Mobile Biometric Market

Mobile Biometrics Market Outlook (2022 to 2032)

Global mobile biometrics sales revenue totaled US$ 24.6 billion in 2021. Total market value is expected to increase from US$ 30.5 billion in 2022 to US$ 208 billion by 2032. From 2022 to 2032, global mobile biometrics demand is projected to rise at 21.2% CAGR.

Fingerprint recognition is expected to remain the most commonly used technology globally. The fingerprint recognition segment will exhibit at a CAGR of around 21.1% from 2022 to 2032. It will emerge as a key revenue-generating segment for mobile biometrics companies through 2032.

Key Trends Shaping the Market:

• Rising demand for advanced authentication and identification solutions globally will provide impetus to the mobile biometrics industry
• High usage of mobile bioelectronics in BFSI and healthcare sectors is expected to fuel up demand in the market
• Advancements in mobile biometric solutions are likely to bolster sales through 2032
• Increasing integration of biometric features in smartphones will boost the market
• Escalating initiatives by government to integrate biometrics in public sector is expected to bolster mobile biometric sales

Rising number of cyberattacks is compelling companies to innovate and develop novel forms of securing their user devices & accounts. One such advancement is biometrics technology.

An advanced type of authentication that uses biometrics to recognize and validate the identity of a person attempting to access mobile application is known as mobile biometrics.

In a highly digitalized world, traditional password-based authentication is no longer sufficient to protect secure applications & software tools. As a result, the focus has shifted to mobile biometrics.

Both government and public enterprises are turning to mobile biometrics to facilitate the processing of people and goods.

Mobile biometric solutions can provide an enhanced level of security and assurance. Adoption of these devices is eliminating the need for traditional credential-based authentication methods such as pins and passwords.

Key advantages of mobile biometrics or biometric authentication:

• High security and assurance
• Faster authentication
• Convenience
• Flexibility
• Non-transferrable
• Improved user experience
• Spoof-proof

Rising popularity of smartphones and other mobile devices is creating high demand for biometric authentication. This is due to the fact that mobile biometrics provide a more convenient and secure way to access mobile applications and services.

Mobile biometric solutions are gaining immense traction as they add to the overall user experience and are less intrusive than entering passwords.

Usage of biometrics on mobile devices is gaining huge momentum as the latest smartphones have at least one integrated mechanism for biometric authentication.

There were around 15.9 billion mobile devices in operation in the world in 2022. By 2025, it is projected that there will be around 18.2 billion mobile devices in operation in the world.

With rising number of mobile devices, demand for mobile biometrics is projected to increase swiftly during the assessment period.

Mobile biometric authentication methods are more secure as they rely on unique physical characteristics that are harder to replicate or steal than traditional passwords. They also provide more convenience and speed, as users can quickly and easily authenticate themselves with a simple biometric scan.

Growing usage of mobile biometrics in applications such as mobile banking, online retail, healthcare, etc. is expected to boost the global market.

Regionally, North America leads the global mobile biometrics industry from the forefront. As per Persistence Market Research, North America mobile biometrics market size is expected to increase from US$ 12.2 billion in 2022 to US$ 83.6 billion in 2032.

Growing adoption of mobile payments and strong presence of leading mobile biometrics companies are key factors driving North America market.

North America has a significant mobile payments market in the world. The total transaction value of mobile payments in North America reached around US$ 802 billion in 2020. By 2027, this value is projected to increase to around US$ 3.3 trillion.

With increasing mobile payments in the region, demand for mobile biometrics is projected to rise at a stupendous pace. This is because biometric authentication can be used to confirm the identity of the user. It can help banks minimize the risk of fraud and unauthorized access.

Leading companies are launching new mobile biometric solutions to gain maximum profits. For instance,

• Recently, a new mobile biometric authentication app was introduced by Veridium to enable biometric authentication in enterprises. The new app is called ‘Veridium Authenticator’.
• In March 2019, a new biometric identity management software was introduced by Unisys Corporation. The new software will help users defend against identity fraud through face, voice, fingerprint, and iris recognition.

