Contactless Biometrics Technology Market Outlook for 2023 to 2033

The contactless biometrics technology market size is projected to be worth USD 22,608.0 million in 2023. The market is likely to reach USD 116,665.1 million by 2033 and is estimated to surge at a CAGR of 17.8% from 2023 to 2033.

Key Market Trends and Highlights

  • Facial recognition technology emerged as a dominant player in the contactless biometrics landscape, finding applications in airports, retail, and mobile devices due to its convenience and accuracy.
  • Concerns about privacy and data security led to increased scrutiny and regulatory measures in the biometrics industry. Companies focused on enhancing encryption, user consent, and compliance with data protection laws like GDPR.
  • Contactless biometrics expanded into diverse sectors, including healthcare for patient verification, automotive for personalized settings, and fintech for seamless and secure identity authentication methods.
  • Many governments and regulatory bodies are recognizing the importance of biometric technology for enhancing security. They are developing guidelines and standards to ensure responsible use, fostering industry growth.
Attributes Key Insights
Contactless Biometrics Technology Market Estimated Size in 2023 USD 22,608.0 million
Projected Market Value in 2033 USD 116,665.1 million
Value-based CAGR from 2023 to 2033 17.8%

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2018 to 2022 Historical Analysis vs. 2023 to 2033 Market Forecast Projections

The scope for contactless biometrics technology rose at a 4.4% CAGR between 2018 and 2022. The global market for contactless biometrics technology is anticipated to develop at a moderate CAGR of 17.8% over the forecast period from 2023 to 2033.

Report Attributes Details
Market Value in 2018 USD 10,103.5 million
Market Value in 2022 USD 19,456.1 million
CAGR from 2018 to 2022 4.4%

Contactless biometrics technology experienced significant growth from 2018 to 2022. The adoption of this technology surged across various sectors due to the demand for secure, convenient, and hygienic authentication methods. The COVID-19 pandemic further accelerated this trend, emphasizing the importance of touchless solutions.

Facial recognition technology emerged as a dominant player during this period, finding applications in access control, payments, and mobile devices. Concerns about privacy and data security led to increased regulation and compliance measures within the industry.

The contactless biometrics technology market is expected to continue its significant growth over the forecast period. The adoption rate is projected to increase across sectors such as healthcare, automotive, and beyond. As technology evolves, biometric systems are likely to become sophisticated, accurate, and secure.

New applications may emerge, and integration with emerging technologies like AI and IoT could further expand the reach of contactless biometrics. Concerns surrounding data privacy and security are likely to persist, necessitating ongoing efforts to enhance encryption and user consent mechanisms.

Contactless biometrics technology is poised to play a vital role in authentication and identity verification across a wide range of industries.

Contactless Biometrics Technology Market Key Drivers

  • Contactless biometrics reduce the need for physical touch, making them appealing in scenarios like access control, payment processing, and healthcare.
  • Contactless biometrics offer a seamless user experience. They are fast and convenient compared to traditional authentication methods like PINs or passwords, making them ideal for busy environments and quick transactions.
  • Continuous improvements in sensor technology, artificial intelligence, and machine learning have enhanced the accuracy and reliability of contactless biometrics, making them practical and secure.
  • Contactless biometrics are finding applications in various industries beyond access control and payments, including healthcare, automotive, and retail, increasing their relevance and demand.
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Sudip Saha

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Contactless Biometrics Technology Market Challenges

  • Collecting and storing biometric data, such as facial scans or fingerprints, raises privacy concerns. The misuse or mishandling of this sensitive information can result in serious breaches of privacy. Striking a balance between security and privacy is a key challenge for contactless biometrics technology.
  • Biometrics are not immune to hacking and spoofing attempts as they are generally considered secure compared to traditional authentication methods. Hackers may attempt to manipulate or replicate biometric data, leading to security breaches.
  • There is a lack of uniform standards in the contactless biometrics industry. Different devices and systems often use proprietary technology, making it challenging for interoperability and seamless integration.

Country-wise Insights

The below table showcases revenues in terms of the top 5 leading countries, spearheaded by the United States and China. These two countries are expected to lead the market through 2033.

Countries Market Share (2023)
The United States 20.2%
China 11.1%
The United Kingdom 9.3%
Japan 1.9%
South Korea 2.3%

Legislative and Regulatory Expenditure to Expand the Market in the United Kingdom

Contactless biometrics technology trends in the United Kingdom are taking a turn for the better. The contactless biometrics technology market in the United Kingdom is projected to hold a market share of 9.3% in 2023.

Biometric identity systems or solutions are increasingly used in public and private entities in broad usage throughout the United Kingdom. Biometric identification was employed in British primary and secondary schools by the United Kingdom Border Agency.

The United Kingdom is a noteworthy country regarding legislative and regulatory expenditure, as well as military and defense sector investment. Thus, the availability of established facilities and government attempts to adopt biometric identification technology stimulates the popularity of the contactless biometrics technology market.

Increasing Use of Non-contact Biometrics Methods in Defense Drives the United States Market

The contactless biometrics technology market in the United States is likely to hold a market share of 20.2% in 2023. The growing use of non-contact biometrics mechanisms in defense and federal applications in the United States is projected to drive up demand for the technology.

