AI-enabled biometric market to reach $50.5 billion by 2031

The global AI-enabled biometric market, valued at USD $12.7 billion in 2022, is set to dramatically rise to a predicted value of USD $50.5 billion by 2031, according to a report by Transparency Market Research. This manifest increase, calculated at a compound annual growth rate (CAGR) of 16.7% from 2023 to 2031, highlights the profound and transformative shift in the security solutions across numerous sectors globally.

The fusion of artificial intelligence (AI) algorithms and biometric systems has heralded a new era of improved accuracy and reliability in identification processes. While banking, finance, healthcare, government and retail sectors have found extensive applications for this technology, the emergence of machine learning and deep learning techniques has also broadened the uses of biometric security. Further growth is anticipated with the integration of AI with IoT and cloud computing, generating new possibilities in smart homes, healthcare, and connected devices.

Given the current climate of significant cyber threats and data breaches, industries from banking to healthcare have been turning towards AI-enabled biometric systems as the solution. The capacity of AI algorithms to analyse large datasets, discern patterns and adapt to variations intensifies the strength and functionality of authentication processes. Increasingly, there is a seismic shift from traditional methods towards these more sophisticated and robust security paradigms.

An emerging trend is the evolution towards multi-modal biometrics, which offers new levels of recognition, security and accuracy. This approach utilises multiple biometric identifiers such as face recognition, voice recognition, fingerprints and iris patterns for unparalleled verification. Industries including finance, healthcare, government, transportation and retail are employing multi-modal biometric solutions, enhancing security, streamlining processes and improving user experiences.

The global regional dynamics show North America leading in the AI-enabled biometric market, buoyed by significant investments in digital security technologies. Meanwhile, the Asia Pacific region is showing the highest CAGR during the forecast period, fuelled by rapid economic growth and digitalisation initiatives across diverse sectors. India and China, in particular, have witnessed a rise in demand for biometric authentication solutions driven by the proliferation of smart devices and digital platforms.

Key players such as Assa Abloy, IDEMIA, and NEC Corporation are leading AI-enabled biometric innovation by investing in research and development to introduce advanced technologies. Strategic collaborations, notable product launches, and technological advancements all aim to meet evolving market demand, foster customer trust, and drive the AI-enabled biometric market towards new growth trajectories.

The merging of AI and biometrics offers a beacon of security, efficiency and innovation in an increasingly digitised world. Forecasted to surge to USD $50.5 billion by 2031, the AI-enabled biometric market plays a vital role in protecting critical assets, enhancing user experiences and driving technological progress. With ongoing advancements and strategic collaborations, the future promises a landscape where security knows no bounds, propelled by the boundless potential of AI-enabled biometrics.