Global Contactless Biometrics Technology Market Size, Trends, and Analysis - Forecasts To 2026 By Component (Hardware, Software, and Service [Professional Services, Managed Services]), By Application (Face, Fingerprint, Hand Geometry, Iris, Voice, and Others), By End-User (Government, Banking & Finance, Consumer Electronics, Healthcare, Transport & Logistics, Defense & Security, and Others), Competitive Landscape, Company Market Share Analysis, and Competitor Analysis
The advancement of technology and the ongoing process of digitalization, particularly in developing countries, are expected to be the prime contributors to the markets growth. Biometrics technology provides a highly efficient and accurate system of recording and processing the biometric data of users for identification purposes. With the rising need for more stringent and effective security systems, due to the rising prevalence of criminal and terrorist activities, the demand for these systems is growing rapidly from various sectors, namely government, healthcare, finance and banking, and also transportation facilities and consumer electronics. The increasing application of artificial intelligence and machine learning in various fields is also increasing the use of these advanced biometric systems.
Depending on the components of these contactless biometric technologies, the market can be divided into three main segments: software, hardware, and service. Among these components, the segment of software is estimated to be leading the market by acquiring the largest part of it. In the year 2020, it almost acquired 45% of the total global market, in terms of revenue. The increasing trend of making everything digitalized is the main reason this biometric technology is growing rapidly and the service part is an extremely important part of it. With the ongoing development and advancements happening technologically in this field coupled with innovations like machine learning, artificial intelligence, this contactless technology is expected to be in demand, even more during the forecast period. With the increasing trend of digitalization all over the world, especially in developing countries, the demand for different algorithms and other high-tech systems is growingwhich eventually accelerates the demand for the software segment.The component of software in this biometric technology system includes these high-tech algorithms and systems, which is why it is expected to be the market leader. Moreover, with this growing adaptation, the demand for the service segment is also expected to grow considerably. To maintain these systems, as well as to use advanced technology at its maximum utility, service is needed. Owing to this fact it is expected to contribute to this growing demand for the service segment, in particular.
According to the applications of this contactless biometric technology, the market for the same can be segmented into several parts, for instance, face, hand geometry, voice, fingerprint, iris, and others. Among all these, the segment of the iris is expected to be the dominating segment by achieving the largest market share during the foreseen period. The iris-based biometric technology is extremely effective and accurate, making this type of biometric technology be demanded largely during the projected period. It is also very convenient and fast at giving the result. During the ongoing pandemic, this type of biometric technology has become more popular as it does not include any kind of touching. It scans the iris from a distance which maintains the distancing requirement for the pandemic to not spread further. This is also a contributing factor in the growth of this particular segment during the forecast period.
Based on the end-user, the market can be divided into several divisions; the government, consumer electronics, transport and logistics, banking and finance, defense and security, healthcare, and others. Out of all these segments, the government segment is anticipated to be the dominant one during the forecast period. With the increasing trend of digitalization primarily in the developing economies, the governments of these countries are adapting to contactless biometric technologies. To reduce criminal activities and keep a record of the citizens of the nations, governments are focusing on recording the biometrics of the citizens. Many developing countries, including India, have already succeeded in recording facial recognition and fingerprint recognition for most of the population. Moreover, this process is expected to continue in the entire world, resulting in the domination of the government segment in this market.
However, on the other hand, the security and defense segment is also expected to be growing significantly and become the fastest-growing end-user segment during the forecast period. Globally, the defense sector in different countries are becoming stronger and improving extensively, where this contactless biometric technology is applied to maintain the secrecy and the strength of the defense force. Other than that, in many regions, these technologies are acquired particularly for security purposes. With the increasing prevalence of criminal activities and terrorist attacks, the security in government buildings, airports, and public places has become more stringent with time, which is expected to become even stronger in the future, which directly results in the greater use of contactless biometrics technology for this particular end-use segment.
As per the geographical analysis, the market can be classified into North America (the United States, Canada, and Mexico), Asia Pacific (India, China, Japan, Malaysia, Singapore, and Rest of Asia Pacific), Europe (Germany, United Kingdom, Italy, France, Spain, Netherlands, and Rest of Europe), Middle East & Africa (Saudi Arabia, United Arab Emirates, and Rest of the Middle East & Africa) and Central South America (Brazil, Argentina, and Rest of Central and South America). Among the different regions, the biometrics technology market is expected to be dominated by the North American region. Owing to the better adaptability of the advanced and latest technology in several sectors, this particular region is anticipated to hold the largest part of the market revenue.The Asia Pacific region, however, is projected to be the fastest-growing region during the foreseen period. With the digitalization processes in place, the developing countries of this region are demanding advanced biometric technologies in different sectors. These technologies have applications in every sector of this region, from the government sectors, security purposes, healthcare sectors, to the finance and banking industry, transportation facilities, and consumer electronics, and as a result, this region is expected to have the fastest growth rate during the forecast period.
Touchless Biometric Systems AG, M2SYS Technology, Fingerprint Cards AB, HID Global, IDEMIA, Aware Inc, nViaSoft, Gemalto N.V., NEC Corporation, and Fujitsu Limited among others are the key players operating in the market.
Please note: This is not an exhaustive list of companies profiled in the report.
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The Global Contactless Biometrics Technology Market has been studied from the year 2019 till 2026. However, the CAGR provided in the report is from the year 2021 to 2026. The research methodology involved three stages: Desk research, Primary research, and Analysis & Output from the entire research process.
The desk research involved a robust background study which meant referring to paid and unpaid databases to understand the market dynamics; mapping contracts from press releases; identifying the key players in the market, studying their product portfolio, competition level, annual reports/SEC filings & investor presentations; and learning the demand and supply-side analysis for the Contactless Biometrics Technology Market.
The primary research activity included telephonic conversations with more than 50 tier 1 industry consultants, distributors, and end-use product manufacturers.
Finally, based on the above thorough research process, an in-depth analysis was carried out considering the following aspects: market attractiveness, current & future market trends, market share analysis, SWOT analysis of the company and customer analytics.
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