Report

Global contactless biometrics technology market size was valued at USD 17.98 billion in 2023, expected to reach USD 59.35 billion in 2031, with a CAGR of 16.1% for the forecast period between 2024 and 2031.
The contactless biometrics technology market is witnessing significant growth owing to increased security. Contactless biometrics eliminate the requirement for physical contact, lowering the risk of germ transmission and preventing unauthorized access. The technology delivers convenience by providing quick and seamless authentication, saving time for users. Moreover, contactless biometrics are highly accurate and difficult to forge, ensuring reliable identification. With the rising adoption of mobile payments, e-commerce, and IoT devices, the demand for contactless biometrics is on the rise. Additionally, the ongoing advancements in biometric sensors and algorithms are driving market growth, creating new opportunities for applications in various sectors such as finance, healthcare, and transportation.

The adoption of biometrics in tourism is influencing the growth of the contactless biometrics technology market by offering a seamless and secure travel experience. According to research by International Air Transport Association (IATA), 75% of passengers prioritize convenience and prefer using biometric data instead of passports and boarding passes. The trend is driving the demand for biometric identification systems in airports and other travel hubs. With biometrics, travelers can enroll their data at home or through airport kiosks, reducing manual document checks and saving time at check-in, bag drop, and boarding. The greater satisfaction rate of around 88% among passengers further encourages the collaboration between airlines and airports to deploy biometrics. The adoption is expected to extend beyond identity checks and potentially include biometric payments for ancillary services, such as in-flight meals or upgrades, further enhancing the frictionless travel experience.
For instance, in March 2023, iPassport and HID Global unveiled a brand-new identity verification system for the transportation sector. Amidst the growing complexity of the passenger journey, the AI-powered technology seeks to optimize airport efficiencies and improve the traveler experience.
Increase in Use of Smartphones Promoting the Market's Growth
The contactless biometrics technology market is expanding as a result of the growing popularity of smartphones, which are the perfect platform for biometric authentication due to their powerful biometric sensors, like fingerprint scanners and facial recognition software. It allows consumers to use their smartphones to make contactless payments and to access a variety of services in an easy and secure manner. Furthermore, since smartphones are so widely used, people are getting used to biometric authentication, which is fostering a climate that is favorable to the adoption of biometric technology in different sectors like travel and tourism. The contactless biometrics technology market has grown dramatically as a result of the ease and security that smartphones offer.
For instance, in November 2023, in an effort to improve security and expedite operations, Aware, Inc. and Serban Group collaborated to provide biometric digital identity and authentication solutions to governments, commercial businesses, and financial services firms in Latin America and Europe.
Rising Need for Secured Transactions Fueling the Market Growth
The contactless biometrics technology market is expanding due to the increasing demand for safe transactions. Demand for safe and practical authentication techniques is rising in response to the rise in identity theft and fraud cases. With contactless biometrics, identities may be easily and securely verified using distinctive biological characteristics like fingerprints, face recognition, and iris scanning. By doing away with the necessity for physical contact, this technology lowers the possibility of disease transmission and offers a hygienic alternative. The global expansion of contactless biometrics technology is being aided by its widespread use in several sectors, including banking, healthcare, and transportation.
For example, in September 2023, Aware, Inc. improved its SaaS-based AwareID system to provide flexible and dependable biometric digital identity and authentication solutions for organizations in Latin America and Europe.
Technological Development Drives the Contactless Biometrics Technology Market
The contactless biometrics technology market is expanding due to developments in contactless biometrics technology. These developments make it possible to create biometric identification systems, such as fingerprint scans and facial recognition, that are more precise and effective. As a result, biometrics are becoming more widely used across a range of businesses, including tourism. Biometrics offer a smooth and safe travel experience, doing away with the need for paper documentation like boarding passes and passports. Further, the market's expansion is due to the growing use of smartphones, which come with sophisticated biometric sensors and provide a practical platform for biometric authentication.
For instance, in October 2023, Fingerprint Cards unveiled an integrated biometric system for PC manufacturers, comprising of an in-house microcontroller unit along with a fingerprint sensor designed for PC requirements.
