The global behavioral biometrics market size was valued at USD 872.7 million in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 24.4% from 2020 to 2027. The rise in online transactions and an increase in fraudulent activities are driving the demand for digital authentication across the globe. Furthermore, the growing demand for a multi-layered security approach in financial institutions is expected to drive the market growth. Development of the Internet of Things (IoT) landscape, along with the growing need for enhanced security systems, is also expected to propel the market growth.
The rising usage of smartphones in daily lives for entertainment, socializing, and work purposes are increasing the number of mobile applications for the provision of these services. The consecutive increase in the use of mobile applications and the exchange of data over the web are giving rise to numerous security and privacy concerns. However, traditional authentication techniques such as unlock patterns and passwords prove to be largely ineffective when it comes to advanced security and privacy threats. The trend is driving the popularity of advanced techniques such as continuous authentication based on behavioral biometrics.
The notable rise in the number of online services, such as webmail, e-Banks, and e-commerce, which verify users by a username and password, is being increasingly exploited by identity thieves. The presence of an additional security layer proves to be significantly beneficial in overcoming potential identity theft. Verifying users based on their mouse activities and keystroke dynamics provides a greater potential as an additional biometric security layer. These factors are expected to drive the market over the forecast period.
The emergence of technologies such as Machine Learning (ML) and Artificial Intelligence (AI), and the growing adoption of these technologies in applications such as authentication and identification, could provide a potential growth opportunity for market players. Developers are increasingly using AI and machine learning along with behavioral biometrics to develop authentication, identification, and verification products for enhanced security. AI-driven behavioral biometrics are mainly used for account takeover fraud prevention across financial institutions. Developments in the field of AI are facilitating significant enhancements in capabilities of AI-driven behavioral biometrics, the growing adoption of which is expected to improve authentication and identification approaches.
However, data privacy is a major concern surrounding new technologies, including behavioral biometrics. The collection and storage of personal information using these technologies, such as face recognition, voice recognition, and signature, may be viewed as an invasion of privacy by some. Furthermore, voice recognition in behavioral biometrics requires high-quality recording and it is difficult to verify users with background noise. These factors are likely to hamper market growth over the forecast period.
The COVID-19 pandemic is expected to hurt the behavioral biometrics technology market on several fronts. The pandemic has compelled several companies operating in the market to temporarily halt manufacturing operations to comply with new government regulations. Revenue streams have been directly affected due to the adverse impact caused by supply chains and trade disruptions on overall operations. However, the pandemic has increased the demand for secure, hygienic, and convenient authentication systems across the globe. The highly contagious nature of COVID-19 has made people wary of touching card readers, keypads, and other devices used for accurate identity authentication. This has increased the demand for behavior-based technologies such as voice recognition and gait analysis, which offer accurate solutions to identify people in-person and online and do not contribute to the spread of COVID-19 and other pathogens.
Behavioral biometrics technology offers increased security and reliability owing to the use of more than one means of identification. Furthermore, cloud-based applications enable the storage of massive amounts of behavioral biometric data, which can help meet the needs of government agencies and organizations.
The behavioral biometrics market is fueled by favorable government initiatives across the globe. The increasing use of behavioral biometrics in industries such as BFSI, IT & telecom, and retail & e-commerce has contributed immensely to market growth. Multimodal biometrics-based products are attracting rising popularity, especially in e-IDs and airport verification systems. The integration of behavioral biometrics with consumer electronics has made the technology easily accessible to the public.
Increasing demand for smooth customer experiences, which are free of stumbling blocks or complications, is anticipated to drive the market over the forecast period. Furthermore, the current procedures in cybersecurity and design for customer experience are prime areas where the market incumbents are investing. Behavioral biometric verification methods are being increasingly utilized to cover the gap by adding a secure data-driven authentication layer which enable better user experience.
Technological advancements have increased the influx of behavioral biometrics systems that can scan a range of personal traits. Constant innovations and the easy availability of unique solutions have increased the penetration of technology in different sectors. Global networks, growing adoption of smartphones, and increasing penetration of the Internet of Things (IoT) have produced unprecedented amounts of data that could not be analyzed or understood by humans alone. The use of artificial intelligence, which enables computers to analyze and make use of this data, has exploded as a result. Furthermore, machine learning, a subfield of artificial intelligence, has played a key role in the continued growth of the behavioral biometrics market.