2017 to 2021 Global Mobile Biometrics Sales Outlook Compared to Demand Forecast from 2022 to 2032

Historically, from 2017 to 2021, the global market for mobile biometrics witnessed a CAGR of around 24.3%. It reached a valuation of about US$ 24.6 billion at the end of 2021.

Over the projection period, Persistence Market Research (PMR) predicts global demand for mobile biometrics to surge at 21.2% CAGR. The worldwide mobile biometrics industry is expected to generate an absolute $ opportunity of US$ 117.5 billion through 2032.

Mobile biometrics is the use of biometric technologies, such as fingerprint scanners, facial recognition, iris scanners, and voice recognition, in mobile devices for authentication and identification purposes.

The integration of mobile biometrics in smartphones and tablets is rising rapidly as the demand for secure authentication methods is increasing globally along with the widespread adoption of mobile devices.

With the rise of mobile devices and mobile payments, consumers are looking for secure and convenient ways to authenticate their transactions. Biometric authentication offers a more secure and convenient option than traditional passwords or PINs.

There is also an increase in regulatory compliance requirements in various industries, such as banking and finance, healthcare, and government. This in turn is driving the adoption of biometric authentication to meet security and compliance standards.

Growing awareness of security risks associated with traditional authentication methods, such as passwords and PINs, is also fueling the adoption of biometric authentication as a more secure alternative.

The total transaction value of mobile payments around the world in 2018 stood at around US$ 4.4 trillion in 2021. It is projected that the total transaction value of mobile payments globally will increase to around US$ 14 trillion by 2027.

With the increase in the adoption of mobile payments, demand for mobile biometrics is projected to increase rapidly. This is because mobile biometrics can be used for secure and seamless transactions.

Country-wise Insights:

What is the Demand Outlook for the United States Mobile Biometrics Market?

The United States mobile biometrics market is expected to exhibit a CAGR of 19.9% during 2022 to 2032. In comparison, 22.6% CAGR was registered from 2017 to 2021. Overall mobile biometric sales in the country will remain positive with the market creating an incremental opportunity of US$ 54.6 billion.

By the end of 2032, the United States mobile biometrics industry is projected to cross a valuation of US$ 62.2 billion. Rising penetration of smartphones is a prominent factor that is expected to fuel mobile biometrics demand in the United States through 2032.

The United States has a leading smartphone market in the world with around 307 million smartphone users in the country in 2022. By 2030, the total number of smartphone users in the country is projected to increase to around 338 million.

As mobile biometrics are increasingly being used in smartphones for better security and convenience purposes, increasing demand for smartphones will eventually create demand for mobile biometrics during the assessment period.

What Makes China an Opportunistic Market for Mobile Biometrics Companies?

Mobile biometrics market in China is expected to witness an impressive CAGR of 22.3%, reaching a valuation of US$ 17.8 billion by 2032. From 2017 to 2021, mobile biometrics demand in China increased at 26% CAGR.

Increasing production and sales of smartphones is emerging as a key factor driving mobile biometrics demand in China. Similarly, high adoption of advanced technologies is making China a profitable market for mobile biometric solution providers.

China is home to a leading smartphone industry. Total smartphone users in China reached around 1.06 billion in 2022. It is projected that by 2026 the number of smartphone users is projected to reach around 1.18 billion.

Rising number of smartphone users in turn will generate high demand for mobile biometric solutions as they are widely used in smartphones.

How is Japan Mobile Biometrics Market Shaping?

Japan mobile biometrics industry is projected to exceed a valuation of US$ 15 billion by 2032. From 2022 to 2032, it will create an absolute $ growth of US$ 12.7 billion. Total mobile biometrics demand in Japan is forecast to increase at 20.5% CAGR from 2022 to 2032.

Growing popularity of mobile biometrics in Japan’s BFSI sector is expected to drive the market forward.

Japan has a prominent mobile payments market with a transaction value of around US$ 96 billion in the year 2018 which increased to around US$ 132 billion by 2020. It is projected that by 2027, transaction value will reach around US$ 278 billion.

Mobile biometrics are used in mobile payments as they make mobile payments more convenient for users. Adoption of mobile biometrics eliminates the need to remember and enter passwords or PINs to authenticate transactions.

