Fact.MR Forecasts 16 Percent CAGR for Contactless Biometrics Market

Fact.MR is forecasting major growth in the contactless biometrics market in the next 10 years, predicting that the market will display a CAGR of 16 percent for the period leading up to 2031. The firm places the 2021 value of the market at $9 billion.

According to Fact.MR, much of that growth can be attributed to the growing need for secure authentication options in government and in the private sector. COVID-19 also created more demand for contactless solutions in particular, since there is less chance of viral spread when people do not need to make physical contact with a shared device to verify their identity. As it stands, Fact.MR estimates that contactless units were featured in 40 percent of all biometric unit sales made over the course of 2020.

Contactless fingerprint applications made up a significant portion of those sales, accounting for more than 25 percent of the market for the year. The hardware segment drove 30 percent of the total revenue, while North America and Europe served as the biggest audiences for contactless tech, generating a combined 57 percent of the global revenue. However, the rest of the world is expected to close that gap, with Fact.MR anticipating a seven-fold market increase in East Asia, South Asia, the Middle East, and Africa in the next 10 years.

Fact.MR listed Fingerprint Cards and Fujitsu as some of the key players in the contactless biometric sphere. The firm noted that while biometric payment cards have started to gain traction, the government, security, and transportation and logistics sectors still dominate the contactless market, together bringing in more than $5 billion worth of revenue in 2020.

The Fact.MR predictions are slightly less ambitious than those of Reports and Data, which recently suggested that the contactless biometrics market will reach $28.83 billion in 2027, based on a CAGR of 19.9 percent. For its part, Fact.MR has separately predicted that biometric technology will help drive steady growth for physical access control systems.

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April 20, 2021 – by Eric Weiss