The Global Biometric Banking Market size is expected to reach $16.2 billion by 2030, rising at a market growth of 16.6% CAGR during the forecast period.
In banks, fingerprint biometrics are commonly used for user authentication. Customers could use their biometrics to access their bank accounts, make transactions, and perform numerous banking operations. Therefore, fingerprint segment would generate $2,826.1 million revenue in the market in 2022. Some banks use fingerprint biometrics to control access to their physical branches, especially in high-security or restricted-access areas. The market has been evolving rapidly, with technological advancements significantly enhancing security, improving user experience, and expanding the range of applications. Integrating biometric authentication into payment cards enables users to authenticate transactions using their fingerprint or other biometric data directly at the point of sale (PoS) terminals.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In June, 2023, Mastercard joined forces with Middle East Payment Services, a payment processor and card issuer, along with Zwipe, to unveil a range of biometric payment cards. Before this launch, MEPS collaborated extensively with Zwipe and Mastercard to conduct an extended pilot and testing phase for these new cards. Moreover, In March, 2023, Mastercard signed a partnership with Singtel Optus Pty Limited, to offer Optus customers a secure method for confirming their identity. Via the My Optus app, users can establish a reusable digital identity, eliminating the necessity for physical document submission when sharing information with consent.
Based on the Analysis presented in the KBV Cardinal matrix; Apple, Inc. is the forerunner in the Market. In June 2023, Apple, Inc. formed a partnership with HDFC Bank, to expand its investment and manufacturing the Indian market. Companies such as Google LLC and Samsung Electronics Co., Ltd. are some of the key innovators in the Market.
The COVID-19 pandemic had a severe impact on the world's economy. The outbreak affected almost all industries, either positively or negatively. The pandemic outbreak positively impacted the market in the initial months. The pandemic forced the adoption of digital technologies in all sectors, including banking. Banks and financial organizations were urged to accelerate digital transformation efforts and invest more in biometric authentication solutions to enhance security and expedite digital processes. While individuals became physically cautious about interaction, contactless payment methods increased. Biometric authentication techniques, such as facial and voice recognition, gained popularity because they offer secure and straightforward ways of authorizing transactions without physical contact. Overall, the pandemic spurred development in biometric technology, resulting in improvements such as more precise facial recognition algorithms, improved voice recognition systems, and expanded liveness detection. Therefore, the market has expanded significantly.
After the COVID-19 pandemic, individuals began to favor contactless payment methods. Ensuring secure and dependable payment solutions is crucial in light of the growing cyber threats. Furthermore, the widespread use of contactless payment solutions has been further accelerated by the COVID-19 pandemic. This is due to consumers' desire to minimize physical contact with payment devices to save themselves from getting in touch with harmful bacteria. Therefore, these factors drive the expansion of the market.
Biometric authentication can be combined with other factors like PINs or tokens to create a multi-factor authentication (MFA) system, further enhancing security. Unlike traditional passwords, biometric data cannot be easily stolen or guessed, reducing the risk of unauthorized access. Biometric data can provide non-repudiation, meaning the user cannot deny their actions since their unique biometric data was used for authentication. Consequently, these factors are anticipated to expand the market.
Security concerns and high implementation costs are two significant challenges facing the market. Ethical considerations revolve around obtaining informed consent from users for collecting and using their biometric data. Banks must address concerns related to data ownership and potential surveillance implications. Insider threats from bank employees with access to biometric data can lead to unauthorized access or data breaches. Implementing strict access controls and monitoring is crucial. Also, banks may need to invest in user education and training programs to ensure customers understand biometric authentication and troubleshoot any issues securely. Therefore, it is anticipated that these factors will restrain the growth of the market.
Based on type, the market is fragmented into fingerprint, facial recognition, hand geometry, iris recognition, and others. The hand geometry segment recorded a remarkable revenue share in the market 2022. Hand geometry recognition has been used for physical access control in bank branches and secure areas within banks. Using hand geometry scans, employees and authorized personnel can access restricted areas, vaults, and data centers. This technology helps enhance security and ensures that only authorized individuals can enter sensitive areas. Banks may use hand geometry recognition for time and attendance tracking of employees. This provides accurate work hours and attendance recording, crucial for payroll processing and compliance with labor regulations.
By vertical, the market is retail, government, transportation, healthcare, hospitality, and others. The transportation segment covered a considerable revenue share in the market 2022. The transportation industry has increasingly adopted biometric technology to enhance security, improve passenger experience, and streamline operations. Biometrics offer unique benefits in this sector, where identity verification and access control are critical. It is attributed to biometric authentication enabling passengers to move seamlessly through various touchpoints of their travel journey, from check-in and security to boarding and baggage claim.
On the basis of component, the market is segmented into hardware, software, and services. In 2022, the hardware segment dominated the market with the maximum revenue share. The development of mobile biometric devices, a greater emphasis on hardware-based security abilities, and the expanding use of biometric technologies in electronics for consumers for verification and identification applications are significant factors fueling the expansion of biometric technology. The benefits of biometric hardware, such as reliable accountability, excellent performance, dependability, and high security & assurance, help propel this market's expansion. Numerous vendors are investing in R&D for cutting-edge technologies to enhance hardware capabilities and reduce costs for small and medium-sized businesses.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 4.8 Billion |
| Market size forecast in 2030 | USD 16.2 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 16.6% from 2023 to 2030 |
| Number of Pages | 281 |
| Number of Table | 403 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Type, Component, Vertical, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the North America region witnessed the largest revenue share in the market. In the United States, biometric technologies are utilized in various sectors, including government, homeland security, commerce, and the legal system. An increasing number of safety and security needs are being met by biometric technology due to the increased global threat of terrorism. Due to its highly developed technological infrastructure and strong emphasis on data security and privacy regulations, North America remains at the forefront of biometric banking implementation. Large financial institutions in the United States and Canada have substantially invested in biometric banking systems. These products safeguard client accounts, prevent unauthorized access, and provide a straightforward and secure banking experience.
Free Valuable Insights: Global Biometric Banking Market size to reach USD 16.2 Billion by 2030
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Google LLC, NEC Corporation, Apple, Inc., The Charles Schwab Corporation, Mastercard Inc., Barclays Plc, Visa Inc., PayPal Holdings, Inc., Samsung Electronics Co. Ltd. and Aliph Brands.
By Type
By Vertical
By Component
By Geography
The Market size is projected to reach USD 16.2 billion by 2030.
Increase in mobile banking and contactless payments are driving the Market in coming years, Security concerns and high implementation costs restraints the growth of the Market.
Google LLC, NEC Corporation, Apple, Inc., The Charles Schwab Corporation, Mastercard Inc., Barclays Plc, Visa Inc., PayPal Holdings, Inc., Samsung Electronics Co. Ltd. and Aliph Brands.
The expected CAGR of this Market is 16.6% from 2023 to 2030.
The Retail segment is generating the highest revenue in the Market, by Vertical in 2022; thereby, achieving a market value of $5.27 Billion by 2030.
The North America region dominated the Market, by region in 2022; thereby, achieving a market value of $5.62 Billion by 2030.
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