Advances in contactless biometrics, digital ID transforming security industry: HID
Supply chain issues, advances in contactless biometrics, and the accelerated adoption of digital ID are among the key factors transforming the security industry, according to HID’s 2023 State of Security and Identity Industry Report.
HID surveyed more than 2700 partners and end users, to get input on “the most pressing topics facing the industry, in pursuit of collective and continuous improvement.”
Unsurprisingly, in a post-pandemic economy, the number one factor facing the security sector was disruptions in the supply chain. Three quarters of respondents said they had been impacted by supply chain issues in 2022, and half feel unsure things will improve in 2023.
The report makes strong statements about digital identity and contactless biometrics. “In the modern world, trusted ID is increasingly a digital phenomenon,” it says, “from passports to student IDs and corporate credentials. This is changing the way security operates. A digital ID is an extension of physical identity and offers a new way to securely verify who we are.”
COVID-19 was also a factor in driving adoption of digital IDs, with an increased demand for contactless transactions. Mobile access, improved digital infrastructure, and the use of mobile wallet apps were also drivers. With Amazon, Google and PayPal moving toward digital wallets, growth is expected to increase to 52.5 percent of transaction value in 2025.
Biometrics will address fraud, become standard
Fingerprint biometrics, facial recognition and other biometric indicators will “become the standard of today’s cloud-based ID management systems,” the report says, forecasting ample economic growth.
“The worldwide market for biometrics is expected to reach $136.18 billion by 2031. And the global facial recognition market, valued at $3.83 billion in 2020, is predicted to reach $16.74 billion by 2030.”
Respondents said fraud and the vulnerability of traditional passwords were among their chief concerns and reasons for implementing biometrics.
Hybrid workplaces impact ID
HID’s report also identifies sustainability and hybrid workplaces as factors shaping the security landscape. In the case of the latter, work-from-home or hybrid models have meant higher demand for reliable cloud-based access management. “Identity-as-a-service (IDaaS) is quickly becoming the expectation,” it says.
“The identity access management (IAM) market is expected to grow at a 22.7 percent compound annual growth rate to $41.9 billion by the end of 2031. As such, SaaS-delivered identities represent huge opportunities in the security industry.”