SWOT Analysis of the Global Contactless Biometrics Market: Unraveling Shocking Insights!

Contactless biometrics is increasing across countries due to higher security, better convenience, and broad biometric capabilities. According to a report, the contactless biometric technology market is projected to be beyond $50 billion by 2035, with a 20% CAGR estimated to begin in 2023. The rising demand will most likely be visible across North America, Latin America, Asia Pacific, Europe, the Middle East, and Africa.

Simultaneously, the rising demands are also raising eyebrows about its weaknesses, such as data security, technical issues, and interoperability, to name a few. While the biometric sphere has strengths and weaknesses, opportunities and threats exist. We would deep dive into every aspect of the global contactless biometric market.

The Complex Terrain of the Global Contactless Biometric Market

Strengths of Contactless Biometrics

Privacy & Security

The primary benefit of implementing contactless biometrics into access, identification, and other systems is increased security, as each person’s biometric traits are unique. According to the National Institute of Standards and Technology (NIST), contactless biometric accuracy via mobile app is 95% and a fraction of 99.5% if performed on a  stationary contactless device. The study also demonstrated that the accuracy of contactless biometrics on devices other than mobile phone was accurate up to 90%.

Wide Range of Applications

Using biometrics in law enforcement has increased, with police forces actively utilizing facial recognition technology. According to G2, between 2017 and 2019, 64 countries implemented AI surveillance using facial recognition technology. So, the scope of biometric technology is expanding beyond the United States. Face recognition and other contactless biometrics are used to ease attendance, access, airport security, and many other processes.

User Convenience

The availability of biometric apps and centralized tablets at organizations that grant access and capture attendance using face recognition significantly enhances the user experience. Moreover, apps allow off-site users to manage their attendance on the go. According to a Deloitte report, 68% of consumers are comfortable using biometrics to authenticate their identities.

Weaknesses of Biometric Solution

Mass Surveillance & Misidentification

Face biometrics for mass surveillance has concerned the end-users; however, it enables law enforcement to identify missing persons or persons of interest, enhancing national security. A Statista survey revealed that 73% of global biometric users are concerned about using their linked databases for mass surveillance. At the same time, 59% of the users thought it would lead to misidentification.

Unfamiliar Technology

While the acceptability of using physical biometrics has become somewhat of a custom; the usage or transition towards contactless biometrics is still ongoing, as people are not yet accustomed to it. According to a source, 10% of people are not aware about face recognition and 53% have some knowledge about it. 

Fear of Losing Personal Information

People unfamiliar with the working methodology of contactless biometrics and measures taken to ensure the privacy of the end-users often fear the loss of personal information linked to their bio identities. While the end user’s fear troubles them, enterprises get worried about the possibilities of compliance or regulatory flaws associated with the new-age technology. In any case, it becomes a weakness for regularly used technologies like contactless face or fingerprint recognition.

Opportunities Opened with Biometric Solutions

Scope of Industry-Wide Scaling

According to a source, the state of financial service security platforms is dramatically transforming due to rising consumer preferences towards biometrics, especially if they are contactless. As per the trend, 93% of users would rather use biometrics than passwords (says Mastercard). Simultaneously, Malibu Poke and BurgerFi were two incorporations in Dallas that used face recognition to speed the ordering process by showcasing the customer’s favorite or regularly ordered options.

Smooth Technological Integrations

The rising demand for secure authentication modes and the capability of contactless biometrics to integrate with existing and next-gen technologies is also increasing the demand for biometrics. According to a source, the voice biometrics market alone will surpass $3.9 billion by 2026. The report also suggests a CAGR of 22.8% beginning from 2020. The reasons for such a rapid growth rate include high demand for reducing authentication and identification costs and a secure fraud detection and prevention system, especially in the BFSI industry.

Probability of Diminishing Security Threats

Contactless biometric solutions have opened up a wide net of identifying missing persons, politically exposed persons (PEPs), anti-money laundering identities, media checks, and more. The usage has helped to stop criminals from misusing digital identities, trespassing the borders, forging identity documents, and solving crimes. Seven agencies in the USA have already started using face recognition due to the widespread advantages it offers. Moreover, global government and law enforcement agencies are going to scale up the usage of face recognition technology with a CAGR of 16.5% between 2023 and 2033.

Related Blog: Contactless Biometric Technology: Important Things to Know!

Threats Posed with Biometric Solutions

Trespassing Due to System Vulnerabilities

According to a voice intelligence and security report, customer contact center call and fraud data increased by 40% in 2022. However, the report shared by Pindrop Labs also stated a significant decrease in the misuse of Knowledge-Based Data (KBD), with an average saving of $4 million a month for customers who opted for multi-factor authentication.

Legal Implications 

Privacy regulations keep changing now and then as part of the changing norms in the government. Therefore, enterprises that have not updated their biometric data compliances according to government regulations could become victims of legal implications. In June 2023, Microsoft had to pay a fine of $20 million for collecting kid’s biometrics on Xbox. Another source states that a fine of $1000 for every violation and any reckless or intentional violation of the Biometric Information Protection Act (BIPA) costs $5,000 per violation in Illinois.

No Defined Federal Laws

While enterprises are aware of the Protection of Personal Information Act (POPIA) and General Data Protection Regulations (GDPR) laws, it is shocking to see that the states in the USA also follow separate rules and regulations. Earlier, we mentioned a $1000 and $5,000 fine in Illinois. However, the Biometric Information Protection Act (BIPA) requires enterprises that collect and use biometric information to have written consent of the data subject before processing it. The law might differ across other states.


The SWOT analysis of the global biometrics market clarified some of the challenges that enterprises in the country face, including the varying threats against the biometrics systems. However, the right enterprise can significantly alter the threats and vulnerabilities to become opportunities.

For example, Biocube stays updated with the ongoing legal biometric data compliances and meets global and state-level requirements. Moreover, the enterprise solutions provide options for securing the end user’s biometrics with a Distributed Data Architecture (DDA), US military grade AES 256 encryption, consented biometric usage, and transparency.

Simultaneously, the built-in passive liveness detection, contactless biometrics, and other security checks help keep cybercriminals away from accessing the biometric records of the end user.

Get in touch with us to learn more about the scale of operations offered through biometrics and the versatility it can provide to your enterprise.