North America Dominates the Global Market
North America is a hotspot for biometrics innovation, with its sophisticated technological capabilities and well-established infrastructure making it the market leader for contactless biometrics technology. The need for secure authentication solutions has grown as a result of North America's strong emphasis on security and privacy. In addition, the adoption of contactless biometrics across a variety of industries has been expedited by the presence of significant acts in the biometric business and partnerships between public and private entities. Additionally, a high rate of smartphone adoption in the area encourages the usage of biometric authentication on mobile devices.
For instance, in September 2023, Aware, Inc. launched a structured partner program to offer incentives to both present and potential partners, as well as more clarity and openness regarding its biometric products, roadmap, and pricing. As the need for biometric authentication in secure payments and other applications grows, the program intends to enable major and midmarket technology companies to use biometrics for improved income streams.
Government Initiatives are Fostering Revenue Growth
Government measures are essential in encouraging the adoption and development of contactless biometrics technology to create a climate that is favorable for the market to flourish. Amongst these measures, the creation of rules and guidelines promote the adoption of biometric identity systems in industries, including banking, healthcare, and transportation. Governments are doing investments in research and development, giving institutions and businesses developing contactless biometrics technology resources and support. Governments work with industry participants to set standards and directives for the deployment of dependable and safe biometric systems. These programs promote innovation, foster consumer trust, and accelerate the market's expansion for contactless biometrics technology.
For instance, in February 2023, The Digi Yatra policy, introduced by the Indian Ministry of Civil Aviation, uses facial recognition technology to provide a smooth boarding process. A few airports have started implementing Digi Yatra, which offers contactless and paperless boarding and check-in procedures.
Impact of COVID-19
The contactless biometrics technology market was significantly impacted by the COVID-19 pandemic. The business is expanding steadily even before the pandemic because of advances in technology and rising consumer demand for safe identification options. On the contrary, since contactless biometrics provide a safe and hygienic substitute for touch or fingerprint-based systems, their use accelerated due to the COVID-19 pandemic. Businesses in biometrics market have seen a sharp increase in customer demand for contactless solutions, particularly from travel, finance, and healthcare industries. Following the pandemic, the market is anticipated to grow further as businesses emphasize contactless technologies to protect workers and reduce the possibility of new outbreaks.
Future Market Outlook (2023-2030)
� The accuracy and efficiency of contactless biometrics systems will be improved by artificial intelligence (AI) and machine learning algorithms, allowing for real-time identification and authentication with a low rate of false positives.
� Biometrics as-a-Service (BaaS) models will become more prevalent in the market, enabling small and medium-sized businesses to implement biometric solutions without having to make significant upfront investments.
� To reduce the need for physical documents and enable secure access to financial services, online transactions, digital platforms, and contactless biometrics will be essential to distant identity verification.
� Internet of Things (IoT) ecosystem will incorporate contactless biometrics technology, allowing secure and easy authentication for connected cars, smart home appliances, and other IoT-enabled applications.
Key Players Landscape and Outlook
The global contactless biometrics technology market is quite competitive and the leaders in this market include Aware, Inc., Fujitsu Limited, IDEMIA Group, SITA, and HID Global Corporation. To keep ahead of the competition, these businesses constantly innovate and make research and development investments. They provide a large selection of contactless biometrics solutions, such as iris, fingerprint, and facial recognition software. The demand for convenient and safe authentication solutions is driving a positive market outlook for contactless biometrics technology. Technological developments like remote identity verification, secure mobile service access, and AI-powered biometrics are anticipated to propel the industry forward.
In May 2023, TBS Switzerland unveiled BIOMANAGER ENTERPRISE, a software platform that facilitates the effective management of biometric goods and data. It provides a complete workforce time management and secure access control solution.
In March 2023, Aware, Inc. and Anyline collaborated to include Knomi into a major Pakistani bank's Electronic Know Your Customer (eKYC) identification verification procedure. Aware will provide biometric technology for safe account opening and consumer identity verification, while Anyline will manage data capture from identity documents.