A new report on the iris recognition market projects this sector to grow from USD 3.7 billion in 2022 to USD 8.4 billion by 2027, registering a CAGR of 15.4% during the forecast period. The market growth, according to research company Marketsandmarkets, is attributed to the increased use of iris recognition technology in the travel & immigration industry and the high demand for iris recognition from offices and commercial sectors.
The rising adoption of iris recognition in the banking & finance industry to avoid fraudulent activities is also a factor that the analysts expect to create lucrative opportunities for the market.
The identity management & access control application accounted for a larger share of the iris recognition market in 2022 and is expected to remain dominant throughout the forecast period. Iris recognition solutions are used in various verticals for identity management and access control applications.
For example, in the banking & finance vertical, iris recognition systems are used by customers to access their bank accounts and employees to log in to their workstations. In the travel & immigration vertical, iris recognition systems prevent illegal immigrants from entering the country using fraudulent travel documents. In many airport terminals, these biometric systems are deployed to enhance the convenience, speed, and efficiency of border-crossing formalities for legitimate travellers. Many government organisations use iris recognition technology for identification and authentication purposes.
The findings show that the software component is expected to hold higher opportunities than the hardware component between 2022 and 2027. The software component has been sub-segmented into iris recognition software & SDK, database, and analytics solution, among others. At present, iris recognition software & SDK account for a larger market share than hardware components, and a similar trend is likely to continue in the near future. Furthermore, the presence of various major players who offer this software, such as Iris Access, Eyelock LLC, Neurotechnology, and others, further drives the market growth.
According to Marketsandmarkets, Asia Pacific is the leading market for iris recognition in the consumer electronics vertical, with major demand from China, India, and Japan.
The region held the largest share of the iris recognition industry in 2021. China and India are key countries contributing to the market growth in Asia Pacific. However, North America is expected to account for the second-largest share of the iris recognition market throughout the forecast period. The US and Canada are significant demand-generating countries for iris recognition devices in this region.
