Biometrics Market Trends - Call for Speakers

Docid: 00011242

Publication Date: 2303

Report Type: MARKET

Preview

Biometrics encompasses a broad range of technologies used to identify an individual or authenticate an individual’s identity by measuring and analyzing the person’s physiological or behavioral characteristics. Popular biometric techniques include fingerprint, facial recognition, and iris recognition. Biometrics is popular in both the public and private sector for its accuracy and reliability.

Executive Summary

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The term biometrics encompasses a broad range of technologies used to
identify an individual or authenticate an individual’s identity by
measuring and analyzing the person’s physiological or behavioral
characteristics.

Biometrics are used for:

Identification – Determining
the identity of an unknown individual. Facial recognition, for example,
may be used to identify an individual in a crowd.

Authentication – Validating
the identity of a known individual. Finger scanning, for example, may be
used to verify that a particular individual is the person he or she
purports to be.

Interest in biometrics has increased as both the US and European Union
(EU) have pursued anti-terrorism and border security initiatives,
integrating biometrics into passports and other identity documents.

Obstacles to the widespread adoption of biometrics include cost,
complexity, and the perception that various forms of biometrics (like iris
recognition) are personally invasive.

Precedence Research, which valued the global biometrics market at $51.55
billion in 2022, expects the market to reach $137.5 billion by 2030,
expanding at a compound annual growth rate (CAGR) of 13.05 percent during
the 2022 to 2030 forecast period.¹

Market Dynamics

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Applications

Protecting national borders and safeguarding personal identities has been
a goal of governments around the world, probably as long as there have
been governments. Biometrics is not the first technology to be used for
this purpose, but it does offer the most advanced means of achieving this
objective. Many countries are adopting biometrics for use with their
e-passports, including the European Union (EU), Canada, and the US.

In addition to governmental applications, biometrics are widely employed
in the private sector. General applications include:

Physical Access Control – Business entry, facility
entry (such as to a data center or laboratory), home entry, and vehicle
entry.
Device Usage Authorization – In particular, personal
computers and mobile phones.
Time and Attendance Monitoring – Especially for
factories and other timed-work environments.

Industry-specific applications include:

Banking and Retail – Fingerprints or other
identifiers can be used in place of credit or ATM cards, or they can be
incorporated into such cards for additional security. Banks are
deploying biometrics primarily as a means to ensure security at their
ATMs, while retailers are using biometrics to authenticate customers and
their credit card use.
Healthcare – The use of biometrics in healthcare can
ensure compliance with the US Health Insurance Portability and
Accountability Act (HIPAA), which requires healthcare organizations and
insurers to secure stored information about patients. Biometrics
can also provide more convenient access to resources, as clinicians will
not have to worry about remembering passwords or losing access cards.
Universities – Universities can implement biometric
features in student and staff ID cards, using them to control access to
dormitories and other buildings as well as enabling people to make
purchases at cafeterias, login to campus computer networks, check out
library books, charge phone calls, and perform other functions.

Technologies

The biometrics market is highly differentiated along technological
lines. Among the most widely-used biometric forms are:

Fingerprint – Ideal for identity documents and device
access such as a computer.
Facial Recognition – A technique for identifying
individuals from photographs. The photograph can be embedded in an
electronic document, such as an e-passport or digital driver’s license,
but many times facial recognition is used to identify individuals in a
crowd or at a distance.
Hand Geometry – Measures the physical characteristics
of the hand such as shape, width, and the length of fingers, nails, and
the hand itself. Since hand geometry is not as unique as fingerprints,
it is primarily used for regulating facility access or authentication.
Iris and Retina Recognition – Appropriate for
high-security applications due to their accuracy, especially iris
recognition. These technologies are often considered invasive by the
public, who frequently resist their use.
Voice/Speech Recognition – Enables audio-only
authentication.

