Contactless Biometrics Market
Contactless Biometrics Market By Component (Hardware, Software, Service), By Application (Face, Fingerprint, Iris, Voice), By End Use (Healthcare, Government, Defence & Security)- Global Market Insights 2022 to 2032
Analysis of Contactless Biometrics Market Covering 30 + Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Global Contactless Biometrics Market Outlook
The global contactless biometrics market is estimated at USD 17.1 Billion in 2022 and is forecast to reach USD 78.6 Billion by 2032, growing at a CAGR of 16.4% during 2022-2032.
The growing demand for end – to – end solutions has created the need for integration of different software and middleware services. Accounted to the above mentioned trend, market valuation for the contactless biometric market is estimated to account around ~43% of the global biometrics market by 2022 end.
Integration of artificial intelligence along with biometric algorithms enhances the face recognition capability. Thus, the need of such ability for determining most prominent traits such as gender, ethnicity, facial hair and glasses escalates its market by growth factor of 4.5X during the assessment period of 2022-2032.
Base Year Value (2021A)
USD 16.3 Billion
Estimated Year Value (2022E)
USD 17.1 Billion
Projected Year Value (2032F)
USD 78.6 Billion
North America Value Share (2021)
Top 5 Companies Market Share
Key Companies Profiled
Traditionally, contactless biometric technology used in the applications of military access control and criminal identification under a tightly regulated and legal framework grew with a CAGR of 13.7% during 2017-2022.
Most importantly, acceptance and awareness about this technology has increased among the users in the past few years, as millions of smartphones includes face and fingerprint recognition technology for unlocking. Sectors such as Fintech Organizations, telecom operator, retailer, banks, and others started adopting contactless biometrics technology for customer identification. Moreover, it is expected to become a mandatory process for verifying and identifying customers during opening of a new or already existing account.
However the difficulty in replacing the biometric data unlike passwords is the major restraint for the market. Biometric data is irreplaceable physically, therefore an alternative solution has to be used in order to replace biometric authentication. Thus, replacement of biometrics data is one of the major challenge anticipated to hinder growth of the contactless biometrics technology market during the forecast period.
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2017-2021 Global Contactless Biometrics Market Outlook in Comparison to 2022-2032 Growth Forecast
According to the latest report by Fact.MR, the global contactless biometrics industry is estimated to grow 1.8X during the historic period. Countries like U.S, U.K, Malaysia and Australia & New Zealand are accounting for the major portion of the market.
- Under technology, facial recognition is the highest growing segment. The segment is anticipated to grow 5.6X during the forecast period.
- By component, software segment is anticipated to generate the highest revenue. The segment is anticipated to create absolute dollar opportunity of USD 34.1 Billion by the end forecast period.
- Identity verification under the application is poised to grow 5.3X during the projection period. The segment is estimated to reach the market value of USD 52.9 Billion by the end of 2031.
- North America is the highest revenue generating segment. The region accounts for over 30% of the market share in 2021 with the growth rate of 16.0% over 2021-2031.
What is escalating the Demand of Contactless Biometrics Market?
The integration of behavioural biometrics with biometric solutions which is helping in securing authentication in financial institution, businesses, government facilities and retail point of sales is boosting the industrial demand of the product.
With the emerging internet of things, demand for efficient security system inbuilt is increasing Some devices were not previously “connected” and therefore not considered “at-risk”; however, with emerging IoT, thus the solution providers have started providing an additional integration of security layer which is essential for various networkable devices. This is providing the buyers with new solution and boosting the market growth.
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Headwinds Impacting the Sales of the Product?
High capital investment and deficient technological infrastructure such as digitalization of underway to deter biometric technological adoption. The high cost of product is impacting its penetration in the market resulting in low revenue generation and hindering the global sale.
Which Region Offers Larger Opportunity for Sales of Contactless Biometric Technology?
North America is the prominent region in the market accounting for 31.5% of the market share in 2031. The region is anticipated to generate the market revenue of USD 5.1 Billion in 2021. The reason for high revenue generation from this region includes maturity of contact-based biometrics, which is making in-roads for touchless biometric systems. The higher adaption of touchless biometrics system for its application in military and government application is boosting its sales in North America
For instance, installation of biometric technology with facial recognition, fingerprint and iris scanning for increasing the border security by El Paso Police Department, U.S is propelling the market growth.
How Does Europe Stand Out in Terms of Biometric Innovation?
