Market Definition
Biometrics involves using a person's biological & physical characteristics, such as the face, fingerprints, or iris, to recognize them in a reliable & automated manner. Biometrics as a Service (BaaS) is a cloud-based framework to promote new biometric recognition for law enforcement, access control, healthcare, financial services, etc. The use of the BaaS model to enhance cybersecurity across end-users like offices, hospitals, airports, defense, etc., is significantly supporting the growth of the BaaS market globally.
Market Insights
The Global Biometric-as-a-Service (BaaS) Market is projected to grow at a CAGR of around 19.78% during the forecast period, i.e., 2022-27. The market growth imputes primarily to the increasing use of Bring-Your-Own-Devices (BYOD) in organizations, coupled with the mounting data security issues globally, which have led to an increased usage of cloud-based mobile biometric services.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 19.78% |
| Regions Covered | North America: USA, Canada, Mexico |
| Europe: Germany, UK, France, Italy, Spain | |
| Asia-Pacific: China, India, Japan, South Korea, Australia | |
| South America: Brazil, and Argentina | |
| Middle East & Africa: UAE, Saudi Arabia, South Africa, Turkey | |
| Key Companies Profiled | Thales Biometrics, Leidos Holdings, Inc., Fujitsu Ltd., NEC Corporation, BioEngagable Technologies Pvt. Ltd., ImageWare Systems, Inc., M2SYS Technology - KernellÓ Inc., Mobbeel Solutions, S.L.L., Aware, Inc., IDEMIA France SAS, Clearview AI, Inc., Bayometric, Amazon Inc, Microsoft Corporation, & CERTIBIO |
| Unit Denominations | USD Million/Billion |
According to the World Internet Stats 2021, there are around 5.1 billion mobile & internet subscribers globally. With the surging number of mobile & internet subscribers and the increasing instances of internet frauds & cyberattacks, there is an urgent need to deploy biometric solutions in vital industrial verticals globally. The mounting application of biometrics technology across commercial centers, offices, & airports, coupled with the soaring application of finger & facial scan solutions in the security & defense sectors, are other prominent factors contributing to the growing demand for biometric sensors globally.
Additionally, growing number of identity thefts & terrorist acts due to the burgeoning usage of online banking services have raised some serious concerns over national security across different regions, which, in turn, has augmented the need for biometrics in vital sectors. Furthermore, factors like the increasing number of e-passport programs entwined with various initiatives by governments worldwide toward enhancing cybersecurity measures have contributed to a surge in the revenue of Biometric as a Service (BaaS) providers. For instance:
Key Trends in the Global Biometri-as-a-Service (BaaS) Market
Rising Government Initiatives toward Integrating BaaS into Prominent Industrial Verticals
Integration of biometric services with cloud-based platforms, such as Biometric-as-a-Service (BaaS), is presently the keen focus area of the eminent end-user industries & small vendors due to burgeoning instances of payment frauds & data breaches worldwide. Cloud-based security services offer organizations various advantages like lowered costs, enhanced flexibility, better disaster recovery related to data breaches, and agility without involving any complex infrastructure.
Several initiatives by governments worldwide to tackle identity-related frauds, specifically for strengthening e-KYC to authenticate identities of different citizens at airports, banks, healthcare, & other economic sectors, shall increase the revenue of BaaS providers during the forecast period.
Impact of Covid-19 on the Global Biometric as a Service (BaaS) Market
The Covid-19 pandemic in 2020 bought several security challenges related to biometrics security in various verticals, such as defense, banking & finance, government, healthcare, etc. According to BAE Systems, around 74% of the global financial institutions reported frequent cyberattacks amidst the global crisis. Additionally, Carbon Black, Inc. reported a 238% increase in cyberattacks against banks & financial institutions globally.
As a result, the demand for enhanced biometric security solutions rapidly surged and fueled the market growth. Furthermore, the growing demand for advanced biometrics for disease detection using face recognition, coupled with systems that can analyze behavioral patterns & emotional/psychological states to monitor, predict & anticipate incidents, are expected to gain significant traction during 2022-27.
Market Segmentation
Based on the Component:
Of them all, the Services segment is expected to gain significant momentum in the Global Biometric as a Service (BaaS) Market during 2022-27. With the growing digitalization and increasing use of IoT in industries like manufacturing, agriculture, logistics, banking, etc., there exists a need for these sectors to deploy enhanced security services to help reduce those security breaches which could cause operational losses.
