Vein Recognition Biometrics in BFSI Market Size, Share and Trends 2026 to 2035

Revenue, 2025

USD 1.60 Bn

Forecast Year, 2035

USD 5.55 Bn

CAGR, 2026 - 2035

13.25%

Report Coverage

Global

What is Vein Recognition Biometrics in BFSI Market Size in 2026?

The global vein recognition biometrics in BFSI market size was calculated at USD 1.60 billion in 2025 and is predicted to increase from USD 1.81 billion in 2026 to approximately USD 5.55 billion by 2035, expanding at a CAGR of 13.25% from 2026 to 2035.The market is majorly driven by growing investments by BFSI companies to deploy advanced security solutions, coupled with technological advancements in software development.

Key Takeaways

• North America led the market in 2025.
• Asia Pacific is expected to grow at the fastest CAGR during the forecast period.
• By component, the hardware segment held the largest share of the market in 2025.
• By component, the software segment is expected to expand at the fastest CAGR during the forecast period.
• By application, the authentication segment held the largest share of the market in 2025.
• By application, the fraud detection segment is expected to grow at a notable CAGR between 2026 and 2035.
• By end-user, the banks segment held the largest share of the market in 2025.
• By end-user, the insurance companies segment is expected to grow at a significant CAGR during the forecast period.

Market Overview

The vein recognition biometrics in BFSI market is a prominent branch of the BFSI sector. This market deals with the development and distribution of vein recognition biometric solutions to the BFSI companies. Vein recognition biometrics in the BFSI sector refers to a high-security, contactless identification method that adopts near-infrared (NIR) light to scan the unique vascular patterns beneath a person's skin. The increasing cases of banking fraud, along with the rise in the number of NBFCs, have driven the market growth. Moreover, the rising need for secure, reliable, and fraud-resistant authentication solutions is expected to drive the market in the coming years.

Vein Recognition Biometrics in BFSI Market Trends

• Product Launches: Numerous biometric solution companies are engaged in launching a wide range of vein recognition solutions to gather maximum consumer attraction. For instance, in May 2025, IDCentriq launched ePalm Palm-Vein Identification Technology. This technology is widely accepted by the financial services sector in the Middle East region.
• Partnerships: Various cloud providers are partnering with biometrics companies to enhance the capabilities of palm vein readers around the world. For instance, in September 2025, Tencent Cloud partnered with Telkomsel Enterprise. This partnership aims at accelerating next-level biometric security in Indonesia.
• Government Initiatives: Governments of several countries are announcing various initiatives to digitalize the banking sector. For instance, in December 2025, the government of the Philippines collaborated with the Bangko Sentral ng Pilipinas. This collaboration aims to launch an initiative to integrate advanced technologies in the banks.
• Integration with Multi-Modal Biometric Systems: Vein recognition is increasingly being combined with fingerprint, facial, or iris recognition to enhance security and reduce fraud.
• Regulatory Compliance and Anti-Fraud Initiatives: Financial institutions are using vein biometrics to comply with KYC/AML regulations and reduce identity fraud, especially in high-risk transactions.

How is AI Impacting the Vein Recognition Biometrics in BFSI Market?

Artificial Intelligenceplays a major role in the development of the BFSI sector. AI enhances fraud detection and risk management capabilities, real-time transaction monitoring, improved consumer experience, and automates time-consuming activities. AI also finds application in vein recognition biometrics solutions, enhancing security, improving image processing capability, and reducing spoofing risks. AI also enables real-time processing for high-volume banking applications such as ATMs, mobile banking, and digital transactions. Additionally, predictive analytics and adaptive learning help systems detect anomalies, prevent fraud, and continuously improve performance, making vein recognition a more robust and scalable solution for financial institutions.

• In May 2025, Facephi launched an AI-based biometric identity suite on the AWS Marketplace. This suite is designed to detect money mule activity in the banking sector.

Market Scope

Segment Insights

Component Insights

Why Did the Hardware Segment Dominate the Vein Recognition Biometrics in BFSI Market?

The hardware segment dominated the market with the largest share in 2025. This is due to the increased usage of high-quality biometric sensors in the banking sector to improve security. Financial institutions prioritize durable and secure hardware devices for ATMs, point-of-sale systems, and access control to ensure minimal errors and prevent fraud. Additionally, the adoption of dedicated vein scanners and biometric terminals provides faster processing, enhanced security, and seamless integration with existing banking infrastructure. The upfront investment in robust hardware continues to drive the segment's leading market share, as institutions emphasize long-term reliability and operational efficiency.

The software segment is expected to grow at the fastest CAGR during the forecast period. This is mainly due increasing demand for advanced algorithms that enhance accuracy, speed, and fraud detection capabilities. AI- and machine learning-powered software enables real-time vein pattern analysis, reduces false positives and negatives, and supports seamless integration with mobile banking, ATMs, and digital payment platforms. Software solutions offer scalability, remote updates, and analytics-driven insights, allowing banks to optimize security protocols and adapt to evolving threats without major hardware changes. Moreover, the surging focus of the biometric companies on integrating AI software in their vein recognition systems is expected to propel the segmental expansion in the coming days.

Application Insights

What Made Authentication the leading Segment in the Vein Recognition Biometrics in BFSI Market?