Figure 1. Biometric Technologies

Source: Wikimedia Commons

Other, more niche, technologies include:

Skin Texture and Vein Recognition – Often used as
part of a multimodal security package, which can include finger scanning
or hand geometry.
Signature Recognition – An old technology that is
being modernized by digital scanning.
Keystroke Dynamics – Typing patterns, collected over
time, provide a biometric template that is unique to each individual
typist.
Gait Identification – Still in its early stages of
development, there are a number of problems that have to be solved
before gait identification will become a useful biometric form. First
and foremost is the clothing factor. Dress can obscure the gait and
change the look of the body. In addition, weight gain or loss can hinder
the use of gait identification.

Multi-Mode and Multi-Factor Biometrics

While single-mode biometrics, especially iris and retina scanning, can be
extremely secure, many government agencies and multinational corporations
are opting for multi-mode identification and authentication (I&A)
schemes, preferring to rely on more than one form of biometric, combining,
for example, fingerprint and facial recognition. As an alternative,
biometric-based multi-factor authentication systems pair biometrics
(something you are) with one or more non-biometric identifiers, such as
passwords (something you know) and smartcards (something you possess).

Single-Factor Biometrics

Although multi-factor biometrics are attractive from a security-in-depth
perspective, MarketsandMarkets predicts that single-factor authentication
will continue to lead the biometrics market “owing to the convenience,
cost-effectiveness, and fast responsiveness of the single-factor
authentication technique. In this authentication type, biometric
technologies such as fingerprint, face, and iris recognition are used
prominently. The single-factor authentication method is mainly used in
government, travel and immigration, and banking applications. Significant
adoption of facial and fingerprint recognition solutions in consumer
electronics has spurred the demand for single-factor authentication-based
biometric systems.”²

Biometrics as a Service

Like virtually all IT-based applications, biometrics is now being offered
on cloud-based platforms, thereby facilitating implementation. As
MarketsandMarkets explains, “The only hardware component required is the
biometric capture device [which receives] the individual biometric input.”
This makes it easier to deploy biometric solutions, “thus driving their
adoption across various industries. Moreover, most of the biometrics as a
service providers offer … services to help customers integrate
biometrics capabilities into their existing systems. This further reduces
the need for [customer furnished] technical resources.”³

Market Leaders

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Market Size

Leading market research firms are bullish on biometrics:

Precedence Research, which valued the global
biometrics market at $51.55 billion in 2022, expects the market to reach
$137.5 billion by 2030, expanding at a compound annual growth rate (CAGR)
of 13.05 percent during the 2022 to 2030 forecast period.⁴

Grand View Research, which valued the market
at $34.27 billion in 2022, expects the market to reach $150.58 billion by
2030, expanding at a CAGR of 20.4 percent from 2023 to 2030.⁵

Prominent Providers

The global biometrics market space is populated by vendors both large and
small. Some of the more prominent providers are:

NEC
Precise Biometrics
Fujitsu
Hitachi
Nuance

Biometrics as a Service

As mentioned earlier, many customers are anxious to adopt cloud-based
biometrics.

According to MarketsandMarkets, the global
Biometrics as a Service (BaaS) market should grow from about $1.4-1.5
billion in 2020 to $3.6-3.7 billion by 2025, a compound annual growth rate
(CAGR) of approximately 19.7 percent.⁶

Offering a concurring opinion, StrategyR
predicts that the BaaS market will be worth $3.9 billion by 2026, a CAGR
of 18.7 percent.⁷

Market Trends

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Biometric Partnerships

Biometric providers are teaming with mainstream IT vendors to expand
their market reach. For example, as Grand View Research reports,
“Microsoft evaluated and certified three new small USB fingerprint reader
accessories from BIO-Key, the SideTouch, SideSwipe and EcoID, to support
Windows 10’s newest biometric authentication sign-in feature.”⁸

Tell-Tale Eyes

Iris recognition, usually considered the most accurate biometric
modality, is receiving the recognition it deserves. Grand View Research
forecasts, “Iris-based access controls, identity recognition, and
surveillance are anticipated to grow. They have applications in ATM
facilities, financial institutions, … military intelligence, and
government programs. [The primary] advantage of Iris technology is safety
and convenience; the user does not need to have physical contact with the
reader [when] using this technology. Face scanning [see Figure 2] is also
one of the most widely used biometric authentication [techniques].
Contactless biometric techniques, such as hand geometry recognition, are
projected to witness substantial growth.⁹

Figure 2. Facial Recognition Scanning

Figure 2. Face Detection Scan Scanning - Free image on Pixabay

Source: Pixabay

AI-Enabled Biometrics

Transparency Market Research reveals that artificial intelligence
(AI)-enabled biometrics has particular promise.

