Biometric System Market by Authentication Type (Fingerprint, Iris, Face, Voice, Vein, Signature, Multi-factor), Offering (Sensor, Camera, Reader & Scanner, Software), Type (Contact, Contactless, Hybrid), Mobility, Deployment – Global Forecast to 2029
Updated on : September 13, 2024
Biometric System Market Size & Growth
The global biometric system market size is expected to be valued at USD 47.2 billion in 2024 and is projected to reach USD 84.5 billion by 2029; it is expected to grow at a CAGR of 12.3% from 2024 to 2029.
The increased adoption of biometrics in consumer electronics has emerged as one of the major growth drivers in the global biometric system market. This has been driven by increasing demand for security coupled with user convenience. Nowadays, fingerprint sensors and facial recognition technologies are very common in smartphones, laptops, and personal devices, thus fueling the demand for biometric systems. The rise of BaaS brings huge potential, especially for SMEs, to scale and cost-effective solutions without large upfront investments. Protecting sensitive biometric information and dealing with complex systems technically pose a challenge when technical expertise is at a premium; these issues play to significant barriers against mass adoption alongside growing data security and privacy-breaching concerns. Ensuring strong security measures and ensuring privacy is critical to establishing user trust and stimulating market growth.
Biometric System Market Trends:
AI Impact in the biometric system market
Introducing AI algorithms in biometric systems, such as deep learning, neural networks, and machine learning, has increased accuracy, speed, efficiency, and adoption. The advent of behaviour recognition has enabled a clear distinction based on patterns between living and deceased individuals. Machine learning techniques such as Artificial Neural Networks (ANN), Support Vector Machine (SVM), Deep Neural Networks (DNN), and Genetic Algorithms (GA) play an essential part in delivering non-common solutions for identification problems.
For instance, the facial recognition engine is part of Vision-Box's Seamless Journey Platform. This digital identity management platform connects multiple stakeholders throughout the traveller journey, enhancing security, customer experience, and operational efficiency by converting complex traveller data into a genuinely contactless, seamless travel experience.
Attractive opportunities in the biometric system market size
Biometric System Market Forecast to 2029
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Biometric System Market Dynamics
Driver: Growing adoption rate of biometrics in consumer electronics
One of the major growth determinants is the growing adoption rate of biometrics in consumer electronics, as this enhances convenience and security for the user. From the early days with smartphones and tablets to today with laptops, the majority of devices have integrated biometric features such as fingerprint and facial recognition as a secure mode of access and authentication. This has been driven by the need for improved data security, as well as frictionless user experience that is devoid of the voltage experienced with passwords. Diffusion and stretching have further reached devices such as smart home devices and wearables for secure access and personalization into everyday technology. Further, biometric authentication facilitates safe mobile and online transactions by removing fears of the growth of cyber threats and identity theft. Biometric sensors and algorithms keep improving, raising their accuracy and reliability, hence the appeal to both consumers and manufacturers. Thus, the demand for biometric systems within the consumer electronics segment never stops and has contributed much to the growth of the market.
Restraint: High costs associated with biometric systems
High costs associated with biometric systems as one of the major restraints of the biometric system market. These involve advanced hardware and software in the initial investment, including installation, integration, and maintenance-related costs. The latter are quite high for many organizations, particularly for small and medium-sized enterprises, since upfront costs are too big for them to afford these technologies.Added to these are high operating costs, including updating the system, data storage, and security measures to protect sensitive biometric data. Another significant factor that contributes to the rise in costs is the high degree of complexity, and integration with the existing infrastructure necessitates specialized technical skills of the highest order. Moreover, huge costs connected with compliance and related stringent regulatory standards, together with the necessity of regular audits on data privacy and security, may deter some businesses from investing in biometric systems. Hence, such financial barriers slow down the pace of wide-scale adoption and implementation of biometric technologies in different sectors.
