The global contactless biometrics technology market was valued at USD 8.11 billion in 2020 and is expected to grow at a CAGR of 20.6% during the forecast period. Contactless biometrics technology is a highly accurate and reliable system for recognizing personal biometrics that is used for staff identification, attendance, and management.
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The sudden outbreak of COVID-19 was a driving force behind the advancement and higher acceptance of this technology. With the spread of corona across the world, organizations, and governments are still focusing on hygiene. This technology is critical for validating personal identities because it provides access controls to customers without letting them make physical contact with the security infrastructure.
Furthermore, governments all over the world have increased their efforts to implement contactless biometric technology in order to react rapidly to the COVID-19 crisis. This is expected to increase government agencies' demand for the global market in order to offer public safety surveillance.
However, contactless biometrics solutions are expensive which may act as a barrier to market growth. Furthermore, identity theft or data theft is a significant growth risk because it poses a severe threat to the protection of sensitive information and may also pose a national security threat.
Contactless biometrics authentication has a fast industrial acceptance rate thanks to the advent of computerized databases and digitization. The market for contactless biometrics technology is expected to expand due to the rising demand for safe, hygienic, and convenient authentication systems in condominiums and clubs around the world.
The market demand for the contactless biometrics technology is expected to be driven by rising smartphone and tablet penetration, as well as manufacturers' emphasis on facial recognition apps for their smartphones as an additional layer of authentication to unlock their smartphones.
Contactless biometrics also authenticates purchases and offers encrypted access to smartphones. Furthermore, the growing acceptance of contactless biometrics solutions in financial institutions for securing financial transactions around the world is expected to accelerate market growth. Longer run times with fewer consumables and less cleaning are possible with contactless biometrics technology, reducing maintenance costs.
The market is primarily segmented on the basis of component, application, end-use, and region.
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During the forecast period, the software market segment is anticipated to witness faster growth. The introduction of emerging advanced technologies such as ML, AI, and cloud services for contactless solutions is projected to boost demand for associated apps to ensure device and operating system compatibility for various applications.
Furthermore, the software helps users to incorporate the most recent add-on functionality by merely upgrading the application's software. Increasing demand for safe access controls in a variety of sectors, such as e-commerce, border controls, airports, and others, is propelling the market segment growth.
The market for contactless biometrics technology is growing rapidly due to rising demand for fast and safe access controls, seamless border crossing, queue-free passenger checks, and quick identification of individuals for greater convenience and protection.
Manufacturers are designing contactless biometric high-tech sensor systems for quick and safe identity checks using fast software algorithms and machine-learning methods. Users can also incorporate the most recent add-on functionality by simply upgrading the software/application.
The iris identification market segment of contactless biometrics technology is anticipated to witness the fastest growth over the forecast period owing to the increasing adoption of iris technology by state and local agencies for border security, hospitals, financial institutes, and several sensitive projects.
Moreover, various benefits are offered by the iris authentication system such as higher accuracy, hygiene, stability, security, scalability, faster matching, liveness detection, and easy-to-use feature while removing payroll frauds like buddy punching.
As the COVID-19 spreads across the world, everyone is being pushed to restrict their physical contact with common surfaces. Iris identification, among other items, offers authentication solutions for national and civil ID systems, time attendance, and access control.
Increased use of iris technology by state and local authorities for border defense is also expected to propel the market forward. For example, in the U.S., the El Paso Police Department began the use of this technology in April 2017 to improve border protection by combining facial recognition, iris-scanning, and fingerprint identification capabilities.
In 2020, North America led the contactless biometrics technology market with an approx. share of one-third. M2SYS Technology, HID Global, and BioConnect is some of the technology providers which dominate in this region. Payment solution providers are required to deliver safe transactions to their customers in the area is projected to fuel regional growth for contactless biometrics technology.
The market in North America is expected to grow further in response to the increasing adoption of contactless biometrics solutions in defense and government applications. Furthermore, the regional demand is expected to be driven by the government initiatives to introduce contactless biometrics solutions in order to cope with a growing number of travelers and to improve security at airport facilities.
In 2018, the Canadian Border Services Agency, for example, introduced kiosks at airports that use facial recognition technology. The novel technology used fingerprint biometrics and face recognition to speed up clearance procedures for passengers at Canadian airports.
Asia-Pacific contactless biometrics technology industry is anticipated to grow at a substantial rate pace during the forecast period primarily due to the outbreak of the COVID 19 pandemic in China and high demand for contactless technology for a safe and secure system.
In addition, the growing number of educational institutes, power plants, banks, factories, corporate offices, and other facilities in developing countries including South Korea, Japan, China, and India are further propelling market demand contactless biometrics technology.
Some of the established players present in the global contactless biometrics technology market include Fujitsu Limited, Aware Inc., Fingerprint Cards AB, Thales Group, M2SYS Technology, NEC Corporation, nViaSoft, HID Global Corporation, IDEMIA Group S.A.S., and Touchless Biometric Systems AG, among other companies.
To stay ahead in this fast-paced market, players are employing a variety of strategies and concentrating on developing more advanced technologies. Some of the key developments include the launch of a contactless facial recognition device, named “VisionPass”, by French technology firm IDEMIA, for the Indian market, in 2020. For access control and protection applications, VisionPass can also address spoofing attempts using an image, video, or 3D mask.