Vein Recognition Biometrics Market

Vein Recognition Biometrics Market Outlook (2022-2032)

The global vein recognition biometrics market is likely to reach a valuation of US$ 1,024.4 million in 2022 and is expected to progress at a CAGR of 19.2% to reach US$ 5,977.0 million by the end of 2032.

The demand for vein recognition biometrics is expanding due to the increased use of contactless biometric technologies, growing security concerns, and government measures in favor of these technologies.

For instance, India is moving toward making Aadhaar contactless with facial authentication for some services and eventually expanding it to the banking and financial services industry.

Since these technologies serve to provide a safe banking environment by reducing instances of identity fraud, creating an audit trail of transactions, and securing financial data, the banking and finance sector contributes significantly to the vein recognition biometrics industry's revenue.

Furthermore, the need for contactless biometric systems is growing in this industry due to the inability of conventional security measures like PINs, passwords, and tokens to effectively provide protection, particularly against more sophisticated intruder attacks.

For instance, a 2020 study by VISA Inc. revealed that biometric banking was used in Austria and the Czech Republic for 90% of transactions.

The rising applications of vein recognition biometrics systems, such as access control, onboarding & KYC, and criminal identification & forensics. The usage of these systems for criminal identification and forensic purposes is primarily driven by the rise in fraudulent activities, identity theft, and a growth in digital identity use cases across verticals.

The government sector is the largest revenue generator in the vein recognition biometrics industry, with a revenue share of more than 30% in 2021. This is due to the fact that numerous national governments are implementing contactless biometric technologies to reduce and regulate criminal activity.

For instance, Hong Kong adopted "contactless e-channels" with face recognition technology and QR code scanning in 2021, which were installed at Hong Kong International Airport for immigration purposes.

Report Attributes	Details
Vein Recognition Biometrics Market Size (2021A)	US$ 858.8 million
Estimated Market Value (2022E)	US$ 1,024.4 million
Forecasted Market Value (2032F)	US$ 5,977.0 million
Global Market Growth Rate (2022-2032)	19.2% CAGR
North America Market Share (2022)	23.7%
North America Market Value (2022)	US$ 243.3 million
Europe Market Share (2022)	30.2%
Europe Market Value (2022)	US$ 308.9 million
China Market Share (2022)	9.1%
China Market Value (2022)	US$ 71.1 million
Market Share of Top 3 Countries	63.6%
Key Companies Profiled	Dormakaba Holdings Fujitsu Futronic Hitachi Ltd. Honeywell Security IDEMIA IdentyTech Imprivata Johnson Controls M2SYS Technology Mofiria

Sales Analysis of Vein Recognition Biometrics Market Outlook (2017-2021) Vs. (2022-2032)

The tremendous digital change that occurred in 2020 has sped up the adoption of technology across a variety of tasks, from grocery shopping to banking. Unfortunately, the adoption of smart and digital services has brought forth brand-new difficulties in terms of rising fraud and cyber security risks.

As a result, numerous secure identity verification methods, including multi-factor authentication and behavioral biometric identification technology, have been thoroughly investigated. Finger vein authentication technology is one such emerging, cutting-edge technology. Since it cannot be copied, it is claimed to be more secure than fingerprint identification.

Strong authentication solutions are now more important than ever for the commercial and residential sectors, due to rapid digitization and the ongoing need to adopt stronger identification protocols to stop fraud and identity theft. The vein recognition biometrics market is predicted to grow as a result of this technical advancement.

• Short Term (2022 to 2025): the wide array of usability of the product, for instance employee attendance, time tracking, automobile security, will lead to market growth.
• Medium Term (2025-2028): United States and China projected to witness comparatively high demand for vein recognition biometrics.
• Long Term (2028-2032): Due to their inadvertent coding of demographic bias, facial recognition and AI-based biometrics have become popular in the headlines, especially when utilized in law enforcement. This could lead to future growth in the market.

From 2017 to 2021, the global market for vein recognition biometrics registered a CAGR of 17.2%. Fact.MR, a market research and competitive intelligence provider, reveals that the market will exhibit growth at 19.2% CAGR between 2022 and 2032.

Market share analysis of vein recognition biometrics based on technology and region is provided in the above image. Under the technology segment, the finger vein pattern recognition sub-segment dominates with 64.4% market share in 2022.

