Automotive Biometric Market Size

Automotive Biometric Market size was valued at USD 950 million in 2023 and is estimated to register a CAGR of over 16% between 2024 and 2032, due to the increasing integration of biometric authentication in automobiles. Biometric systems provide increased convenience and security by reducing the risk of theft and facilitating easy access to cars. Customers are looking for more sophisticated features in their cars, driving up the demand for biometric systems.

The automobile industry is focused on creating smart and connected vehicles, fueling the adoption of biometric technologies for authentication & customization. For instance, in November 2021, Daimler’s Mobility unit partnered with Visa to use fingerprint scanning to verify secure digital payments from the vehicle, allowing the driver to make purchases without the need for voice commands or PINs. The technology has been rolled out in 2022 in the UK and globally.

The automotive biometric market is expected to expand significantly owing in large part to the increased emphasis on driver monitoring and safety. Biometric systems provide real-time monitoring of a driver's vital signs, level of weariness, and distraction detection to improve overall safety. Regulations that favor Advanced Driver Assistance Systems (ADAS) mandate the inclusion of biometric technologies. These systems provide individualized driving experiences, propelling the demand for biometric solutions in the automobile industry.

Privacy concerns over the acquisition of biometric data are a major challenge faced by the market. Customers are reluctant to divulge their biometric data for fear of improper usage or illegal access. This fear may prevent market growth as consumers prioritize protecting their personal information. To foster the general adoption of biometric technology in automotive applications and develop trust, it is imperative to address these concerns through clear permission mechanisms, strong encryption techniques, and transparent data rules.