The global biometric-as-a-service market is projected to register a fast-paced CAGR of 22.4% during the forecast period. The current valuation of the market is USD 6,040.9 million in 2022. The value of the market is anticipated to reach a high of USD 45,607.6 million by the year 2032. A historical market valuation of USD 5,002.0 million has been recorded by the experts of Future Market Insights during the base year.
While there are multiple tangents to the market growth, primary drivers include:
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The market is expected to have healthy growth through the projection period. However, the expert analysts at FMI have revealed that certain aspects, hinder the pace of advancement. The restraining factors identified are as follows:
Enterprises, especially in the IT industry, have increased their reliance on cloud-based services, which is creating a positive outlook for the market. Both private and government organizations are investing in advanced biometric-as-a-service solutions to curb identity theft and security attacks.
However, the waves of opportunities for the biometric-as-a-service market aren’t just splashing into the IT industry. Biometrics service providers find a revenue pocket for mobile apps as the banking, retail, and healthcare sectors conform to digitalization. Hence, the usage of biometrics to create secured digital wallets and, in turn, virtual transactions is a newfound opportunity.
With multi-directional growth in the scenario, service providers shoulder the responsibility of keeping their BaaS offerings up to date. As a result, their focus has been on developing high-sensitive systems, which can only be accessed through advanced authentication systems. Technologies such as voice and facial recognition, fingerprint scanning, and similar ones are gradually blending in with BaaS.
New opportunities in industries assisted with technological innovation promise a positive outlook for the market during the forecast period.
| Attributes | Details |
|---|---|
| Biometric-as-a-Service Market Value (2022) | USD 6,040.9 million |
| Biometric-as-a-Service Market Anticipated Value (2032) | USD 45,607.6 million |
| Biometric-as-a-Service Projected Growth Rate (2022 to 2032) | 22.4% |
Principal Consultant
An approximate USD 1,038.9 million surge in the total market value is from 2021 to 2022. From 2017 to 2021, the market registered a CAGR of 20.6%.
One of the key influencers providing new avenues of growth to service providers includes the surge in the usage of smart devices. Besides this, end users no longer only get satisfied with seamless UI/UX experiences. They demand sophistication and security while carrying out digital transactions, making BaaS the new default feature in mobile devices.
The biometric-as-a-service market is witnessing an unprecedented surge in recent years owing to the various technological advancements that include the integration of biometric-as-a-service with tablets, smartphones, laptops, and other IoT devices. This aspect is aiding towards the smooth conduction of business transactions through location-independent and multi-device environments.
While adopting biometrics systems has been growing steadily in developed countries, developing countries are the new haven for service providers trying to break through in the market. Governments across developing economies are creating a favorable environment for enhancing national security, which has contributed to the growth of the biometric-as-a-service market in the past few years.
Unimodal Biometric-as-a-Service Systems Tops the Modality Segment
The expert analysts at FMI have identified that the unimodal BaaS systems are going to hold a dominant share in the modality type category. This segment has surpassed the market shares o multimodal systems with 58% shares, whilst the multimodal system upheld 42.0% market shares in the year 2021. This segment is estimated to register a CAGR of 12.0% during the base year. The reasons behind the steady progress of this segment are:
However, the multimodal biometric systems market is estimated to advance at a CAGR of 13.3% through the forecast period. They are being highly deployed in smartphones and other technologically advanced devices for multi-factor authentication purposes, which gives an edge over conventional unimodal systems.
Users prefer to Tap their Fingerprint to Secure their Systems
The fingerprint segment by the scanner type category is estimated to account for the largest market share through the forecast period, surpassing the valuation of voice recognition, palm recognition, iris recognition, and facial recognition. This segment is estimated to progress at a fast pace, registering a CAGR of 14.5% through 2032. The market valuation is estimated to surpass USD 18.52 Billion by the end of the projection period. The factors contributing to the growth of this segment are:
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| Country/Region | USA |
|---|---|
| Statistics | North America is projected to hold the highest share in the biometric-as-a-service market through the projection period. This region accounted for a 32.9% market share during the base year. The USA has emerged as the most lucrative country in the concerned region. Historical CAGR: 15.1% |
| Growth Propellants | Reasons accelerating the growth of BaaS services in the USA are:
|
| Country/Region | Europe |
|---|---|
| Statistics | Europe is anticipated to emerge as the second largest region in the biometric-as-a-service market with a 20.7% market share during 2021. The forum is advancing at a CAGR of 16.4% and Germany has emerged as the leading country in the base year. |
| Growth Propellants | Factors fueling the growth of the market are:
|
| Country/Region | Japan |
|---|---|
| Statistics | Japan has emerged as the leading country across the Asia-Pacific region with an 18.6% market share during the base year. The biometric-as-a-service market in Japan is estimated to advance at a substantial pace, recording a CAGR of 20.4% through the forecast period. |
| Growth Propellants | Reasons owing to the growth of the market are:
|
| Country/Region | Korea |
|---|---|
| Statistics | Korea is expected to advance at a rapid pace, recording a CAGR of 14.2% through the forecast period. |
| Growth Propellants | Prevailing elements responsible for market growth are:
|
New Entrants Add an Edge to the Market Dynamics of BaaS Systems
The new entrants in the biometric-as-a-service market are leveraging advancements in technology to launch new products and gain a competitive advantage. These firms are continually investing in research and development activities to keep themselves in tandem with the changing consumer preferences and end-use industry demands. Efforts are being made to strengthen their foothold in the forum and aid the further progression of the biometric-as-a-service market.