The authentication segment led the market in 2025. This is due to the growing use of vein recognition solutions in high-security authentication to identify individuals by scanning unique blood vessel patterns in fingers and palms using near-infrared light. Also, vein-based authentication solutions improve ATM security by replacing or strengthening PIN-based systems, which in turn prevents card fraud and identity theft, thus driving the segmental development. Additionally, numerous advantages of vein recognition biometrics in BFSI authentication, such as superior security control, advanced protection, high accuracy, reduced fraud, and preventing unauthorized access, have driven the growth of this segment.

The fraud detection segment is expected to grow at a notable CAGR between 2026 and 2035. This is because vein recognition biometrics solutions help in enhancing fraud detection by using near-infrared light to map unique, internal vascular patterns in palms or fingers, which are impossible to forge, replicate, or steal. Additionally, these biometrics solutions help in securing digital transactions and provide additional security in ATM withdrawals, thus contributing to the overall segmental development. Moreover, the constant R&D activities performed by biometrics companies on developing AI-based fraud detection devices are expected to foster the growth of this segment in the upcoming years.

End-User Insights

Why Did the Banks Segment Dominate the Vein Recognition Biometrics in BFSI Market?

The banks segment dominated the vein recognition biometrics in BFSI market in 2025. This is due to the high adoption of advanced biometrics solutions in modern banks to lower the risk of theft and cybercrimes. Additionally, numerous government initiatives aimed at strengthening security in the BFSI sector, coupled with collaboration among private banks and biometric solution providers to deploy palm-based vein recognition solutions in their offices, are positively contributing to the segmental growth. Moreover, the integration of high-resolution charge-coupled devices in public banks to reduce fraudulent activities has driven the segmental development.

• In February 2025, RBI launched a new initiative. This initiative is aimed at enhancing security in the banking sector across India.

The insurance companies segment is expected to expand with a significant CAGR during the forecast period. This is due to the growing demand for high-quality security systems from the insurance providers in several countries, such as Switzerland, Canada, Qatar, and Japan. Also, vein recognition biometrics is widely adopted by insurance companies to provide high-protection, contactless identification to prevent fraud, streamline and improve customer experience, thereby accelerating segmental growth. Additionally, joint ventures among biometrics solutions providers and insurance companies on integrating vein recognition systems in their organizations are expected to propel the growth of this segment in the future.

Regional Insights

Why Did North America Dominate the Vein Recognition Biometrics in BFSI Market?

North America dominated the vein recognition biometrics in BFSI market with a major share in 2025. The region's dominant position in the market is attributed to the growing focus of the insurance companies to adopt advanced biometrics solutions in the U.S., Canada, and Mexico. Also, the rising investment by the sensor manufacturers in opening new production centers, along with the technological advancements in the NBFC sector, is playing a prominent role in shaping the industrial landscape. Moreover, the rise in the number of financial institutions and product launches by numerous market players such as IdentyTech Solutions America LLC, Imprivata, Inc., and BIO-key International, Inc. has boosted the growth of the market in this region.

U.S. Market Trends

The U.S. leads the North American vein recognition biometrics in BFSI market. This is due to the growing demand for fraud detection solutions from the banking sector, along with the rapid deployment of AI-based biometrics solutions in financial institutions. Moreover, the surging investment by the software companies in opening new research labs plays a crucial role in shaping the industrial landscape.

Why is Asia Pacific Expanding with the Fastest CAGR in the Market?

Asia Pacific is expected to expand with the fastest CAGR during the forecast period. This is due to the rise in the number of public banks in various countries, including China, India, South Korea, Singapore, Japan, Australia, and New Zealand. Additionally, the growing investment by software companies in developing advanced biometrics software, along with the partnerships among biometrics companies and tech developers, is playing a prominent role in shaping the industrial landscape. Moreover, collaborations and business expansions by several market players, such as Hitachi, Ltd., Fujitsu Limited, and Mantra Softech (India) Pvt. Ltd., are expected to proliferate the growth of the vein recognition biometrics in BFSI market in this region.

Japan Market Analysis

Japan is a major contributor to the vein recognition biometrics in BFSI market within Asia Pacific. This is due to the rising focus of the government on deploying advanced security solutions in public banks to enhance security and improve authentication procedures. Moreover, the rapid digitalization of the BFSI sector, coupled with the increase in the number of insurance providers, has played a vital role in shaping the industry in a positive direction.

Vein Recognition Biometrics in BFSI Market Value Chain Analysis

Top Companies in the Vein Recognition Biometrics in BFSI Market

• Hitachi, Ltd.
• Fujitsu Limited
• M2SYS Technology
• NEC Corporation
• IdentyTech Solutions America LLC
• BioSec Group Ltd.
• PalmSure
• Tyco International Ltd.
• 3M Cogent, Inc.
• Safran Identity & Security (now IDEMIA)
• BIO-key International, Inc.
• UnifyID, Inc.
• Mantra Softech (India) Pvt. Ltd.
• IriTech, Inc.
• EyeVerify, Inc.
• SRI International
• Recogtech B.V.
• Techshino Technology Co., Ltd.
• Matrix Security Solutions
• Imprivata, Inc.

Segments Covered in the Report

By Component

• Hardware
• Software
• Services

By Application

• Authentication
• Access Control
• Fraud Detection
• Others

By End-User

• Banks
• Insurance Companies
• Financial Institutions
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa