Behavioral Biometrics Market Size, Share & Trends Analysis Report By Type (Signature Analysis, Keystroke Dynamics, Voice Recognition), By Deployment (On-Premise, On-Cloud) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global behavioral biometrics market size to grow to USD 10 billion in 2030 with a CAGR of 26% from the early figures of USD 1 billion in 2021. 

Behavioral biometrics is a device used for security solutions that help identify individuals on the basis of the way of interaction with the computer devices like smartphones, tablets, or any digital device that can cater to the identifying process. The increase in security threats associated with data confidentiality is resulting in a significant loss to organizations, with compromising user credentials being highlighted as one of the major causes of global cyber threats. The increasing demand and acceptance of biometric authentication in the financial industry, along with the public support for biometric authentication, fueling the demand for such behavioral biometric systems and gaining a whopping revenue.

The need for behavioral biometrics is increasing globally due to benefits including flexibility, ease, efficiency, and security that make integration with cloud solutions easier.

The development of behavioral biometrics functions with increased performance will likely result from integrating technologies such as the Internet of Things (IoT), Big Data, Artificial Intelligence (AI), and others.

Market Dynamics

Global Behavioral Biometrics Market Drivers

Growth in Applications of Biometric Technology in Commercial and Government Sectors

Biometrics is one of those evolving technologies that has become a part of people's everyday life. Biometric technology has evolved a lot since its introduction in the industry, with new technologies coming up like face recognition, thumbprints, eye scanner or retina scanners, etc. Such biometric systems are typically used for attendance needs and security concerns in big organizations where confidentiality is the prime concern. Biometric applications are used where confidentiality is of utmost importance. Only specific individuals are allowed to access the respective region or the computer system due to a high level of secrecy. There have been important evolutions in biometric technology, including retina scanning, where people's eyes are scanned, and only the required access is provided. The next development in biometric technology is face recognition, which has become quite common in today's lifestyle. Mobile phones also come up with face scanners that produce another level of security. Such biometric systems are used mostly in government offices, considering the highly confidential national information, which can lead to national threats. This is why there are continuous developments in behavioral biometric systems that can make the biometric security system more prominent than earlier versions, and this is proving to be a key driving factor for the global behavioral biometrics market.

Increase in Fraudulent Activities Boost the Behavioral Biometrics Market Growth

The increase in security concerns worldwide regarding data theft comprising the security concerns regarding national or state issues is the big reason for introducing such behavioral biometric systems. There is only one way to prevent such fraudulent activities by imposing strict rules and regulations for access and utilization of highly important data and highly secured places. That is why biometric systems are now included with face recognition, thumbprints, retina scanners, etc. That will ensure confidential data's safety and avoid any fraudulent activities. With the inclusion of such behavioral biometric systems, the complete system would be under continuous surveillance that will identify any threats and make sure to restrict any such happenings. That is why behavioral biometric systems are introduced and helping the said market to grow exponentially in the global industry.

Global Behavioral Biometrics Market Restraint

Privacy Intrusion Concerns Hampering Behavioral Biometrics Market Growth

Even when installed with high-class security systems in biometric devices such as face recognition, thumb imprints, retina scanners, etc., there are still incidents where the biometric system is breached with some means. The behavioral biometric system does scan for authenticated access and individuals, but there are still possibilities of a security breach with some technological traits. Some harmful malware is released into the biometric system that malfunctions its entire authentication process, leading to false alarms and providing open access, proving to be a great security concern for an organization. When considering such breaches, the government authorities would definitely think about utilizing these behavioral biometric systems, as it is a question of national security. These kinds of intrusions are the only issues related to behavioral biometrics, which are surely playing a major role in the overall growth of the global behavioral biometrics market.

Global Behavioral Biometrics Market Opportunities

Increased Technological Advancements Create a Wide Range of Opportunities for the Behavioral Biometrics Market

With the restraints discussed above, there is continuous improvement in the technology of biometric security systems with the help of artificial intelligence (AI), use of IoT (internet of things) devices, cloud computing, etc. with such technological advancements in the behavioral biometric systems, it provides more subtle data security that can be used for the government as well as corporate purposes.

With the continuous evolution in the technology of biometric systems, there is a need for new cutting-edge technologies that would help make the said biometric technology stronger and safer. With the inclusion of firewalls and cloud security, the said market is seeing great growth in terms of devices being installed at the highest level of operations. This is why the said market segment opens a wide range of opportunities for IT firms, engineers, and organizations or start-ups that are catering to the required need for security.

Regional Analysis

The global behavioral biometrics market share is primarily segmented into three regions, namely- North America, Europe, and Asia-Pacific.

North America has a dominant market share with figures of USD 1 billion in 2021 and is expected to reach USD 3 billion by 2030 at a CAGR of 25%. The North American region is one of the most techno-savvy regions where most of the technological inventions are made and deployed and accounts for the major share of such behavioral biometric systems.

This is because of the increased cyber threats to national, corporate, or even personal security. The second dominant region in Europe accounts for a market value of USD 1 billion in 2021 and is expected to reach USD 3 billion by 2030 at a CAGR of 26%. Companies engaged in the behavioral biometrics market must adhere to technical regulations set forth by public and private entities. All products must adhere to several rules and laws that control many parts of a company's market operation, including the production process. For example, to ensure the security and privacy of data when using cloud platforms, makers and sellers of behavioral biometrics in the European market are expected to adhere to the EU General Data Protection Regulation (GDPR).

