New Delhi, May 07, 2024 (GLOBE NEWSWIRE) -- The global behavioral biometrics market is projected to reach US$ 15.08 billion by 2032, up from US$ 2.50 billion in 2023, at a CAGR of 22.41% during the forecast period 2024–2032.
Behavioral Biometrics Market Revenue (US$ Mn), by Deployment
| By Deployment | 2020 | 2021 | 2022 | 2023 |
| On-premise | 979.26 | 1,146.01 | 1,346.86 | 1,588.54 |
| Cloud-based | 526.62 | 630.78 | 758.64 | 915.53 |
Behavioral Biometrics Market Revenue (US$ Mn), by Application
| By Application | 2020 | 2021 | 2022 | 2023 |
| Risk & Compliance Management | 246.89 | 293.83 | 351.17 | 421.20 |
| Identity Proofing | 502.38 | 591.65 | 699.79 | 830.69 |
| Continuous Authentication | 294.57 | 347.65 | 412.08 | 490.23 |
| Fraud Detection & Prevention | 462.05 | 543.66 | 642.45 | 761.94 |
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The digital landscape is rapidly evolving, with more services migrating online. This necessitates robust authentication methods that extend beyond traditional passwords. Behavioral biometrics address this need by offering an extra layer of security that analyzes a user's unique behaviors. Frictionless user experience is paramount. Thankfully, behavioral biometrics enable silent authentication that seamlessly integrates with the user journey. This is particularly important considering that 93% of consumers perceive gaps in online banking security, emphasizing the need for both secure and convenient authentication methods. In addition to this, fraudulent activity and account takeovers pose a significant threat. Behavioral biometrics excel at combating these issues by analyzing user behavior for deviations from established patterns. This is especially relevant in light of the staggering statistic - nearly $100 billion in pandemic relief funds were stolen due to fraud in the US alone. Evidently, robust fraud prevention measures are crucial.
The burgeoning Internet of Things (IoT) and the prevalence of advanced sensor-equipped smartphones are facilitating the capture of behavioral data for authentication purposes. This trend is particularly evident in France, where the behavioral biometrics market is projected to grow at a staggering CAGR of 27.5%, driven by widespread IoT adoption. The study finds that behavioral biometrics are not intended to replace existing authentication methods entirely. Often, they are leveraged to fortify multi-factor authentication (MFA) systems. In fact, a top US card issuer reported a significant annual increase of $10 million by incorporating behavioral biometrics into their account opening process. This exemplifies the potential of behavioral biometrics to significantly enhance existing security measures.
Key Findings in Global Behavioral Biometrics Market
| Market Forecast (2032) | US$ 15.08 billion |
| CAGR | 22.41% (2024-2032) |
| Largest Region (2023) | North America (37.50%) |
| By Component | Software (69.38%) |
| By Type | Voice Recognition (37.38%) |
| By Deployment | On-premise (63.44%) |
| By Application | Identity-Proofing (33.13%) |
| By Organization Size | Large Enterprises (73.84%) |
| By Industry | BFSI (27.82%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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Voice Recognition to Contribute $5.64 Billion to Global Behavioral Biometric Market by 2032
There's a compelling reason why voice recognition dominates the behavioral biometrics market: convenience. Over half (55%) of customers have already used voice recognition for online purchases, showcasing its widespread adoption and ease of use. This technology is constantly evolving. Advancements in artificial intelligence (AI) and deep learning have significantly bolstered the accuracy and reliability of voice recognition. In 2021, a leading vendor achieved a remarkable feat – a 0.01% false acceptance rate (FAR) and a 5% false rejection rate (FRR) for voice-enabled device unlocking, demonstrating significant progress.
Beyond convenience, voice recognition offers a unique security advantage. Each person's voice possesses inherent characteristics that make it a secure and difficult-to-forge biometric identifier. Voice biometric templates are stored securely and require a proprietary decoding process by the authentication provider, adding another layer of protection. In the behavioral biometrics market increasingly focused on minimizing contact, voice recognition shines. It facilitates contactless login, a significant benefit in the post-pandemic era. It stands out as one of the few biometric methods that doesn't necessitate physical contact with a device.
