The global contactless biometrics technology market size was valued at US$ 6.95 billion in 2021 and is expected to reach over US$ 37.10 billion by 2030, poised to grow at a notable CAGR of 20.5% from 2021 to 2030.
Contactless biometrics technology offers a unique and safe scanning method that prioritizes hygiene and simplicity and this factor will drive the market growth. Additionally, the increase in demand for high security level in public, commercial and private sector is anticipated to drive the market growth. The surge in demand for Automatic Identification and Data Capture (AIDC) technology in diverse industry verticals such as BFSI, e-commerce and retail industry, border control applications and many others will contribute significantly towards the market growth.
Furthermore, the surge in demand for smartphones with face recognition software is estimated to foster the market growth. In addition, there has been an increase in the use of contactless biometrics in financial institutions that ensures the secured financial transactions are the attribute that will fuel the market growth. For instance, On 29th September 2021, Fingerprint Cards AB announced that it has collaborated with Infineon Technologies AG, the world leader in security controllers for contactless payments to enable biometric authentication that will be carried out fully within Infineon's Secure Element, making it cheaper and easier for card companies to build and use biometric payment cards on a large scale.
The growth in the number of air travelers in the recent years has increase and this has generated huge demand for Contactless biometrics to be used as advanced identification solutions at airport facilities. This factor drives the growth of the Contactless Biometrics Technology Market. The emergence of computerized database and digitization has increased the industrial adoption of contactless biometrics across the globe and this factor fuels the market growth.
Based on the Component, the Contactless Biometrics Technology Market is divided into Hardware, Software and Service.
The software segment leads the market with more than 44.5% in 2020 and is estimated to grow significantly during the forecast period. The software section of the market is expected to be fueled by an increase in the usage of Artificial Intelligence (AI), cloud-based services, and Machine Learning (ML) for contactless biometrics solutions.
Based on the End-use industry verticals, the Contactless Biometrics Technology Market is divided into Government, Banking & Finance, Consumer Electronics, Healthcare, Transport & Logistics, Defense & Security and Others. The Government end use segment leads the market contributing more than 30% of revenue share in 2020 and is expected to grow significantly during the forecast period. In order to minimize the criminal activities, the Governments across the globe adopted using the contactless biometrics technology. This factor will contribute significantly towards the market growth.
The healthcare end use segment also leads the market contributing more than 27% of revenue share in 2020 and is anticipated to grow significantly during the forecast period owing to the rapid technological advancements and AI-powered face and iris identification system used in the hospitals to trace patients without using physical tracking devices. Moreover, the development of real-time emotion detection system, that is an application of face recognition in healthcare helps in detecting the emotions of the patients during their stay in the healthcare facility. This assist the doctors to determine the patient’s feelings and also in identifying the area where more attention needs to be given. All these attributes are expected to drive the growth of the Contactless Biometrics Technology Market.
Based on the Application, the Contactless Biometrics Technology Market is divided Face, Fingerprint, Hand Geometry, Iris, Voice and Others. The iris application segment is expected to lead the Contactless Biometrics Technology Market during the forecast period owing to its accuracy, fast, and convenient scanning method. Payroll frauds such as buddy punching are also eliminated. The rise in the use of iris biometrics systems within organizations to process payroll and compute other benefits such as health, disability, and vacation is predicted to drive the iris application segment's growth.
The emergence of COVID-19 across the globe has compelled the people to avoid physical contact with common surfaces and this has accelerated the demand for iris biometrics in the market. Iris identification is used in national and civil ID schemes, access control, time attendance, and a variety of other applications. In addition, the Contactless Biometrics Technology Market is expected to rise due to the increasing usage of iris technology by state and local authorities for border security.
North America leads the market contributing revenue share of more than 31% in 2020 and will continue to grow significantly over the forecast period owing to the presence of major market players such as M2SYS Technology, HID Global, nVIAsoft Corporation and BioConnect in this region. The surge in payment solution providers are requesting contactless biometrics solution s that ensures safe transaction to the customers is expected to fuel the growth of the Contactless Biometrics Technology Market in this region.
The increase in Contactless biometrics systems being adopted in defense and government application accelerates the market growth in North America. Additionally, the Government regulations to install the contactless biometrics solutions to track the travelers and to boost the security at airport are anticipated to boost the market growth. For instance, on 15th July 2021, HID Global, a worldwide leader in trusted identity solutions, announced that the Arcos Bosques Torre 1 (Tower 1) has deployed its access control solutions to increase the security and better manage visitor entry. It is located in the Bosques de las Lomas neighborhood of Mexico City, the center is comprised of six buildings. The complex included two skyscrapers and is home to high-profile law firms, mining, industrial, media and technology companies, and one of the city’s most recognized shopping centers.
Key Companies Profiled
The global contactless biometrics technology Market is characterized by the presence of various small and big players. The major market players include Touchless Biometric Systems AG, Fingerprint Cards AB, IDEMIA, nViaSoft, Fujitsu Limited, NEC Corporation, Gemalto N.V., Aware Inc., HID Global and M2SYS Technology. As the market is competitive in nature, the players are indulged in rapid adoption of advanced technologies to improve the efficiency and in raising their competitive share by means of strategic initiatives like mergers, new product and acquisitions.
Scope of the Contactless Biometrics Technology Market Report
|Market Size||USD 21.20 Billion by 2030|
|Growth Rate||CAGR of 20.5% From 2021 to 2030|
|Largest Market||North America|
|Fastest Growing Market||Asia Pacific|
|Forecast Period||2021 to 2030|
|Companies Mentioned||Touchless Biometric Systems AG, Fingerprint Cards AB, IDEMIA, nViaSoft, Fujitsu Limited, NEC Corporation, Gemalto N.V., Aware Inc., HID Global, M2SYS Technology|
Segments Covered in the Report
By End use Industry
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