Contactless Biometrics Technology Market Size

Contactless Biometrics Technology Market Size

Contactless Biometrics Technology Market size was valued at USD 20.4 billion in 2023 and is expected to grow at a CAGR of over 20% between 2024 and 2032. The market is expanding owing to the growing need for safe authentication techniques. A growing number of industries including banking, healthcare, and government are realizing the drawbacks and weaknesses of using passwords or PINs for traditional authentication.

Organizations are under pressure to provide more reliable and secure authentication systems as the number of data breaches and identity theft incidents rises. Contactless biometric technology presents a strong substitute, delivering improved security and user experience using distinct physiological or behavioral traits for authentication. It improves user satisfaction and security by streamlining authentication procedures and eliminating the need for tokens or passwords.

The contactless biometrics technology market is also benefitting from developments in biometrics. Contactless biometric systems now have far higher accuracy, dependability, and efficiency owing to ongoing advancements in biometric algorithms, sensor technology, and Artificial Intelligence (AI). With increasing sophistication, biometric algorithms are now able to reliably identify and validate people using their distinct physiological or behavioral traits such as speech patterns, face features, or fingerprints.
 

In a similar vein, developments in sensor technology have led to the creation of more resilient and sensitive biometric sensors that can record accurate biometric data under a range of environmental circumstances. Additionally, by enabling adaptive learning and ongoing development based on data, the integration of AI and Machine Learning (ML) techniques improves the performance of contactless biometric systems.
 

For instance, in June 2023, DERMALOG identity Systems GmbH, a manufacturer of face, iris, and fingerprint identification technology, acquired JENETRIC GmbH, a provider of biometric identity technology. JENETRIC's optical Thin-film Transistor (TFT) technology offers contactless fingerprint capture of superior quality.
 

Concerns about data security & privacy pose serious obstacles for the contactless biometrics technology market. Biometric information is private and sensitive, comprising distinct physiological or behavioral traits such as fingerprints, facial features, or iris patterns. As biometric data is extremely personal, there are greater risks of identity theft or privacy violations from any unauthorized use, access, or compromise of this data. It can be misused for financial fraud, identity theft, and other types of exploitation.
 

Furthermore, the growing usage of contactless biometric solutions in a variety of industries raises concerns around the openness of data collecting procedures, user permission procedures, and the potential for surveillance or tracking. As a result, ensuring robust security measures, implementing stringent data protection protocols, and complying with relevant privacy regulations are paramount for gaining user trust and acceptance of contactless biometrics technology. Addressing these privacy concerns is essential for fostering wide adoption and realizing the full potential of contactless biometrics in enhancing security and user experience across industries.