Key contactless biometrics technology solution providers in the United States include Aware, HID Global, M2SYS Technology, IdentyTech Solutions, and a few more. As an outcome, the large number of such enterprises in the nation eventually fuels consumption for the contactless biometrics technology industry.

Access control systems, utilized in various sectors like corporate offices and airports, increasingly adopted contactless biometrics to bolster security and streamline entry processes in this country.

The growth has been further driven by advancements in sensor technology and artificial intelligence, improving the accuracy and reliability of contactless biometric systems.

The contactless biometrics technology market in the United States is expected to continue expanding in the coming years as businesses and organizations prioritize security, efficiency, and hygiene.

Rising Contactless Biometrics Implementation in the Medical Field to Propel Market in Japan

The contactless biometrics technology market in Japan is estimated to hold a market share of 1.9% in 2023. Japan is an industrialized nation with a high rate of embracing cutting-edge technology around the world. For instance, the government of Japan chose SAFR facial biometrics for in-person service entry in October 2021. It offers face biometrics technology to enhance the country's modernization efforts.

Such regulatory measures and the country's increasing digitization growth are likely to drive consumption of contactless biometrics technology in Japan.

The healthcare industry of Japan witnessed the implementation of contactless biometrics for patient identification and access control, ensuring the protection of sensitive medical data.

Rapid Technological Advancement to Boost the Market in China

The contactless biometrics technology market in China is likely to hold a market share of 11.1% in 2023. The contactless biometrics technology market in China has experienced remarkable growth and innovation in recent years. China's rapid technological advancement, large population, and increasing urbanization have created a fertile ground for the adoption of contactless biometrics.

In the financial sector, banks and fintech companies in China have led the way in integrating contactless biometrics such as facial recognition and fingerprint scanning into payment systems and mobile apps, making transactions secure and convenient.

The initiatives by the government of China to promote digital identity solutions have further boosted the market, leading to applications in areas like access control, public transportation, and e-commerce. The market size and appetite in China for innovation make it a focal point for contactless biometrics technology development and adoption, with continued growth anticipated in the years ahead.

Booming Financial Sector to Play Key Role in the Market

The contactless biometrics technology market in South Korea is anticipated to hold a market share of 2.3% in 2023. The contactless biometrics technology market in South Korea has witnessed remarkable growth and innovation in recent years. South Korea's robust technology infrastructure and its position as a global tech leader have made it fertile ground for the adoption of contactless biometrics.

In the financial sector, South Korean banks and fintech companies have been at the forefront of integrating contactless biometrics, enhancing both security and convenience for consumers.The healthcare industry in South Korea has also embraced contactless biometrics for patient identification and access control, ensuring secure and efficient healthcare service delivery.

The contactless biometrics technology market in South Korea is poised for continued growth and widespread adoption in diverse applications in the coming years with its technologically savvy population and a strong commitment to innovation.

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Category-wise

The below table highlights how facial recognition is projected to lead the market in terms of technology, expanding at 17% CAGR through 2033.

The government & law enforcement segment is likely to spearhead sales based on industry and is anticipated to witness a CAGR of 3.0% through 2033.

Category CAGR from 2023 to 2033
Facial Recognition 17%
Government & Law Enforcement 16.5%

Facial Recognition Segment to Dominate the Industry

The facial recognition segment by technology is expected to continue dominating the contactless biometrics technology industry with a CAGR of 17% from 2023 to 2033.

The combination of artificial intelligence with face biometric algorithms improves the identification of faces and aids in the determination of attributes including sex, ethnicity, age, facial hair, and specs.

Facial recognition technology improves or automates processes and improves face-matching precision. As a result, the facial recognition segment is predicted to grow during the estimated time frame.

Government & Law Enforcement Predicted to be the Most Important Segment.

By industry, the government & law enforcement segment is expected to emerge as a prominent segment. A CAGR of 16.5% is projected from 2023 to 2033.

A significant number of economies throughout the world have begun to use contactless biometrics technology. Contactless biometrics technology offers benefits like enhanced safety and reliability, and reduced exposure in different domains like identity verification, transactions and operations, and access control.

Increased government regulations promoting or facilitating the implementation of technology and, developments in security technologies, are supporting industry growth.

Competitive Landscape

Several key contactless biometrics technology solution suppliers are eager to create new goods and services to expand their clientele and broaden their line of goods. They are additionally putting money into technological advancement to give improved biometrics solutions.

  • IDEMIA, a global pioneer in identification technologies, revealed the debut of two new innovative biometric terminals. It targeted speeding up traveler authentication procedures in March 2023, on the auspices of the Passenger Terminal EXPO 2023 in Amsterdam.
  • Moqi, an AI innovator firm, introduced its latest contact-less biometric scanning approach, MOQI A1 Pro, in June 2022. This gadget authenticates user data during verification by using iris and facial recognition technology.

