The global contactless biometrics technology market size was valued at USD 12.12 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 18.1% from 2023 to 2030. The market has experienced significant growth in recent years due to increasing security concerns, the need for convenient authentication methods, and the adoption of biometrics in various industries, including government, healthcare, defense, and consumer electronics. The COVID-19 pandemic accelerated the adoption of contactless biometrics technology, as it offers a hygienic and touchless way to verify identities. Facial recognition and iris scanning gained prominence in healthcare and access control.
Rising penetration of smartphones and tablets, coupled with manufacturers’ focus on facial recognition software for their smartphones as an added layer of verification to unlock their smartphones, is anticipated to drive the demand. Contactless biometrics also provides secure access to apps and authenticates payments. Moreover, the rising adoption of contactless biometrics solutions in financial institutions to secure international financial transactions is expected to drive market growth. Contactless biometrics technology allows longer run times with fewer consumables and less cleaning, minimizing maintenance costs.
A growing number of air travelers across the globe has increased the demand for more secure and advanced identification solutions at airport facilities. For instance, in April 2020, Etihad Airways announced a trial of contactless self-service technology manufactured by Elenium Automation. The solutions estimate a passenger’s vital signs to allow for touchless health screenings through voice recognition at airport kiosks. In addition, manufacturers are also focusing on advancing their existing contactless biometrics solutions by implementing temperature sensors to capture body temperature and imaging cameras.
With the advent of computerized databases and digitization, contactless biometrics verification has a high industrial adoption rate worldwide. Rising demand for secure, hygienic, and convenient authentication systems in condominiums and clubs across the globe is anticipated to drive market growth. The COVID-19 pandemic created a heightened awareness of hygiene and security. Condominiums and clubs needed to minimize physical contact to reduce the spread of the virus. As a result, there was a surge in demand for contactless access control systems that relied on technologies like facial recognition, RFID cards, or mobile apps.
However, the high cost of contactless biometrics solutions is expected to hinder the growth of the contactless biometrics’ technology market to a certain extent. Furthermore, data theft or identity theft is a major challenge for growth as it may seriously threaten the security of important information or even increase national security threats. Human face changes in texture and shape over time, and facial recognition technologies must be robust enough to accommodate changes generated from the aging process, increasing error rates in the matching systems. Other factors of error include illumination of the face, variations in pose, and expression that further limit the growth to a certain extent.
The software segment dominated the market with a share of over 44.5% in 2022 and is expected to maintain its dominance over the forecast period. Growing adoption of cloud-based services, Artificial Intelligence (AI), and Machine Learning (ML) for contactless biometrics solutions are expected to drive the demand for software to strengthen the compatibility of devices for different applications. Based on components, the market is segmented into hardware, software, and service. The service segment is further segmented into professional services and managed services.
Growing demand for fast and secure access controls, queue-less passenger checks, seamless border crossing, and fast identification of individuals for better convenience and security is accelerating the market demand. Manufacturers are developing contactless biometric high-tech sensor systems through fast software algorithms and machine-learning methods for fast and secure identity checks. The software also allows users to integrate the latest add-on features by updating the software/application. Furthermore, various e-commerce companies such as Amazon.com, Inc. are also developing and marketing image recognition software, Amazon Rekognition, for users of the Prime Photos service. The software allows users to detect faces, objects, and scenes to organize and filter their photos.
The face biometrics technology segment dominated the market with a revenue share of 28.4% in 2022. Facial recognition technology is widely used for security and access control in both the public and private sectors. This included applications in airports, government facilities, and private organizations for authentication and surveillance Moreover, the iris segment is expected to register significant growth over the forecast period. An iris-based system is accurate, fast, and convenient while eliminating payroll frauds such as buddy punching. The growing demand for iris biometrics technology within an organization to process payroll and calculate other benefits such as disability, health, and vacation is expected to drive the demand for the iris segment.
The growing COVID-19 pandemic across the globe is pushing everyone to minimize physical contact with a common surface. Iris identification provides authentication solutions in national and civil ID programs, access control, and time attendance, among others. Furthermore, the increasing adoption of iris technology by state and local agencies for border security is further expected to drive growth. For instance, El Paso Police Department, U.S., started using biometrics technology which combines iris-scanning, facial recognition, and fingerprint identification capabilities to increase border security.
