San Francisco, 27 February 2024: The Report Contactless Biometrics Technology Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Service), By Application (Face, Fingerprint), By End-use (Consumer Electronics, Healthcare), By Region, And Segment Forecasts, 2023 - 2030

The global contactless biometrics technology market is anticipated to reach USD 46.65 billion by 2030, registering a compound annual growth rate (CAGR) of 18.1% from 2023 to 2030, according to a new report by Grand View Research, Inc. Contactless biometrics technology is used for identification and authentication without the need for any physical contact. Contactless biometrics is a safer and more innovative verification mode based on convenience and hygiene. Moreover, owing to the impact of the COVID-19 pandemic, contactless biometrics technology is widely being adopted by key markets for applications such as border control, law enforcement, surveillance, healthcare, and biotechnology. For instance, facial recognition biometric systems in China are being used to detect individuals not wearing facemasks.

The promising growth prospects of the market can be attributed to the vast advantages of contactless biometrics, including a high level of security in the private, public, and commercial sectors. The technology records unique human characteristics, such as the retina, fingerprints, DNA, and voice patterns, for authorization. Furthermore, the increased adoption of biometrics technology across several verticals in the public, private, and commercial sectors for enhancing security is expected to work well for the market.

The rising adoption of Artificial Intelligence (AI) and cloud-based services for biometric devices is anticipated to propel the demand for associated software to fortify the compatibility of operating systems and devices for different applications. Growing demand for fast and secure access controls, queue-less passenger checks, seamless border crossing, and faster identification of individuals for better convenience and security are some of the key factors driving the market’s growth. Manufacturers are developing contactless biometric high-tech sensor systems through fast software algorithms and machine-learning methods for fast and secure identity checks.

The rise of digital banking across the globe is the major impetus behind the increased introduction of voice and facial recognition in the banking and financial sectors. For instance, Citigroup Inc. introduced voice biometrics to verify customers’ identities. The use of contactless biometrics authentication for banks offers an additional, convenient, and user-friendly way of verifying their customers, thus delivering a consistent and superior user experience with strong and secure authentication across channels. The demand is steadily increasing amid the COVID-19 outbreak. The pandemic has also influenced various digital businesses, which are now developing facial recognition systems to secure their online platforms.

The implementation of biometrics technology can be a costly affair for any enterprise. The high cost associated with the hardware, software, and support services required to implement a biometrics system is presently one of the main challenges for the market. However, technological advancements and the increasing use of these technologies may gradually reduce the overall implementation cost. The demand for biometrics technology is expected to grow significantly in the healthcare sector, owing to the rapid technological advancements and use of biometrics for protecting patient privacy, curbing false insurance claims, and other healthcare frauds.

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The market has experienced significant growth in recent years due to increasing security concerns, the need for convenient authentication methods, and the adoption of biometrics in various industries, including government, healthcare, defense, and consumer electronics. The COVID-19 pandemic accelerated the adoption of contactless biometrics technology, as it offers a hygienic and touchless way to verify identities. Facial recognition and iris scanning gained prominence in healthcare and access control.

Contactless Biometrics Technology Market Report Highlights

• By component, the software segment dominated the market with a share of over 44.5% in 2022. Growing adoption of cloud-based services, Artificial Intelligence (AI), and Machine Learning (ML) for contactless biometrics solutions are expected to drive the demand for the software segment.
• By application, the face biometrics technology segment dominated the market with a revenue share of 28.4% in 2022. The COVID-19 pandemic accelerated the demand for contactless technologies, and facial biometrics gained prominence as a secure and touchless means of identity verification in various sectors, including retail and finance.
• By end-user, the government segment dominated the market with a revenue share of 25.1% in 2022. Many governments use contactless facial recognition and iris scanning at border control and immigration checkpoints. These systems help verify travelers' identities quickly and efficiently, enhancing security and reducing wait times.
• The North America region dominated the market by a revenue share of 32.0% in 2022. The rising adoption of contactless biometrics solutions in defense and government applications is also expected to drive the demand for the market in North America.

Rising penetration of smartphones and tablets, coupled with manufacturers’ focus on facial recognition software for their smartphones as an added layer of verification to unlock their smartphones, is anticipated to drive the demand. Contactless biometrics also provides secure access to apps and authenticates payments. Moreover, the rising adoption of contactless biometrics solutions in financial institutions to secure international financial transactions is expected to drive market growth. Contactless biometrics technology allows longer run times with fewer consumables and less cleaning, minimizing maintenance costs.

A growing number of air travelers across the globe has increased the demand for more secure and advanced identification solutions at airport facilities. For instance, in April 2020, Etihad Airways announced a trial of contactless self-service technology manufactured by Elenium Automation. The solutions estimate a passenger’s vital signs to allow for touchless health screenings through voice recognition at airport kiosks. In addition, manufacturers are also focusing on advancing their existing contactless biometrics solutions by implementing temperature sensors to capture body temperature and imaging cameras.

Contactless Biometrics Technology Market Report Scope

With the advent of computerized databases and digitization, contactless biometrics verification has a high industrial adoption rate worldwide. Rising demand for secure, hygienic, and convenient authentication systems in condominiums and clubs across the globe is anticipated to drive market growth. The COVID-19 pandemic created a heightened awareness of hygiene and security. Condominiums and clubs needed to minimize physical contact to reduce the spread of the virus. As a result, there was a surge in demand for contactless access control systems that relied on technologies like facial recognition, RFID cards, or mobile apps.

However, the high cost of contactless biometrics solutions is expected to hinder the growth of the contactless biometrics’ technology market to a certain extent. Furthermore, data theft or identity theft is a major challenge for growth as it may seriously threaten the security of important information or even increase national security threats. Human face changes in texture and shape over time, and facial recognition technologies must be robust enough to accommodate changes generated from the aging process, increasing error rates in the matching systems. Other factors of error include illumination of the face, variations in pose, and expression that further limit the growth to a certain extent.

List of Key Players in the Contactless Biometrics Technology Market

• Aware Inc.
• Fingerprint Cards AB
• Fujitsu Limited
• Gemalto N.V.
• HID Global
• IDEMIA
• M2SYS Technology
• NEC Corporation
• nViaSoft
• Touchless Biometric Systems AG