Increasing cyberattacks & internet scams across these sectors have contributed extensively to an increasing demand for advanced biometrics solutions & services to ensure data security and the smooth functioning of business operations. Government organizations globally have adopted significant initiatives to curb data security losses. For instance:
Based on Trait
Of them all, the Behavioral segment is expected to acquire a considerable market share during 2022-27, owing to the burgeoning demand for digitally integrated technologies across a variety of industries, such as banking, government, manufacturing units, etc., coupled with the growing number of behavioral thefts. Biological biometrics is a powerful tool for tackling advanced threats in these industries. It analyzes parameters like a user's keystrokes when typing, navigational patterns, screen pressure, typing speed, etc. Moreover, the surging adoption of digitally integrated solutions & services like Digital Banking has also contributed to a revenue surge for the Biometric as a Service industry worldwide.
Cyber attackers & fraudsters are constantly developing different tactics to adapt to changes in the banking sector and exploit weaknesses & vulnerabilities of the industry. Account Takeover (ACTO) is one of the incipient fraud trends emerging globally. Besides, TransUnion, a global credit bureau, also detected a surge in fraudulent & criminal activities related to financial services in the South African region, with a 187% increase in 2020 from 2019. Furthermore, rising Authorized Push Payment (APP) frauds & identity thefts from e-commerce platforms are expected to boom the demand for Behavioral Biometrics globally.
Regional Landscape
Based on the Geography, the Biometric as a Service (BaaS) market expands across:
Geographically, among all countries, North America is expecting to portray a noticeable growth in the Biometric as a Service (BaaS) Market during 2022-27. With the increasing technological advancements, cyber-attacks are also rising in the North American region. Besides the prominent financial, tech, telecommunication companies, the government is also actively opting for various cyber security measures. Besides, the Department of Homeland Security in the US also uses biometrics to detect & prevent illegal entries, facilitate legitimate travel & trade, enforce federal laws, etc.
Hence, this boost in investments in the Biometric as a Service Market by private sectors & governments worldwide for National security would drive the North America Biometric as a Service (BaaS) Market in the years to come.
Recent Developments
Thales Group:
Market Dynamics:
Key Driver: Digitalization and Growing Security Threats
The growing dependence on technology of the key industries, such as e-commerce, banking, security, etc., has urged the need for enhanced security mechanisms, which, in turn, has resulted in the increased integration of biometric services globally. Moreover, the mounting need to strengthen national security in many countries is also augmenting the demand for Biometric-as-a-Service (BaaS) models.
Governments worldwide are using BaaS to identify illegal immigrants, criminals, etc. For example, over 150 countries have adopted e-Passport programs, a combination of paper & electronic passports containing biometric identification information stored on an embedded microchip. It is for more accurate authentication of the identity of travelers while maintaining their privacy & the highest level of security.
Industries like healthcare, IT, banking, etc., are also shifting toward BaaS for more privacy & fewer security threats and are investing extensively in enhancing security systems. Moreover, the mounting demand for fingerprint scanning biometric solutions for payments & banking services is another crucial aspect positively influencing the global market. For instance:
The increasing need to secure online transactions, surging security threats, and mounting adoption of advanced technologies by governments to create awareness among citizens and promote digitalization is anticipated to propel the overall market growth during 2022-27.
Possible Growth Restraint: Increasing Security & Privacy Concerns Due to Data Theft Incidences
Service providers need to be careful regarding the biometric authentication methods they use in order to prevent violations of customers' privacy or exposure of their personal information since this information could be stolen or lost if the cloud isn’t well-secured. Due to these reasons, consumers & enterprise organizations hesitate while adopting BaaS solutions.
According to Varonis, a US-based data security & insider threat detection company, around 10 million identities have got stolen since 2013, and nearly 64% of them occurred in the United States. Hence, increasing concerns over the security of biometric data stored in the cloud might challenge the Biometric as a Service Market growth during 2022-27.
Key Questions Answered in the Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The Global Biometric as a Service (BaaS) Market is projected to grow at a CAGR of around 19.78% during 2022-27.
A. The Services segment is anticipated to emerge as an area of lucrative growth opportunities for the leading players in the Global Biometric as a Service (BaaS) Market during 2022-27.
A. The growing adoption of digitally integrated technologies in vital sectors of the economy, coupled with increasing number of cyberattacks & internet scams, are the prime aspects anticipated to drive the Global Biometric as a Service Market in the coming years.
A. Burgeoning ransomware attacks & internet frauds, combined with the evolution in biometrics technology for disease detection during the Covid-19 pandemic, the Global Biometric as a Service (BaaS) Market is expected to witness a pool of significant growth opportunities during 2022-27.