The third and the least contributing region in the said market is the Asia-Pacific region, which has a market share of USD 1 billion in 2021 and grows to USD 3 billion in 2030 at a CAGR of 28%. The demand for behavioral biometrics is driven by increased fraud incidents caused by the region's increasing adoption of mobile payment and real-time payment platforms. Additionally, financial service providers in the area are concentrating on offering their clients secured authentication options based on behavioral biometrics. For instance, to improve the security of e-commerce transactions, financial services giant Mastercard announced a behavioral biometrics-based smartphone authentication solution in India in August 2019.

Segmental Analysis

The global behavioral biometrics market share is segmented by type and by deployment. When segmented by type, the said market is further classified into signature analysis, keystroke dynamics, and voice recognition. The voice recognition segment has a major market share of USD 1 billion in 2021 and is expected to grow to USD 4 billion by 2030 at a CAGR of 27%.

Voice recognition, also known as speaker recognition or speech recognition, is biometric mobility that recognizes the sound and approves access for a said cause. Voice recognition technology is widely used as while recognizing the sound, it also measures the complex physiological components such as the physical size, shape, and health of a person's vocal cords, lips, teeth, tongue, and mouth cavity. Along with this, the voice recognition technology tracks behavioral components like the accent, pitch, tone, talking pace, and emotional state of the speaker as well.

Currently, two types of voice recognition technologies are used: speaker-dependent and speaker-independent. Speaker-dependent voice recognition requires training on a user's voice, as it needs to match the user's accent and tone before recognizing what was said. This is used to identify and verify user identities. Banks, tax offices, and other services are using voice for customers to access their sensitive financial data, which is why this segment is among the top gaining markets.

The segment's second dominant category is the signature analysis, which accounts for a market value of USD 1 billion in 2021 and is expected to grow to USD 3 billion by 2030 at a CAGR of 25%. Handwritten signature analysis is one of the most common ways to determine an individual's identity. Other biometric systems are similar to face, point, iris, tone, and DNA, but the hand signature remains the most respectable for identification in some tracks.

 Also, signature recognition carries the most implicit in terms of rigidity, security, and perpetuation of all the biometric modalities in actuality. In addition, costs involved in the deployment and procurement of this biometric modality are minimum in discrepancy to the necessary, more complex modalities, like retinal and point recognition. Biometric systems are applied in two main scripts identification and verification. Identification systems try to answer the question of who owns this signature.

Verification is used to classify the query signature as genuine or forged. There are two main types of signature identification and verification systems Offline (static) systems and Online (dynamic) systems. In offline systems, the signature is captured or scrutinized from a document, similar to bank checks; the system must read and prize features from the image of the hand. At the same time, the online system is where an individual sign on a digital device with a stylus to record their signature.

The third segment is the keystroke dynamics, which accounted for USD 1 billion in 2021 and is expected to grow to USD 2 billion by 2030 at a CAGR of 26%.

When segmented with respect to deployment, the global behavioral biometrics market is further classified into on-premise and on-cloud deployment. The on-premise segment dominated the market share with USD 1 billion in 2021 and is anticipated to grow to USD 5 billion by 2030 at a CAGR of 24%. Enterprises have trusted the biometric system as an effective solution for administering security.

According to a survey, 92% of participants perceived biometrics as an effective way of securing the data stored on-premise. The same report concluded that only 28% of companies use biometrics on-premise, and indeed smaller, i.e., 22%, use it for cloud operations. Therefore, on-premise is anticipated to dominate the said market. This can be attributed to the fact that on-premise behavioral biometrics results are easy to integrate and configure with online immolations.

Likewise, the on-premise perpetration provides associations with a high degree of customization and also incurs lower costs in case of any fresh coffers. The on-cloud segment has a comparatively less market share than the on-premise segmentation, accounting for a market value of USD 1 billion in 2021 and reaching USD 5 billion by 2030 at a CAGR of 28%.

Cloud deployment offers security to online products and makes it simple to combine company programs with third-party applications. Cloud applications are currently being used by businesses more and more to streamline their data storage. Additionally, several industry providers have concentrated on providing cloud-based behavioral biometrics solutions due to the rising demand. For example, Plurilock introduced a cloud-based behavioral biometric technology for User Behavior Analytics in August 2018. (UBA).

Impact of covid-19

With the recent outbreak of the COVID-19 epidemic, associations across the world must respond proactively to cyber pitfalls that have witnessed a shaft during the epidemic. Cyber adaptability, which refers to a sector or association's capability to respond to, prepare for, and recover from cyberattacks, has become an absolute necessity rather than an option in the current script.

The work from home culture introduced in the pandemic has increased the threat of cyber-attacks. As a result of the COVID-19, contactless biometric technology is anticipated to be in high demand. The global health extremity is impacting people's stations toward commerce with touch-grounded results, making it imperative for companies to first consider stoner safety throughout registration and authentication by enforcing advanced biometric technologies.

Recent Developments

• In October 2022, Financial Institutions Can Now Protect Customers From Fraud by Using BioCatch's Real-Time Phishing Site Alerts and Victim Reports.
• In October 2022, Indue and BioCatch collaborated to give financial institutions in Australia and New Zealand access to top-tier fraud detection technology based on behavioral biometrics.
• In November 2022, Direct Integration of Medical Imaging AI Models into Clinical Environments by Nuance Communications and NVIDIA.
• In December 2022, Callsign and Illuma announced joint ventures, and SecureAuth released an authentication framework.
• In October 2022, Ravelin and Mastercard collaborate to eliminate friction at checkout in digital quick commerce.