by Brianna Crandall — May 6, 2016 — Market research provider Technavio released four reports in recent weeks analyzing the global market for various aspects of biometrics, used in different applications for security purposes, indicating upcoming trends.
Global Keystroke Biometrics Market 2016-2020
This market research report presents a detailed segmentation of the global keystroke biometrics market by end user (enterprises, education, e-commerce, and others). Keystroke biometrics is a transparent authentication solution that requires no alteration to an individual’s behavior, explains Technavio.
Technavio graph of segmentation of global keystroke biometrics market by end-users
Increase in the instances of data theft will necessitate the implementation of keystroke biometrics across sectors like banking, insurance, and e-commerce during the forecast period. Much of this market’s growth comes from the heavy dependence on wireless technologies, rapid transition to cloud-based services, and the presence of a dynamic e-commerce market, according to the report.
Amrita Choudhury, lead analyst, ICT, Technavio Research, said:
Owing to the rising need for data security, businesses and governments from across the globe have been compelled to adopt multimodal biometric solutions. Multimodal biometrics integrates several applications like keystrokes, facial, and fingerprints to prevent unauthorized access to sensitive data. In this mode of data protection, online and offline access to networks and mobile devices is made available to those who have access. Since the integration of different technologies helps end-users to not only restrict access but also overcome the limitations of using a single technology, its demand among the end-users will increase rapidly over the next few years.
Business enterprises comprise the largest segment of the global keystroke biometrics market during 2015 and will generate a market revenue of nearly USD 220 million by the end of 2020, according to the report. Much of this segment’s growth can be attributed to the introduction of the “bring your own device” policy by enterprises, which necessitates the integration of keystroke biometrics with any mobile device to protect sensitive data.
Global Facial Recognition Biometrics in Consumer Electronics Market 2016-2020
This report includes a detailed segmentation of facial recognition in the consumer electronics market by technology and end-users such as enterprise and individual consumers. Due to growing instances of theft, several original equipment manufacturers (OEMs) are integrating facial recognition biometrics in their consumer electronics devices.
This will require end-users to authenticate themselves to gain authorized access to data and applications in mobile devices. According to the report, facial recognition technology is highly reliable, accurate, and cost-effective. Growing adoption of m-commerce and the increasing need to secure personal information among users will boost the growth of this market over the next four years.
According to Choudhury:
Of late, a number of financial institutions are encouraging mobile banking and online financial transactions. This has encouraged consumers to opt for electronic transactions. Growing usage of financial transactions through electronic devices have pushed enterprises to opt for several biometrics technologies for authentication purposes. Facial recognition and authentication technologies have emerged to address the need for end-users to remember passwords or carry hardware tokens for authenticating themselves to execute any transaction.
Individual consumers dominated the market in 2015, with a market share of over 60%. However, enterprise users will show high revenue growth at a rate of over 100% during the forecast period because of the growing awareness of facial recognition technology and the ease of implementation.
Global Multi-factor Authentication Market 2016-2020
Technavio research shows the adoption of multifactor authentication is rising because of growing security concerns such as Web transaction fraud, network-based attacks, Web-based application attacks, and mobile phone application attacks. Enterprises are adopting multifactor authentication solutions for more control over access to applications and sensitive information from remote locations.
Choudhury explained:
The advent of out-of-band (OOB) authentication is the latest trend gaining traction in this market. OOB authentication is a type of two-factor authentication and works well even if a fraudulent user gains all security credentials to a user’s account. Hardware OOB authentication tokens and mobile phone-based OOB authentication tokens such as SMS and back-up calls are the OOB authentication methods available in the market.
Broken down by technology, two-factor authentication occupies the largest share in the market, accounting for 92% of the overall market. This technique is a combination of factors such as username and password, an automated teller machine (ATM) card, or any type of biometric characteristics such as fingerprints.
Much of this segment growth comes from increased security concerns over transactions. The banking, financial services and insurance (BFSI) and payment card industry (PCI) sectors are the highest adopters of two-factor authentication for both employee and user authentication.
Global Multi-modal Biometrics Market 2016-2020
This report includes a detailed segmentation of the global multimodal biometrics market by technology (fingerprint recognition, facial recognition, iris recognition, voice recognition and vein recognition). Multimodal biometrics is an integration of a number of biometric technologies, such as fingerprint, facial recognition, or voice recognition.
Technavio graph of global multimodal biometrics market by fingerprint recognition ($ millions)
Such integration of biometrics in a single device allows users to have accurate and reliable recognition and a fortified level of security, leading many organizations to shift from systems based on smart cards and other technologies to multimodal biometric systems.
Choudhury commented:
Of late, biometric technologies such as voice recognition and facial recognition technologies have gained traction in the healthcare sector. These technologies are providing end-to-end electronic processes to ensure customer convenience and compliance with security regulations. Owing to increased use of mobile devices such as smartphones, tablets, and PDAs in the healthcare sector, manufacturers are integrating mobile apps with multimodal biometrics to avoid unauthorized access to patients’ records. Due to the occurrence of fraudulent activities in the healthcare sector, the use of multimodal biometrics is expected to increase in this sector during the forecast period.
Fingerprint recognition currently dominates the multimodal biometrics market, accounting for 43% of the overall market share. The adoption of fingerprint recognition in multimodal biometric systems is high because of the low cost of hardware systems. The need to track employees and government initiatives such as e-passports, border control programs, and e-governance are fostering the growth of this market. By 2020, a number of educational institutions, retail stores, healthcare organizations, and banks are likely to adopt multimodal biometric systems integrated with fingerprint recognition to execute live finger scanning, which is considered reliable, non-intrusive, and accurate.
Reports
The report summaries include the key vendors for each market, expected compound annual growth rate (CAGR) for each for the time period, breakdown by geographical region, and other information. Reports are available for purchase from the Technavio site (see links above), and can be customized by other regions and specific segments upon request.
