Biometrics as a Service Market is projected to grow at a CAGR of 21.90% between 2025 to 2030.
Biometrics as a Service is a cloud-based application that authenticates and identifies individuals on the basis of their behavioral and biological characteristics. It refers to a technology based on biometrics that records the individual’s presence through precise facial, voice, or eye recognition. This aids in enhancing the security of enterprises and organizational infrastructure. When compared to the traditionally used pin and paper-based authentication, these systems are time and cost-effective, highly scalable.
Driving Factors
The usage of traditional biometric techniques to integrate biometric capabilities into business applications can be tedious and costly. Biometrics as a service is mainly offered on the cloud platform which integrates biometric infrastructure with cloud capabilities and technologies. The identity theft activities resulting from rising incidents of theft and fraud have forced enterprises to adopt identity management solutions and secure access. Hence, various end-user industries have been adopting biometric solutions around the globe to control these activities. Furthermore, the availability of a good number of vendors contributing reliable biometric solutions over the cloud is fueling the demand for biometrics as a service market in the forecast period. Also, several government initiatives are further boosting the adoption of biometrics as a service, leading to its market growth.
Market Segmentation
By enterprise size, biometrics as a service is segmented into large, small, and medium enterprises. The large enterprise is expected to show prominent growth owing to the high scale adoption and demand of biometrics as a service in larger enterprises. By end-user, the biometrics as a service market is segmented into BFSI, communication, and technology, government, travel and tourism, retail, and others. The BFSI segment is anticipated to show promising growth owing to the heavy investments made by bank service providers in mobile app services and to safeguard transactions and payments through mobile apps. The use of two-factor authentication, voice recognition, and fingerprint to provide safe transactions is leading to its growth.
Geographically, the North American region is expected to show prominent growth in the biometrics as a service market owing to the adoption of advanced technologies and the presence of major market players fuels the market growth of biometrics as a service market. Factors such as employee access monitoring in buildings and large-scale funded programs are leading to the substantial growth of biometrics as a service market in the forecast period. The adoption of biometrics as a service solution owing to the rising identity thefts related to banking and payment sectors in countries like the US are further boosting the market growth in the forecast period.
Growth Factors
One of the major reasons for the growth of biometrics as a service market is the growing application of biometrics as a service solution in the retail industry. The application of biometrics for access control for employees to curb inventory theft is leading to the increasing adoption of biometrics as a service solution in the retail industry. The use of identification methods which include biometrics for safeguarding customer data has led to the growth of biometrics as a service market Date 2021-10-12 Words 840 Characters 5539 Page 1 in the forecast period.
Restraints
A major restraint in the growth of biometrics as a service market is the security of biometric data which is stored on the cloud. As the storage of biometric data is directly on the cloud enterprise and consumers are unwilling to integrate the biometrics as a service system with their organization which can be lost, stolen, or compromised if the cloud is not secure. The misuse of biometrics if it is intercepted can enable illegitimate authentication. Biometrics cannot be reproduced or reset once it is compromised unlike passwords or smart cards and hence its security of biometric data restraints the market growth of biometrics as a service.
The COVID-19 impact on biometrics as a service market has been positive as several technologies such as artificial intelligence, biometrics, machine learning(ML) are anticipated to play a major role in the fight again the COVID-19 virus. The deployment of biometrics for early detection, public safety monitoring, and patient screening to curb the spread of the virus. Also, the introduction of biometrics in the key markets including border control, healthcare, law enforcement, biotechnologies, surveillance for the prevention of infectious disease and its control. Surveillance operations and face recognition are modernized with new screening software to locate individuals not wearing facial masks. Also, in a recent study, the use of biometric identification such as iris recognition and facial recognition in the post-COVID-19 scenario is anticipated to witness huge traction. Governments of various nations have emphasized the use of touchless biometric authentication instead of the use of touch-based biometric authentication in order to take protective measures to curb the spread of the virus.
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