Biometric Payments Market Overview
The growth of the global biometric payments market is thriving on the back of advancement in biometric payment technology around the world. Increasing number of users of smart devices along with the rising penetration of the internet is helping raise the environment for cashless payments, which in turn is anticipated to drive the growth of the global biometric payment technology market. Moreover, the need to mitigate the security challenges, increasing digitization, development in online banking services and the need for protection of data are some of the factors raising the need for the development and adoption of biometric technology. According to the statistics by the GSM Association, smartphone penetration across regions around the world was led by North America, followed by Europe, Latin America and others in the year 2017. Moreover, the statistics also anticipated that the smartphone penetration in North America in the year 2025 will reach to 91%.
The global biometric payments market reached USD 442.9 billion in 2018 and is expected to garner USD 16030.2 billion by the end of 2027 by registering a CAGR of 49.0% across the globe over the forecast period 2019-2027. Further, the worldwide market of biometric payments is anticipated to achieve a Y-o-Y growth rate of 49% in 2027 as compared to the previous year.
Growth Highlights based on Region during 2018-2027
The global biometric payments market is segmented by regions into North America, Latin America, Europe, Asia-Pacific and Middle East and Africa. Among these regions, the market of Asia-Pacific biometric payments is driven by nations such as Japan, china and India among others, where China held the largest market share of around 35% during 2018. The increase in the implementation of facial recognition biometric payment systems in financial organizations in China is predicted for the significant growth of biometric payments market in the upcoming years. Additionally, Asia Pacific is expected to expand by observing the growth rate of 44x over the forecast period, which in turn is estimated to have a positive effect on the demand for biometric payments in the long run.
Further, nations such as Germany, UK and Rest of Europe are the prominent countries that are driving the growth of the Europe biometric payments market, where in the year 2018 Rest of Europe held the largest market share of 43%.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
By Authentication Type
The global biometrics payment market has been segmented on the basis of authentication type into voice, face, palm-vein, finger-vein, behavioral, palmprint and iris. Finger-vein segment with around 46% share in 2018, occupies the largest market share of biometric payments across the globe. Additionally, finger-vein segment is anticipated to cross USD 8500.0 billion by the end of 2027 by registering a CAGR of 51.4% over the forecast period. Further, the voice segment is estimated to grow with a significant CAGR of 49.6% over the forecast period.
By Architecture
Global biometric payments market is also segmented on the basis of architecture into cloud-based and device-based. It is observed that the device-based segment held the largest market share in the year 2018 and is anticipated to attain a CAGR of 46.8% during the forecast period. The device-based segment is further anticipated to grow by 32x and attain an absolute $ opportunity of USD 9228.2 billion during the assessment period. The segment is also estimated to grow with a Y-o-Y growth rate of 46.4% in the year 2027 as compared to the previous year.
Market Drivers and Challenges
Growth Indicators
Several security concerns raised due to the increasing number of cybercrimes around the globe has led to the need for taking steps on security measures and has also contributed to the development of numerous authentication methods, one such being the biometric payments, as these type of authentication methods help users to access their accounts easily without the need for memorizing long passwords. Additionally, the concern for secure payments in the banking system and the need to protect from online frauds along with the increasing adoption of smartphones around the world are some of the factors anticipated to drive the growth of the global biometric payments market.
Barriers
Lack of proper technological infrastructure in several nations around the globe, along with other technical barriers observed in biometric systems, such as issues with facial and voice recognition, and fear of security uncertainties are some of the major factors that are limiting the growth of the biometric payments market around the globe.
Top Featured Competitive Landscape
Some of the affluent industry leaders in the global biometric payments market are Fujitsu Ltd., Hitachi Ltd., Fulcrum Biometrics, LLC, NXP Semiconductors, Microsoft Corporation, Qualcomm Technologies, Inc., Tencent and Diebold Nixdorf, Incorporated.