Opportunity: Increasing adoption of Biometric-as-a-Service (BaaS)
Increasing adoption of Biometric-as-a-Service (BaaS) is a huge opportunity for the market of biometric systems by scaling the cost-effective solution for organizations of all sizes. BaaS enables organizations to leverage biometric authentication and identification technologies through cloud-based platforms, removing large upfront investments usually required in hardware and infrastructure.This model gives flexible, on-demand access to the newest fingerprint, facial, and voice recognition biometric features according to business requirements. Maintenance, updates, and security are carried out by BaaS providers and put less of a technical burden on clients' sides. In this way, one makes sure that all regulatory standards are followed while it is safer to protect the data due to state-of-the-art safety measures in place. With this, BaaS is going to be very attractive to any business that intends to improve its security given the easy integration with previously existing systems and the scaling of services depending on demand. As more organizations begin to realize the benefits of adopting BaaS, the biometric system market will grow tremendously based on this innovative service model.
Challenge: Data security and inadequate technical expertise
The major concerns that pose challenges to the biometric system market lie in data security and inadequate technical expertise. The biometric systems have very high sensitivity to personal information; therefore, they are always threatened by cyberattacks and data breaches. Strong security measures have to be in place to protect biometric data, which is impossible in many organizations due to the lack of technical expertise required to implement and maintain the respective systems effectively. The very complexity of biometric technologies necessitates special knowledge in terms of their installation, integration, and operation, hence forming a barrier to smaller enterprises with limited resources. Besides, cyber threats keep evolving; therefore, security protocols need continuous updating and monitoring, which requires further investment in skills and infrastructure related to cybersecurity. Finally, regulatory compliance—organizations must navigate too many rigorous data protection laws. The integration of these factors consequently inhibits the wide acceptance of biometric systems as businesses measure the potential risks and technical difficulties against the benefits that could accrue from implementing such technologies.
Biometric System Market Ecosystem
The biometric system market share is dominated by established and financially sound manufacturers with extensive experience in the industry. These companies have diversified product portfolios, cutting-edge technologies, and strong global sales and marketing networks. Leading players in the market include Thales (France), IDEMIA (France), NEC Corporation (Japan), ASSA ABLOY (Sweden), and Fujitsu (Japan), among others.
Biometric System Market Segmentation
Multi-factor authentication segment in the biometric system market is anticipated to grow with the highest CAGR
Multi-factor authentication accounts for the highest growth rate in the market due to increased implementation across industries because of its developed security features. As it is self-explanatory, multi-factor authentication combines two or more modes of verification, such as biometric recognition (fingerprint, facial, or iris) together with passwords or tokens, which provides better security compared to a single-factor authentication process. This advanced security then becomes critical in industries like banking and finance, healthcare, and government—industries wherein the leakage of information is very undesirable. Organizations are looking to implement MFA solutions as extra security for systems and data in view of the ever-increasing cyber threats and data breaches. Furthermore, the regulatory mandates and compliance requirements are enforcing companies to have stronger authentication methods that will provide further growth impetus to MFA in the biometric system market.
The software offerings to dominate the biometric system market over the forecast period
Software can be expected to grow with the highest growth rate during the forecast period in the market because it has been at the forefront of enhancing the functionality and adaptability of biometric hardware. Advanced software solutions open up more sophisticated and accurate biometric recognition algorithms; hence, their deployment within applications like mobile devices, security systems, and identity verification platforms will increase. Finally, the trend of biometric solutions is moving toward cloud-based and AI-driven technologies, further increasing demand for software. That's because technologies like these give users scalability, real-time processing, and improved security features. Besides these benefits, the fact that software can be easily integrated with other existing systems and has regular updates and improvements makes it very suitable for businesses looking to upgrade their biometric capabilities. In this respect, the reliance on software-driven solutions underlines its important and accelerating market growth.
