MarketsandMarkets has released a new report that suggests that the global Biometrics-as-a-Service (BaaS) market will climb from $1.2 billion to $2.7 billion between 2019 and 2024. Those figures represent a CAGR of 17 percent for the forecast period.
The estimate is slightly less ambitious than a recent report from Allied Market Research (AMR) that predicted that the BaaS market would top $5 billion by 2026. However, AMR arrived at a similar CAGR (18.2 percent), based on a comparable valuation of the market in 2019 ($1.42 billion). Frost & Sullivan is also anticipating a growing demand for BaaS solutions.
For its part, MarketsandMarkets credits the anticipated growth to government data security initiatives and the need for more robust fraud detection and prevention systems on mobile devices. To that end, the firm believes that authentication systems that leverage a single biometric modality – whether it be fingerprint recognition, facial recognition, or another option – will prove to be more popular than their multimodal alternatives, if only because multimodal systems are more expensive to deploy. However, MarketsandMarkets noted that multimodal systems are also more difficult to spoof, which is why many organizations will be willing to pay the added cost to secure more sensitive information.
That includes healthcare organizations that are likely to adopt biometric solutions in an effort to meet strict regulatory requirements, and to facilitate the distribution of prescription medications. Healthcare will exhibit more growth than all other types of applications as a result. North America, meanwhile, is expected to provide the largest market for BaaS technology, although the Asia Pacific region is expected to grow at a faster rate, thanks in large part to national identity initiatives like India’s Aadhaar program.
MarketsandMarkets highlighted NEC, Aware, Fujitsu, Nuance, IDEMIA, Smilepass, Certibio and BioID as some of the leading providers of biometric authentication services.
January 27, 2020 – by Eric Weiss