Contactless Biometrics Technology Market Size, Share, Analysis, Trends, Growth, Forecasts, 2032

Contactless Biometrics Technology Industry Prospective:

The global contactless biometrics technology market size was evaluated at $20.5 billion in 2023 and is slated to hit $100.1 billion by the end of 2032 with a CAGR of nearly 20.1% between 2024 and 2032.

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Contactless Biometrics Technology Market: Overview

Contactless biometrics technology facilitates biometric identification and authentication of persons without requiring any physical interaction with the sensor. It makes use of voice patterns, facial patterns, and iris patterns for recognizing the identity of individuals. Furthermore, there are various kinds of contactless biometrics that include facial recognition, voice recognition, palm vein recognition, and iris recognition.

Key Insights

• As per the analysis shared by our research analyst, the global contactless biometrics technology market is projected to expand annually at the annual growth rate of around 20.1% over the forecast timespan (2024-2032)
• In terms of revenue, the global contactless biometrics technology market size was evaluated at nearly $20.5 billion in 2023 and is expected to reach $100.1 billion by 2032.
• The global contactless biometrics technology market is anticipated to grow rapidly over the forecast timeline owing to the necessity of improving the end-user experience and demand for swift authentication as well as improved access.
• In terms of technology, the facial recognition segment is slated to register the highest CAGR over the forecast period.
• Based on application, the government segment is predicted to contribute majorly towards segmental space in the upcoming years.
• Based on component, the software segment is set to dominate the segmental growth in the ensuing years.
• On the basis of deployment mode, the cloud-based segment is set to dominate the industry growth in the ensuing years.
• Region-wise, the Asia-Pacific contactless biometrics technology industry is projected to register the fastest CAGR during the projected timespan.

Contactless Biometrics Technology Market: Growth Factors

Highlight on enhancing individual privacy can prop up the global industry expansion over forecast period

Growing focus of firms on improving the security & privacy of individuals is likely to drive the growth of the global contactless biometrics technology market. In addition to this, the necessity of improving the end-user experience and demand for swift authentication as well as improved access will drive the global market trends.

Apart from this, the need for safety & hygiene and technological innovations will propel the global market expansion. Apparently, supportive government programs and enforcement of strict laws for securing the usage of biometric data will scale up the global market expansion. Massive use of contactless biometric systems across a spectrum of end-use sectors will drive the market expansion globally.

Contactless Biometrics Technology Market: Restraints

Growing costs of system installation can depreciate the growth of the industry across the globe  

Contactless biometrics systems are prone to data breaches and security issues, thereby posing a huge challenge to the expansion of the global contactless biometrics technology industry. Moreover, an increase in the cost of deploying the systems and growing privacy concerns over surveillance can obstruct the global industry surge in the upcoming years.

Contactless Biometrics Technology Market: Opportunities

The use of contactless biometric systems in various end-use sectors can exhibit new growth patterns for the global market

Enhanced demand for secured authentication and the use of contactless biometrics systems in retail, healthcare, government, and consumer electronics sectors will open new growth avenues for the global contactless biometrics technology market. Furthermore, technological breakthroughs such as the miniaturization of biometric sensors, along with demand for cloud-based biometrics, will spur the market extension in the coming years.

Contactless Biometrics Technology Market: Challenges

Stringent regulations governing contactless biometric functionalities can retard the global industry surge by 2032

A lower proportion of standardization and technological limitations can challenge the growth of the global contactless biometrics technology industry. Moreover, strict laws regulating the operations of contactless biometrics systems can stagnate the global industry progression.  

Contactless Biometrics Technology Market: Segmentation

The global contactless biometrics technology market is divided into technology, application, component, deployment mode, and region.                                             

In terms of technology, the contactless biometrics technology market across the globe is segmented into facial recognition, palm veil recognition, voice recognition, and iris recognition segments. Apparently, the facial recognition segment, which amassed nearly 65% of the global market revenue in 2023, is anticipated to record fastest CAGR in the next few years owing to easy access to facial systems coupled with ease of use of these systems.

Based on the application, the global contactless biometrics technology industry is segmented into government, automotive, healthcare, retail, banking & finance, and consumer electronics segments. Apparently, the government segment, which led the global industry in 2023, is expected to account remarkably towards the segmental expansion in the ensuing years. This can be due to the need for enhanced security for government agencies, the need for data security, and the demand for identity verification.

On the basis of component, the global contactless biometrics technology market is sectored into hardware, services, and software segments. Moreover, software segment, which led the component segment in 2023, is likely to lead the segmental sphere in the forecast timespan. In addition to this, the segmental surge can be subject to its core functions, constant innovation, and ability of providing robust security & privacy.  

Based on the deployment mode, the contactless biometrics technology industry globally is divided into cloud-based and on-premise segments. Additionally, the cloud-based segment is predicted to dominate the industry growth in the coming years subject to its beneficial features such as flexibility, low infrastructural prices, and scalability as well as rapid upgrades & data security.

Contactless Biometrics Technology Market: Report Scope

Contactless Biometrics Technology Market: Regional Insights

North America is likely to maintain leading status in the global market over the analysis timespan

North America, which accounted for about 54% of the global contactless biometrics technology market size in 2023, is likely to establish a numero uno position in the global market in the upcoming years.

Apart from this, the regional market expansion in the next decade can be credited to the early acceptance of advanced biometric systems in countries such as the U.S. Moreover, the presence of key players in countries such as the U.S. will embellish the regional market expansion. Huge spending on IT resources in the region will drive the growth of the market in the region.  

Asia-Pacific contactless biometrics technology industry is likely to record the fastest compounded growth annually in the ensuing years. The elevation of the industry in Asia-Pacific can be a result of a surge in digitization, growing cyber-security concerns, and acceptance of biometric services in countries such as India and China. An increase in the acceptance of IoT and smartphones, along with supportive demographics, will drive the industry growth in the region.

Contactless Biometrics Technology Market: Competitive Space

The global contactless biometrics technology market profiles key players such as:

• M2SYS Technology
• Aware Inc.
• nViaSoft
• Fingerprint Cards AB
• Gemalto N.V.
• Fujitsu Limited
• HID Global
• IDEMIA
• NEC Corporation
• Touchless Biometric Systems AG.

The global contactless biometrics technology market is segmented as follows:

By Technology

• Facial Recognition
• Palm Veil Recognition
• Voice Recognition
• Iris Recognition

By Application

• Government
• Automotive
• Healthcare
• Retail
• Banking & Finance
• Consumer Electronics

By Vertical 

• Hardware
• Services
• Software

By Deployment Mode 

• Cloud-Based
• On-Premise

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa