Global Behavioral Biometrics Market Overview
The key drivers impacting behavioral biometrics are the rise in online transactions and fraudulent activities. Also, the increase in mobile applications usage and the exchange of data over the web leads to frequent security and privacy concerns, promoting the market's growth in the coming years. Moreover, the growing demand for a multi-layered security approach in financial institutions contributes to behavioral biometrics demand later.
According to Value Market Research, the global behavioral biometrics size was valued at about USD 1.25 billion in 2020 and is estimated to grow at a CAGR of around 25% during the forecast period 2021 to 2027.
The rising need for a multi-layered security approach in the finance vertical will likely augment the demand for behavioral biometrics in the forecast period. Also, the development of the Internet of Things (IoT) landscape and the growing need for improved security systems positively impact market growth. However, the low cybersecurity budget hampers the market in the long run. In addition, the high behavioral biometrics software installation cost acts as a big challenge for the market. Nevertheless, the market trends, such as the improved security than static biometrics, and higher compatibility with promising AI technologies, might provide massive market opportunities to the market's key players.
The behavioral biometrics market is large, with several local and international players. Consequently, the market leaders follow diverse strategies to strengthen their markets, such as product launches, collaborations, mergers and acquisitions, and product upgrades globally. For instance, in November 2019, Fair Isaac Corporation (FICO) acquire security access provider EZMCOM Inc. This facilitated the FICO to launch FICO identity proofing, digital onboarding technology, and FICO user identification employing multi-factor behavioral authentication capabilities. The key players in the report are BehavioSec Inc., Fair Isaac Corporation, Nuance Communications, Inc., SecureAuth Corporation, UnifyID, BioCatch, Mastercard Incorporated, Plurilock Security Solutions Inc., SecuredTouch Inc, UnifyID, and Zighra.
In this research report, behavioral biometrics is segmented by component, type, deployment model, application, end-use industry, and region.
Analysis by Component:
By component, the report is divided into software and services. The software segment dominates with the highest market share of 72% in 2020. It is due to the growing demand for reliable and safe digital transactions globally. Moreover, the ever-increasing penetration of smartphones and the e-commerce industry leads to the increased adoption of behavioral biometrics software, thereby contributing to the growth of the software segment in the forecast period.
Analysis by Type:
By Type, the report is divided into keystroke dynamics, gait analysis, signature analysis, and voice recognition. The voice recognition segment dominates the type segment with the highest market share of 36% in 2020. It is due to the growing demand for demand for voice assistants such as Google Home, Alexa, Siri, and Cortana is growing and consumers are likely to be interested in using voice biometrics to unlock their devices. Moreover, voice recognition also assists in spot fraudsters within the voice channel as it engages a one-to-one match between voice samples.
Analysis by Deployment Type:
By deployment type, the report is segmented into Cloud and On-Premise. The On-Premise segment dominates the deployment type segment with the highest share of 62% in 2020. It is because on-premise behavioral biometrics solutions are easy to incorporate and configure with presented online offerings. Moreover, on-premise implementation offers organizations a high degree of customization. Also, it acquires lower costs if any added resources contribute to the growth of the On-Premise segment.
Analysis by Application:
By application, the report is divided into identity proofing, continuous authentication, risk & compliance management, and fraud detection & prevention. The identity proofing segment dominates the application segment with a high market share of 35% in 2020. It is because identify proofing solutions helps in setting up policies for validating sensitive applications by developing fail-safe mechanisms. Moreover, it provides different authentication options to users based on their privilege levels, thereby contributing to the high growth of the identity-proofing application segment.
Analysis by End-use Industry:
By end-use industry, the report is divided into BFSI, retail & e-commerce, healthcare, government & defense, IT & telecom, and others. The BFSI segment dominates the end-use industry segment with a significant market share of 26% in 2020. It is due to the high adoption of behavioral biometrics by Organizations to develop next-generation identification solutions that can combat fake activities and make transactions more protected. Moreover, the constant rise in government initiatives and financial regulations globally makes BFSI sector companies choose behavioral biometrics solutions to provide enhanced customer experience and secure their data to increase market demand from the BFSI sector.
Analysis by Region:
In the regional outlook of the global behavioral biometrics, the North America region dominates with the largest market share of 32% in 2020. It is due to the growing demand for data security through behavioral biometrics solutions and the presence of leading technology providers, and increasing government support through funding in research and development of advanced biometric solutions. Moreover, the end-use industries such as BFSI, government, and IT and telecom in the region significantly focus on adopting behavioral biometrics to secure their offerings and customer data contribute to the tremendous market growth across North America.
Market Segmentation covered in the Report:
By Component
- Software
- Service
- Managed Services
- Professional Services
By Type
- Keystroke Dynamics
- Gait Analysis
- Signature Analysis
- Voice Recognition
By Application
- Identity Proofing
- Continuous Authentication
- Risk & Compliance Management
- Fraud Detection & Prevention
By Deployment
By End-use Size
- BFSI
- Retail & E-commerce
- Healthcare
- Government & Defense
- IT & Telecom
- Others
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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