“State-of-the-art systems equipped with AI features are gathering
traction in the healthcare industry, where they are increasingly used for
real-time interpretation of emotions in patients. In addition, biometrics
have already been widely commercialized for user authentication in
healthcare facilities.”¹⁰

Continuous Authentication

To help address the deficiencies of network security schemes, many
enterprise officials are embracing a relatively new security paradigm
called “Zero Trust,” which is “rooted in the principle of ‘never trust,
always verify.'”¹¹

The “always verify” part means continuous validation and verification.

According to Transparency Market Research, “Enterprises are expected to
adopt technology that will allow them continuous biometric
authentication,” part of a process for preventing cyber crimes and data
breaches.¹²

Analyst Chris Burt agrees, saying, “Continuous biometric authentication,
particularly within the enterprise space, is … expected to boost the
market.”¹³

Facial Recognition Is Helping Law Enforcement Identify Criminals

In a major test of the technology, the US Federal Bureau of Investigation
(FBI) and other law enforcement agencies are leveraging facial recognition
software to help identify the several hundred perpetrators of the January
6, 2021 assault on the US Capitol.

Analyst Mark Harris reports that according to Arun Vemury, director of
the US Department of Homeland Security (DHS) Science and Technology
Directorate Biometric and Identity Technology Center, “Modern algorithms
can basically see past issues such as how your head is oriented and
variations in illumination or expression.”

Perhaps more impressively, tests performed by the US National Institute
of Standards and Technology (NIST) indicate that the best algorithms can
make highly reliable identifications even during a pandemic when subjects
are wearing masks.¹⁴

Strategic Planning Implications

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Think Carefully

Biometric investment requires cautious consideration:

First, it may not be necessary. In many cases, much simpler security
measures such as keycard access control are sufficient to protect a
business or asset.
Second, many people believe that biometric identification and
authentication (I&A) is inherently invasive, especially in settings
other than government agencies or national security environments.
Potential enterprise adopters should be cognizant of the fact that many
of their employees may be just as resistant as the general public.
Third, while fingerprint is relatively cheap, other biometric
modalities, like iris scanning and facial recognition, can be expensive,
perhaps prohibitively so.
Fourth, future biometric systems will be AI-enabled. New adopters
should carefully analyze what AI means in terms of accuracy,
reliability, security, and personal privacy.

Try BaaS

Small-to-medium-sized enterprises (SMEs) should weigh the advantages of
Biometrics as a Service (BaaS). BaaS:

Reduces capital investment in biometric equipment.
Enables comparison shopping, in which multiple pilot projects are
conducted, each featuring a different vendor’s BaaS product or solution.
Permits a ready reversion to a no-biometrics environment, as may be
required if significant employee or customer resistance is encountered.

Privacy Policy

Before implementing any biometrics system, planners should craft a
Biometrics Privacy Policy. The primary purpose of the policy is to
address public concerns relative to the security and privacy of biometric
data. Public participation is essential in developing a biometrics
privacy code:

First, to register any general privacy concerns relative to
biometrics.
Second, to register any specific privacy concerns relative to
particular modalities, such as fingerprint or iris recognition.
Third, to elicit suggestions for mitigating any privacy concerns.
Fourth, to fashion privacy language that is simple, understandable,
reassuring, and not liable to multiple interpretations.

There are many considerations other than privacy concerns, such as cost,
false error rates, time consuming identification procedures, and
bottlenecks in places of business. Privacy concerns, however, are the
first factor that must be addressed to gain buy-in. Without public
acceptance, a deployment will not succeed.

