Contactless biometrics market to reach over $46 billion by 2030

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The global contactless biometrics technology market is anticipated to reach USD 46.65 billion by 2030, registering a compound annual growth rate of 18.1% from 2023 to 2030, according to a new report by Grand View Research, Inc. Contactless biometrics technology is used for identification and authentication without the need for any physical contactand it is also considered to be a safer and more innovative verification mode based on convenience and hygiene.

With the inevitable impact of the Covid-19 pandemic, contactless biometrics technology is widely being adopted by key markets for applications such as border control, law enforcement, surveillance, healthcare, and biotechnology. For instance, facial recognition biometric systems in China are being used to detect individuals not wearing facemasks.

The promising growth prospects of the market can be attributed to the vast advantages of contactless biometrics, including a high level of security in the private, public, and commercial sectors. The technology records unique human characteristics, such as the retina, fingerprints, DNA, and voice patterns, for authorisation. Furthermore, the increased adoption of biometrics technology across several verticals in the public, private, and commercial sectors for enhancing security is expected to work well for the market.

AI and the cloud to propel the demand

The rising adoption of Artificial Intelligence (AI) and cloud-based services for biometric devices is anticipated to propel the demand for associated software to fortify the compatibility of operating systems and devices for different applications. Growing demand for fast and secure access controls, queue-less passenger checks, seamless border crossing, and faster identification of individuals for better convenience and security are some of the key factors driving the market’s growth. Manufacturers are developing contactless biometric high-tech sensor systems through fast software algorithms and machine-learning methods for fast and secure identity checks.

The rise of digital banking across the globe is the major impetus behind the increased introduction of voice and facial recognition in the banking and financial sectors. For instance, according to the researchers Citigroup Inc. introduced voice biometrics to verify customers’ identities. The use of contactless biometrics authentication for banks offers an additional, convenient, and user-friendly way of verifying their customers, thus delivering a consistent and superior user experience with strong and secure authentication across channels. The findings demonstrate that demand is steadily increasing amid the Covid-19 outbreak. The pandemic has also influenced various digital businesses, which are now developing facial recognition systems to secure their online platforms.

Cost is still an implementation challenge

The implementation of biometrics technology can be a costly affair for any enterprise. The high cost associated with the hardware, software, and support services required to implement a biometrics system is presently one of the main challenges for the market. However, technological advancements and the increasing use of these technologies may gradually reduce the overall implementation cost. The demand for biometrics technology is expected to grow significantly in the healthcare sector, owing to the rapid technological advancements and use of biometrics for protecting patient privacy, curbing false insurance claims, and other healthcare frauds.

Some of the key takeaways from the report:

  • The software segment dominated the market with a share of over 44.5% in 2022.
  • Facial biometrics dominated the market with a revenue share of 28.4% in 2022.
  • The government segment dominated the market with a revenue share of 25.1% in 2022. 
  • North America holds the largest revenue share of the market with 32.0% in 2022. 

Some of the key players mentioned in the report as being active in this sector include, Aware Inc.; Fingerprint Cards AB; Fujitsu Limited; Gemalto N.V.; HID Global; Idemia; M2sys Technology; NEC Corporation; Nviasoft; Touchless Biometric Systems AG.


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