What’s Driving High Demand for Vein Recognition Biometrics Across Regions?

“Growing adoption of Vein Recognition Biometrics in the banking sector”

Growing instances of data theft and breach are prompting questions about security precautions, particularly in the finance sector. As they are utilized for security purposes in the BFSI sector to safeguard clients from identity theft and data theft, vein recognition biometrics are a viable and trustworthy option.

The adoption of vein recognition biometrics in developing nations like Argentina, Mexico, India, China, Brazil, and South Africa to confirm the identities of their clients in banks and other financial institutions.

The sales of vein recognition biometrics are significantly high, as it provides more accurate results than other types of biometric systems and has a lower false rejection rate (FRR) and false acceptance rate (FAR).

Thus, there is heavy demand for vein recognition biometrics in the banking sector to maintain privacy. The BFSI sector is estimated to take a market share of 17.4% in 2022 and reach a valuation of US$ 1100.9 million by 2032.

“Against Rising Crimes and Home Burglaries, there is High Demand for Improved Access Control Systems”

Globally, there is an increasing need for advanced access control systems in both commercial and residential settings, which is in line with the rise in theft and burglary incidents. Vein recognition biometrics companies all around the world are investing millions in secure access devices, firewalls, and encryption.

To obtain a competitive edge, businesses are undergoing a digital transformation and relying on software-defined networking, cloud computing, and the internet of things. In order to safeguard extremely sensitive data during normal data transfers, vein recognition biometric security solutions can be integrated into already-existing IT infrastructures.

This opens up new business prospects for the vein recognition biometrics market. As a result, there is significant demand for security-enabled devices as crime and burglary rates rise.

What Do Vein Recognition Biometrics System Installers Need to Watch Out for?

“Lack of result accuracy in some circumstances to limit installation”

Some of the restrictions and difficulties with finger vein biometrics are as follows. For instance, a person's finger vein patterns change as they mature. Younger and older persons need to replace their finger vein records every few years, as finger vein patterns are only stable between the ages of 20 and 50.

Environmental changes also have an impact on the effectiveness of finger recognition. For instance, colder temperatures increase blood viscosity, which causes finger veins to constrict and result in subpar picture patterns.

The opposite occurs when the temperature rises and the finger veins enlarge. This can result in several false negatives while making identification under harsh weather conditions. Overall, finger vein recognition is a promising new technology that is a safer and more secure alternative and has the potential to support or possibly replace afingerprint-identifying biometrics in the future.

Additionally, it has the ability to eliminate prejudice from biometric identification methods, resulting in more reliable, inclusive, and diverse digital verification systems globally.

Comparative View of Adjacent Vein Recognition Biometrics Market

Vein Recognition Biometrics Market:

Attributes	Vein Recognition Biometrics Market
CAGR (2023-2033)	19.2%
Market Value (2033)	US$ 5,977.0 million
Growth Factor	Due to growing security concerns and increased use of contactless biometric technologies, demand is expected to rise.
Opportunity	Growing demand in the banking sector as a result of an increase in fraud is opening up new market opportunities.
Key Trends	The government sector is the largest revenue generator in the vein recognition biometrics industry, providing new options for the market.

Hand Geometry Biometric Scanner Market:

Attributes	Hand Geometry Biometric Scanner Market
CAGR (2023-2033)	16.9%
Market Value (2033)	US$ 22.9 billion
Growth Factor	For security and better user experience, smartphones with biometric technology are being used more frequently, which is anticipated to positively boost market growth.
Opportunity	Expanding private organizations and flexible adoption are opening up new opportunities for manufacturers.
Key Trends	Use of Hand Geometry Biometrics Scanners in Indian Airports and the Transportation Sector is expected to rise in the coming years.

Biometric Payment Card Market:

Attributes	Biometric Payment Card Market
CAGR (2023-2033)	62.3%
Market Value (2033)	US$ 15.4 billion
Growth Factor	The demand for biometric payment cards is increasing as consumers are leaning toward using them to unlock their mobile phones and they want a biometric sensor for quick payment processing.
Opportunity	To give the customers these smart cards, various banks and financial institutions have partnered with biometric payment service providers.
Key Trends	Market participants for biometric payment cards have invested a lot of money in the introduction of new models

Country-wise Insights

How Increasing Use of Smart Appliances Drive U.S. Vein Recognition Biometrics Demand?

