The biometrics market has reached a tipping point. Driven largely by the confluence of organizations’ desires to better authenticate or identify users and users’ distaste for knowledge-based systems (password and challenge questions), biometrics is working its way into consumer, industrial, and government systems at an increasing pace.
Tractica forecasts that annual biometrics hardware and software revenue will grow from $2.4 billion in 2016 to $15.1 billion worldwide by 2025, representing a compound annual growth rate (CAGR) of 22.9%.
During that 10-year period, analysts anticipates that cumulative biometrics revenue will total $69.8 billion.
“Growth in the biometrics market is driven by use cases,” says principal analyst Keith Kirkpatrick. “While there has traditionally been a demarcation between consumer and enterprise use cases, this dynamic is starting to change, as seen in financial institutions’ use of biometrics to allow consumer and corporate users to authenticate to online banking systems with their voices or with their eyes, in place of keying a personal identification number, to name just one example.”
Kirkpatrick adds that the biometric modalities representing the largest revenue segments will be fingerprint recognition, voice recognition, iris recognition, and facial recognition. Meanwhile, the largest application markets for the technologies will be consumer, finance, healthcare, government, and enterprise.