The Consumer electronics vertical exhibit second highest CAGR in the biometric system market
Consumer electronics vertical segment is expected that the software segment of the biometric system market will grow at the fastest rate during the forecast period because it has been driving the development in functionality and flexibility of biometric hardware in the recent past. Sophisticated and more accurate algorithms for biometric recognition are enabled by advanced software solutions; thus, their implementation in various applications, such as mobile devices, security systems, and identity verification platforms, will increase correspondingly. Finally, biometric solutions are trending toward cloud-based and AI-driven technologies, further increasing demand for software. That is because technologies such as these give users scalability, real-time processing, and improved security features. Other than that, since it can be easily integrated with other existing systems and has regular updates for improvements, it will be very suitable for any business looking to upgrade their biometric capabilities. In this regard, the dependence on software-driven solutions underlines its key to accelerating market growth.
Biometric System Industry Regional Analysis
Asia Pacific region in biometric system industry to dominate the market growth
The Asia Pacific holds the largest market share in biometric systems, due to the rapid growth of the economy, extensive technological development, and huge government-sponsored programs. Countries such as India and China top the board in the adoption of biometric systems with their national ID programs like Aadhaar, coupled with wide adoption across the banking, healthcare, and security sectors. Furthermore, large population and increasing smartphone penetration act as additional factors driving demand for biometric technologies integrated into consumer electronics. Growing focus toward smart city projects and digital transformation in various industries across the Asia Pacific region is also driving demand for biometric solutions. In addition to this, supportive government policies and heavy investments being done in security infrastructure are some of the other key factors contributing to establishing the leading position for this region in the biometric system industry.
Biometric System Market by Region
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Top Biometric System Companies - Key Market Players
- Thales (France),
- IDEMIA (France),
- NEC Corporation (Japan),
- ASSA ABLOY (Sweden),
- Fujitsu (Japan) are among the major players in the biometric system companies.
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Report Metric |
Details |
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Estimated Market Size |
USD 47.2 billion |
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Expected Market Size |
USD 84.5 billion |
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Growth Rate |
CAGR of 12.3% |
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Market size available for years |
2020-2029 |
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Base year considered |
2023 |
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Forecast period |
2024-2029 |
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Forecast units |
Value (USD Million/Billion) |
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Segments Covered |
By Authentication Type, By Offering, By Mobility, By Type, By Deployment Mode, By Vertical |
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Geographies covered |
North America, Europe, Asia Pacific, and Rest of the world (RoW) |
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Companies covered |
The major market players include Thales (France), IDEMIA (France), NEC Corporation (Japan), ASSA ABLOY (Sweden), and Fujitsu (Japan), among others (Total of 37 players are profiled) |
Biometric System Market Highlights
The study categorizes the biometric system market size based on the following segments:
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Segment |
Subsegment |
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By Authentication Type |
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By Offering |
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By Mobility |
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By Type |
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By Deployment Mode |
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By Vertical |
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By Region |
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Recent Developments
- In January 2024, IDEMIA has introduced VisionPass SP, a new facial recognition access control solution that offers accurate and fair matching in under a second, even in various lighting conditions. The compact, eco-friendly device integrates advanced AI and facial recognition algorithms, along with robust security measures to prevent cyber-attacks. VisionPass SP maintains high security standards while enhancing user experience.
- In January 2024, NEC Corporation has been commissioned to install joint Immigration & Customs Declaration KIOSKs at Haneda Airport Terminal 2 by Japan's Immigration Services Agency and Customs. These KIOSKs aim to streamline procedures with pre-registered information, enhancing efficiency amid increasing international visitors and Japan's goal of accommodating 60 million by 2030.
- In October 2023, Thales has collaborated with SoyYo which is a digital identity provider for companies in Colombia. The company is to introduce FIDO2 passkeys for passwordless authentication in Colombia, enhancing security and user experience for millions. This implementation, leveraging biometrics or device codes, will also bolster Thales' biometric solutions by integrating them into secure, passwordless access.
Frequently Asked Questions (FAQs):
What are the biometric system market's major driving factors and opportunities?
