Global Contactless Biometrics Technology Market Size, Share and Trends Analysis Report By Component Software, Hardware and Service, By Application, By End User, By Region, And Segment Forecasts, 2021-2028 | Analytical Research Cognizance

Global Contactless Biometrics Technology Market Size, Share and Trends Analysis Report By Component Software, Hardware and Service, By Application, By End User, By Region, And Segment Forecasts, 2021-2028

Published by ARCAMR001
Report ID 1668059
Published date May 06, 2021
Category Technology
Total Pages 105
Choose license type Buy Now
Request a Sample Enquiry Before Buying Check Discount

Industry Overview
Global contactless biometrics technology market is predicted to reach $ 23.5 billion by 2028, expanding at a 19.1% CAGR. Contactless Biometrics Technology is a highly accurate and reliable system for recognizing personal biometrics that is used for staff identification, attendance, and management.

Sudden outbreak of COVID-19 was a driving force behind the advancement and higher acceptance of this technology. With the spread of corona across the world, organizations, and governments are still focusing on hygiene. This technology is critical for validating personal identities because it provides access controls to customers without letting them make physical contact with the security infrastructure. Furthermore, governments all over the world have increased their efforts to implement contactless biometric technology in order to react rapidly to the COVID-19 crisis. This is expected to increase government agencies' demand for global market in order to offer public safety surveillance.

However, contactless biometrics solutions are expensive which may act as barrier in the market growth. Furthermore, identity theft or data theft is a significant growth risk because it poses a severe threat to the protection of sensitive information and may also pose a national security threat.

The market is primarily segmented on the basis of By Component, By Application, By End-Use, and geographic region.

By Component

By Application
Hand Geometry

By End-Use
Banking & Finance
Consumer Electronics
Transport & Logistics
Defense & Security

By Region
North America (U.S., Canada)
Europe (France, Germany, UK, Italy, Hungary, Croatia, Austria)
Asia Pacific (Japan, China, India, Malaysia, Indonesia. Australia)
Latin America (Brazil, Mexico, Argentina)
MEA (Saudi Arabia, UAE, Israel, South Africa)

Insight by Component
During the forecast period, the software segment is anticipated to rise at a faster CAGR. The introduction of emerging advanced technologies such as ML, AI and cloud-based services for contactless biometrics solutions is expected to boost demand for associated apps to ensure device and operating system compatibility for various applications. Furthermore, software helps users to incorporate the most recent add-on functionality by merely upgrading the application's software. Increasing demand for fast identification of individuals and safe access controls in a variety of sectors, such as e-commerce, border controls, airports, and others, is propelling the segment forward.

The market is growing rapidly due to rising demand for fast and safe access controls, seamless border crossing, queue-free passenger checks, and quick identification of individuals for greater convenience and protection. Manufacturers are designing contactless biometric high-tech sensor systems for quick and safe identity checks using fast software algorithms and machine-learning methods. Users can also incorporate the most recent add-on functionality by simply upgrading the software/application.

Insight by Application
Iris identification segment is anticipated to grow at a faster CAGR during the upcoming years owing to the increasing adoption of iris technology by state and local agencies for border security, hospitals, financial institutes, and several sensitive projects. Moreover, various benefits are offered by iris authentication system such as higher accuracy, hygiene, stability, security, scalability, faster matching, liveness detection, and easy to use feature while removing payroll frauds like buddy punching.

As the COVID-19 spreads across the world, everyone is being pushed to restrict their physical contact with common surfaces. Iris identification, among other items, offers authentication solutions for national and civil ID systems, time attendance and access control. Increased use of iris technology by state and local authorities for border defence is also expected to propel the market forward. For example, in USA, the El Paso Police Department began the use of this technology in April 2017 to improve border protection by combining facial recognition, iris-scanning, and fingerprint identification capabilities.

Industry Dynamics
Growth Drivers
Contactless biometrics authentication has a fast industrial acceptance rate thanks to the advent of computerised databases and digitization. The market is expected to expand due to rising demand for safe, hygienic, and convenient authentication systems in condominiums and clubs around the world. For instance, in April 2020, several clubs and condominiums such as Tamboré 1, Residencial Alphaville Zero, and Residencial Alphaville 1, among others in the São Paulo region installed IDEMIA’s MorphoWave Compact, a contactless biometric access control. The access control performs a 3D scan and verification of fingers and offers hygienic and secure identification experience to the users.

The demand for the technology is expected to be driven by rising smartphone and tablet penetration, as well as manufacturers' emphasis on facial recognition apps for their smartphones as an additional layer of authentication to unlock their smartphones. Contactless biometrics also authenticates purchases and offers encrypted access to smartphones. Furthermore, the growing acceptance of contactless biometrics solutions in financial institutions for securing financial transactions around the world is expected to accelerate market growth. Longer run times with less consumables and less cleaning are possible with contactless biometrics technology, reducing maintenance costs.

Geographic Overview
In 2020, North America led the market with an approx. share of one-third. M2SYS Technology, HID Global, and BioConnect are some of the technology providers which dominates in this region. Payment solution providers are required to deliver safe transactions to their customers in the area is projected to fuel regional growth.

The market in North America is expected to grow further in response to the increasing adoption of contactless biometrics solutions in defence and government applications.

Furthermore, the regional demand is expected to be driven by the government initiatives to introduce contactless biometrics solutions in order to cope with a growing number of travellers and to improve security at airport facilities. In 2018, the Canadian Border Services Agency, for example, introduced kiosks at airports that use facial recognition technology. The novel technology used fingerprint biometrics and face recognition to speed up clearance procedures for passengers at Canadian airports.

Asia-Pacific region is anticipated to grow at fast pace during the forecast period primarily due to the outbreak of the COVID 19 pandemic in China and high demand for contactless technology for safe and secure system. In addition, the growing number of educational institutes, factories, corporate offices, power plants, banks, and other facilities in developing countries including Japan, China, India, and South Korea, are further propelling the demand of market.

The demand for more reliable and sophisticated identification solutions at airport facilities has grown as the number of air travellers around the world has increased. For example, in April 2020, Eitihad Airways announced a trial of Elenium Automation's contactless self-service technology.

Competitive Insight
Some of the established players present the global market include Fujitsu Limited, Aware Inc., Fingerprint Cards AB, Thales Group, M2SYS Technology, NEC Corporation, nViaSoft, HID Global Corporation, IDEMIA Group S.A.S., and Touchless Biometric Systems AG, among other companies.

To stay ahead in this fast-paced market, players are employing a variety of strategies and concentrating on developing more advanced technologies. Some of the key developments include launch of advanced contact-less facial recognition access control device named VisionPass for the India market in 2020. VisionPass can distinguish users of varying heights in all lighting situations, with all face shapes, and at various vertical and horizontal angles. For access control and protection applications, VisionPass can also address spoofing attempts using image, video, or 3D masks.