MarketsandMarkets has released a new report that predicts that the market for Biometrics-as-a-Service products will more than double in the next five years. The report places the current value of the market at $1.5 billion, and forecasts that that will grow to $3.7 billion by 2025. Those numbers represent a CAGR of 19.7 percent.
The report also takes the impact of COVID-19 into account. Factoring in the pandemic, post-COVID market size is expected to display the same CAGR, and grow from $1.4 billion to $3.6 billion.
According to MarketsandMarkets, much of that growth can be attributed to the rising need for robust data security and fraud prevention solutions, especially as the Internet of Things continues to expand. As more mobile devices enter circulation, governments and other organizations will need to be able to verify people’s identities and protect their users across a range of different channels.
Delving into the specifics, the report predicts that the fingerprint scanning segment will make up the largest portion of the market during the forecast period. The technology is expected to be particularly popular in the financial services industry, where it will be used for authentication in the anticipated wave of biometric payment cards. However, there are some concerns about its performance with dirty fingers, and about the safety of shared readers during the pandemic.
With that in mind, MarketsandMarkets believes that more and more organizations will turn to multimodal solutions, as opposed to those that rely on a single biometric modality to verify the identities of users. Multimodal solutions have lower error rates and are generally more accurate than those that use more limited information.
North America will generate the most revenue as a region, thanks largely to the use of BaaS for employee authentication at offices and other work sites. MarketsandMarkets listed IDEMIA, NEC, Thales, Fujitsu, Nuance, HYPR, Cognitec, Iritech, and Fingerprints as some of the key players in the space, placing them alongside perennial titans like Amazon, Microsoft, and Google.
(Originally posted on FindBiometrics)