The major driving factors for biometric systems include growing adoption of biometric technology in consumer electronics for authentication and identification and rising focus on enhancing governance and welfare delivery with biometrics are the major driving factors to this market. Collaborative strategies among participants in the supply chain is anticipated to fuel market growth of biometric systems.
Which region is expected to hold the highest biometric system market share?
Asia Pacific region is expected to hold the highest share in the biometric system market due growing adoption of smartphone to presents substantial growth opportunities for biometric authentication solutions.
Who are the leading players in the global biometric system market share?
Companies such as Thales (France), IDEMIA (France), NEC Corporation (Japan), ASSA ABLOY (Sweden), and Fujitsu (Japan) are the leading players in the market. Moreover, these companies rely on several strategies, including new product launches and developments, collaborations, partnerships, and acquisitions. Such methods give these companies an edge over other players in the market.
What are some of the technological advancements in the market share?
Advancing technology has made methods of authentication ever more accurate and efficient, with better fingerprint, facial, and iris recognition technologies. Further innovations in AI integration and improved sensors make for more reliability and scalability in the offerings of biometric solutions.
What is the size of the global biometric system market?
The global biometric system market was valued at USD 47.2 billion in 2024 and is anticipated to reach USD 84.5 billion at a CAGR of 12.3% during the forecast period.
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The study involved four major activities in estimating the current size of the biometric system market—exhaustive secondary research collected information on the market, peer, and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Various secondary sources have been referred to in the secondary research process to identify and collect information important for this study. The secondary sources include annual reports, press releases, and investor presentations of companies; white papers; journals and certified publications; and articles from recognized authors, websites, directories, and databases. Secondary research has been conducted to obtain critical information about the industry’s supply chain, the market’s value chain, the total pool of key players, market segmentation according to the industry trends (to the bottom-most level), regional markets, and key developments from market- and technology-oriented perspectives. The secondary data has been collected and analyzed to determine the overall market size, further validated by primary research.
List of major secondary sources
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Source |
Web Link |
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International Biometrics + Identity Association (IBIA) |
https://www.ibia.org/ |
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International Biometric Society (IBS) |
https://www.biometricsociety.org/home |
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European Association for Biometrics, |
https://eab.org/ |
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Institute of Electrical and Electronics Engineers (IEEE) |
https://www.ieee.org/ |
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Western North American Region (WNAR) |
https://www.biometricsociety.org/about/regions-networks/western-north-american |
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Swedish National Biometric Association |
https://biometricassociation.wordpress.com/ |
Primary Research
Extensive primary research was conducted after gaining knowledge about the current scenario of the biometric system market through secondary research. Several primary interviews were conducted with experts from the demand and supply sides across four major regions—North America, Europe, Asia Pacific, and RoW. This primary data was collected through questionnaires, emails, and telephonic interviews.
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Market Size Estimation
In the complete market engineering process, top-down and bottom-up approaches and several data triangulation methods have been used to estimate and forecast the overall market segments and subsegments listed in this report. Key players in the market have been identified through secondary research, and their market shares in the respective regions have been determined through primary and secondary research. This entire procedure includes the study of annual and financial reports of the top market players and extensive interviews for key insights (quantitative and qualitative) with industry experts (CEOs, VPs, directors, and marketing executives).
All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources. All the parameters affecting the markets covered in this research study have been accounted for, viewed in detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data has been consolidated and supplemented with detailed inputs and analysis from MarketsandMarkets and presented in this report. The following figure represents this study’s overall market size estimation process.
Bottom-Up Approach
The bottom-up approach was used to determine the overall size of the biometric system market from the revenues of the key players and their shares in the market. The overall market size was calculated based on the revenues of the key players identified in the market.
- Identifying entities in the value chain influencing the entire biometric system industry
- Analyzing each entity, along with related major companies
- Identifying technology providers for the deployment of components
- Estimating the market for biometric system end users and verticals
- Tracking ongoing and upcoming implementation of biometric systems developments by various companies and forecasting the market based on these developments and other critical parameters
- Arriving at market size by analyzing biometric system companies based on their countries and combining it to obtain market estimates by region
- Verifying estimates and crosschecking them through a discussion with key opinion leaders, including chief experience officers (CXOs), directors, and operation managers
Top-Down Approach
In the top-down approach, the overall market size has been used to estimate the size of individual markets (mentioned in the market segmentation) through percentage splits from secondary and primary research.