Voice recognition isn't a lone wolf in the security domain. It often joins forces with multi-factor authentication (MFA) solutions, providing an additional layer of defense. A UK bank, for instance, reported preventing nearly £249 million in fraud using voice biometrics. The ability to thwart fraud is another strength of voice recognition. By verifying that the person attempting authentication is genuinely who they say they are, voice biometrics plays a crucial role in combating fraud. As identity theft climbs, the need for secure methods like voice recognition becomes even more critical.
The BFSI Industry Controls More Over 27.82% Market Share: Championing Behavioral Biometrics in the Fight Against Fraud and Friction
The BFSI industry is at the forefront of adopting behavioral biometrics, driven by a critical need to combat fraud (a UK bank prevented £249 million in fraud using voice biometrics) and improve customer experience. Traditional security measures like passwords are failing as cyberattacks grow more sophisticated (93% of consumers feel gaps exist in online banking security). This, coupled with rising customer awareness of these limitations, is fueling demand for stronger solutions. Behavioral biometrics market tackles these challenges head-on. It excels at fraud detection by continuously monitoring user behavior for anomalies. Additionally, biometrics technology in general has the potential to significantly reduce fraud tied to stolen identities.
Beyond security, behavioral biometrics offers a frictionless user experience. Unlike passwords or multi-factor authentication, it operates silently in the background, minimizing disruption to the user journey. This is crucial as consumer preferences shift towards digital convenience and new payment methods emerge. Banks are actively undergoing digital transformation, and behavioral biometrics plays a vital role in this process. Regulations are another driver for adoption. Regulatory mandates are actively promoting the use of behavioral biometrics in recognition of its security potential. Security breaches pose a severe risk for banks, not just financially but also in terms of regulatory scrutiny and eroded customer trust. Behavioral biometrics offers a solution that can deter attacks without compromising user experience or compliance. The industry is even witnessing the formation of partnerships and consortiums to leverage this technology's power.
The applications of behavioral biometrics market within the BFSI sector extend beyond fraud prevention. Biometrics are being used to streamline various financial processes, including account opening, payments, and transfers. Additionally, implementing streamlined KYC platforms with biometrics can potentially attract new customers for payment firms, fintech companies, and even crypto entities. The Reserve Bank of India's plans to incorporate biometrics into additional fraud risk management measures further highlight the promising future of this technology. Finally, a top US card issuer's experience exemplifies the tangible benefits. By adding behavioral biometrics to their account opening process, they witnessed a significant annual increase of $10 million.
Beyond Passwords: Behavioral Biometrics is Securing the Digital World with Identify Proofing, Control Over 33.13% Market Share
Behavioral biometrics market is revolutionizing secure authentication. It offers a powerful one-two punch: high accuracy and a seamless user experience (minimizing friction during logins). This makes it a top choice for fraud detection, effectively distinguishing legitimate users from criminals based on their online behavior and interactions. Unlike traditional methods that offer a single point of verification, behavioral authentication provides continuous monitoring, adding an extra layer of security. While newer than fingerprint or facial recognition, behavioral biometrics boasts strong growth potential alongside advancements in the field.
Combating fraud is the primary driver for this technology. With cybercrime damages projected to reach a staggering $6 trillion annually by 2021, robust solutions are paramount. Behavioral analysis excels at identifying fraudulent patterns that deviate from a user's typical digital behavior. For instance, a cybercriminal might copy-paste through a form, while a real user would enter data one keystroke at a time.
The applications for behavioral biometrics market extend beyond security. Here's a glimpse into its adoption across various industries:
- Financial Services: Banks and fintech companies leverage behavioral monitoring to strike a balance between convenience and robust fraud prevention. This can significantly reduce fraud in account opening, payments, transfers, and more.
- Healthcare: Patient identity management and securing medical records are critical use cases. In fact, 66% of healthcare organizations have already deployed biometrics for authentication, with an additional 25% planning to do so in the near future.
- Government: Behavioral traits can be used to verify citizen identities for voting, border control, and accessing benefits. The global government biometrics market is expected to experience a significant CAGR of 18.3% from 2022 to 2030.
