MarketsandMarkets forecasts the global biometric-as-a-service market size to grow from USD 1.2 billion in 2019 to USD 2.7 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 17.0% during 2019–2024. An increasing users and data-security initiatives by government, growing usage of mobile devices, and increasing demand for robust fraud detection and prevention systems across the Banking, Financial Services and Insurance (BFSI) industry are the major growth factors for the market. Growing demand of fast and secure users’ identification in eCommerce and regulatory compliances could provide growth opportunities for vendors of biometric-as-a-service.
The European Union (EU) has established a new association in the field of biometric technology named the European Association for Biometric (EAB). The EAB is seeking to advance the proper and beneficial use of biometrics in Europe, considering the interests of European citizens, industries, academies, and governments. Further, development of national IDs, ePassports, and e-Visas is expected to be a main driver of the European market growth.
The biometric-as-a-service market has 4 segments, namely, application area, modality, offering, and region.
In the biometric-as-a-service market by application areas, the healthcare segment is expected to grow at the highest CAGR during the forecast period. Increasing digital health records and stringent regulatory mandates to manage these records has raised the use of biometrics in the healthcare sector. Additionally, biometrics being increasingly used to monitor the use of prescribed drugs.
In the biometric-as-a-service market by modality, the multimodal segment is expected to grow at a higher CAGR during the forecast period. The multimodal biometric authentication makes use of multiple biometric traits for authentication. This technology enables the users to authenticate themselves based on multiple biometric traits, including fingerprint, iris, voice, facial, and palm and vein recognition. As 2 or more biometrics traits provide more accuracy with the authentication, hence there is an increasing rate of adoption witnessed in all industries.
In the biometric-as-a-service market by offerings, the services segment is expected to grow at the highest CAGR during the forecast period. Services are mostly support services for upgradation or maintenance, which are either a part of the subscription plan or a standalone service. Additionally, services revenues are mostly derived from integration services with complex enterprise applications.
In the conversational market by region, APAC is expected to grow at the highest CAGR during the forecast period. Increasing security concerns in India, China, Japan, and Korea have further contributed to the adoption of biometric solutions in these countries. The Indian government launched an initiative toward the unique identification of citizens using biometrics and toward the issuance of Aadhaar numbers and cards.
The growing demand for fast and secure users’ identification and regulatory compliances in the healthcare sector to handle patient information with utmost privacy and care are major opportunity areas for the biometric-as-a-service solution and platform providers. By providing a unique solution as per demand and market trend, biometric-as-a-service providers can tap these opportunities.