The behavioral biometrics market revenue totaled USD 1,254.7 million in 2022, according to Future Market Insights (FMI). The market is expected to reach USD 13,001.4 million by 2033, growing at a CAGR of 23.8% from 2023 to 2033. As of 2023, the market for behavioral biometrics is expected to total USD 1,533.2 million.
The behavioral biometrics market growth will continue to accelerate, resulting in a higher degree of competition among key players. FMI has forecast the top 5 providers to account for around 55.0% of the total market in 2022.
| Report Attribute | Details |
|---|---|
| Base year (2022) Market Value | USD 1,254.7 million |
| Expected Market Value in 2023 | USD 1,533.2 million |
| Projected year (2033) Market Value | USD 13,001.4 million |
| CAGR% (2023 to 2033) | 23.8% |
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Frequent developments and the implementation of new technologies/software such as advanced behavioral biometrics technologies, human behavioral patterns, and machine learning/deep learning for identity verification and validation, fraud prevention, and multi-factor authentication applications are creating opportunities for growth of the behavioral biometrics solutions.
Advantages such as flexibility, convenience, efficiency, and security, which also facilitate integration with cloud solutions are primary factors resulting in higher demand for behavioral biometrics being used on a global scale. The integration of technologies such as the Internet of Things (IoT), big data, artificial intelligence (AI), and others can be expected to lead to development of the behavioral biometrics functionalities, with improved performance.
FMI predicts the behavioral biometrics demand to rise at a 23.8% CAGR between 2023 and 2033 in comparison to the 21.7% CAGR registered during 2018 to 2022. Biometric authentication software helps improving security for networks, applications, and physical locations through integration of biometric factors such as additional access qualifier. Biometric authentication tools uses physical characteristics including facial, fingerprint, or voice recognition to verify a user’s identity.
Higher integration of the technology will enable the global behavioral biometrics market reach USD 1,533.2 million in 2023, and eventually to USD 13,001.4 million by 2033.
Crucial Applications Banking Sectors to Propel the Market Growth
Behavioral biometrics are mainly used for analyzing a user’s cognitive behavior and digital-physical features. It is gaining traction across diverse industries as an effective fraud prevention solution. Behavioral biometrics helps in distinguishing between legitimate users and cybercriminals and verifies people by how they perform and interact online rather than by their physical characteristics.
Behavioral biometrics are adopted across a range of industries with a digital presence and are poised to play a crucial role in building digital trust and safety. Digital banking is one of the most effective platforms for financial institutions to drive growth, attract new customers, and increase revenue.
Behavioral biometrics offers various benefits in the banking sectors such as account opening protection, account takeover protection, and social engineering scam detection, among others. The reliability offered by behavioral biometrics solutions will push their uptake in the BFSI sector.
The Behavioral Biometrics Sector Now Has a Beneficial Income Stream Owing to Ddigitalization
Ongoing digitization has created a lucrative revenue stream for the behavioral biometrics industry wherein access, security, and privacy of data remains at top of the mind of all digitally-driven businesses. As password security has become vulnerable to breaches, businesses are seeking intelligent yet convenient security solutions to avoid fraudulent activities, financial losses, and market reputation.
Popular biometric technologies, ranging from fingerprint to facial recognition, have witnessed a demand uptick because they offer accurate, reliable, and cost-efficient security services. The reliance of enterprises on biometric technologies for security needs is set to fuel behavioral biometrics demand in the future.
United States to Take Over the North American Market
North America is predicted to remain one of the most attractive markets during the forecast period. According to the study, the United States accounted for 18.5% of the North American market share in 2022.
The United States is the largest market for behavioral biometrics due to the strong presence of some of the leading behavioral biometrics software and service providers. Implementation of behavioral biometrics creates unique records of individuals and helps in elimination of data duplication and fraud activities, thereby combating identity fraud. Hence, the demand for behavioral biometrics would increase across various organizations in the United States, during the forecast period.
High Adoption of IOT to Generate High Market Revenue in France
The behavioral biometrics demand in the France is expected to rise at a CAGR of around 27.5% over the forecast period. France is increasingly powered by Internet of Things (IoT), human behavioral patterns, smart sensors, machine learning/deep learning, smartphone technology, and peer-to-peer networks.
Governments in Europe are encouraging the use of face biometrics incorporated civil ID cards for issuing passports and driving license. This is one of the factors driving behavioral biometrics demand in France and elsewhere in Europe. Furthermore, the increasing demand for a multi-layered security approach in banking and financial institutions is anticipated to drive growth in the country.