Biometrics in general, and contactless biometrics technologies in particular, have received a lot of support in recent years across Europe. Biometric innovation has been maintained afloat because to funding programs including FFG KIRAS, EU PF7, IKT der Zukunft and H2020. Border security is a top priority for many projects, and demand for contactless biometrics in automated border control gates is critical. In Europe, contactless biometrics incorporated in mobile devices have been actively employed to help law enforcement organizations (LEAs) do their jobs more efficiently. During the projection period, the region is expected to increase 1.8X.
What Makes the United States a Hub for Contactless Biometric Technology?
In the United States, key market players include nVIAsoft Corporation, HID Global, and M2SYS Technology. Furthermore, being close to end customers allows technology companies to collect regular input from them in order to improve their solutions.
Why Does Fingerprint Application Hold Majority Market Share?
Fingerprint recognition is expected to achieve a market value of USD 1.5 billion by the end of 2021, representing a absolute dollar opportunity of over USD 5.4 billion the projection period. Users like the ease of contactless fingerprint scanners and sensor modules, which are considered one of the most error-free systems. This is also the most well-known biometric technology, making their purchasing more obvious.
Why is Demand for Iris Applications Surging?
Contactless biometric systems based on the iris are more precise and responsive, making them the preferable option for end users looking for a simple authentication process. Human resource processes, such as payroll processing and vacations, benefit from iris-based authentication. The growing use of automation in human resource management is projected to drive up demand for iris biometrics technology. This segment is expected to expand at a CAGR of roughly 18% between 2021 and 2031.
Which End User Contributes Most to Contactless Biometrics Revenue?
As an end customer, the government makes the most contribution to the global contactless biometrics industry. Governments all over the world have been integrating contactless biometrics in their operations in order to regulate criminal activities and avoid losses in administrative processes. The National Crime Records Bureau of India expressed interest in using facial recognition surveillance technologies that allow police to identify criminals through a verification procedure in November 2019. By the end of 2031, the segment is expected to have a market value of USD 2.4 Billion, with a CAGR of 18.4% over the same period.
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Competitive landscape highlights only certain players
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According to the market research analysis the top manufacturers of contactless biometrics are Touchless Biometric Systems AG, IDEMIA SAS, nViaSoft, Fujitsu Limited, NEC Corporation, HID Global, Assa Abloy AB, Blue Biometrics, FEITIAN Technologies Co., Smart Packaging Solutions and GateKeeper Proximity etc.
Majority of the manufacturers are focused on establishing subsidiaries in developing regions. Strategies include product launches, collaborations with key players, partnerships, and mergers and acquisitions. Some of the key development are:
- In May 2020, company named Finger Cards AB has expanded its touch sensor portfolio by the introduction of FPC2025 sensor. The target was to introduce a high performing biometrics that consume low power.
- In May 2020, one of the market giants NEC Corporation introduced NeoFace Thermal Express which offered touchless screening. NeoFace Thermal Express was designed to detect elevated body temperature and protective body equipment such as face mask.
- In 2020, Fingerprint Cards AB has partnered with Digi- Key Electronics, which has allowed the former expansion in the new market. During this partnership, Digi Key will help the company to develop new application areas.
Similarly, recent developments related to companies providing contactless biometrics and integrated biometrics software have been tracked by the team at Fact.MR, which are available in the full report.
Global Contactless Biometrics Market by Category
By Technology :
- Contactless Fingerprint Recognition
- Facial Recognition
- Iris Recognition
- Palm Vein Recognition
- Voice Recognition
- Contactless Cards
By Component :
- Contactless Fingerprint Scanners
- Facial Recognition Scanners
- Iris Recognition Scanners
- Palm Vein Scanners
- Others (Voice Recognition Devices, Contactless Smart Cards & Readers
- Integrated Biometrics Software
- Standalone Software/Middleware
- Facial Recognition Software
- Vein Recognition Software
- Iris Recognition Software
- Professional Services
- System Integration & Deployment
- Security Consulting
- Support & Maintenance
- Managed Services
- Professional Services
By Application :
- Identity Verification
- Payments & Transactions
- Access Control
By Industry :
- Government & Law Enforcement
- Military & Defense
- FAQs -
The global market value from sales of contactless biometrics is estimated to be around USD 16 Billion in 2021.
Sales of Contactless biometrics is projected to increase at a CAGR of over 17.1% during 2021 – 2031.
Contactless biometrics industry analysis showcase an absolute dollar opportunity of more than USD 61 Billion during the forecast period.
Increasing penetration of internet of things and advance security system in institutes, offices is escalating the growth of contactless biometrics.
Contactless biometrics demand is being escalated due to automatic identification and data capture technologies.