The government segment dominated the market with a revenue share of 25.1% in 2022 and is expected to maintain its dominance over the forecast period. The government segment of the Contactless Biometrics Technology Market refers to the application of contactless biometric systems and solutions by various government agencies and entities for a wide range of purposes. Contactless biometrics technology in the government sector is used to enhance security, streamline processes, and improve the efficiency of various government functions. For example, Contactless biometric systems, such as facial recognition and iris scanning, are used at border control points and immigration checkpoints to verify the identity of travelers and detect fraudulent documents.
The healthcare sector is expected to register considerable growth over the forecast period. The rapid technological advancements and AI-powered face and iris identification systems allow hospital facilities to track patients without using physical tracking devices. Furthermore, the emergence of real-time emotion detection, which is an application of face recognition in healthcare, is also gaining popularity. It is used to detect emotions that patients exhibit during their stay in the facility. The data is used to determine how patients are feeling and also helps to identify where the patients need more attention in case, they’re in pain.
North America dominated the market with a share of over 32.0% in 2022. This dominance can be attributed to the presence of technology providers, such as nVIAsoft Corporation, HID Global, M2SYS Technology, and BioConnect, in the region. Increasing demand for contactless biometrics solutions by payment solution providers to offer secure transactions to their customers in the region is further expected to drive regional growth. For instance, in October 2019, SnapPay, Inc., a provider of payment solutions, announced the availability of facial recognition-based payment technology for merchants in North America.
The rising adoption of contactless biometrics solutions in defense and government applications is also expected to drive the demand for the market in North America. Furthermore, increasing government initiatives to implement contactless biometrics solutions to deal with an increasing number of travelers and to increase security at airport facilities are expected to drive regional demand. For instance, the Canadian Border Services Agency installed kiosks that utilize facial recognition technology at airports. The new technology utilized both facial recognition and fingerprint biometrics to facilitate clearance procedures for travelers at airports in Canada.
The market is characterized by strong competition, with a few major worldwide competitors owning a significant market share. The major focus is developing new products and collaborating among the key players. Some prominent players in the global contactless biometrics technology market include:
Fingerprint Cards AB
Touchless Biometric Systems AG
Market size value in 2023
USD 14.56 billion
Revenue forecast in 2030
USD 46.65 billion
CAGR of 18.1% from 2023 to 2030
Base year for estimation
2017 - 2021
2023 - 2030
Market revenue in USD million, CAGR from 2023 to 2030
Revenue forecast, company ranking, competitive landscape, growth factors, trends
Component, application, end-use, region
North America; Europe; Asia Pacific; Latin America; MEA
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil, Mexico
Key companies profiled
Aware Inc.; Fingerprint Cards AB; Fujitsu Limited; Gemalto N.V.; HID Global; IDEMIA; M2SYS Technology; NEC Corporation; nViaSoft; Touchless Biometric Systems AG
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional, and segment scope.
This report forecasts revenue growth on global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global contactless biometrics technology market report based on component, application, end-user, and region:
Component Outlook (Revenue, USD Million, 2017 - 2030)
Application Outlook (Revenue, USD Million, 2017 - 2030)
End-use Outlook (Revenue, USD Million, 2017 - 2030)
Banking & Finance
Transport & Logistics
Defense & Security
Regional Outlook (Revenue, USD Million, 2017 - 2030)
Middle East and Africa
b. The global contactless biometrics market size was estimated at USD 12.12 billion in 2022 and is expected to reach USD 14.56 billion in 2023.
b. The global contactless biometrics market is expected to grow at a compound annual growth rate of 18.1% from 2023 to 2030 to reach USD 46.65 billion by 2030.
b. North America dominated the contactless biometrics market with a share of 31.2% in 2022. This is attributable to the presence of technology providers such as nVIAsoft Corporation, HID Global, M2SYS Technology, and BioConnect, among others, in the region.
b. Some key players operating in the contactless biometrics technology market include Touchless Biometric Systems AG; Fingerprint Cards AB; Fujitsu Limited; IDEMIA; and NEC Corporation.
b. Key factors driving the growth of contactless biometrics technology market growth include growing popularity and the need for more convenient and secure authentication systems and vast advantages of contactless biometrics, including a high level of security in the private, public, and commercial sectors.
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
"The quality of research they have done for us has been excellent."