Single-factor authentication currently more popular

Single-factor authentication holds the largest market share in biometric systems market because of its wide acceptance, simplicity, and cost-effectiveness. Extensive applications of fingerprint, iris, face, and voice recognition technologies in smartphones, access control, and financial services make them easy and reliable for identity verification. The ease of integration and user convenience proved to be the main reasons single-factor authentication was found to be among the preferred choices by many organisations and consumers. Improvements to these technologies in recent years have significantly improved their accuracy and speed, making them more popular. Broader applicability, established reliability, and lower complexity are why single-factor authentication solutions dominate the market.

Software enhances sophistication

The software segment is expected to hold the largest share of the biometric system market during the forecast period since software is critically complemented to enhance the functionality and accuracy of biometric hardware. Developing software algorithms improves recognition capabilities and enhances sophisticated features such as multi-modal biometrics. Flexibility, scalability, and ease of updating are the significant reasons behind the growing adoption rates of the software solution, which facilitates seamless integration with any existing system. Moreover, the expanding demand for cloud-based biometric services and remote access solutions shifts power increasingly to software. With an increasing requirement to enhance security and user experience in the most effective and cost-efficient manner possible, the reliance on robust biometric software is expected only continue to grow, thus sealing its lead in the market.

Tactile technologies still dominates 

Contact-based biometric systems hold the largest share in the biometric systems market due to the wide implementation and effectiveness. This includes technologies such as fingerprint and palm recognition, which find applications in many other industries, including access control, time, and attendance, and mobile device authentication applications. Such systems are preferred regarding accuracy, reliability, and ease of integration into any infrastructure. The tactile nature of contact-based biometrics is where the data captured is accurate, hence reducing the chances of error. This factor has been primarily responsible for its dominant position in the marketplace. Though the contactless systems are fast making inroads, past performance and cost-effectiveness have secured them a place as the preferred choice across many industries.

Buoyant healthcare vertical

The healthcare sector would be the fastest-growing sector in the biometric system market, with an increase in demand for a secure and efficient patient identification and data management method. Biometric solutions improve healthcare safety by reducing patient records errors and ensuring proper identification that prevents fraud. Biometric systems provide higher security and compliance with regulatory standards in access control to sensitive data, electronic health records, and medication-dispensing units. More importantly, as soon as the pandemic subsides, the increasing adoption of telemedicine and remote patient monitoring has accelerated the demand for biometric authentication to protect patient information. These factors drive rapid growth in the use of biometric systems in the healthcare sector.

Biometric initiatives drive Asia Pacific market

In terms of geographical performance, it is he Asia Pacific region that the analysts expect to witness the highest CAGR in the biometric system market based on rapid technological change and wide adoption of biometric solutions across diversified sectors. Huge biometric initiatives, including national ID programs, e-passports, and border control, are the prerogative of the governance of countries such as India and China. This is also fueled by the increasing use of biometric systems in different banking, finance, healthcare, and consumer electronics applications. Other than this, the increase in the booming smartphone market and the demand for authentication methods have increased at a safe rate, as has the adoption rate of biometric technologies in this region. Economic growth in this region and an increase in investment in security infrastructure, helps the biometric system market expand robustly in Asia Pacific.

Key players

The biometric system market includes significant Tier I and II players like Thales, Idemia, NEC, Assa Abloy, Fujitsu, Precise Biometrics, Secunet Security Networks, Anviz Global, Aware Inc, and Cognitec Systems, amongst others.These players have a strong market presence in biometric systems across various countries in North America, Europe, Asia Pacific, and the Rest of the World (RoW).