The global biometrics as a service in healthcare market was surpassed at USD 569.23 million in 2021 and is expected to hit around USD 2.5 billion by 2030, growing at a CAGR of 17.87% from 2022 to 2030.
The market is propelled by the increasing adoption of biometrics across healthcare organizations due to its cost-effectiveness, ease of deployment, and data security management. The demand for biometrics as a service in healthcare is expected to constantly rise as healthcare organizations are realizing the need to digitize their operations and move on from the traditional method of patient record management.
Biometrics as a service helps healthcare organizations integrate their operations and services with cloud technology and also modify these services according to their convenience. An increase in the number of cyber-attacks and medical data theft has been one of the driving factors in the market. Although, the privacy of the biometric data being stored on the cloud is a rising concern, especially in the case of public cloud deployment.
The adoption of biometrics as a service increased significantly during the COVID-19 pandemic. The spread of the COVID virus was a constant risk to patients and healthcare professionals during the pandemic. Hence, the use of contactless biometrics gained popularity in a rush to contain the spread of and secure healthcare premises. Consumer apps, surveillance, remote access, and pharmacy dispensing are some of the major healthcare tools integrated into cloud-based biometrics. As a result of limitations to physical interactions, many of the patients require remote treatment/monitoring. This resulted in the adoption of biometric solutions for remote identification on a large scale.
The biometric system can supplement the user's verification to healthcare IT frameworks (online and local) and support the institution's Identity and Access Management (IAM) strategies. User verification concerning fast identity online (FIDO) specifications gives a lot less complex and far more secure system, than password-based verification, and is structured given privacy compliance for scalable and open frameworks across sites and applications.
Scope of The Report
|Market Size in 2021|
|Revenue Forecast by 2030|
|Growth rate from 2022 to 2030||CAGR of%|
|Forecast Period||2022 to 2030|
|Segmentation||Type, application, scanner type, region
Based on type, the market is segmented into unimodal and multimodal. The multimodal segment dominated the market with the largest market share of 54.92% in 2021, as multimodal biometric systems reduce data distortion, it is cost-effective and more accurate than unimodal ones. The demand for multimodal systems is increasing as multimodal biometric systems are extremely difficult to replicate. Even if one biometric identification is compromised, the individual can be authenticated using the other biometric identifier.
The multimodal segment is also expected to witness the fastest growth with a CAGR of 18.24% during the forecast period. Multimodal biometrics has a significantly greater verification rate as compared to unimodal biometrics and hence is more popular among healthcare organizations. Multimodal biometrics uses a combination of two identification traits, for example, fingerprint and face or fingerprint and iris. This increases the accuracy and performance of the identification process.
Based on application, the mobile application segment held the dominant share of over 41.13% in 2021 and is also expected to witness the fastest growth during the forecast period with a CAGR of 19.44% from 2022 to 2030. The rising need for appropriate authentication techniques in mobiles is driving the mobile application segment in the market. Additionally, the increasing frequency of cyber-attacks is also expected to the expansion of the mobile biometric business.
The industrial convergence on developing biometric intelligence in mobile devices is driving the mobile application segment various companies have launched biometrics-enabled phones in the past few years. Moreover, government initiatives for biometric adoption, the introduction of e-passports, an increase in mobile transactions, and a growing number of smartphone suppliers choosing biometric capabilities are factors fueling the growth of the segment.
Scanner Type Insights
Based on scanner type, the market is segmented into fingerprint recognition, iris recognition, palm recognition, facial recognition, voice recognition, and others. The fingerprint recognition segment held the largest market share of 49.55% in 2021. The need for a highly accurate and dependable technique for securing important healthcare information and preventing mistakes that might mean the difference between life and death is driving the segment's growth. Fingerprints are the most accurate method of identification, as every individual has distinct sets of fingerprints. Fingerprint biometrics assists hospitals in meeting government rules such as the Health Insurance Portability and Accountability Act (HIPAA) and other legislation across the world that require the protection of patient privacy.
The facial recognition segment is expected to witness the fastest growth during the forecast period with a CAGR of 20.93% from 2022 to 2030. The demand for the segment is expected to increase in coming years as no physical contact is necessary, unlike fingerprint or other security methods, facial recognition provides an automated, rapid, and seamless verification experience. Favorable government initiatives are projected to have a positive impact on the segment's growth. Furthermore, facial recognition offers various applications in healthcare including attendance tracking, Patient check and check out, access control, Patient monitoring and diagnosis, security and surveillance, and Caretaking robots
In 2021, North America dominated the market in terms of the revenue share of 48.73% owing to the growing adoption of biometrics as a service in healthcare across various verticals within the healthcare industry. Moreover, increased demand during COVID-19 accelerated the growth of the market. Furthermore, the increasing implementation of biometrics in different sectors such as homeland security, law, and military, among others, is driving market expansion in the U.S. Large-scale financed initiatives and staff access monitoring in buildings are driving revenue development in this region. Rapid development in online transactions, an increase in complex cyber-attacks, and high IT security spending are all important reasons driving this region's BaaS industry. In addition, the adoption of sophisticated biometrics in different IoT-based devices in this area has increased the demand for biometrics-as-a-service.
Asia Pacific is projected to witness a promising growth rate during the forecast period with a CAGR of 19.03% from 2022 to 2030. Increased terror risks and rising government expenditure on security are two main drivers driving access control solution sales in the Asia Pacific region. Furthermore, China's expanding economy produces a large need for security solutions. The development of the market in the APAC region is fueled by increasing cyber-attacks, as well as the difficulty of big and small enterprises in this region to manage and mitigate the risks connected with identity-related intrusions. A rise in government investments in biometric initiatives such as national ID cards and e-passports, as well as the development of smart cities and connected devices, are likely to impact the growth of the Asia-Pacific biometrics-as-a-service market.