The global biometric banking market revenue was around US$ 5.8 billion in 2023 and is estimated to reach US$ 23.6 billion by 2032, growing at a compound annual growth rate (CAGR) of 17.2% during the forecast period from 2024 to 2032.

Biometrics is an automated procedure of recognizing customers with the use of biological characteristics and traits like voice recognition, iris, and fingerprints. This characteristic is special for every individual and not easy to develop into. This technology is growing as a cutting-edge layer to many enterprise and personal security systems.

Factors Influencing Market Growth

- The rise in security and decreased identity fraud are the key drivers for the growth of biometric banking market.

- The growth in contactless payments and mobile banking and biometric authentication managing key needs for the convenience of the customers are the major driving factors for the growth of the biometric banking market.

- The security problems and high implementation costs are major factors that hinder the development of the biometric banking market.

- The significant adoption of AI and ML offers a significant growth opportunity for the biometric banking market.

Impact of COVID-19

The impact of the COVID-19 pandemic had a positive influence on the growth of the global biometric banking market. Banks and financial institutions were encouraged to expedite their digital change efforts, leading to augmented investment in biometric authentication solutions to improve security and facilitate digital procedures.

As people became more careful about physical contact, there was a surge in the usage of contactless payment techniques. Biometric authentication methods like voice recognition and facial recognition achieved importance as they presented convenient and secure ways to confirm transactions without physical contact.

Regional Analysis

In 2023, North America dominated the global biometric banking market in terms of revenue. This is due to the growing popularity of digital banking services has propelled the requirement for user-friendly and secure authentication procedures.

Also, Asia-Pacific is anticipated to be the fastest-growing region during the forecast period. This is due to industries, including banking, are experiencing rapid digital transformation in this region. Biometric authentication played a critical role in this change by allowing secure mobile and online transactions.

Leading Companies

The leading prominent companies profiled in the global biometric banking market are: -

- Charles Schwab and Co.
- Visa, Inc.
- JPMorgan Chase & Co.
- Diebold Nixdorf, Incorporated.
- NEC CORPORATION
- IDEMIA
- Infineon Technologies AG
- IDEX Biometrics ASA
- Synaptics Incorporated
- Axon
- Other prominent key players

Segmentation Outline

The global biometric banking market segmentation focuses on Component, Type, End User, and Region.

Segmentation based on Component

- Hardware
- Software
- Service

Segmentation based on Type

- Fingerprint
- Facial Recognition
- Hand Geometry
- Iris Recognition
- Others

Segmentation based on End User

- Retail
- Government
- Transportation
- Healthcare
- Hospitality
- Others

Segmentation based on Region

- North America
- The U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest Of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa