The contactless biometrics market contributes $17,389.2 million revenue in 2021, and it is projected to rise at a rate of 14.6% from 2021 to 2030, and generate $59,501.4 million revenue by 2030. It is ascribed to the rising preference for contactless biometric technologies, increasing security concerns, and government initiatives that encourage contactless biometric systems. For example, there is an ongoing progression in the implementation of Aadhar for contactless and facial authentication for various services. Thus, it will boost the banking and financial services sector.
The contactless biometric systems are utilized for forensics & criminal identification, access control, onboarding, and KYC. The rising identity theft & fraudulent activities, along with increased usage of the digital identity for various use cases across verticals result in the growing demand for the systems for forensic and criminal identification purposes.
The software category holds a significant share of the contactless biometric industry, accounting for 40%, and it is projected to retain its position in the coming years, due to the growing demand for software to enhance device compatibility for various applications. In addition, the rise in the queue-less passenger checks demand, fast and secure access controls, seamless border crossing, and quick identification to facilitate ease of convenience and security boost the industry growth.
The services category captures the third position, regarding market share, and it is projected to witness higher growth in the near future. It is ascribed to the training & consulting services, feasibility assessment services, analysis, and advisory services, and managed services, as they hold prominence for end users for efficiently operating the biometric systems.
Face recognition technology captures a significant share of the contactless biometric industry, ascribed to wide usage by end users, as it is reliable, economic, and facilitates high-level security. The iris recognition technology is projected to reflect the fastest growth in the coming future, ascribed to the technology that keeps away facial recognition drawbacks. This technology functions by exposing the iris to infrared light that discloses internal complex patterns.
Furthermore, the contactless biometric card technology demand is projected to register the highest growth in the coming years, led by an extensive rise in contactless payments. Therefore, companies are focusing on advanced facial recognition software and solutions development, which in turn proliferates the contactless payments industry.
Under the end-user segment, the government sector generates the largest revenue share in the contactless biometrics industry, accounting for 30%. It is led by the massive adoption of contactless biometric systems by numerous national governments. For example, contactless e-channels are installed at Hong Kong International Airport with QR code scanning and facial recognition technology for immigration.
North America holds the extensive share of the contactless biometrics industry, accounting for 30%, ascribed to the demand for seamless border crossing, speedy identification of individuals, rapid and secure access controls, and queue-less passenger checks. In addition, the illegal immigrants inflowing, unexpected terrorist operations results in growing security concerns, which in turn boost the demand for contactless biometric solutions in the region.
The next-largest contributor to the industry is Europe for the contactless biometrics industry. It is projected to witness the fastest growth in the near future, ascribed to the rising adoption of touchless biometric systems in government and military applications in the nation.
Therefore, the surging demand for contactless biometric solutions led by the rising security concerns, and the efficiency of these systems boost the industry.
