MarketsandMarkets believes that the demand for biometric systems will continue to increase in the next few years, even if the actual growth rate is slightly lower than previously expected. The firm predicts that the Biometric System Market will climb from $36.6 billion to $68.6 billion between 2020 and 2025, which corresponds to a CAGR of 13.4 percent.
Those figures are down when compared to the firm’s 2019 biometric systems report, which suggested that the market would hit $65.3 billion a full year earlier, in 2024, thanks to a CAGR of 14.6 percent. This year’s dip can likely be attributed to the disruption caused by COVID-19.
Moving forward, MarketsandMarkets credits the anticipated growth to the rising popularity of surveillance systems, consumer devices, and smart cars with biometric capabilities. Many of those solutions will support multi-factor authentication, primarily because multi-factor systems have lower failure to enroll (FTE) and failure to capture (FTC) rates and consequently offer better accuracy (and better security) than systems that rely on a single form of identity verification. Multi-factor tech is expected to turn up in the government sector, and in biometric smart cards that can be used for identification and payments.
Hybrid systems that support multiple biometric modalities will display the highest CAGR, for many of the same reasons. Multimodal systems are more difficult to spoof, and have become more common at border crossings due to national security concerns.
The Middle East and Africa will be the region that exhibits the fastest growth. Many countries in the Middle East are moving forward with national ID projects, and biometric technology is gaining traction with banks and with the travel industry.
MarketsandMarkets lists Thales, NEC, ASSA ABLOY, and Fujitsu as some of the key players in the biometric system space. In separate reports, the firm has predicted that the Identity Verification Market will reach $15.8 billion, while the Access Control Market and the Biometrics-as-a-Service Market will hit $12.8 billion and $3.6 billion, respectively.
November 10, 2020 – by Eric Weiss