Behavioural Biometrics Market

Market Outlook for Behavioural Biometrics Market

The global market for behavioural biometrics reached a valuation of around US$ 1.5 Bn in 2020, and is slated to accelerate at a stupendous CAGR of 20% to top US$ 9 Bn by 2031, as per latest industry analysis published by Fact.MR. The behavioural biometrics software is set to be worth over US$ 6 Bn in the next ten years.

Key Insights Offered in Behavioural Biometrics Industry Survey:

• Market Estimates and Forecasts (2016-2031)
• Key Drivers and Restraints Shaping Market Growth
• Behavioural Biometrics Market Size in 2021
• Segment-wise, Country-wise, and Region-wise Analysis
• Behavioural Biometrics Market Growth to 2031
• Competition Mapping and Benchmarking
• Brand Share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Demand for Behavioural Biometrics and How to Navigate
• Recommendation on Key Winning Strategies

Revenue Analysis of Behavioural Biometrics from 2016 to 2020 Compared to Demand Outlook for 2021 to 2031

As per Fact.MR, a market research and competitive intelligence provider, the global behavioural biometrics market thrived at a CAGR of over 9% from 2016 to 2020 to be worth US$ 1.5 Bn.

Cybercriminals steal data such as email, physical addresses, phone numbers, birthdates, and other personal details to open a fraudulent account. According to Plurilock Security research, 2016 and 2017 marked 82,000 and 160,000 cyber-attacks respectively, across the world. Behavioural biometrics technology solves these problems by using machine learning to analyze patterns. The high need to prevent cyber-attacks has driven adoption of behavioural biometric systems at a rapid pace.

With an increase in the number of mobile phone users with bank accounts, there has been rapid rise in mobile banking. Fraudsters are targeting digital transactions, and this is one of the key factors driving the global behavioural biometrics technology market. Demand for more developments in machine learning and artificial intelligence for advanced digital security has further led to the proliferation of behavioural biometrics.

Behavioural biometrics technology has a unique ability, which bridges the gap between security and user experience, and this significant factor is further impelling the need for behavioural biometrics in eHealth and well-being.

Latest trends and advancements in behavioural biometrics are also a significant factor that has led to an increase in investments by top behavioural biometric service providers.

Furthermore, government initiatives have been instrumental in promoting the adoption of these technologies, with governments across different countries providing subsidies on the installation of new solutions.

Considering these factors, the market is projected to witness high growth over the coming years, registering a CAGR of 20% to cross US$ 9 Bn by 2031.

How is New Technology Adoption Driving Market Growth for Behavioural Biometrics?

As several behavioural patterns and data points are being continuously collected by behavioural biometrics, any combination of data can be employed for the identification of a user. Thus, the authentication is precise and accurate, and users cannot practicably be impersonated.

Advent of AI in behavioural biometrics is a major growth driver for the market. Since the fundamental incident signals in which the device user’s behavioural data, such as length of stride and speed of typing are encoded, it cannot be easily susceptible to human interpretation.

Hence, AI-driven behavioural biometrics undertaking is adding impetus to the market by delivering real-time results. Rising demand for behaviour-based technologies will be a major factor for the emergence of AI in behavioural biometrics.

Due to an increase in the number of Internet users, people have found their digital journey painful as they are losing their security trust on online activities and privacy. This need to protect sensitive data from cyber intrusions with modern security and increasing demand for voice recognition in behavioural biometrics has driven market growth.

What are the Key Challenges Faced by Behavioural Biometrics Providers?

One of the major challenges faced by behavioural biometrics providers globally is high installation cost. Due to ongoing technology upgrades, initial cost of adopting behavioural biometrics has increased rapidly, which restrains end users from purchasing these solutions.

This is especially prevalent in developing nations where budgets for educational institutes will not be able to accommodate this technology. Even in developed nations, the cyber security budget of many companies is rather limited, which can hinder the adoption of behavioural biometrics-based mobile authentication solutions.

