MarketsandMarkets has updated its forecast for the Biometric System Market. The firm has previously predicted that the market would hit $68.6 billion in 2025 (in a report released in 2020), and is now suggesting that the market will jump all the way to $82.9 billion in 2027. Those figures are based on a CAGR of 14.1 percent and a 2022 market valuation of $42.9 billion.
Both MarketsandMarkets reports noted that the biometric systems market was down during the pandemic, with supply chain disruptions and labor shortages limiting the availability of certain technologies. However, the firm’s latest report indicates that the market is starting to rebound, and will make a full recovery by the middle of the year.
The consumer electronics segment is expected to drive much of that recovery. Biometric sensors are becoming an increasingly ubiquitous security option in smartphones and other devices, and the declining cost of biometric tech is allowing manufacturers to install those sensors in a wider range of products. Single-factor biometric systems are also more accurate than they used to be, which makes them more reliable from a security perspective.
Fingerprint recognition is expected to be the most common biometric modality, primarily because it is so popular in consumer devices, and in government registration programs. For instance, more and more people will be expected to submit a fingerprint when applying for a passport or a driver’s license. Broadly speaking, the need for better authentication options will fuel market growth across the board, with the financial and automotive verticals standing as some of the most impactful segments outside of consumer electronics.
Moving forward, more devices will feature voice and facial recognition systems alongside fingerprint recognition. Facial recognition will also be used for surveillance applications. The Asia Pacific market, meanwhile, will display the highest CAGR.
Thales, IDEMIA, NEC, Fujitsu, and Precise Biometrics were listed as some of the key players in the biometric system space. MarketsandMarkets has separately predicted that the fingerprint sensor market will be worth $5.8 billion in 2026, while the overall identity verification market will hit $18.6 billion in that same period.
March 11, 2022 – by Eric Weiss