With budgetary and governmental restrictions across the world, there has been a drastic shift in the investment priorities around biometrics technologies – reveals ABI Research.
Given the current market scenario, many countries had temporarily held or canceled several fingerprint-based solutions – keeping in mind the safety and hygiene concerns. This includes solutions for official registration, physical access control, legal applications, workforce management, and more.
According to a recent study by ABI Research, the global market valuation of $1.8 billion is most likely to drop. Basically, the biometric system market is anticipated to drop by 22% – reaching $6.6 billion due to the COVID-19 pandemic.
Although the biometric system market is gaining a slight momentum in 2021 in some regions, the revenue is projected to reach nearly $40 billion by 2025. Certainly, the rapid decline in the biometrics market landscape is rooted in the multifaceted problems associated with commercial, governmental, and technological frameworks.
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In this context, Dimitris Pavlakis, Digital Security Industry Analyst at ABI Research, explains – “First, they have been instigated primarily due to economic reforms during the crisis which forced governments to constrain budgets and focus on damage control, personnel well-being, and operational efficiency.”
In fact, new use-case scenarios are now emerging, and various technological trends have expanded to the best of the implementation lists. For instance, enterprise mobility and logical access control with the help of biometric solutions – as a division of multi-factor authentication (MFA) system for remote workers.
Pavlakis also added, “Second, commercial on-premise applications and access control suffered as the rise of the remote workers became the new norm for the first half of 2020.” Even there are obvious hygiene concerns and eventually, contact-based technologies pushed biometrics revenues to a sudden break in proceedings in the fingerprint shipments globally.
The present-day MFA devices for the remote workforce may fit well in the permanent information technology security as well as authentication measures for enterprises in the long term. It will enhance the biometrics-as-a-service (BaaS) market, along with its authentication models, monetization, and security and with time.
Besides, the study indicated that the biometrics applications could look forward to innovative implementation horizons, with leading brands in the sector. The list includes NEC, Gemalto (Thales), HID Global, IDEMIA, FPC, and Cognitec.
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Down the line, the future smart city infrastructure investments will matter in the added surveillance, face recognition, and behavioral analytics, and. This is expected to be favorable for epidemiological research, crisis response undertakings, and monitoring.
Undoubtedly, the pandemic has impacted the biometrics hardware market; however, industry experts still believe that it is likely to evolve across various business horizons in this digital era.