The most appropriate immediate parent market size has been used to implement the top-down approach to calculate the market size of specific segments. A top-down approach was implemented for the data extracted from the secondary research to validate the market size obtained.
Each company’s market share has been estimated to verify the revenue shares used earlier in the top-down approach. This study has determined and confirmed the overall parent market and individual market sizes by the data triangulation method and data validation through primaries. The data triangulation method in this study is explained in the next section.
- Focusing initially on topline investments by market players in the biometric system ecosystem
- Calculating market size based on revenue generated by market players through sales of biometric system
- Mapping the use of biometric systems in different authentication type, offering, mobility, type, deployment mode, vertical
- Building and developing information related to revenue generated by market players through key products
- Estimating geographic split using secondary sources considering factors such as number of players in a specific country and region, role of key players in developing innovative products, and adoption and penetration rates for various biometric systems and verticals in a particular country
Data Triangulation
After arriving at the overall market size from the above estimation process, the market has been split into several segments and subsegments. The data triangulation procedure has been employed wherever applicable to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Additionally, the market size has been validated using top-down and bottom-up approaches.
Market Definition
Biometrics is a term used to define a human body's physical and behavioral characteristics that are measurable in various forms. Biometrics is a technology that identifies an individual by verifying physical and behavioral characteristics, such as fingerprints, eye retinas and irises, Deoxyribonucleic Acid (DNA), voice patterns, facial patterns, and hand measurements, for authentication purposes.
Key Stakeholders
- Hardware system integrators
- Software providers
- Raw material suppliers
- Original equipment manufacturers (OEMs) and systems integrators
- Research organizations and consulting companies
- Government bodies such as regulating authorities and policymakers
- Venture capitalists and private equity firms
- Associations, organizations, and alliances related to the biometric systems ecosystem
- End users of biometric systems across various verticals, such as government, defense, healthcare, BFSI, consumer electronics, travel & immigration, automotive, and security, among others
Report Objectives
- To define and forecast the biometric system market based on authentication type, offering type, type, mobility, deployment mode and vertical in terms of value for biometric systems.
- To define and forecast the biometric system market based on authentication type for fingerprint sensors in terms of volume for biometric systems.
- To describe and forecast the biometric system market based on four key regions, namely, North America, Europe, Asia Pacific, and the Rest of the World (RoW), along with their respective countries
- To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing the growth of the market
- To strategically analyze micromarkets with respect to individual growth trends, prospects, and contributions to the overall market size
- To study the complete value chain of the biometric system market
- To analyze opportunities in the market for stakeholders by identifying high-growth segments of the biometric systems ecosystem
- To strategically profile the key players and comprehensively analyze their market positions in terms of their ranking and core competencies, and provide a detailed competitive landscape
- To analyze competitive developments, such as product launches and developments, acquisitions, collaborations, agreements, and partnerships, in the biometric system market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
- Detailed analysis and profiling of additional market players (up to 5)
- Additional country-level analysis of the biometric system market
Product Analysis
- Product matrix provides a detailed comparison of the product portfolio of each company in the biometric system market.
Generating Response ...
Growth opportunities and latent adjacency in Biometric System Market
I would like to understand the overall market scenario of biometric system market
With the inclusion of biometric authentication across various applications, there are various key revenue pockets that are emerging to further expand the biometric industry. Foe instance, biometric identification as a service is significantly growing with the inclusion of more smart devices and cloud based intelligence platform. Does the scope of the report covers biometric as a service market and further break it down with respect to the applications?
