| Study Period | 2019 - 2032 |
| 2024 Market Size | USD 21.5 Billion |
| 2025 Market Size | USD 25.2 Billion |
| 2032 Forecast | USD 81.6 Billion |
| Growth Rate (CAGR) | 18.3% |
| Largest Region | North America |
| Fastest Growing Region | Asia-Pacific |
| Nature of the Market | Fragmented |
| Largest End User Category | Government |
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The global contactless biometrics market is predicted to value USD 81.6 billion in 2032, increasing from USD 21.5 billion in 2024 at a CAGR of 18.3% during the forecast period (2025–2032). The major factors credited for this growth include the increasing preference for contactless biometric technologies and the rising security concerns along with government initiatives supporting contactless biometric systems. For instance, India is on the way to making Aadhaar contactless with facial authentication for certain services, and it will expand to the banking and financial services sector as well.
The contactless biometric systems are majorly used for criminal identification & forensics, onboarding & KYC, and access control. The surge in fraudulent activities and identity theft and an increase in digital identity use cases across verticals are largely driving the use of these systems for criminal identification and forensic purposes.
Moreover, the demand for contactless biometric card technology is expected to register significant growth in the coming future, due to the significant surge in contactless payments. Thus, companies are developing advanced facial recognition software and solutions, which, in turn, contribute to the growth of the contactless payments industry.
The software category accounts for the largest share, of more than 45%, in 2024, and it is expected to witness the fastest growth during the forecast period as well. This will be owing to the rising demand for software to strengthen the compatibility of devices for different applications. Moreover, an upsurge in the demand for queue-less passenger checks, seamless border crossing, fast and secure access controls, and fast identification of individuals for better convenience and security are also contributing to the growth of the industry in this category.
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Face recognition technology accounts for the largest market share in 2024. This is because the technology is largely used by end users, as it provides high-level security and is becoming reliable and affordable.
The iris recognition technology category is expected to witness the highest CAGR during 2024–2032. This can be because the technology avoids many of the drawbacks of facial recognition, as it works by exposing the iris to infrared light, which discloses the complex patterns within.
The report offers analysis on the following technologies:
The government sector is the largest revenue contributor to the market, with around 30% share in 2024, and it is also the fastest-growing category. This is because a large number of national governments are adopting contactless biometric systems so as to minimize and control criminal activities. For instance, in 2021, Hong Kong introduced ‘contactless e-channels’ installed at Hong Kong International Airport for immigration purposes with facial recognition technology and QR code scanning.
The banking and finance sector is also a significant revenue contributor to the industry, as these systems help to create a safe banking environment by preventing instances of identity fraud, creating an audit trail of transactions, and securing financial data. Furthermore, the failure of traditional security mechanisms, such as PINs, passwords, and tokens to successfully give protection, particularly against the increased sophistication of intruder attacks, the demand for contactless biometric systems is increasing in this sector.
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The North American contactless biometrics market share in 2024 is the largest at approximately 35%. This is owing to the requirement of seamless border crossing, queue-less passenger checks, rapid and secure access controls, and speedy identification of individuals. Moreover, the surging security concerns as a result of unexpected terrorist operations and illegal migrants inflowing into the region have boosted the need for contactless biometric solutions to sustain high-level security. Also, identity theft issues, as recognized by the United States Federal Trade Commission, may promote the adoption of enhanced authentication systems.
The advent of numerous government standards and regulations for the security and protection of personal data, as well as to control the collecting and utilization of biometric data in the region, has resulted in the high adoption of biometric technologies for verification and authentication purposes. Moreover, with the help of software algorithms and machine learning techniques, manufacturers are designing high-tech and contactless biometric sensor systems for fast and secure identity checks.
The U.S. is a larger consumer of contactless biometric technologies in the North American region. This is attributed to the increasing adoption of touchless biometric systems in military and government applications in the country.
Furthermore, Europe is the second-largest market for contactless biometrics, which is expected to grow at a significant CAGR in the coming years. This is attributed to the rising demand for contactless biometric iris recognition systems for contactless identification at busy locations. Also, the biometric revolution is stirring many regional countries to develop a unique and robust citizen identification system, providing individuals with a slew of benefits and allowing them to easily exercise their rights.
In the region, the U.K. and Germany are the major markets, owing to the high adoption of biometric identification systems in private and public institutions in these countries. Moreover, the momentum of contactless biometric systems has been growing to enhance contactless payments. In fact, since mid-2021, 50% of the card transactions were contactless.
APAC is expected to grow at the highest CAGR during the forecast period, owing to the constant technological advances coupled with increasing disposable income. For instance, fintech startups and financial services organizations have formed alliances to enable bio-authentication for safe onboarding and transactions using facial, finger, and voice recognition. Further, brand and technology-sensitive buyers are expected to boost the market demand. Moreover, an upsurge in the demand for entertainment, travel navigation, gaming and music, and social and personalization solutions is also driving the industry growth.
In the region, China, India, and Japan are the major markets for contactless biometrics. This is due to the presence of a large number of customers and several lunches of advanced products. For instance, in May 2022, Fingerprint Cards AB and Mswipe collaborated to introduce biometric credit and debit cards in India. Moreover, Japan is one of the developed countries, which is experiencing higher adoption of advanced digital technologies, resulting in the growth of the industry.
The geographical breakdown of the market is as follows:
The market is fragmented as it covers three distinct offerings: hardware, software, and services. Although a few companies have comprehensive offerings, some specialize in one or two of these. Additionally, a large variety of technologies are available for contactless biometric identification, which often have niche applications. Further, the relatively low development costs allow small companies and startups to make the most of the expanding opportunities in this space. As more industries and applications digitize, the demand for new technologies might increase, offering more new companies to emerge.
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