Implementation of Sophisticated Technology to Boost the Indian Market
The sales in India are expected to increase at around 25.4% CAGR between 2023 and 2033. There is continuous development and implementation of new technologies/solutions such as behavioral biometrics software across organizations in India.
The proliferation of and real-time payment and mobile payment platforms in the country has augmented cases of fraud, which is fueling the demand for behavioral biometrics. In addition to this, financial solution providers in the South Asia & Pacific region are focusing on offering secured authentication solutions based on advanced behavioral biometrics technologies to their customers.
Beneficial Characteristics of Behavioral Biometrics Software to Propel Segment Growth
Based on solution, behavioral biometrics solutions are available as behavioral biometrics software and services. The behavioral biometrics software segment was valued at USD 685 million in 2022, accounting for 54.5% revenue.
Behavioral biometrics software offers various benefits such as better user experience, fast and inexpensive deployment, flexibility, increased security, and are compliant with regulations.
Behavioral biometric authentication solutions identify a person based on human behavioral patterns exhibited when they interact with a device like smartphone, tablet, or computer with including mouse and keyboard.
Identity Verification & Validation Applications Segment to Generate Highest Market Share
By application, behavioral biometrics is segmented into identity verification & validation, fraud prevention, multi-factor authentication, and others. Rising awareness among organizations about the requirement to maintain the privacy of their data and counter the increasingly frequent and sophisticated cyber-attacks, identity-related fraud, malware, and data breaches targeted at their data is further expected to drive the identity verification & validation application segment growth.
Identity verification & validation application had the highest market share in terms of value in 2022 and is set to report a CAGR of 23.8% from 2023 to 2033.
The identity verification & validation solutions provide different authentication options to users based on their privilege levels. In June 2020, Incognia launched location-based behavioral biometrics solution to combat mobile fraud. Implementation of behavioral biometrics helps to fight the cybercrimes as well.
Adoption of Digital Payment Methods to Drive the Large Enterprises Segment Growth
The large enterprises segment accounted for 63.4% of the overall market share in 2022, and is expected to continue its dominance during the forecast period. Large enterprises have been focusing on implementing behavioral biometrics solution in their business applications to improve customer security and overcome infrastructure costs.
Emerging trend of online transactions is encouraging large enterprises large multinational banks and financial institution to adopt advanced and more sophisticated service platforms. Rising cases of cyber-attacks and sophisticated data theft are propelling the adoption of behavioral biometrics-based cybersecurity systems, which enable flexible authentication and persistent security, in the large enterprises.
Ease of Operation to Propel the Market Exapnsion of BFSI Segment
On the basis of industry, behavioral biometrics is segmented into banking, financial services and insurance (BFSI), retail and eCommerce, healthcare, IT & telecom, government and defense, and others.
The BFSI segment held the highest market share in terms of value in 2022 and is set to register a CAGR of 28% from 2023 to 2033. BFSI industry segment is expected to witness substantially high demand during the forecast period due to its advantages including ease of operation, flexibility, security, and cost proficiency.
Implementation of behavioral biometrics facilitates secure authentication in financial institutions, businesses, government facilities and retail Point-of-Sale (POS), and in other environments. Behavioral biometric verification methods include keystroke dynamics, gait analysis, voice ID, mouse use characteristics, signature analysis and cognitive biometrics.
| Attribute | Details |
|---|---|
| Market Value in 2023 | USD 1,533.2 million |
| Market Value in 2033 | USD 13,001.4 million |
| Market CAGR 2023 to 2033 | 23.8% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; Middle East & Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, India, Malaysia, Singapore, Thailand, China, Japan, South Korea, Australia, New Zealand, GCC Countries, South Africa, Israel |
| Key Segments Covered | Solution, Application, Enterprise Size, Industry, Region |
| Key Companies Profiled | BioCatch Ltd.; Nuance Communications Inc.; NuData Security (MasterCard); SecuredTouch Ltd.(Ping Identity); UnifyID (Prove); Fair Issac Corporation; BehavioSec Inc.; ThreatMark; Callsign Inc.; Adjust GmbH (AppLovin) |
| Customization & Pricing | Available upon Request |
Increasing demand for frictionless authentication, rising concerns about cyber threats, and shift towards continuous authentication.
It adds an additional layer of security by recognizing unique ways individuals interact with devices, making it harder for fraudsters to replicate.
It offers a seamless and non-intrusive authentication process, reducing the need for traditional password-based methods.
Industries like finance, e-commerce, healthcare, and online services are integrating behavioral biometrics to strengthen security and prevent fraud.
While often analyzing unique patterns without personal data, privacy concerns related to data collection and storage must be addressed.
Behavioral Biometrics Market
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