Biometrics market to reach $136B by 2031…if mobile segment doesn’t top $184B first
The global biometrics market is showing no signs of slowing down, and a new report from Transparency Market Research forecasts a 13.3 percent compound annual growth rate over the next decade, reaching $136.18 billion by 2031.
The growth is expected to be driven by steady adoption beyond its historical core market of law enforcement, with the banking, insurance and financial services, healthcare, military and automotive sectors using biometrics for identification or authentication. Government investment is also on the rise.
Investment has been going towards voice and face biometrics to support digital transformation, according to TMR’s analysis. Integrations with AI, such as in the healthcare industry, are also opening up new applications. Voice growth is strong in business process outsourcing, which in this case mostly refers to call centers.
Continuous biometric authentication, particularly within the enterprise space, is also expected to boost the market.
The Asia-Pacific region holds the largest share of the market, and will continue to do so throughout the forecast period, TMR says.
Contactless, cloud, mobile and multi-factor biometrics set for rapid growth
A report by Prescient & Strategic Intelligence forecasts contactless biometrics to make up a $59.5 billion market opportunity by 2030, on 14.6 percent CAGR.
Access control systems are among the main expected growth areas for contactless biometrics, but mobile onboarding and KYC, along with law enforcement and forensic applications, are also expected to grow substantially.
Facial recognition has the largest market share among modalities, and software makes up more of the market than hardware or services.
A separate study from TMR predicts that facial recognition will be a $20.5 billion market by 2031, and like P&S sees smartphone applications as a big growth driver.
The 16.8 percent CAGR forecast in that report slightly beats out the 16.4 percent CAGR that Technavio sees in iris recognition from 2021 to 2025. That growth is predicted to add $1.33 billion to the global iris recognition market.
Mobile biometrics are analyzed as a group in an Allied Market Research report, which says the market will jump from $24.6 billion in 2021 to $184.8 billion by 2031, for a whopping 22.5 percent CAGR.
This forecast stands out for predicting a higher number for the mobile market in 2031 than TMR sees for the total biometrics market the same year.
Biometrics-as-a-Service will be worth $3.9 billion by 2026, according to StrategyR, at 18.7 percent CAGR.
Multi-factor authentication, including biometric and non-biometric methods, will be worth $26.7 billion by 2027, according to a new research report from MarketsandMarkets.