Behavior Biometrics Market Size, Share, and Industry Analysis, By Deployment (Cloud and On-premises), By Type (Signature Analysis, Keystroke Dynamics, Voice Recognition, Gait Analysis, and Others), By Application (Identity & Access Management, Risk & Compliance Management, Fraud Detection & Prevention Management, and Others), By Industry (BFSI, Retail & E-Commerce, Healthcare, Government & Defense, IT & Telecom, and Others), and Regional Forecast till 2032

The global behavioral biometrics market is expected to grow exponentially, driven by the increasing concerns about security and privacy. Behavior biometrics analyzes an individual’s interaction with devices and systems, such as typing speed, mouse movement, gait, smartphone swiping patterns, and voice intonation. The system continuously collects data on user’s behavior. The system uses machine learning algorithms to create a behavioral profile for each user. If the behavior significantly deviates from the norm, the system flags the activity as potentially fraudulent or unauthorized. Unlike traditional authentication methods, behavioral biometrics continuously monitors user behavior, ensuring security without disrupting the user experience. Companies operating in the market offer solutions that provide continuous, non-intrusive authentication. For instance,

• In June 2024, ID Dataweb partnered with IBM to enhance identity verification processes by integrating their solutions. This collaboration will utilize the IBM Security Verify platform to streamline identity verification, helping companies ensure that only authorized users gain access and improving fraud prevention.

Impact of AI on the Behavioral Biometrics Market

Artificial Intelligence (AI) is revolutionizing the behavioral biometrics market by enhancing accuracy, adaptability, and security. AI with machine learning enables behavioral biometric systems to continuously learn and evolve from user interactions, refining their ability to distinguish between normal behavior and malicious activity. AI-driven algorithms process vast amounts of data, identifying subtle behavioral traits that would be difficult to detect manually. Real-time decision-making allows instant threat detection, enabling organizations to act immediately against fraud or unauthorized access. Moreover, AI’s ability to adapt to new patterns of cyber threats allows for future-proofing of behavioral biometric systems. This learning and adaptability differentiate AI-powered behavioral biometrics from traditional security systems.

• In April 2024, Mastercard introduced a new AI-powered security suite, Scam Protect, combating fraud by utilizing digital identity, behavioral biometrics, and open banking features. It protects users against various scams, including card-based and account-to-account fraud.

Behavioral Biometrics Market Driver

Rising Cybercrime Threats and Digital Transformation Drive Market Growth

Cybercriminals have become more sophisticated with phishing, credential stuffing, and social engineering to exploit weaknesses in traditional security measures. The widespread adoption of digital transactions, online banking, e-commerce, and remote work leads to growth in cybercrime, increasing identity theft, account takeovers, and financial fraud. Behavioral biometrics offers a proactive and continuous layer of security by monitoring user behavior in real time. As businesses and consumers adopt cloud platforms, mobile applications, and digital payment systems, the demand for robust security mechanisms grows. The convergence of rising cybercrime and digital shifts drives the widespread adoption of behavioral biometrics in industries such as BFSI, healthcare, and e-commerce.

• In March 2022, the Commonwealth Bank of Australia (CBA) enhanced its security by integrating behavioral biometrics into its systems. This move aimed to bolster real-time fraud detection capabilities on digital platforms.

Behavioral Biometrics Market Restraint

High Implementation Costs and Privacy Concerns May Impede Market Growth

The cost of integrating behavioral biometrics into existing systems requires substantial investment in infrastructure and technology. It involves installing advanced software solutions, upgrading hardware, training personnel, and ongoing system maintenance. Moreover, privacy concerns pose a considerable challenge in adopting behavioral biometrics. Users may feel uneasy knowing their digital activities are being tracked and analyzed. In some regions, strict privacy regulations mandate stringent data collection and processing controls, creating complications in deploying behavior biometrics solutions. Balancing the need for security with user privacy protection remains a critical factor in widespread adoption.

