Contactless Biometrics Market Set for Explosive Growth to USD 50.3 Billion by 2030, Led by North America's 36.6% Global Market Share | DataM Intelligence

The Global Contactless Biometrics Market reached USD 11.2 billion in 2022 and is projected to reach USD 50.3 billion by 2030, growing at a strong CAGR of 20.6% during 2023-2030.

Market growth is driven by increasing demand for secure, frictionless authentication, rising adoption across government, BFSI, and healthcare sectors, and the shift toward touchless systems post-pandemic. Advancements in AI-driven facial, iris, and voice recognition technologies are further accelerating market expansion.

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United States: Key Industry Developments
✅ June 2025: Fuse Identities launched a biometric physical access card featuring advanced fingerprint sensor technology, aimed at enhancing secure, contactless access for corporate and government clients.

✅ April 2025: A leading U.S. cybersecurity firm introduced AI-powered contactless facial recognition software with enhanced accuracy and fraud prevention capabilities for financial services and border security applications.

Asia Pacific / Japan: Key Industry Developments in Contactless Biometrics Market
✅ October 2025: Japan accelerated the integration of biometric authentication within national digital ID programs, including use of facial and iris recognition across transportation hubs, banking, and healthcare, driven by government smart city initiatives.

✅ August 2025: Major Japanese tech firms released new AI-enhanced contactless biometric solutions tailored for aging populations and urban environments, promoting adoption in consumer electronics and public infrastructure.

✅ June 2025: China expanded smart city biometric projects integrating contactless iris and facial recognition with 5G-enabled cloud verification to improve public security and convenience in metropolitan areas.

Key Merges and Acquisitions(2025):
✅ IN Groupe acquires IDEMIA Smart Identity: In March 2025, IN Groupe finalized a deal to acquire IDEMIA Smart Identity for over $1.13 billion. This merger creates a European powerhouse in digital identity verification, combining IN Groupe's public sector expertise with IDEMIA's biometric technology.

✅ Mastercard, NCR Atleos, and ITCARD enhance ATM experiences: In September 2025, Mastercard collaborated with NCR Atleos and ITCARD to launch a new feature enabling secure, contactless cash withdrawals using a mobile device at ATMs.

✅ Mastercard focuses on biometric tokenization: In February 2025, Mastercard announced a plan to migrate from 16-digit card numbers to a biometric-token checkout system by 2030, reinforcing its strategy with on-device biometrics and network tokenization.

Market Segmentation Analysis:
-By Component: Software Leads with 44.5% Share
Software holds 44.5% market share in 2024, powering AI-driven algorithms for real-time multimodal authentication and edge processing.​
Hardware supports sensors and cameras essential for capture, while services grow fastest at 20.9% CAGR, aiding integration and compliance in deployments.​

-By Technology: Facial Recognition Dominates at 38.1%
Facial recognition commands 38.1% share due to widespread cameras, high acceptance, and sub-100ms latency in public spaces.​
Iris recognition surges at 21.4% CAGR with compact optics; contactless fingerprint, palm vein, and others like voice enable diverse use cases from payments to access.​

-By Application: Access Control Holds 41.8% Base
Access control leads with 41.8% revenue, securing enterprise doors and borders amid badge system migrations.​
Payments & transactions grow at 21.6% CAGR for frictionless mobile banking; identity verification and others support law enforcement and attendance tracking.​

-By End-User: Government & BFSI Drive Adoption
BFSI and government lead adoption for secure transactions and digital ID mandates, with healthcare fastest at 20.8% CAGR for patient ID and contactless check-ins.​
Retail and others expand via e-commerce and logistics, fueled by post-pandemic hygiene demands.​

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Growth Drivers:
-Post-pandemic hygiene demands: The shift toward touch-free authentication in healthcare, public safety, and high-traffic areas like airports has accelerated adoption to minimize infection risks.​

-Government digital ID initiatives: Mandates for national digital identities and border control e-gates in regions like Asia, Europe, and the Gulf are driving widespread deployments.​

-Smartphone and device integration: OEMs are embedding 3D facial recognition and ultrasonic sensors, boosting consumer familiarity and use in payments and access.​

-Rising security needs in finance: Demand for secure transactions, fraud prevention, and biometric payment cards/wallets in BFSI and fintech sectors fuels growth.​

-AI and tech advancements: Edge-AI, multimodal fusion, and cloud-based services enhance accuracy, enabling applications in defense, enterprises, and smart cities.​

Regional Insights:
-North America commands the largest share of the Contactless Biometrics Market at approximately 36.6% in 2024, driven by advanced technological infrastructure, rapid adoption in government, banking, and healthcare sectors, and the presence of major vendors like HID Global and BioConnect.​

-Europe follows as the second-largest region, benefiting from stringent data privacy regulations like GDPR that favor secure contactless solutions, alongside growing implementations in border control and financial services, though specific share figures remain slightly below North America's dominance.​

-Asia Pacific ranks third in market share, emerging as the fastest-growing region with a projected CAGR of around 17.38%, fueled by rising security needs, digitalization in countries like China and India, and expanded use in retail and healthcare post-COVID.​

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Key Players:
Aware, Inc. | Fingerprint Cards AB | Fujitsu Limited | HID Global Corporation | NVIAsoft Corporation | BioConnect Inc. | Innovatrics, s.r.o. | Cognitec Systems GmbH | NEC Corporation | Veridos GmbH

Key Highlights (Top 5 Key Players) for Contactless Biometrics Market:
-Aware, Inc. reported significant revenue contributions, being a major player in the contactless biometrics space with notable market presence.

-Fingerprint Cards AB is recognized as a key player, contributing substantially to the market revenue.

-Fujitsu Limited is among the top contributors, leveraging its strong technology portfolio in contactless biometrics.

-HID Global Corporation holds a significant market share, recognized for its robust contactless biometric solutions.

-NVIAsoft Corporation is noted as a top player with important revenue streams in the contactless biometrics market.

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