The global behavioural biometrics market size is expected to reach USD 9.92 billion by 2030, registering a CAGR of 27.3% from 2023 to 2030, according to a new report by Grand View Research, Inc. As behavioural biometric tools are less vulnerable to authentication frauds and hacking, the research suggests that their demand is expected to increase across end-use industries.
A notable rise in the number of fraudulent activities across the globe is further expected to drive the demand for behavioural biometrics solutions over the forecast period. According to a survey conducted by the Communications Fraud Control Association (CFCA), the telecom industry reported that in 2017, it incurred nearly USD 29.2 billion worth of losses from communication frauds. The use of technologies such as AI and machine learning for developing behavioural biometrics tools are gaining popularity in the market as they offer real-time intelligence and security control with enhanced user experience.
To stay competitive in the market, vendors are focusing on expanding their behavioural biometrics portfolio through innovations and mergers and acquisitions. For instance, in February 2020, Biocatch announced the acquisition of the multimodal biometric authentication capabilities of Aimbrain. The acquisition would help the former to enhance its capabilities in anomaly detection, behavioural biometrics, and other biometrics modalities for applications in the field of digital identity.
The increasing penetration of smartphones and e-commerce, coupled with increasing online payment frauds across the globe, is encouraging vendors to offer behavioural biometrics solutions to protect consumers from online payment frauds. For instance, in January 2019, Biocatch launched a behavioural biometrics tool. The company launched the tool to protect consumers in the U.K. from an authorised push payment fraud attack.
Some of the report highlights and key findings are as follows:
● Based on components, the service segment is anticipated to register the fastest growth over the forecast period. This, according to Grand View Research, can be attributed to the growing dependence of enterprises on IT assets to improve their productivity.
● In terms of type, the keystroke dynamics segment is anticipated to register the highest CAGR from 2022 to 2030. The rising number of online transactions and the increasing number of associated frauds are expected to drive demand for keystroke dynamics solutions.
● For applications, the continuous authentication segment is expected to register a considerable CAGR over the forecast period. The rising adoption of multimodal biometrics tools and the growing demand for additional security layers across end-use industries is driving demand for the segment.
● The small and medium enterprises segment is anticipated to register the highest CAGR over the forecast period. This can be attributed to the rising number of small and medium enterprises globally, and the growing demand from these organisations to offer secure online services to their customers.
● The healthcare segment is expected to register the fastest growth over the forecast period in terms of end use. Behavioural biometrics in the healthcare industry allows customers to securely store and access medical records.
● Geographically, it was North America that dominated the market with the largest revenue share of 33.6% in 2022. The Asia Pacific is expected to grow at the fastest CAGR of 29.3% during the forecast period to 2030.