The software segment dominated the behavioral biometrics market with a revenue share of over 70% in 2019. The growing demand for reliable and safe digital transactions globally, owing to the growing penetration of smartphones and the e-commerce industry, is leading to the increased adoption of behavioral biometrics software. On the basis of the component, the market is segmented into software and service. The service segment is further segmented into managed services and professional services. Additionally, the rising number of fraudulent activities coming to light is driving the demand for behavioral biometrics software.
To reduce fraud, increase security, and minimize the costs associated with traditional multi-factor authentication solutions and passwords, vendors in the market are developing behavior-based authentication software. For instance, in March 2019, Veridium Ltd., a provider of identity and access management software, launched InMotion for VeridiumID, the company’s software-only platform for mobile security. The platform uses behavioral biometrics to provide enhanced mobile security for individuals and businesses. The software makes use of User Behavior Analytics (UBA) to identify patterns in human behavior and detects anomalies, which could indicate security breaches, using statistical analytics. The introduction of such innovative software based on behavioral biometrics is further expected to drive the growth of the software segment over the forecast period.
The voice recognition segment dominated the market with a share of over 35% in 2019. The demand for voice assistants such as Google Home, Alexa, Siri, and Cortana is growing and consumers are likely to be interested in using voice biometrics to unlock their personal devices. Voice recognition also helps in identifying fraudsters within the voice channel as it involves a one-to-one match between voice samples. These factors are expected to propel the growth of the voice recognition segment. Based on the type, the market is segmented into keystroke dynamics, gait analysis, signature analysis, and voice recognition.
Voice recognition does not require any additional dedicated hardware apart from a microphone, which increases its demand across end-use industries. Furthermore, the increasing adoption of voice recognition across banks to automate the login process, which helps in enhancing customer satisfaction level and minimizing bank’s customer care costs through automation, is likely to work well for the segment. Voice biometrics also saves time across several end-use industries as it eliminates paperwork and lengthy verification processes. Moreover, the advent of technologies such as artificial intelligence, machine learning, data analytics, cloud computing, and the growing demand for safe financial and healthcare data is expected to provide significant opportunities for companies operating in the field of voice recognition.
The identity proofing segment dominated the market with a share of over 34% in 2019 and is expected to retain its dominance over the forecast period as well. Identity proofing solutions provide different authentication options to users based on their privilege levels. These solutions also help in setting up policies for authenticating sensitive applications by developing fail-safe mechanisms. Based on application, the market is segmented into identity proofing, continuous authentication, risk and compliance management, and fraud detection and prevention.
Growing awareness among organizations about the need to maintain the confidentiality of their data and counter the increasingly frequent and sophisticated cyberattacks, malware, identity-related fraud, and data breaches targeted at their data is further expected to drive the segment growth. The growing popularity of automation and digitization across end-use industries such as BFSI, IT and telecom, healthcare, and government increase demand for robust security solutions. Additionally, stringent government regulations across the globe, regarding identity proofing for improving security and safety, are further expected to drive demand for the identity proofing solutions.
The on-premise segment dominated the market with a share of over 60% in 2019. This can be attributed to the fact that on-premise behavioral biometrics solutions are easy to integrate and configure with existing online offerings. Furthermore, the on-premise implementation provides organizations with a high degree of customization and also incurs lower costs in case of any additional resources. Based on deployment, the market has been segmented into on-premise and cloud.
Cloud deployment allows business applications to be easily integrated with third-party applications and provides security to online offerings. Organizations are now increasingly adopting cloud applications for streamlining their data storage. Furthermore, owing to the increasing demand, several vendors in the market have focused on offering cloud-based behavioral biometrics solutions. For instance, in August 2018, Plurilock launched a cloud-based behavioral biometric tool for User Behavior Analytics (UBA).