Concerns associated with the security of the technology and high cost of cloud-based behavioural biometric tools are some of the restraining factors that may affect the growth of the biometrics market to some extent.

Which Region Offers Huge Opportunity for Providers of Behavioural Biometrics?

Owing to growing demand for behavioural biometrics in the BFSI segment and ICT sector in North America, the region is anticipated to hold more than 40% share in the global market for behavioural biometrics.

Availability of IT infrastructure and increasing demand for gait recognition are factors expected to drive growth of the market in the region.

Further, the region benefits from governmental interest and funding in security sectors. The government is known to aggressively fund research and start-ups in the field of behavioural biometrics.

Rising demand for behaviour-based authentication software in Canada, latest trends of behavioural biometric software in Japan, and growing demand for behavioural biometrics in Germany are supplementing market growth in these respective countries.

Country-wise Analysis

What is the Behavioural Biometrics Demand Outlook for the U.S.?

The U.S. market was valued at over US$ 420 Mn in 2020. Top behavioural biometric software and service providers located in the U.S. is one of the major driving factors for market growth here.

All major companies in finance, retail, and IT & Telecom are moving towards the adoption of behavioural biometrics for fraud prevention.  The U.S. government has shown keen interest in implementing behavioural biometrics, and it is spending millions and dollars to develop advanced behavioural biometrics applications in public sector departments.

Growing demand for keystroke dynamics, gait analysis, and signature analysis in the U.S. has opened new growth avenues for providers of behavioural biometrics.

Will China Offer Increasing Opportunities for Companies Providing Behavioural Biometrics?

By 2031, the market in China is expected to be worth roughly US$ 1.1 Bn. Increasing demand for advanced security systems and growing finance sector are factors anticipated to drive the growth of the market in China.

Rising proliferation of mobile payment and real-time payment platforms across the country has increased fraud events, which is driving demand for behavioural biometric services in China. Furthermore, top behavioural biometrics solution providers in China are focusing on providing secured authentication solutions based on behavioural biometrics to their customers.

Category-wise Insights

What Makes Behavioural Biometrics Software Hold a Higher Market Share?

The software segment is the highest revenue-generating segment accounting for 60% of global revenue. Growing demand for reliable and safe digital transactions globally, owing to increasing penetration of smartphones and e-commerce, is leading to increased adoption of behavioural biometrics software.

To reduce fraud, increase security, and minimize costs associated with traditional multi-factor authentication solutions and passwords, vendors are developing behaviour-based authentication software. Additionally, rising number of fraudulent activities coming to light is driving demand for behavioural biometrics tools.

• For instance, in March 2019, Veridium Ltd., a provider of identity and access management software, launched InMotion for VeridiumID, the company’s software-only platform for mobile security.

Behavioural biometrics platforms provide enhanced mobile security for individuals and businesses. The software makes use of User Behavior Analytics (UBA) to identify patterns in human behaviour and detect anomalies, which could indicate security breaches, using statistical analytics.

Introduction of such innovative software based on behavioural biometrics is further expected to drive growth of the software segment over the next ten years.

Why Do Large Enterprises Lead Demand for Behavioural Biometrics?

Large enterprises focus on implementing behavioural biometrics in their business applications to enhance customer loyalty and reduce overall infrastructure costs. This trend is expected to drive demand for advanced behavioural biometrics applications in the large enterprises segment to a great extent.

Increasingly sophisticated data theft and cyber-attacks are driving the adoption of behavioural biometrics-based cyber security measures, which provide adaptive authentication and persistent security for large enterprises. Furthermore, behavioural biometrics tools allow large enterprises to meet increasingly stringent cyber-security regulations and standards such as ISO 27001, NIST 800-171, and Health Insurance Portability and Accountability Act (HIPAA).