Best I&A

Finally, there’s an inescapable logic that compels the acceptance of
biometrics for identification and authentication (I&A). Biometrics is
simply the most reliable form of I&A, and enterprise security
officials should be monitoring biometric developments with the aim of
implementing biometric technologies as soon as they become technically and
financially feasible within a particular security environment.

Importantly, security-conscious customers and business partners will want
to do business with enterprises employing biometric security measures.

References

¹ “Biometric Technology Market (By Authentication Type:
Single-Factor Authentication, Multi-Factor Authentication; By Component:
Hardware, Software; By Type: Contact-Based, Contact-less, Hybrid; By
Mobility: Fixed, Portable; By Application; By End User) – Global
Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and
Forecast 2022-2030.” Precedence Research. September 2022.

² “Biometric-as-a-Service Market by Offering, Solution
(Fingerprint Recognition, Iris Recognition, Voice Recognition, Palm
& Vein Recognition), Trait (Physiological, Behavioral), Modality,
Organization Size, Vertical, Region-Global Forecast to 2025.”
MarketsandMarkets Research Private Ltd. July 2020.

³ Ibid.

⁴ “Biometric Technology Market (By Authentication Type:
Single-Factor Authentication, Multi-Factor Authentication; By Component:
Hardware, Software; By Type: Contact-Based, Contact-less, Hybrid; By
Mobility: Fixed, Portable; By Application; By End User) – Global
Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and
Forecast 2022-2030.” Precedence Research. September 2022.

⁵ “Biometric Technology Market Size, Share & Trends
Analysis Report By Component, By Offering, By Authentication Type, By
Application, By End-use, By Region, And Segment Forecasts, 2023 – 2030.”
Grand View Research. 2023.

⁶ “Biometric-as-a-Service Market by Offering, Solution
(Fingerprint Recognition, Iris Recognition, Voice Recognition, Palm &
Vein Recognition), Trait (Physiological, Behavioral), Modality,
Organization Size, Vertical, Region-Global Forecast to 2025.”
MarketsandMarkets Research Private Ltd. July 2020.

⁷ Chris Burt. “Contactless, Cloud, Mobile and Multi-Factor
Biometrics Set for Rapid Growth.” Biometrics Research Group, Inc. August
3, 2022.⁷

⁸“Biometric Technology Market Size, Share & Trends
Analysis Report By Component, By Offering, By Authentication Type, By
Application, By End-use, By Region, And Segment Forecasts, 2023 – 2030.”
Grand View Research. 2023.

⁹ Ibid.

¹⁰ “Biometrics Market Size Worth $136.18 Billion by 2031 |
CAGR: 13.3%: Notes TMR Study.” Transparency Market Research Inc. August
2, 2022.

¹¹ “What Is Zero Trust?” Palo Alto Networks, Inc. 2020.

¹² “Biometrics Market Size worth $136.18 Billion by 2031 |
CAGR: 13.3%: Notes TMR Study.” Transparency Market Research Inc. August
2, 2022.

¹³ Chris Burt. “Contactless, Cloud, Mobile and Multi-Factor
Biometrics Set for Rapid Growth.” Biometrics Research Group, Inc. August
3, 2022.

¹⁴ Mark Harris. “How Facial Recognition Technology Is
Helping Identify the U.S. Capitol Attackers.” IEEE. January 11, 2021.

Web Links

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Fujitsu: http://www.fujitsu.com/
Hitachi: http://www.hitachi.com/
NEC: http://www.necam.com/
Nuance: http://www.nuance.com/
Precise Biometrics: http://www.precisebiometrics.com/
US National Institute of Standards and Technology: http://www.nist.gov/

About the Author

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James G. Barr is a leading business continuity analyst
and business writer with more than 30 years’ IT experience. A member of
Who’s Who in Finance and Industry, Mr. Barr has designed, developed, and
deployed business continuity plans for a number of Fortune 500 firms. He
is the author of several books, including How to Succeed in Business
BY Really Trying, a member of Faulkner’s Advisory Panel, and a
senior editor for Faulkner’s Security Management Practices.
Mr. Barr can be reached via e-mail at jgbarr@faulkner.com.

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