three different forecast scenarios for the impact of COVID-19, as well as the market ecosystem, five forces analysis, and the applications, technologies and geographies that make up the market over 120 pages.
Market growth will decelerate by 19 percent over the forecast period, but the mobile biometrics market will still grow by $15.63 billion overall, a 21.53 percent CAGR, according to Technavio. Of that growth, 43 percent will come from the APAC region.
The global market for voice biometrics will grow by $2.6 billion, or 19 percent CAGR from 2020 to 2024, driven in large part by law enforcement, BFSI and health care applications, Technavio writes in another report.
The ‘Global Voice Recognition Biometrics Market 2020-2024’ report analyzes trends, growth drivers and challenges, as well as 25 vendors over 120 pages. The market is also segmented according to end-users and geography.
Automatic identification and capture
The new ‘Automatic Identification and Data Capture Market…’ report from MarketsandMarkets forecasts a leap from $40.1 billion in 2020 to $80.3 billion in 2025, a 14.9 percent CAGR for an industry that includes barcoding solutions, wearables, and radio frequency identification (RFID) solutions.
Key factors include the continuing growth of ecommerce, the use of smartphones for QR code scanning and image recognition, and rising adoption of AIDC solutions for minimizing queuing and transaction time. Increased adoption by financial institutions to provide data privacy-preserving security is also expected to impact the market.
The growth is forecast despite the market being adversely impacted by COVID-19, according to the 253-page report.
Biometric systems are considered as one product type within the market, along with barcodes, OCR systems, smart cards, and RFID products. As of 2019, biometrics held a relatively low share among these categories.
Government ID cards
COVID-19 has driven down the global market for government-issued smart ID cards by 11 percent, according to ABI Research.
Churn rates for passports have fallen by 50 to 60 percent from typical levels in some countries, and overall shipments of smart government ID credentials are expected to drop from 617.6 million last year to only 547.5 million in 2020. National ID issuance is expected to decline by 2.3 percent to 296 million units. E-passport issuance is expected to decrease by 34.9 percent, ABI predicts in its ‘Government and Healthcare ID Cards’ market report.
Programs in Philippines, Ghana, Uganda, Kenya, and Nigeria have been delayed until 2021. Existing government programs have also shifted in many cases to allow more time for implementation, with the Real ID deadline in the U.S. just one example.
Identity and access management
The global identity and access management market will be worth $24.1 billion by 2025 according to another new report from MarketsandMarkets, with growth driven by increasing funding from venture capital firms and growing investments in IAM technology.
The market was estimated at $12.3 billion in 2020, and is expected to grow at a 14.5 percent CAGR.
The ‘Identity and Access Management Market’ report breaks down the market by component and solution type, organization size, deployment mode, industry vertical and region. Support and maintenance services are expected to be the segment with the highest growth rate, along with healthcare applications, while North America will hold the largest market share.