- Retail: Behavioral analysis helps retailers detect fraudulent transactions while ensuring a smooth checkout experience. Recognizing the potential, 58% of retailers are planning investments in biometric solutions.
Beyond its core functionalities, behavioral biometrics empowers organizations to comply with strict data privacy and security regulations like GDPR, PSD2, and CCPA in the global behavioral biometrics market. Consumer demand for more secure online experiences is a significant driver for adoption. A staggering 93% of consumers feel there are still gaps in online banking security, while 70% of millennials specifically prefer biometric authentication according to an IBM study. The positive impact is evident - a top US card issuer reported a $10 million annual increase in revenue after incorporating behavioral biometrics into their account opening process. These figures highlight the growing importance and effectiveness of behavioral biometrics in the digital age.
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North America, spearheaded by the US, Dominates Global Behavioral Biometrics Market, Contributes Over 37.50% Revenue Share
With cybercrime damages reached a staggering $12.5 billion in 2023 across US, driving demand for robust security solutions. Wherein, behavioral biometrics offers a powerful defense against sophisticated fraud attempts like account takeovers and automated attacks. For instance, a top-5 US credit card issuer exemplifies the positive impact of this technology. By incorporating behavioral biometrics into their account opening process, they achieved a significant $10 million annual increase in revenue. This underscores the ability of behavioral biometrics to create secure yet frictionless user experiences.
The US is a hub for leading behavioral biometrics vendors. These companies develop machine learning solutions that can recognize unique user behaviors with high accuracy. For instance, Prove, a US-based provider, offers solutions applicable across various industries - finance, e-commerce, onboarding, and more - in a staggering 195 countries. Behavioral biometrics offers a deployment advantage over physical biometric methods. Unlike fingerprint scanners or iris recognition systems, behavioral solutions can leverage existing devices and simple software. This translates to easier and more cost-effective implementation at scale.
The benefits of behavioral biometrics market are resonating across various industries in the US. 66% of healthcare organizations have already deployed biometrics for authentication, and 58% of retailers are actively planning investments in this technology. Apart from this, strict US data privacy regulations like CCPA are driving the need for advanced authentication methods. Behavioral biometrics steps in to address this need, ensuring compliance with evolving regulations. The US has also witnessed a significant rise in cyberattacks, with 2023 marking a record high of 800,000 incidents in the US. Furthermore, the COVID-19 pandemic has exacerbated application fraud due to data breaches. Behavioral biometrics offers a much-needed defense against these growing threats.
Behavioral biometrics often complements existing security measures like device intelligence and statistical learning. This layered approach enhances overall security by accurately identifying attackers. Moreover, behavioral analysis can establish a user's identity without relying on vulnerable credentials like passwords. Unlike fingerprints or iris scans, behavioral traits are dynamic and can't be easily stolen or replicated. This advantage is further emphasized by the massive 2014 US Office of Personnel Management breach, where over 20 million fingerprints were compromised.
Over half (51%) of banking professionals believe their customers are confident in the security mechanisms employed. This growing trust likely stems from the transparent nature of behavioral authentication, which operates seamlessly without disrupting the user experience. The behavioral biometrics market is experiencing rapid growth, fueled by the need to balance security and user experience in a world increasingly reliant on digital services. This technology has immense potential to combat various threats, including account takeovers, web scraping, and fake accounts.
Global Behavioural Biometrics Market Key Players
- Mastercard Incorporated.
- BioCatch Ltd.
- Ping Identity
- Prove Identity Inc.
- Fair Issac Corporation
- ThreatMark
- Plurilock Security Solutions Inc.
- SecureAuth Corporation
- Zighra
- IBM Corporation
- NEC Corporation
- Microsoft Corp.
- Other Prominent Players
Market Segmentation:
By Component
- Software
- Services
By Type
- Voice Recognition
- Keystroke Dynamics
- Gait Analysis
- Signature Analysis
- Others
By Deployment
- On Premise
- Cloud
By Application
- Risk & Compliance Management
- Identity Proofing
- Continuous Authentication
- Fraud Detection & Prevention
By Organization Size
- Large Enterprises
- SMEs
By Industry
- Retail & E-commerce
- Healthcare
- BFSI
- Government & Defense
- IT & Telecom
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
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