Behavioral Biometrics Market Opportunity

Increasing Industrial Applications and Integration With IoT Poses a Significant Opportunity

As various industries increasingly digitize their operations, the need for continuous authentication across connected devices grows exponentially. Behavioral biometrics offers a seamless way to secure digital interactions without disrupting workflows. Moreover, integration with IoT creates a vast network of connected devices, requiring robust security measures to prevent unauthorized access. Integrating IoT with behavioral biometrics ensures that only authorized individuals interact with these systems by constantly monitoring and authenticating user behavior. All these factors create significant opportunities for deploying behavioral biometrics in smart cities, healthcare, wearable devices, industrial IoT, and other industries.

• According to Oloid, 81% of consumers consider biometrics more secure than traditional methods, while 72% prefer facial biometrics over passwords for online processes.  Facial biometric payment users are expected to grow from 671 million (2020) to 1.4 billion by 2025.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators
• Drivers, Restraints, Trends, and Opportunities
• Business Strategies Adopted by the Key Players
• Impact of AI on the Global Behavioral Biometrics Market
• Consolidated SWOT Analysis of Key Players

Analysis by Deployment

By deployment, the market is bifurcated into cloud and on-premises.

On-premise deployment dominates the market due to the stringent security regulations in organizations. Enterprises that need complete control over the data and security prefer on-premise solutions to handle sensitive and classified information. It offers customization options and infrastructure to support such solutions and is widely adopted by large enterprises. Moreover, cloud solutions are expected to exhibit the highest CAGR during the forecasted period, driven by their flexibility, affordability, and scalability. These solutions are hosted on a third-party cloud platform, enabling organizations remote access without heavy investments in the hardware and infrastructure. Cloud security, AI, and machine learning innovations make cloud behavioral biometrics more accurate, efficient, and cost-effective for small and medium enterprises (SMEs).

• According to industrial experts, SMEs are expected to grow by 27.56% from 2024-2032.

Analysis by Type

By type, the market is divided into signature analysis, keystroke dynamics, voice recognition, gait analysis, and others.

Voice recognition dominates the market due to the increasing use of voice-activated devices and services, such as virtual assistants, voice-controlled smart home systems, and contact center authentication. It analyzes the unique characteristics of an individual’s voice, pitch, tone, and speaking patterns to authenticate their identity. Additionally, the growing integration of voice biometrics with AI-driven natural language processing (NLP) enhances its potential in the market. Moreover, keystroke dynamics are expected to witness the highest CAGR during the forecast period, driven by its widespread applications, cost-effectiveness, and ease of integration with existing systems. Its ability to continuously monitor users without requiring additional hardware gives traction for rapid growth. Keystroke dynamics monitor the manner and rhythm in which an individual types on a keyboard, typing speed, dwell time, and flight time. It is commonly used in online banking, secure logins, and sensitive government applications.

• In January 2024, researchers from Spain and Germany proposed a new framework for benchmarking keystroke dynamics verification. This framework addresses challenges in measuring typing behavior varying over time. This innovation aims to enhance the reliability and fairness of keystroke-based biometric systems.

Analysis by Application

By application, the market is divided into identity & access management, risk & compliance management, fraud detection & prevention management, and others.

Identity & Access Management (IAM) leads the market due to its widespread adoption across industries. It focuses on managing and controlling user access to systems, data, and networks. It enhances IAM by providing continuous authentication based on the user’s behavior, typing patterns, voice intonation, and device interaction. As companies focus on securing their internal networks and restricting access to authorized personnel, behavior biometrics becomes a crucial component in IAM. Moreover, fraud detection & prevention management is expected to witness the highest CAGR during the forecast period, driven by the complexity of cyber attacks. Behavioral biometrics helps detect anomalies in user behavior that may indicate fraudulent activity. It enhances security strategies by proactively analyzing user behavior patterns, allowing for early detection of anomalies, thus minimizing potential damage. The rapid increase in online transactions and digital banking gives traction for fraud detection & prevention management.

