Technological Advancements in the Biometric System Market


The global biometric system market size is estimated to grow from USD 42.9 billion in 2022 to USD 82.9 billion by 2027, at a CAGR of 14.1%. The market declined in 2020, mainly due to the impact of COVID-19.

The industrial supply chain was disrupted in March and April 2020 due to the lockdown imposed by various governments and labor shortages in these industries due to travel restrictions, which would affect the biometric system market. Though the market is expected to be impacted in 2020, it is expected to fully recover by 2021. Increasing the advancements in biometric technology across various sectors and rising demand for authentication and identification solutions as well as security and surveillance solutions in various application areas are the primary factors driving the market growth. Moreover, growing adoption of biometric systems in consumer electronics, BFSI as well as automotive verticals will drive the demand for this technology in the near future.

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Likewise, Biometric-as-a-Service (BaaS) offering has opened unparalleled capabilities for the biometrics market to attract low and mid-size businesses that were otherwise unreachable owing to the high-cost disadvantages. This is also expected to propel the demand for the said market during the forecast period.


Biometric-as-a-Service (BaaS) has revolutionized the adoption pattern of software and technology in the biometric ecosystem. The varied use cases of a biometric system designed to provide safety and security to end users are likely to create lucrative opportunities for BaaS companies in the biometric system market. The major advantage of BaaS is that it allows a company to incur the expenses of a biometric system as stable and predictable operating costs paid via subscription instead of huge capital investments with unpredictable maintenance costs.


The multi-factor authentication segment is expected to grow at the highest CAGR during the forecast period. The growing demand for multi-factor authentication is attributed to the rising need for additional security against the theft of sensitive data, especially in government and defense verticals. Combining multiple identifiers adds an extra level of protection, making the system more effective, accurate, and reliable. In addition, a multimodal biometric system can reduce the failure to enroll (FTE) and failure to capture (FTC) rates. The rapid development of biometric smart cards for payment and identification purposes is expected to drive the demand for multi-factor authentication. All these factors are expected to drive the market for multi-factor authentication during the forecast period 

The portable segment is expected to grow at the highest CAGR in the biometric system market during the forecast period. The portable biometric system market is expected to grow at a CAGR of 16.5% from 2022 to 2027. The ability to use these systems at a given point and location will bring in lucrative opportunities for the market for these systems during the forecast period. Handheld biometric systems are highly being used by the military and defense sector for capturing fingerprints, facial features, and IRIS of the army personnel and providing them access to critical hubs of the sector. In July 2020, the US Defense Department unveiled their design of Basic Optical Biometric Analysis application, developed for portable devices to determine the foes, civilian allies, and army personnel.

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The market in Asia Pacific is expected to register the highest CAGR during 2022-2027. The market in APAC will grow at the highest CAGR during the forecast period. The biometric system market in APAC is segmented into China, Japan, India, Australia, South Korea, and the Rest of APAC. The presence of prominent biometric system manufacturers including Fujitsu and NEC Corporation is expected to contribute to the revenue share of this region owing to the rapid economic growth in major countries such as China, Japan, India, and South Korea. The growth of the biometric system market in APAC is also attributed to technological advancements, increased awareness among the masses regarding the use of biometric systems for security purposes, and lowered the cost of devices based on these technologies.

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