North America Behavioral Biometrics Market Size, Share & Trends Analysis Report By Component (Software, Services), By Application (Identity & Access Management, Risk & Compliance Management, Fraud Detection & Prevention), By Type (Voice Recognition, Signature Analysis, Keystroke Dynamics, Others), By Deployment Type (On-premise, Hosted), By End-User (BFSI, Telecom & IT, Healthcare, Retail & E-commerce, Government & Defense, Others) and By Country(US, Canada) Forecasts, 2022-2030

Market Overview

The goal of using a behavioural biometrics solution for identification is to examine the actions of its users, such as keystroke dynamics, signature verification, voice recognition, gesture recognition, and others. Within the context of this system, a biometrics system compares the actions of a user to a profile that was constructed using a wide number of physiological, cognitive, and environmental characteristics. It is projected that this technology would improve data security among a variety of end users, which will generate profitable chances for market development in the future.

From its current value of 1 billion dollars in 2021, the worldwide North America behavioral biometrics market size was expected to reach a size of 3 billion dollars in the year 2030, expanding at a compound annual growth rate (CAGR) of 25%. The term "behavioural biometrics" refers to a device that can be used in conjunction with security solutions to assist in the identification of individuals based on the manner in which they interact with computer devices such as smartphones, tablets, or any other type of digital device that is able to facilitate the identifying process. A large cost is being incurred by businesses as a direct result of the rise in the number of security risks related with the confidentiality of data. Compromising user credentials has been identified as one of the most significant factors contributing to global cyber threats. The growing need and acceptance of biometric authentication in the financial industry, together with the public's support for biometric authentication, is boosting the demand for such behavioural biometric systems and reaping a staggering income as a result.

Market Dynamics

The growing number of people who use smartphones on a daily basis for a variety of activities, including work, socialising, and leisure, is leading to an increase in the number of mobile applications that are designed to facilitate the provision of these services. The steadily expanding use of mobile applications and the increased volume of data transferred over the internet are both contributing factors that have resulted in a rise in the number of privacy and security issues. However, conventional authentication methods like as passwords and unlock patterns are mostly ineffectual when confronted with more sophisticated privacy and security risks. Because of this tendency, more sophisticated methods of authentication, such as continuous authentication, which is founded on behavioural biometrics, are becoming increasingly widespread.

Market Restraints Factors

Even when biometric devices are equipped with top-of-the-line security systems such as facial recognition, thumb imprints, retina scanners, and other similar technologies, there are still instances in which the biometric system is broken into using some method. Even though the behavioural biometric system does check for verified access and persons, there is still a chance that security might be compromised due to certain technological characteristics. The introduction of malicious software into the biometric system causes it to malfunction during the whole authentication process. This results in false alarms and opens the door to unauthorised access, which is a significant security risk for an organisation. As a matter of concern for the country's safety, the relevant authorities in the government would undoubtedly give the utilisation of these behavioural biometric systems serious consideration whenever such breaches are discussed. The only problems that are associated with behavioural biometrics are intrusions of this sort, which are certainly playing a significant part in the expansion of the worldwide market for behavioural biometrics as a whole.

Regional Analysis

North America has the lion's share of the market, with projected revenues of 1 billion US dollars in 2021 and 3 billion US dollars in 2030, based on a compound annual growth rate of 25%. The North American area is one of the most technologically advanced regions in the world. It is also the location where the majority of technical inventions are produced and implemented, and it is responsible for the largest number of behavioural biometric systems.

It is projected that the region of North America would have a major part of the market that has been analysed as a result of the significant use of behavioural biometrics in BFSI and ICT in that area. The amount of money being spent on various forms of security measures has been on the rise in this region. The United States of America has projected that it would spend USD 15 billion on cybersecurity in 2019, which is an increase of USD 583.4 million (4.1 percent) over 2018.

Cybersecurity Ventures forecasts that by the year 2021, businesses around the world would lose more than USD 6 trillion yearly due to the effects of cybercrime. The estimate was derived using historical data on cybercrime, which included recent rise from year to year as well as a huge increase in the amount of hacking operations sponsored by hostile nation states and organised criminal gangs. This would result in an increase in spending on cybersecurity during the projected time period.