Report Scope

Attributes Details
Estimated Market Size in 2023 USD 22,608.0 million
Projected Market Valuation in 2033 USD 116,665.1 million
Value-based CAGR 2023 to 2033 17.8%
Forecast Period 2023 to 2033
Historical Data Available for 2018 to 2022
Market Analysis Value in USD million
Key Regions Covered North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East & Africa
Key Market Segments Covered Technology, Component, Application, Industry, Region
Key Countries Profiled The United States; Canada; Brazil; Mexico; Germany; The United Kingdom; France; Spain; Italy; Russia; Poland; Czech Republic; Romania; India; Bangladesh; Australia; New Zealand; China; Japan; South Korea; GCC countries; South Africa; Israel
Key Companies Profiled Fujitsu Limited, NEC Corporation, Gemalto (Thales), Aware Inc., HID Global, M2SYS Technology, IDEMIA, BioConnect, IdentyTech Solutions, Touchless Biometric Systems AG, Innovatrics, Cognitec Systems GmbH, Mantra Softech, DERMALOG Identification Systems GmbH, Vision-Box

Segmentation Analysis of the Contactless Biometrics Technology Market 

By Technology:

  • Contactless Fingerprint Technology
  • Facial Recognition
  • Iris Recognition
  • Palm Vein Recognition
  • Voice Recognition
  • Contactless Cards

By Component:

  • Hardware
    • Contactless Fingerprint Scanners
    • Facial Recognition Scanners
    • Iris Recognition Scanners
    • Palm Vein Scanners
    • Others
  • Software
    • Integrated Biometrics Software
    • Standalone Software/Middleware
      • Facial Recognition Software
      • Vein Recognition Software
      • Iris Recognition Software
      • Others
  • Services
    • Professional Services
      • System Integration & Deployment
      • Security Consulting
      • Support & Maintenance
    • Managed Services

By Application:

  • Identity Verification
  • Payments & Transactions
  • Access Control

By Industry:

  • BFSI
  • Government & Law Enforcement
  • Healthcare
  • Military & Defense
  • Retail
  • Others

By Region:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • South Asia & Pacific
  • East Asia
  • The Middle East & Africa

Frequently Asked Questions

What is the expected worth of the Contactless Biometrics Technology Market in 2023?

The market is expected to reach USD 22,608.0 million in 2023.

What is the Projected CAGR for the Contactless Biometrics Technology Market?

The market is set to expand at a CAGR of 17.8% by 2033.

What is the Forecasted Contactless Biometrics Technology Market Value in 2033?

The industry is estimated to reach USD 116,665.1 million by 2033.

Which Country is Leading the Contactless Biometrics Technology Market?

The United States is the leading market, accounting for a 20.2% market share in 2023.

Which is the Leading Technology in the Contactless Biometrics Technology Market?

Facial recognition technology is preferred, expected to rise at a 17% CAGR through 2033.

Table of Content
  • 1. Executive Summary
  • 2. Market Overview
  • 3. Market Background
  • 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
  • 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Technology
    • 5.1. Contactless Fingerprint Technology
    • 5.2. Facial Recognition
    • 5.3. Iris Recognition
    • 5.4. Palm Vein Recognition
    • 5.5. Voice Recognition
    • 5.6. Contactless Cards
  • 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component
    • 6.1. Hardware
      • 6.1.1. Contactless Fingerprint Scanners
      • 6.1.2. Facial Recognition Scanners
      • 6.1.3. Iris Recognition Scanners
      • 6.1.4. Palm Vein Scanners
      • 6.1.5. Others
    • 6.2. Software
      • 6.2.1. Integrated Biometrics Software
      • 6.2.2. Standalone Software/Middleware
    • 6.3. Services
      • 6.3.1. Professional Services
      • 6.3.2. Managed Services
  • 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application
    • 7.1. Identity Verification
    • 7.2. Payments & Transactions
    • 7.3. Access Control
  • 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Industry
    • 8.1. BFSI
    • 8.2. Government & Law Enforcement
    • 8.3. Healthcare
    • 8.4. Military & Defense
    • 8.5. Retail
    • 8.6. Others
  • 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
    • 9.1. North America
    • 9.2. Latin America
    • 9.3. Western Europe
    • 9.4. Eastern Europe
    • 9.5. South Asia and Pacific
    • 9.6. East Asia
    • 9.7. Middle East and Africa
  • 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 12. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 13. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 14. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 17. Key Countries Market Analysis
  • 18. Market Structure Analysis
  • 19. Competition Analysis
    • 19.1. Fujitsu Limited
    • 19.2. NEC Corporation
    • 19.3. Gemalto (Thales)
    • 19.4. Aware Inc.
    • 19.5. HID Global
    • 19.6. M2SYS Technology
    • 19.7. IDEMIA
    • 19.8. BioConnect
    • 19.9. IdentyTech Solutions
    • 19.10. Touchless Biometric Systems AG
    • 19.11. Innovatrics
    • 19.12. Cognitec Systems GmbH
    • 19.13. Mantra Softech
    • 19.14. DERMALOG Identification Systems GmbH
    • 19.15. Vision-Box
  • 20. Assumptions & Acronyms Used
  • 21. Research Methodology
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