Behavioral Biometrics Market

2016-2020 Behavioral Biometrics Market Outlook Compared to 2021-2031 Forecast

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.

Based on aforementioned factors FMI predicts the behavioral biometrics demand to rise at 23.6% CAGR between 2021 and 2031 in comparison with 18.8% CAGR registered during 2016-2020.

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 ~US$ 1.3 Bn in 2021 to ~US$ 11.2 Bn by 2031.

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How is Behavioral Biometrics Application in Banking, Financial Services and Insurance (BFSI) Industry Affecting 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.

Reliable and Convenient Security Solutions Offered by Behavioral Biometrics Aiding Expansion

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.

Country-wise Insights

How big is the Opportunity for Adoption of Behavioral Biometrics in the U.S.?

North America is predicted to remain one of the most attractive markets during the forecast period. According to the study, the U.S. is expected to account for nearly 79% of the North America market share through 2031.

The U.S. 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 U.S., during the forecast period.

Why is Demand for Behavioral Biometrics Increasing in the France?

The behavioral biometrics demand in the France is expected to rise at a CAGR of around 27.2% 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.

How will the Sales Prospects for Behavioral Biometrics Solutions unfold in India?

The sales in India are expected to increase at around 38% CAGR between 2021 and 2031. There is continuous development and implementation of new technologies/solution 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.

Category-wise Insights

Why is the Demand for Behavioral Biometrics Software Increasing?

Based on solution, behavioral biometrics solutions are available as behavioral biometrics software and services. The behavioral biometrics software segment was valued US$ 680.0 Mn in 2020 and is also anticipated to register a high CAGR during the forecast period (2021-2031).

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.

Why are Identity Verification & Validation Applications of Behavioral Biometrics Increasing?

On the basis of 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 2020 and is set to report a CAGR of 23.6% from 2021 to 2031. The identity verification & validation solutions provide different authentication options to users based on their privilege levels. For instance, June 2020, Incognia launched location-based behavioral biometrics solution to combat mobile fraud. Implementation of behavioral biometrics helps to fight the cybercrimes as well.

Why is the Adoption of Behavioral Biometrics HigherMostly Preferred in Large Enterprises?

The large enterprises segment accounted for more than 59.2% of the overall market share in 2020, 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.

Why is Demand from Banking, Financial Services and Insurance (BFSI) Industry Rising?

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 2020 and is set to register a CAGR of 27.0% from 2021 to 2031. 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.

Competitive Landscape

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.

For instance, October 2021, BioCatch, a leading behavioral biometrics company launched behavioral biometric software to protect vulnerable segments of the population against fraud. The software is a new account opening protection capability that’s focused on shielding elderly consumers from fraudulent practices.

Scope of Report

Key Points Covered in Behavioral Biometrics Industry Survey

• Which region is expected to showcase high behavioral biometrics demand?

  South Asia & Pacific is projected to register robust growth in the market, exhibiting a CAGR of nearly 33% during the forecast period from 2021 to 2031.  

• Who are some of the leading companies offering behavioral biometrics?

  Some of the leading companies in this landscape are BioCatch Ltd., Nuance Communications Inc., SecuredTouch Ltd. (Ping Identity), and Fair Issac Corporation, among others. As per Future Market Insight, nearly 55%-60% of the market share is currently covered by the top 15 players.

• Which industry is the leading user of behavioral biometrics? 

  Banking, financial services and insurance (BFSI) segment is expected to dominate the market over the forecast period, accounting for maximum revenue share in the market. Demand in the banking, financial services and insurance (BFSI) segment is also projected to increase by 27% CAGR during the forecast period.

• How much is the global behavioral biometrics industry worth?

  The behavioral biometrics industry was valued at ~US$ 1.1 Bn in 2020, and is estimated to grow at an exceptional pace with a CAGR of 23.6%.

• What will be the demand outlook/ sales forecast for behavioral biometrics?

  The sales of behavioral biometrics solutions are expected to total ~US$ 1.3 Bn by the end of 2021, and is likely to reach ~US$ 11.2 Bn by 2031.

• At what rate did the demand for behavioral biometrics rise in the last five years?

  The market in last 5 years (2016 – 2020) grew by a CAGR of 18.8%.

• What are the key trends of behavioral biometrics industry?

  Key trends in the market includes:

  • Technological advancements in cybersecurity to create new growth opportunities
  • Rise in sophistication level of security threats to drive solution demand
  • Implementation of behavioral biometrics in payments industry for secure transaction

• What is driving demand for behavioral biometrics?

  Implementation of behavioral biometrics to improve customer experience and adoption of convenient security solutions have increased the demand of behavioral biometrics solution and are the key factors driving the market growth.

• Which are the top 5 countries driving behavioral biometrics demand?

  Top 5 countries driving demand for behavioral biometrics include the India, China, U.S., and Malaysia.

• What is North America behavioral biometrics market outlook?

  North America is predicted to remain one of the most attractive markets during the forecast period. According to the study, U.S. is expected to account for nearly 78.7% of the Europe market through 2031.

• What is the key market statistics in China and India?

  The behavioral biometrics demand in China and India is projected to grow at CAGR of around 25.6% and 38.2%, respectively between 2021 and 2031.

Behavioral Biometrics Market Outlook by Category

By Solution:

• Behavioral Biometrics Software
  •  Cloud-Based 
  •  On-Premise
•  Services
  •  Professional Services
    •  Consulting Services
    •  Implementation Services
    •  Support & Maintenance
  •  Managed Services

By Application:

• Identity Verification & Validation
• Fraud Prevention
• Multi-factor Authentication
• Others

By Enterprise Size:

• Small and Medium-sized Enterprises (SMEs)
• Large enterprises 

By Industry:

• Banking, Financial Services and Insurance (BFSI) 
• Retail and eCommerce
• Healthcare
• IT & Telecom 
• Government and Defense
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East and Africa (MEA)