Increasing advances in technology and technology-driven business models increase customer expectations for a high-end security experience to protect their data. To provide an improved security experience, large enterprises are adopting a combination of two or more biometrics modalities such as face detection biometric technology, fingerprint biometric systems, and voice recognition in behavioural biometrics, so as to offer secure services to their customers.

Has COVID-19 Impacted the Behavioural Biometrics Industry?

Healthcare, banking, and retail are the top industries adopting contactless biometric technologies for enhanced safety. Due to COVID-19, many of the public and private sectors are using behavioural biometrics for ensuring modern security.

The world has seen demand for secure, hygienic, and convenient authentication systems during this pandemic. It has been difficult for users to touch card readers, keypads, and devices for identity authentication.

The pandemic has forced top biometric component and equipment manufacturers to halt manufacturing operations on a temporary basis to obey government rules, and due adverse impact on supply chains, revenue of companies has been affected. The COVID-19 pandemic has impacted the entire global economy in unprecedented ways.

Various companies or industries have asked their staff to work from home, and this has intensified the need for digital solutions. With the outbreak of COVID 19, the market for behavioural biometrics is expected to witness significant growth due to increasing cyber-attacks and data breaches across the globe.

Competitive Landscape

Major vendors providing behavioural biometric software and services are continuously focusing on research & development for increasing their share in the global market.

• In February 2019, Plurilock Security Solutions Inc. introduced its new product ADAPT MFA, to provide next-generation multi-factor authentication for enterprise environments.
• In February 2020, BioCatch, a global leader in behavioural biometrics, acquired Aimbrain, to enhance fraud detection, delivering seamless and secure digital experience to organizations and users.

Behavioural Biometrics Industry Report Scope

Attribute	Details
Market size value in 2020	USD 1.5 Billion
Market forecast value in 2031	USD 9 Billion
Growth Rate	CAGR of 20% from 2021 to 2031
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania MEA
Key Countries Covered	U.S. Canada Germany U.K. France Spain Italy Russia China Japan South Korea India Australia Brazil Mexico Argentina GCC South Africa
Key Market Segments Covered	Component Deployment Model Enterprise Size Type Application Industry Vertical Region
Key Companies Profiled	BioCatch Ltd. Nuance Communications Inc. MasterCard Incorporated ThreatMark s.r.o. Plurilock Security Solutions Inc. ZIGHRA INC. Secured Touch GetSmart Solutions Ltd. Akiyama NuData Security G2 Data Technologies Nexgen Technologies Net Com SAS UnifyID SecureAuth Corporation Fair Issac Corporation BehavioSec Inc.
Pricing	Available upon Request

Key Segments Covered in Behavioural Biometrics Industry Research

• Component

  • Behavioural Biometric Software
  • Behavioural Biometric Services
    • Behavioural Biometric Managed Services
    • Behavioural Biometric Professional Services

• Deployment Model

  • On-premise Behavioural Biometrics Solutions
  • Cloud-based Behavioural Biometrics Solutions

• Enterprise Size

  • Behavioural Biometrics for Small & Medium Enterprises
  • Behavioural Biometrics for Large Enterprises

• Type

  • Keystroke Dynamics
  • Gait Analysis
  • Signature Analysis
  • Voice Recognition

• Application

  • Application of Behavioural Biometrics in Identity & Access Management
  • Application of Behavioural Biometrics in Risk & Compliance Management
  • Application of Behavioural Biometrics in Fraud Detection & Prevention Management
  • Application of Behavioural Biometrics in Identity Proofing
  • Application of Behavioural Biometrics in Continuous Authentication
    • Single Factor Behavioural Biometric Authentication
    • Multi-Factor Behavioural Biometric Authentication

• Industry Vertical

  • Use of Behavioural Biometrics in BFSI Sector
  • Use of Behavioural Biometrics in Retail & e-Commerce Sector
  • Use of Behavioural Biometrics in Healthcare Sector
  • Use of Behavioural Biometrics in Government & Defense Sector
  • Use of Behavioural Biometrics in IT & Telecom Sector