The large enterprise segment dominated the market with a share of over 70% in 2019. Large enterprises focus on implementing behavioral biometrics in their business applications to improve customer loyalty and reduce overall infrastructure costs. This trend is expected to drive demand for behavioral biometrics in the large enterprise segment. Increasingly sophisticated data theft and cyberattacks are driving the adoption of behavioral biometrics-based cybersecurity measures, which provide adaptive authentication and persistent security, in large enterprises. Furthermore, behavioral biometrics tools allow large enterprises to meet the increasingly stringent cybersecurity regulations and standards such as ISO 27001, NIST 800-171, and Health Insurance Portability and Accountability Act (HIPAA).
Growing advances in technology and technology-driven business models increase customer expectations for a high-end security experience to protect their personal data. To provide an improved security experience, enterprises are adopting a combination of two or more biometrics modalities such as behavioral biometrics, facial recognition, voice biometrics, and fingerprint scanning to offer secure services to their customers. Furthermore, various end-use industries such as BFSI, healthcare, and IT and telecom are collaborating with biometrics tool providers to secure personal and customer data from growing online frauds. For instance, in April 2017, Experian plc, a credit reporting company, collaborated with the behavioral biometrics solution provider BioCatch to integrate its credit card and other online lending products with behavioral biometrics. The integration helped the company to identify fraudsters applying for credit cards.
The BFSI segment dominated the market with a share of over 25% in 2019 and is expected to retain its dominance over the forecast period as well. Organizations in the BFSI sector are using behavioral biometrics to develop next-generation identification solutions that can combat fraudulent activities and make transactions more secured. A continuous rise in government initiatives and financial regulations globally is compelling companies in the BFSI sector to opt for behavioral biometrics solutions to secure customer data and to offer enhanced customer experience. Based on end-use, the market is segmented into BFSI, retail and e-commerce, healthcare, government and defense, IT and telecom, and others.
The growing trend of open banking systems across the globe, which forces banks to open up their digital infrastructure to third parties through APIs, can lead to an increase in the instances of fraudulent activities. Furthermore, growing digitization across financial institutions to improve customer experience increases the demand for measures safeguarding the network infrastructure from data breaches. The improved safety offered by behavioral biometrics solutions is leading to their increased demand across financial institutions. The emergence of mobile and online banking globally and the rising demand to improve e-Banking security is expected to drive demand for behavioral biometrics in the BFSI segment.
North America dominated the market with a revenue share of over 30% in 2019. The growing demand for data security through behavioral biometrics solutions and the presence of leading technology providers is anticipated to drive the market growth in North America. Furthermore, end-use industries such as BFSI, government, and IT and telecom in the region are significantly focusing on adopting behavioral biometrics to secure their offerings and customer data. Governments in the region are also taking a keen interest in behavioral biometric applications and are aggressively funding and organizing various research programs to develop advanced behavioral biometrics applications. For instance, in October 2017, Intelligence Advanced Research Projects Activity (IARPA) launched the Odin program to develop sensors, algorithms, and technologies for advanced biometric technology against increasing cyberattacks in the U.S.
Companies operating in the behavioral biometrics market are required to comply with technical standards established by government institutions and private organizations. Several standards and regulations govern several aspects of a business operating in the market, including the manufacturing process, and mandate that all products adhere to them. For instance, manufacturers and sellers of behavioral biometrics in Europe market are required to comply with the EU General Data Protection Regulation (GDPR) for ensuring the security and privacy of data using cloud platforms.
Asia Pacific is anticipated to register significant growth over the forecast period. The rising proliferation of mobile payment and real-time payment platforms across the region has increased fraud events, which is driving the demand for behavioral biometrics. Furthermore, financial service providers in the region are focusing on providing secured authentication solutions based on behavioral biometrics to their customers. For instance, in August 2019, Mastercard, a provider of financial services, launched a behavioral biometrics-based mobile authentication solution in India to increase the security of e-commerce transactions.
The BFSI industry is increasingly embracing digital transformation, leveraging innovative technologies such as artificial intelligence, machine learning, and robotic process automation to address its challenges. Furthermore, banking customers demand a personalized experience, as well as a more secure and convenient banking experience. As the number and popularity of Fintech start-ups increase and countries seek to make the financial sector more competitive through encouraging regulations, such as the PSD2 (Revised Payment Service Directive) in the European Union, customer experience and security are becoming increasingly important. This is anticipated to drive the demand for advanced authentication methods such as behavioral biometrics, which not only help improve security but also provide financial institutions a way of improving customer experience, thus staying competitive in the market.
