The global biometric-as-a-service market is expected to bode well over the forecast years as it is projected to register a fast-paced CAGR of 22.4% from 2022 to 2032, according to Future Market Insights (FMI).
The global market is expected to be valued at US$6,040.9 million in 2022. The value of the market is anticipated to reach a high of US$45,607.6 million by the year 2032.
The experts of FMI have recorded a historical market valuation of US$5,002.0 million during the base year, also stating the market is predicted to have healthy growth through the projection period.
The surging need for biometric systems across diverse organisations makes sure that the data is safe. Furthermore, the cost-effectiveness of these systems is anticipated to attract organisations toward the adoption of biometrics-as-a-service, the analysts state.
There is an industrial requirement regarding the fast-paced and secured registration, which is responsible for the substantial growth of the biometric-as-a-service market. In addition, BaaS systems are making allowance for mobile access control, time recording, and web and workspace management easier for emerging business organisations.
Furthermore, employee identification can be achieved in the offices with this system and is predicted to stir up the demand for biometric-as-a-service. It is identified to be a secure form of entry of codes like passwords, pins, and locks, over traditional forms and is expected to aggravate the growth of the market through 2032.
A significant surge has been witnessed in the use of digital platforms to make transactions possible and is anticipated to curate lucrative opportunities for the biometric-as-a-service market. The advancement of cloud computing technologies and increased storage capacity of clouds for biometric-as-a-service is flourishing the growth of the market.
Key takeaways from FMI include:
- According to the analysis done by the experts at FMI, it has been identified that the unimodal BaaS systems are going to hold a dominant share in the modality type category. This segment is predicted to surpass the market share of multimodal systems with 58% shares, whilst the multimodal system upheld 42.0% market shares in the year 2021. This segment is estimated to register a CAGR of 12.0% during the base year.
- The growth of the corporate sector is anticipated to deploy unimodal biometric systems for registering the entry and exit of employees in the office. Registering a single mode such as fingerprint or voice recognition is estimated to be more convenient than registering multiple modes for the large populace across diver industry sectors.
- In addition, the multimodal biometric systems market is predicted to advance at a robust CAGR of 13.3% through the assessment period. They are being highly deployed in smartphones and other technologically advanced devices for multi-factor authentication purposes, which gives an edge over conventional unimodal systems.
- The fingerprint segment by the scanner type category is predicted to account for the largest market share within the forecast period, surpassing the valuation of voice recognition, palm recognition, iris recognition, and facial recognition. This particular segment is estimated to bolster at a phenomenal pace by registering a CAGR of 14.5% through 2032. The market valuation is estimated to surpass US$18.52 billion by the end of the projection period.
- The factors contributing to the growth of this segment are non-transferrable in nature as each person has a unique fingerprint that cannot be easily copied. Furthermore, with the risk of duplicated or stolen keys, fingerprint authentications are gaining rapid traction across government sectors and are estimated to propel further through 2032.
The BaaS market is known to be fragmented and the key players are deploying organic and inorganic growth strategies to compete in the market, FMI states. The leading companies are heavily investing in research and development activities to make technological advances in biometric systems for easing the job of the growing corporate sector and advanced security to all the data.
Several North American-based companies have offered AI-based biometric identity and KYC solutions that enable business organisations to effectively protect their users with the help of AI-powered identity solutions developed with the intersection of privacy, cybersecurity, and biometrics. It transforms sensitive data to maximise both its utility and privacy, allowing businesses to adopt biometrics and other anti-fraud initiatives while protecting personal information from hacks and leaks.