Surge in the need for high-end security across government establishments as well as corporates has led to mounting demand for biometric technology. While the past half-decade witnessed technological up gradation of biometric technology, demand for contactless biometrics has also increased. Based on latest assessment by an ESOMAR-certified market research and consulting firm, in 2020, out of every 10 biometric unit sales, four were contactless. The outbreak of COVID-19 further unfurled the utility of the less-prominent features of this technology, including identification of people with masks on the face and extended capability of temperature scanning.
As per the latest market intelligence report, the global contactless biometrics market is anticipated to exceed a valuation of US$ 9 Bn by 2021, and expand at an impressive CAGR of around 16% over the forecast period of 2021 to 2031.
Key Takeaways from Market Study
- In 2020, North America and Europe together accounted for over 57% revenue of the global contactless biometrics market.
- The market in East Asia, South Asia, and Middle East and Africa is estimated to grow over 7-fold over the next ten years.
- The hardware segment accounted for over 30% of global market revenue.
- Fingerprint application accounted for over one-fourth of the global market in 2020.
- Contactless biometrics generated over US$ 5 Bn revenue from transportation & logistics, government and defence, and security applications.
- The market is moderately concentrated, with companies such as Touchless Biometric Systems AG, Fujitsu Limited, and Fingerprint Cards AB accounting for a majority of the market share.
“Collaborations play an important role in the market for contactless biometrics. While this stands as a win-win strategy, it also encourages the industry to adopt feedback-based product development,” says a Senior Research Analyst.
Fingerprint applications have gained significant traction in the recent past, as they have enabled contactless card payment instead of using PINs. With growing urbanization, the need for quicker authentication processes with be pivotal during the mid-to-long term. This highlights the growing adoption of voice and iris applications, owing to them being hassle-free and less time consuming.