Analysis by Industry

By industry, the market is divided into BFSI, retail & e-commerce, healthcare, government & defense, IT & telecom, and others.

BFSI holds the largest market share due to its critical need for advanced security solutions as the industry is more sensitive to fraud and cyberattacks. This sector demands stringent security for both digital and physical transactions, and behavioral biometrics offers an efficient, seamless authentication process that minimizes friction for users. Financial institutions detect anomalies that indicate fraudulent activities in real time, ensuring that accounts and sensitive data are protected by monitoring how users interact with their devices. Behavioral biometrics helps BFSI organizations comply with stringent regulatory requirements for data protection and fraud prevention. Moreover, the retail & e-commerce sector is expected to witness the highest CAGR throughout the forecasted period, driven by the increasing number of online shoppers, digital payments systems, and the threat of fraud in e-commerce. As more retailers and e-commerce platforms adopt behavioral biometrics to combat payment fraud and secure customer accounts, the technology accelerated significant market growth.

• According to industry experts, in September 2024, banks have increasingly adopted biometric authentication to combat account takeover (ATO) fraud. However, behavioral biometrics is gaining traction to overcome the limitations of traditional biometrics. It offers continuous monitoring and is more difficult for fraudsters to bypass.

Regional Analysis

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In terms of geography, the global market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America dominates the market, driven by technological advancements and a robust cybersecurity infrastructure. The healthcare, retail, and telecom industries drive the demand for behavioral biometrics in the region, seeking to safeguard sensitive customer data and mitigate fraud in a growing digital environment. Additionally, the high rate of cyberattacks, identity theft, account takeovers, and online fraud increases the demand for robust authentication solutions. Moreover, the Asia Pacific is expected to witness the highest CAGR during the forecasted period due to rapid digitization, increasing penetration of smartphones, and the rise of mobile payments. As digital services become more accessible to larger populations, the risk of cyber threats increases, pushing governments and businesses to invest in robust security solutions. Additionally, the growing adoption of mobile payments, e-wallets, and IoT offers significant opportunities for integrating behavioral biometrics into smart devices and industrial applications.    

• In June 2024, the Bureau partnered with M2P Fintech to enhance security in digital transactions by integrating behavioral biometrics and device intelligence into M2P’s existing fraud management systems. The solution will verify user and device legitimacy before transactions, improving fraud prevention. The partnership has been implemented by central banks in Asia, targeting over 100 million monitored transactions monthly by year-end.

Key Players Covered

• BioCatch Ltd. (Israel)
• IBM Corporation (U.S.)
• Nuance Communications Inc. (U.S.)
• SecureAuth Corporation (U.S.)
• Mastercard Incorporated (U.S.)
• UnifyID Inc. (U.S.)
• NuData Security (U.S.)
• SecuredTouch Ltd. (U.S.)
• Zighra (Canada)
• BEHAVIOSEC INC. (Sweden)
• NEC Corporation (Japan)
• Adjust GmbH (Germany)
• Plurilock Security Solutions Inc. (Canada)

Key Industry Developments

• In June 2024, Ping Identity introduced PingOne Protect, a service designed to tackle multi-factor authentication (MFA) fatigue by incorporating behavioral biometrics and user and entity behavior analytics (UEBA). This solution identifies abnormal patterns during login attempts to prevent fraud and assigns users risk scores based on factors such as device and network behavior. The service integrates identity access management (IAM) and fraud mitigation for more effective security.
• In May 2024, Zighra secured a contract with Shared Services Canada (SSC) to bolster the cybersecurity of government networks. Zighra’s DeepSense technology uses AI-driven behavioral models for continuous identity validation and threat detection, which will be tested in the Innovative Solutions Canada program.
• In May 2023, BioCatch secured a USD 40 million investment from Permira Growth Opportunities, granting Permira a significant minority stake in the company. This funding will be used for geographic expansion, product development, and potential acquisitions.