Biometric Technologies Market Size, Trends and Growth Analysis by 2027

The biometric technologies market is projected to grow significantly, reaching an estimated US$ 37.85 billion by 2030, up from US$ 118.35 billion in 2022, reflecting a compound annual growth rate (CAGR) of 15.3% from 2022 to 2030.

The North American market for biometric technologies is categorized into three main regions: the United States, Canada, and Mexico. These countries represent some of the largest economies in North America and collectively hold a substantial portion of the global biometric technologies market. The increasing incidents of data breaches, identity theft, and terrorist activities are key factors propelling the growth of biometric technologies in this region. For instance, in October 2023, a cyberattack targeting the House Foreign Affairs Committee and the U.S. Senate Committee on Homeland Security & Governmental Affairs was attributed to Vietnamese hackers attempting to install spyware on journalists' devices. Such events underscore the urgent need for enhanced security measures, thereby driving the adoption of biometric technologies to combat illegal activities and bolster national security. Biometric authentication methods, particularly in mobile devices, offer heightened security by being less susceptible to common cyber threats like password cracking and phishing attacks. These technologies provide a robust solution to mitigate both physical and cyber threats by implementing more rigorous security protocols for users.

During the forecast period, the market is expected to witness substantial growth, primarily due to the escalating demand for biometric solutions from the information technology sector and the rising frequency of phishing attacks. This trend encourages companies to innovate and develop advanced software solutions to assist clients in combating credential theft. For example, in November 2023, Accu-Time Systems, Inc. introduced the Only|You Face facial recognition system, designed to facilitate secure, safe, and touchless timekeeping processes. This system offers a more hygienic alternative to traditional fingerprint scanners and keypads. In Canada, the government is actively adopting biometric technologies to enhance national security protocols. The implementation of strict regulations regarding biometric usage is further stimulating market growth. In January 2024, the Privacy Commissioner of Canada (OPC) released guidelines for the ethical use of biometrics, emphasizing the importance of avoiding profiling or categorization that could lead to unfair or discriminatory practices in violation of human rights laws.

According to Airports Council International - North America (ACI-NA), the United States is projected to invest US$ 151 billion in airport infrastructure development from 2023 to 2027. This funding will be distributed across various airport categories, including large hub airports (US$ 79.3 billion), medium hub airports (US$ 28.0 billion), small hub airports (US$ 15.4 billion), on-hub airports (US$ 8.1 billion), and other airports (US$ 20.3 billion). The ongoing infrastructure projects at airports are expected to create a demand for biometric technologies to streamline the processes of traveler arrivals and departures. The increased investment in infrastructure and the expansion of airport facilities are likely to further stimulate the biometric technologies market in the United States during the forecast period.

The analysis of the biometric technologies market has been conducted by examining various segments, including component, type, authentication method, and end user.

In terms of type, the biometric technologies market is divided into contact, contactless, and hybrid categories. Contact-based biometric technologies primarily include fingerprint and palm vein recognition. The reliability and widespread acceptance of these systems, particularly in sectors like banking and law enforcement, have contributed to their extensive adoption. Furthermore, the growing implementation of contact-based biometric systems in fitness centers, wellness gyms, and sports organizations is expected to enhance the market share of this segment, as these systems assist in managing memberships and tracking training sessions. On the other hand, contactless biometric technologies, such as facial recognition and iris scanning, are gaining traction due to their ease of use and hygiene benefits, especially in light of recent global health concerns. These technologies facilitate efficient and safe identity verification without physical contact, making them increasingly preferred in high-traffic environments like offices, airports, and retail spaces. The contactless segment is also likely to benefit from the rise of smart city initiatives and the integration of contactless biometrics into public security and surveillance systems.

Additionally, the growing adoption of biometric technologies in consumer electronics and their expanding applications in the government sector are driving market growth. Notably, there is a rising trend in the utilization of biometric systems at airports.

Regarding authentication methods, the biometric technologies market is categorized into single-factor authentication and multifactor authentication. Single-factor authentication (SFA) secures access to various platforms by verifying the identity of the user through a single credential type. The most common example of SFA is password-based authentication, which is best implemented by requiring strong password creation and preventing unauthorized access. With SFA, users provide one piece of verifiable information for authentication, which can range from a knowledge factor like a password to a biometric factor such as a fingerprint. Access is granted only when the provided authentication information matches the stored data.

Key players in the biometric technologies market include Aware Inc, Thales SA, Cognitec Systems GmbH, NEC Corp, IDEMIA France SAS, HID Global Corp, Fujitsu Ltd, Leidos Holdings Inc, M2SYS Technology, and Precise Biometrics AB.

The forecast for the biometric technologies market is based on a combination of extensive secondary and primary research, including key company publications, industry association data, and various databases. Comprehensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative insights related to the biometric technologies market size. This process also aids in providing an overview and forecast of the market across all segments. Additionally, numerous primary interviews have been conducted with industry stakeholders to validate the data and gain analytical insights, involving industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the biometric technologies sector.