The biometrics market has reached a tipping point, according to a new report from Tractica. Driven largely by the confluence of organizations’ desires to better authenticate or identify users and users’ distaste for knowledge-based systems (password and challenge questions), biometrics is working its way into consumer, industrial, and government systems at an increasing pace.
The market intelligence firm forecasts that annual biometrics hardware and software revenue will grow from $2.4 billion in 2016 to $15.1 billion worldwide by 2025, representing a compound annual growth rate (CAGR) of 22.9%. During that 10-year period, Tractica anticipates that cumulative biometrics revenue will total $69.8 billion.
“Growth in the biometrics market is driven by use cases,” says principal analyst Keith Kirkpatrick. “While there has traditionally been a demarcation between consumer and enterprise use cases, this dynamic is starting to change, as seen in financial institutions’ use of biometrics to allow consumer and corporate users to authenticate to online banking systems with their voices or with their eyes, in place of keying a personal identification number, to name just one example.”
Kirkpatrick adds that the biometric modalities representing the largest revenue segments will be fingerprint recognition, voice recognition, iris recognition, and facial recognition. Meanwhile, the largest application markets for the technologies will be consumer, finance, healthcare, government, and enterprise.
Tractica’s report, “Biometrics Market Forecasts”, provides detailed 10-year market forecasts for biometrics hardware and software during the period from 2016 through 2025. The report is based on a comprehensive and detailed analysis of 142 biometrics use cases, each of which includes business function, industry, and modality. Each use case is further analyzed by world region and is based on OECD income levels for each country in a given region. This granular approach provides a well-grounded, realistic view of the market opportunity by avoiding the use of identical assumptions for the most developed economies and still-developing economies. An Executive Summary of the report is available for free download on the firm’s website.