Pindrop Security - USA-based Start-up
Funding: 223 Million
Pindrop Security is a phone fraud prevention solutions provider. It helps detect, report, and mitigate phone fraud by identifying key attributes of any phone call including the device used (based on audio analysis), ID, call path and geographic point of origin. The features include voice reports, multi-factor caller authentication, etc. The clients include AXIOS, Forbes, FORTUNE, etc.
BioCatch - Israel-based Start-up
Funding: 216 Million
AI-based biometric behavioral detection for transaction monitoring. It provides Account Opening Protection for identifying digital behaviors, Account Takeover Protection for detecting behavioral anomalies, Social Engineering Scam Detection for identifying fraudulent behavior on money transfers, and more. Users can integrate the tools with websites and mobile-based platforms.
D-ID - Israel-based Start-up
Funding: 48 Million
Cloud and AI-based platforms offer security solutions to protect biometric databases. Its proprietary algorithm resynthesizes photos to a protected version proprietary algorithm combined with advanced image processing and deep learning technique. The solution is available as SaaS and on-premise.
Attempts of Biggies to revolutionize the BaaS Market
The BaaS market is fragmented and the key players are deploying organic and inorganic growth strategies to compete in the market. The biggies are heavily investing in research and development activities to make technological advances in biometric systems for easing the job of the growing corporate sector and advanced security to all the data.
Trust Stamp, a North American company offer AI-based biometric identity and KYC solutions that enable business organizations to protect their users with the help of AI-powered identity solutions developed with the intersection of privacy, cybersecurity, and biometrics. It transforms sensitive data to maximize both its utility and privacy, allowing businesses to adopt biometrics and other anti-fraud initiatives while protecting personal information from hacks and leaks.
It is identified that financial institutes are also focusing on adopting biometric solutions to provide better customer experiences.
Recent Developments
The growth outlook for the biometric-as-a-service market is predicted to advance at a CAGR of 22.4% during the forecast period.
The North American region is anticipated to lead the market.
The valuation of the biometric-as-a-service market stands at USD 6,040.9 million in 2022.
The biometric-as-a-service market is likely to hold a valuation of USD 45,607.6 million by 2032.
The IT industry sector is the key driver in the market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032 5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Component 5.1. Services 5.2. Software 6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Application 6.1. Mobile Banking 6.2. Payments 6.3. Authentication 6.4. Workforce Management 6.5. Law Enforcement and Border Control 6.6. Civil Identity and Elections 6.7. Others 7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Type 7.1. Unimodal 7.2. Multimodal 8. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. South Asia 8.5. East Asia 8.6. Oceania 8.7. Middle East and Africa (MEA) 9. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 10. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 11. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 12. South Asia Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 13. East Asia Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 14. Oceania Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 15. MEA Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Fujitsu 18.2. HYPR (USA) 18.3. OT-Morpho 18.4. M2SYS (USA) 18.5. SUPREMA Leidos (USA) 18.6. Image Ware Systems 18.7. CERTIFY GLOBAL 18.8. Polygon Innovation 18.9. Sky Biometry 18.10. Right Patient 18.11. VoiceIt Technologies 18.12. Smile Pass Athena Sciences Corporation 18.13. BYTES TECHNOLOGY GROUP-Bytes SI 18.14. Fulcrum Biometrics 18.15. Accenture 18.16. SpeechPro (USA) 19. Assumptions & Acronyms Used 20. Research Methodology
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Biometric-as-a-Service Market