Does this report provide detail analysis of India market including the usage of Indian data base to incorporate various applications and software
"Software play a significant role in ensuring the interoperability and compatibility of biometric devices, particularly with feasibility to integrate add-on features in existing hardware by updating the software. So depending upon the usage with respect to different authentication technologies and applications we may further classify the software segment. I would like to understand wheather this report include different types of software used in biometric solutions an the market sizing for the same?"
Doe this report covers industry specific competitive analysis
Although the market of biometric system is huge, it still projected to grow significantly as there is continuous shift towards implementing stringent security methods that replaces traditional identification methods with biometrics. At the same time, market can be distinguish on the basis of various parameters such as various modalities, applications, and offering. I would like to understand, how does this report help in launching a new business in biometric space by identifying most attractive hotbets.
Biometric authentication solution has tremendous demand in APAC. Growing adoption is largely attributed to increasing use cases, such as implementing facial recognition cameras and growing number of airports with biometric security chechpoints, in China for public safety. So, I would like to understnd the market in China for biometric solutions and how we can cater to it? Further, what are some of the hot bets in China where we can expand our business?
I would like to understand the scope of the report
Government agencies across the globe are increasingly using social media as a primary communication channel from communicating crisis to policy changes. For instance, US Department of State using YouTube to share press briefings or updating the citizens about a new regulation. Social media has made communication between citizens and government much easier. The government worldwide follows measures for data privacy such as high-tech encryption and multi-layered authentication. However, there are no stringent rules that prevent officials at government agencies from publishing the sensitive information online or data misuse. Does the report include data breaches and potential abuse of biometrics databases crossed against social media accounts by certain governments?
Does this report covers in-depth analysis of companies involved in the biometric space along with detailed segmentation with respect to technology and application
Software plays a significant role in ensuring interoperability and compatibility of biometric devices, particulary in terms of the feasibility to integrate add-on features in existing hardware by updating the software. So, depending upon usage, with respect to different authentication technologies and applications, we may further classify the software segment. I would like to understand whether this report includes different types of software used in bioetric solutions and the market sizing for the same.
How does this report cover market for IT / ITES / BPO segment to position 2 Factor Authentication, Server Access Management and Single Sign-ON using biometric
I would like to understand the commercial drivers and challenges associated with biometric system.
I would like to understand the adoption of smart locks and biometrics in the space
With the inclusion of biometric authentication across various applications, there are various key revenue pockets that are emerging in the biometric space. For instance, biometric identification as a service is witnessing significanlt growth, with the inclusion of more smart devices and cloud-based intelligence platform. Does the scope of the report cover bioetric as a service market? Also, can it further be broken down with respect to applications?
What´s difference of "Single User License" and "Corporate License"?
Does the report include biometric system market for Middle East and Pakistan
Government agencies across the globe are increasingly using social media as a primary communication channel—from communicating crisis to policy changes. For instance, the US Department of State using YouTube to share press briefings or updating the citizens about a new regulation. Social media has made communication between citizens and government much easier. The government worldwide follows measures for data privacy, such as hi-tech encryption and multi-layered authentication. However, there are no stringent rules that prevent data misuse or officials at government agencies from publishing sensitive information online. Does the report inculde data breaches and potential abuse of biometrics databases against social media accounts by certain governments?
I would like to understand the market trends in biometric industry
The market for biometric systems is huge and the continuous shift toward implementing strigent security methods to replace traditional identifoication methods with biometrics is expected to further propel the market. The market can be distinguished by parameters such as various modalities, applications, and offering. I would like to understand, how does this report help in launching a new business in the biometrics space by identifying most attractive hotbets?
Does this report provide specifics about next generation biometric
I would like to understand the distinction of market based on single factor authentication
Biometric authentication solution has a tremendous demand in APAC countries. Growing adoption is largely attributed to the increasing use cases in China for public safety such as implementing facial recognition cameras and growing number of airports with biometric security checkpoints. So, I would like to understand the market in China for biometric solutions and how we can cater to it. Further, what are some of the hot bets in China where we can expand our business.
I would like to understand the used cases of biometric solutions for law and enforcement