With biometric authentication, users can simply use their fingerprint or facial recognition to complete transactions quickly and easily. Therefore, increasing mobile payments will elevate mobile biometrics demand across Japan during the projection period.

Category-wise Insights:

Which is the Leading Technology in the Mobile Biometrics Industry?

As per Persistence Market Research (PMR), fingerprint recognition is likely to remain the most commonly used technology globally. The fingerprint recognition segment grew at a CAGR of 24% from 2017 to 2021 and it is expected to progress at 21.2% CAGR through 2032.

Fingerprint recognition is a popular form of biometric authentication that has been widely adopted in mobile devices. It involves capturing and analyzing the unique pattern of ridges and valleys on a person's fingertip to verify their identity.

In mobile devices, fingerprint recognition typically involves a small sensor that is integrated into the device's home button or display. When a user places his finger on the sensor, the device captures an image of the fingerprint and uses algorithms to match it against a previously stored template.

The technology behind fingerprint recognition in mobile devices has advanced significantly in recent years. Modern sensors are highly accurate and reliable and can recognize a fingerprint in a matter of seconds.

Further, various devices now support "live" recognition, which involves detecting the user's pulse or blood flow to ensure that the fingerprint being scanned is from a living person and not a fake.

Fingerprint recognition has become an increasingly popular form of authentication in mobile devices due to its convenience and security. It allows users to unlock their devices and access sensitive information quickly and easily, while also providing a high level of protection against unauthorized access.

Which Industry Vertical Prominently Uses Mobile Biometrics?

Based on industry vertical, BFSI is forecast to remain the leading user of mobile biometrics. As per the latest report, demand for mobile biometrics in BFSI sector is expected to rise at 21.0% CAGR through 2032.

Mobile biometrics has become an important tool for the banking, financial services, and insurance (BFSI) industry to enhance security and convenience for customers.

One of the prominent applications of mobile biometrics in BFSI is for identity verification during account registration or login. By using biometric authentication such as fingerprint or facial recognition, banks and financial institutions can ensure that only authorized individuals have access to their accounts and sensitive financial information.

Mobile biometrics in BFSI can also be used for secure and seamless transactions. By using biometric authentication to confirm the identity of the user, banks can minimize the risk of fraud and unauthorized access.

Biometrics can also eliminate the need for physical authentication methods such as signatures or PINs, making transactions faster and more convenient for customers. It can also be used for customer onboarding, which involves verifying the identity of new customers and ensuring that they meet the regulatory requirements.

By using biometric authentication, banks can streamline the onboarding process, reduce the risk of fraud, and improve customer experience. Hence, rising adoption across BFSI sector is expected to scale up mobile biometrics demand during the assessment period.

Competitive Landscape:

M2SYS Technology, Apple Inc, Nuance Communications, 3M, Aware Inc., BIO-key International, Precise Biometrics AB, NEC Corporation, HID Global Corporation, and Safran Inc. are few of the leading providers of mobile biometric solutions providers.

Leading mobile biometrics providers are using various key strategies to increase their revenues and expand their presence. These include the launch of new products and services, mergers, partnerships, acquisitions, agreements, and collaborations.

For instance,

• In April 2023, Precise Biometrics AB announced a partnership with Flowscape Technologies. With this partnership, precise biometrics aims to expand its sales channel and increase its presence in the United States.
• In December 2022, Precise Biometrics partnered with CanvasBio. Both companies will be jointly developing fingerprint biometric modules to be used in the laptops with the help of precise Biomatch Algorithms.
• In March 2019, App Guard announced the launch of the TRUSTICA Mobile, a consumer mobile device communication software that has military-grade security. By integrating iris, facial, and fingerprint biometrics, it provides user authentication and encryption keys that vary with each interaction.

Scope of the Report:

Global Mobile Biometrics Market Segmentation:

By Component:

• Hardware
• Software
• Service

By Authentication Mode:

• Single Factor Authentication
• Multi-Factor Authentication

By Technology:

• Fingerprint Recognition
• Voice Recognition
• Face Recognition

By Industry Vertical:

• Public Sector
• BFSI
• Healthcare
• IT and Telecommunications

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East and Africa

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