The U.S. healthcare sector is the third largest sector in the country, which represented 19.7% of the U.S. economy in 2020 with a revenue share of $1.27 trillion. The total number of employees in the healthcare domain is approx. 14% adults.

As of 2020, one-third of U.S. adults require telehealth assistance, with such massive growth in the industry. Between 2022-2032, healthcare employment is expected to grow by 14%. There is a rising requirement for the adoption of advanced technological products in order to secure the patients' records and maintain the privacy of healthcare employees.

Thus, the North American vein recognition biometrics market is expected to reach US$ 1,328.2 million by 2032.

Why is the China Vein Recognition Biometrics Market Expected to Be Highly Lucrative?

During the projected period, East Asia is anticipated to account for a huge portion of the global vein recognition biometrics market. Spending on building firewalls, encryption, and secure access devices is rising due to the growing usage of vein recognition biometrics technology in nations like China and Japan to prevent crimes like thefts and break-ins.

This is anticipated to support the expansion of the vein recognition biometrics industry in this area. Finger vein recognition is likely to be added to all bank ATMs by the Bank of China, Hong Kong, as it has a high degree of accuracy and cannot be faked. During the assessment period, the adoption of vein recognition biometrics is likely to enhance demand.

All in all, due to China being the manufacturing hub and one of the leading countries of smart devices, it has the capacity to expand the growth of the vein recognition biometrics market in the long run and generate an absolute dollar opportunity of US$ 360.4 million over the 2022-2032 period.

Category-wise Insights

Finger Vein Recognition Biometrics is Expected to have Higher Contribution in Sales of Vein Recognition Biometrics

Finger vein recognition is a physiological biometric that is used to evaluate people based on their physical traits and vein pattern characteristics. Since vein images are difficult to fabricate and don't alter with age, finger vein recognition is more accurate than other identification biometrics.

Biometrics based on finger veins entirely sidesteps the problem of biometric bias. This is due to the fact that biometric bias results from an algorithmic error when it is entrusted with automatically identifying people based on their biological and behavioral traits. However, if physical traits are completely ignored and authentication is solely based on internal bodily processes, this issue is either avoided or at least much reduced.

Owing to the above facts, the finger vein recognition biometric sub-segment of the vein recognition biometrics market is predicted to expand 5.7X by the end of 2032.

How can the Manufacturing Industry be the market leader for Vein Recognition Biometrics?

Long-standing labor and supply chain problems rarely coexist with favorable economic statistics. In 2021, the recovery started to take off as a result of the release of vaccines and a rise in demand. As industrial production surpassed pandemic levels in the middle of the year, increases in new orders for all major sectors suggest that growth continues in 2022.

However, realism about persistent threats restrains confidence in income growth. Operational efficiency decreases as a result of labor shortages and supply chain instability. Industries need to persist in the uncertainty caused by rapid recovery and compete in the growth period and might need to be active in their operations.

Owing to the aforementioned factors, the market for the manufacturing industry drives the growth of vein recognition biometrics, which is expected to grow more than 6.9X over the decade.

Competitive Landscape

All the industry leaders in technology are making their own strategies to stand out from other competitors in the vein recognition biometrics market. The brands like Dormakaba Holdings, Fujitsu, Futronic, Hitachi Ltd, Honeywell Security, IDEMIA, IdentyTech, Imprivata, Johnson Controls, M2SYS Technology, Mofiria, and other leading players have started manufacturing the vein recognition system biometrics to meet the consumer preference.

The advanced features involved in vein recognition biometrics are gaining traction in the market.

Fact.MR has provided detailed information about the price points of key manufacturers of vein recognition biometricspositioned across regions, sales growth, installed base, and speculative technological expansion, in the recently published report.

Segmentation of Vein Recognition Biometrics Industry Research

• By Technology:

  • Finger Vein Pattern Recognition
  • Palm Vein Pattern Recognition
  • Retina Vein Pattern Recognition

• By Solution:

  • Hardware
  • Software
  • Services

• By Sector:

  • BFSI
  • Healthcare
  • Manufacturing
  • Services, Communication & Media
  • Retail & Other Corporate
  • Transportation & Utilities
  • Institutions
  • Residential
  • Law Enforcement Offices.

• By Region:

  • North Americas
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa