AI-enabled Biometric Market Size, Share, and Industry Analysis By Technology (Face Recognition, Fingerprint Recognition, Iris Recognition, Voice Recognition, and Others), By Application (Mobile Biometrics and Smart Devices, Biometric Access Control Systems, Identity Verification & Authentication, Security & Surveillance, and Others), By End-user (Healthcare, BFSI, Transportation & Logistics, Government & Law Enforcement, and Others), and Regional Forecast, 2025-2032

The global AI-enabled biometric market is expanding owing to the escalating product demand for ensuring security. Artificial intelligence-based biometrics is a term that refers to the use of artificial intelligence (AI) to increase the accuracy and efficacy of biometric systems. Biometric systems are procedures for detecting and verifying people based on their behavioral or physical characteristics, such as face, fingerprint, voice, and iris. Artificial intelligence in biometric systems can improve performance by using advanced techniques such as computer vision, deep learning, and natural language processing to process and analyze data.

In addition, these systems use machine learning algorithms to examine biometric data and accomplish tasks, including registration, verification, matching, and identification. These systems can also adapt to varying environmental conditions, detect scams, and provide feedback to customers.

Impact of Generative AI on the AI-enabled Biometric Market

Generative AI technology is having a positive impact on the market. Generative AI can synthesize diverse and high-quality biometric data, such as facial images, fingerprints, or Iris patterns. This is crucial for training biometric systems, especially in scenarios where obtaining large datasets is challenging due to privacy concerns or data scarcity. The ability to generate synthetic datasets can also help overcome biases in existing biometric systems by balancing datasets across gender, age, and ethnicity. Thus, these factors boost the market growth.

AI-enabled Biometric Market Driver

Proliferation of AI-enabled Biometrics for Security Threat Prevention to Drive Market Growth

The demand for AI-enabled biometrics is driven by the increasing use of these technologies to counter security threats, which are changing security practices. The accuracy of biometric systems is enhanced by artificial intelligence, enabling reliable authentication and verification processes, which are essential to prevent security breaches. Additionally, real-time monitoring enabled by AI-based analytics allows for quick detection and action. This integration of biology and artificial intelligence serves various industries, such as government, health care, and finance, where security regulations are necessary. Therefore, these factors are driving the growth of the market.

AI-enabled Biometric Market Restraint

Concerns about Data Privacy in AI-enabled Biometric Systems May Hinder the Market Growth

Data privacy is a major concern in the AI-enabled biometrics industry. Biometric systems increase concerns about misuse or unauthorized access as they collect and analyze sensitive personal data, such as fingerprints, facial images, and IRIS scans. Concerns about privacy are exacerbated by problems related to authentication, transparency, and control of biometric data for individuals and public agencies. For instance,

• According to OLOID Desk Insights, 57% of experts believe that policies and regulations have difficulty in keeping up with advancements in biometrics. Therefore, the risk of breaches and misuse of biometric data underscores the necessity for strong security protocols and privacy regulations.

Additionally, high-profile data breaches and malpractice cases highlight the need for strong security practices and privacy laws to defend biometric data. Hence, these factors hinder the market growth.

AI-enabled Biometric Market Opportunity

Rapid Growth of IoT and Sensor Technology in Smart Farming Solutions to Boost the Market Growth

The market for AI-enabled biometrics is growing due to the increasing demand for advanced authentication solutions across various sectors. Fingerprint-based biometric technologies provide powerful options for organizations looking for more efficient and secure ways to authenticate. Biometric systems enable more flexible, accurate, and powerful real-time authentication using cognitive algorithms. This allows them to meet the different security needs of industries such as government, healthcare, and finance. Therefore, these factors are anticipated to drive market growth over the upcoming years.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators
• Drivers, Restraints, Trends, and Opportunities
• Business Strategies Adopted by Key Players
• Consolidated SWOT Analysis of Key Players

Analysis by Technology

Based on technology, the market is divided into face recognition, fingerprint recognition, iris recognition, voice recognition, and others.

The face recognition segment held the highest market share in 2023. This technology is widely adopted in security and surveillance, banking, retail, and smartphones due to its convenience and non-contact nature. AI and deep learning modules have significantly improved the accuracy and reliability of facial recognition, even in challenging conditions such as low lighting, different angles, and facial occlusions. These advancements have made the technology more dependable and appealing for adoption. For instance,

• As per a survey conducted by Thales Group, approximately 30% of users handle all their banking activities remotely via their mobile devices. This indicates that a notable percentage of banking is now conducted through facial biometric technology and underscores the crucial role of facial biometrics in ensuring secure banking in the present day.

Analysis by Application

Based on application, the market is fragmented into mobile biometrics and smart devices, biometric access control systems, identity verification & authentication, security & surveillance, and others.

The mobile biometrics segment accounts for the largest share of the market. With billions of smartphones worldwide, mobile biometrics are now a standard feature for user authentication, app security, and mobile payments. Mobile biometrics offer a quick and seamless way to secure devices and verify identities, leading to high adoption among customers and businesses. These benefits are expected to drive the sector over the coming years.

Analysis by End-user

Based on end-user, the market is divided into healthcare, BFSI, transportation & logistics, government & law enforcement, and others.

The government and law enforcement segment held the highest market share in 2023. Governments widely adopt biometric technologies for border control, public safety, and large-scale surveillance programs. AI-enabled facial recognition and fingerprint systems are heavily used in criminal identification and monitoring. Many countries implement biometric-based national ID systems, which rely heavily on AI-powered biometric solutions for identity verification and citizen services. Therefore, these factors boost the market growth. For instance,

• NEC Corporation India, a technology firm, has also been recorded to deploy facial recognition technology in India. They provide solutions for government projects, smart city initiatives, and public safety, including attendance systems.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America accounted for the largest market share in 2023. The regional market growth is due to the existence of a large number of key performers in the U.S. and augmented investments in digital technologies for security and surveillance by law enforcement agencies and governments, among other industries.

The Europe market is projected to exhibit steady growth over the forecast period. European governments are actively investing in AI-powered biometric solutions for national security, border control, and digital identity verification. The European Union (EU) has introduced regulations such as GDPR, ensuring the ethical use of biometric data and enforcing privacy standards, which impacts the adoption rate.

Moreover, South America witnessed significant growth due to the rising demand for improved security, digital identity management, and advancements in financial inclusion. Countries such as Brazil, Argentina, and Chile are leveraging biometrics for identity verification and e-governance initiatives. Thus, AI-enhanced biometrics are being integrated into these systems to improve efficiency and reduce fraud in identity management.

Additionally, the Middle East and Africa markets are anticipated to grow over the coming years due to the combination of government initiatives, digital transformation efforts, and rising demands for secure identity management. In countries such as the UAE, Saudi Arabia, and Nigeria, AI-enhanced biometric systems are being used for citizen registration, voter authentication, and secure access to government services.

Asia Pacific is anticipated to witness the highest CAGR over the forecast period. The regional market growth is due to the increasing digitalization in the IT & telecom sectors in China and India, which boosts workforces to use their biometrics to prove their presence. This has made a higher demand for AI-enabled biometric authentication solutions.

Key Players Covered

The global AI-enabled biometric market is fragmented, with a large number of group and standalone providers. In North America, the top 5 players account for only around 35% of the market.

The report includes the profiles of the following key players:

• Assa Abloy (Sweden)
• Aware Inc. (U.S.)
• Ayonix Pty Ltd. (Australia)
• Facephi Biometria (Europe)
• IDEMIA (France)
• Leidos Holdings, Inc. (U.S.)
• M2SYS Technology (U.S.)
• NEC Corporation (Japan)
• Nuance Communications (U.S.)

Key Industry Developments

• In April 2024, HID, an identity solutions provider, announced a partnership with ASSA ABLOY to enhance the airport experience with AI-powered facial recognition and self-service gate control to modernize the passenger experience.
• In June 2023, Aware Inc., launched the artificial intelligence data platform Aware IQ to comprehend the unique human context of workplace discussions at scale. The introduction of new applications helps gain real-time visibility into each aspect of business, including the threats and opportunities that users were formerly unaware of.