To strengthen their positions in the market, key players are adopting strategies such as new product launches, collaborations, mergers and acquisitions, and product upgrades. For instance, in November 2019, Fair Isaac Corporation (FICO) acquired security access provider EZMCOM Inc. The acquisition facilitated the former to launch digital onboarding technology, FICO identity proofing, and FICO user identification using multi-factor, behavioral authentication capabilities.
The key market players are also heavily investing in R&D activities to strengthen their capabilities across new and emerging technologies and to incorporate these technologies into their products. For instance, in 2019, Fair Isaac Corporation invested USD 149.5 billion in R&D activities to develop new products and services and update their current offerings. Some prominent players in the behavioral biometrics market include:
BehavioSec Inc.
BioCatch
Fair Isaac Corporation
Mastercard Incorporated
Nuance Communications, Inc.
Plurilock Security Solutions Inc.
SecureAuth Corporation
SecuredTouch Inc
UnifyID
Zighra
Report Attribute |
Details |
Market size value in 2020 |
USD 987.9 million |
Revenue forecast in 2027 |
USD 4.56 billion |
Growth Rate |
CAGR of 24.4% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative units |
Revenue in USD million and CAGR from 2020 to 2027 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Component, type, application, deployment, enterprise size, end-use, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Country scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil |
Key companies profiled |
BehavioSec Inc.; BioCatch; Fair Isaac Corporation; Mastercard Incorporated; Nuance Communications, Inc.; Plurilock Security Solutions Inc.; SecureAuth Corporation; SecuredTouch Inc; UnifyID; Zighra |
Customization scope |
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Grand View Research has segmented the global behavioral biometrics market report based on component, type, application, deployment, enterprise size, end-use, and region:
Component Outlook (Revenue, USD Million, 2016 - 2027)
Software
Service
Managed Services
Professional Services
Type Outlook (Revenue, USD Million, 2016 - 2027)
Keystroke Dynamics
Gait Analysis
Signature Analysis
Voice Recognition
Application Outlook (Revenue, USD Million, 2016 - 2027)
Identity Proofing
Continuous Authentication
Risk & Compliance Management
Fraud Detection & Prevention
Deployment Outlook (Revenue, USD Million, 2016 - 2027)
On-premise
Cloud
Enterprise Size Outlook (Revenue, USD Million, 2016 - 2027)
Large Enterprise
Small & Medium Enterprise
End-use Size Outlook (Revenue, USD Million, 2016 - 2027)
BFSI
Retail & E-commerce
Healthcare
Government & Defense
IT & Telecom
Others
Region Outlook (Revenue, USD Million, 2016 - 2027)
North America
U.S.
Canada
Europe
Germany
U.K.
Asia Pacific
China
India
Japan
Latin America
Brazil
MEA
b. The global behavioral biometrics market size was estimated at USD 0.8 billion in 2019 and is expected to reach USD 0.9 billion in 2020.
b. The global behavioral biometrics market is expected to grow at a compound annual growth rate of 24.5% from 2020 to 2027 to reach USD 4.6 billion by 2027.
b. North America dominated the behavioral biometrics market with a share of 34% in 2019. This is attributable to the growing demand for data security through behavioral biometrics solutions and the presence of leading technology providers in the region.
b. Some of the key players that are a part of the behavioral biometrics market include BehavioSec Inc.; BioCatch; Fair Isaac Corporation; Mastercard Incorporated; Nuance Communications, Inc.; Plurilock Security Solutions Inc.; SecureAuth Corporation; SecuredTouch Inc; UnifyID; and Zighra.
b. Key factors driving the behavioral biometrics market growth include the rise in online transactions and an increase in fraudulent activities and the growing demand for a multi-layered security approach in financial institutions.
GET A FREE SAMPLE
This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.
Contact us now to get our best pricing.
ESOMAR certified & member
Leading SME award by D&B
We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure. For more details, please read our privacy policy.
"The quality of research they have done for us has been excellent."
We value your investment and offer free customization with every report to fulfil your exact research needs.