In addition, governments all throughout the area have recently shown a significant interest in the field of biometric applications. It is aggressively sponsoring a variety of research initiatives and startup companies in order to create sophisticated applications for behavioural biometrics in essential public sector departments. According to the findings of a recent survey conducted by the Canadian Internet Registration Authority (CIRA), 71 percent of firms have suffered from actions related to data breach in 2019. In addition to this, over 43 percent of those firms were ignorant of the necessary breach procedures that are outlined in the Personal Information Protection and Electronic Documents Act (PIPEDA). As a result, the initiatives taken by the government to cut down on these cyber thefts would propel growth in the market for behavioural biometrics in this area.

Segmental Analysis

The North America behavioral biometrics market is divided into two categories: type and deployment. The market is further divided into signature analysis, keystroke dynamics, and voice recognition when split by type. The speech recognition category has a market share of USD 1 billion in 2021 and is predicted to expand at a CAGR of 27% to USD 4 billion by 2030.

Voice recognition, also called as speaker recognition or speech recognition, is a type of biometric mobility that detects sound and grants access for a certain reason. Voice recognition technology is extensively utilised because it assesses complicated physiological components such as the physical size, form, and health of a person's voice cords, lips, teeth, tongue, and mouth cavity while identifying the sound. Additionally, the speech recognition algorithm records behavioural aspects such as the speaker's accent, pitch, tone, talking rate, and emotional state.

Speaker-dependent and speaker-independent voice recognition systems are now in use. Speaker-dependent speech recognition necessitates vocal training since it must match the user's accent and tone before it can recognise what was spoken. This is used to authenticate user identities and identify them. Voice is being used by banks, tax offices, and other businesses to provide clients access to sensitive financial data, which is why this sector is one of the fastest growing.

Signature analysis is the segment's second most important category, with a market value of USD 1 billion in 2021 and a CAGR of 25% predicted to reach USD 3 billion by 2030. One of the most popular methods of determining an individual's identification is through handwritten signature analysis. Other biometric methods, such as face, point, iris, tone, and DNA, are comparable, but in some cases, the hand signature is the most reliable method of identification.

In addition, of all the biometric modalities, signature recognition bears the most implicit in terms of rigidity, security, and perpetuation. Furthermore, in comparison to more complicated modalities like as retinal and point recognition, the expenses associated with the deployment and procurement of this biometric modality are minimal. Identification and verification are the two major scripts in which biometric technologies are used. Identification systems attempt to determine who owns the signature.

The query signature is verified to see if it is real or faked. Signature identification and verification systems are divided into two categories. There are two types of systems: offline (static) and online (dynamic). In offline systems, analogous to bank checks, the signature is recorded or analysed from a document; the algorithm must interpret and prize features from the picture of the hand. At the same time, an individual signs on a digital device using a stylus to register their signature on the internet system.

The third category, keystroke dynamics, amounted for USD 1 billion in 2021 and is predicted to expand at a CAGR of 26% to USD 2 billion by 2030.

The worldwide North America behavioural biometrics market is further divided into on-premise and on-cloud deployment when it comes to deployment. With a market share of USD 1 billion in 2021, the on-premise category is expected to increase at a CAGR of 24% to USD 5 billion by 2030. Enterprises have put their faith in the biometric system as a reliable security solution.

According to a poll, 92% of respondents said biometrics were an efficient technique to secure on-premise data. According to the same survey, only 28% of businesses utilise biometrics on-premises, and even fewer, 22%, use them for cloud operations. As a result, on-premise is expected to dominate the industry. This is due to the ease with which findings from on-premise behavioural biometrics may be integrated and configured with online immolations.

Similarly, on-premise perpetration allows for a high level of customisation while also incurring reduced expenditures in the event of new coffers. The on-cloud category has a smaller market share than the on-premise segment, with a market value of USD 1 billion in 2021 and a CAGR of 28% expected to reach USD 5 billion by 2030.

Impact of covid-19

The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

Recent Developments

In June of 2020, Nuance Communications released an updated version of their biometric authentication and fraud detection tool, which included the addition of a software for age analysis.

SecureAuth Corporation expanded its service territories into the Asia-Pacific regions in June of 2020 in order to operate with high capacity in the region.

In July of 2020, Mastercard entered into a contract with the business Entersekt, which paves the way for the integration of fintech and behavioural analytics solutions.