Europe Enterprise Biometrics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Europe Enterprise Biometrics Market size is estimated at USD 1.26 billion in 2024, and is expected to reach USD 2.62 billion by 2029, growing at a CAGR of 15.79% during the forecast period (2024-2029).

Key Highlights

• Enterprise biometrics refers to the use of biometric authentication technology in the context of business and organizational security. Biometrics involves the use of unique behavioral or physical characteristics, like fingerprints, facial features, iris patterns, or voiceprints, to verify the identity of individuals. In the enterprise setting, biometric authentication can be used to enhance security measures, control access to sensitive information or physical locations, and streamline authentication processes for employees and users. The rising expansion of commercial spaces and demand for high-tech office spaces are anticipated to increase the demand for biometrics in Europe's enterprise sector.
• Biometric authentication surpasses traditional methods like passwords or PINs in security. Biometric traits, unique to individuals, are challenging to duplicate, minimizing unauthorized access risks. This authentication method eradicates the necessity for users to juggle multiple passwords or carry access cards. It not only streamlines the authentication process but also enhances convenience, saving time and lightening the load on IT departments.
• Biometric technology mitigates the risk of employees logging in for others or sharing passwords. Time tracking, a facet vulnerable to errors, is being managed more accurately by numerous European firms through biometrics, thereby curbing errors and time theft.
• The physical building access control system not only facilitates entry but also provides data related to the entry of visitors. Various software, such as attendance software, can be integrated with any existing payroll software to automatically record information collected by the attendance system, saving time and resources in a recording. Businesses operating in the United Kingdom, Germany, Italy, and other European countries use biometrics to provide access to buildings and digital platforms; they can track employee and customer attendance automatically. This data helps managers analyze the causes of declining engagement and attendance.
• Biometrics-as-a-service (BaaS) models allow businesses to leverage biometric authentication without requiring extensive infrastructure or in-house expertise. This cloud-based approach makes it easier to scale biometric authentication solutions to accommodate changing user volumes and system requirements.
• Europe has stringent data protection regulations, such as the General Data Protection Regulation (GDPR), which mandates personal data protection. Biometric authentication methods, when implemented correctly, can help organizations comply with these regulations by providing a higher level of security and privacy. This regulatory environment is driving the adoption of biometric solutions across various enterprises.
• However, data privacy concerns and regulations pose a significant challenge to the market. Enterprises need to ensure compliance with strict data protection laws, which can limit the collection and use of biometric data. The high implementation and maintenance costs act as a deterrent for small and medium-sized enterprises (SMEs). The expenses associated with hardware, software, and infrastructure can be prohibitive for these organizations.
• Further, the Russia-Ukraine War and economic slowdown caused significant disruption in the market studied. The increased inflation and interest rates reduced consumer spending, hampered the semiconductor and electronics industry's demand, and led to slow growth in the market studied.

Europe Enterprise Biometrics Market Trends

The Rising Demand for Safety and Security Measures in Organizations is Anticipated to Support Market Growth

• Safety and security have become paramount concerns for European enterprises in recent years. With the increasing number of cyber threats, data breaches, and identity theft cases, businesses seek robust solutions to protect their assets, employees, and customers.
• Traditional authentication methods, like passwords and PINs, are no longer considered secure enough to protect sensitive information. Weak or stolen passwords have been responsible for a significant number of data breaches. As a result, enterprises are turning to biometric technology for enhanced authentication and access control.
• According to the Italian Association for IT Security, during the initial half of 2023, approximately 84% of cyberattacks in Italy were driven by cybercrime. Further, cyber espionage accounted for about 6.4% of the incidents.
• Further, according to IBM Corporation, the average cost of a data breach from March 2022 to March 2023 accounted for USD 4.67 million in Germany, while the global average stood at USD 4.45 million. The increasing number of data breaches, coupled with high-cost implications in Europe, is anticipated to drive the growth of the market studied.
• Market players in Europe are striving to offer comprehensive products to cater to the requirements of their consumers. For instance, BioID offers securely designed face and eye recognition in Germany, including anti-spoofing liveness detection for universal access control. BioID Software-as-a-Service can be integrated directly into users' mobile apps or websites using its powerful and intuitive facial recognition through the user's webcam or smartphone camera. Businesses can use biometrics in addition to traditional access controls to significantly improve security and convenience.
• Additionally, the development of sophisticated algorithms and machine learning techniques has made it possible to achieve higher accuracy rates and reduce false acceptance and rejection rates. The integration of biometric systems with other technologies, such as artificial intelligence (AI) and cloud computing, has enhanced their capabilities, making them more scalable and cost-effective for enterprises.

The United Kingdom is Anticipated to Register Robust Market Growth Rate

• Biometric authentication surpasses traditional methods in user experience, offering a seamless and convenient approach. Users are relieved from the burden of complex passwords or physical tokens for authentication. Solutions like fingerprint, facial, and voice recognition streamline the process, elevating user satisfaction and productivity. This convenience factor propels the adoption of biometric solutions across enterprise applications, spanning from employee authentication to customer identification.
• The increasing number of data breaches in the United Kingdom is expected to drive the demand in the market studied. For instance, according to GOV.UK, as of January 2024, about 21% of organizations in the United Kingdom reported experiencing a data breach accident once a month. A further 24% claimed that they had encountered a data breach event less than once a month in the past 12 months. Meanwhile, 18% said they had experienced a data breach incident once a week.
• Facial recognition technology has gained enormous traction in the UK enterprise sector. Its non-intrusive nature and ease of implementation make it an attractive choice for access control and employee attendance management.
• Further, the proliferation of smartphones has led to the rise of mobile biometrics. Mobile devices equipped with biometric sensors, such as fingerprint scanners and facial recognition cameras, enable secure authentication and authorization for various applications.
• The convenience and security offered by mobile biometrics have led to their widespread adoption in the United Kingdom, especially in the financial services sector. For instance, according to Ofcom, the proportion of smartphone users out of those using a mobile phone in the United Kingdom increased notably from 85% in 2019 to approximately 91% in 2023.

Europe Enterprise Biometrics Industry Overview

The European enterprise biometrics market is highly competitive and consists of several market players like Fujitsu Limited, Thales Group, HID Global Corporation, and NEC Corporation. Several companies in the market are striving to increase their market share by introducing new products or solutions or by entering into strategic mergers and acquisitions.

• October 2023: IDEX Biometrics secured a significant production order from Sentry Enterprises for its IDEX Access biometric solutions. The order, to be fulfilled over three quarters, is pivotal in bolstering Sentry's biometric card offerings, catering to digital and physical access, and strengthening its crypto cold storage capabilities. Sentry's biometric card solution directly targets the rising demand for heightened enterprise security, especially in light of the growing adoption of zero-trust programs. Sentry's innovation is claimed to redefine multi-factor authentication and pioneer a novel approach to decentralized authentication, seamlessly integrating mobile and card-based systems.
• September 2023: Aware Inc. launched a Partner Program, empowering large and midmarket technology providers to leverage biometrics for enhanced revenue streams. Technology providers can partner with Aware and integrate Aware technology to address global use cases, leveraging their local, regional, and specialized expertise.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support