Demand and adoption of biometric middleware likely to gain momentum in banking, financial services, and insurance (BFSI) sector
As growing traction of biometrics-as-a-service (BaaS) model creates more demand for biometric systems, high growth potential is expected for the biometrics middleware in the upcoming years.
According to a new Fact.MR research, biometric middleware market continues to grow upwards. The biometric middleware sales recorded 20% year-on-year growth in 2018, an estimated revenue increase of nearly US$ 150 Mn as compared to 2017.
The report has projected the market to record a spectacular CAGR of over 17% through 2027.
The study report cited that the growth of the biometric middleware market will be influenced by myriad factors ranging from adoption of convenient security solutions to demand for real-time data processing that influences prospects of the end-to-end biometric service landscape.
Key growth area for biometric middleware vendors
According to the Fact.MR report, government sector remains a key growth area for the biometric middleware vendors. The growing emphasis on security has led to rapid adoption of biometric technologies in airports, thereby driving sales of biometric middleware, the report said.
Adoption of biometric middleware is also gaining ground in the military and law enforcement, with advancements in the facial recognition technology resulting in more efficient policing.
Biometric middleware market is estimated to grow in these services sector – communication & media, institutions, and manufacturing sector. These end-use industries are collectively estimated to account for nearly three-fifth share of the biometric middleware market in 2018.
BFSI to witness rapid adoption of biometric middleware
Though revenues from sales of biometric middleware in the banking, financial services, and insurance (BFSI) sector have been relatively low, the researchers at Fact.MR have predicted that demand and adoption will fast gain momentum in 2018.
A revenue growth of over 20% is estimated for the biometric middleware sales in the BFSI sector in 2018.
The researchers observed that growing requirements of end-users in the BFSI sector have led biometric service providers to focus on the provision of BaaS model. BaaS model is seen as a promising prospect to increase the adoption of biometric technologies, which in turn will create lucrative opportunities for the biometric middleware developers.
To counter the prominent challenge of high upfront capital investment, which constrains adoption of biometric technologies in the BFSI sector, service providers are offering subscription-based and predictable model, the report noted.
Multi-modal biometric systems gaining popularity
The Fact.MR research found that enterprises operating in myriad industrial domains have increased their reliance on the biometric technology. As a result, implementation of multi-modal biometric systems is gaining rapid momentum.
Multimodal biometric systems are witnessing widespread acceptance among end-users, owing to their convenience and greater security, despite involvement of relatively more resource- and time-intensive.
Thanks to the rise in incorporation of the multimodal biometric systems, the market is also witnessing an increase in the number of biometric middleware vendors.
Slow adoption of biometric systems in SMEs
“While large organizations have retained their supremacy in terms of revenues from biometric systems, adoption of the technology in small and medium-sized enterprises (SMEs) has remained sluggish, despite their widespread global occupancy,” pointed a lead analyst at Fact.MR.
“Digitalization is underway, however deficiency in the technology infrastructure continues to be a yet-to-be-achieved milestone, confining the penetration of biometric technologies, and thereby biometric middleware,” the analyst added.
With vendors putting more efforts on the improvement of security apparatus, researchers are expecting decline of cyber threats apropos of BaaS in the foreseeable future.