Biometric ATM Market

Pressing need for advanced security measures in the face of escalating cyber threats is driving the market growth

Market CAGR for Biometric ATMs is being driven by the pressing need for advanced security measures in the face of escalating cyber threats. Biometric authentication methods, encompassing fingerprint scanning, facial recognition, and iris scanning, present an elevated security standard compared to traditional PINs and card-based methods. The escalating cybersecurity threats and financial fraud instances have prompted financial institutions to strategically invest in advanced security solutions, thereby fostering a heightened demand for biometric ATMs. In 2022, organizations worldwide detected a substantial 493.33 million ransomware attacks.

The prevalence of phishing, evidenced by approximately 3.4 billion daily spam emails, remains a primary cyber threat. The global average cost of a data breach reached $4.35 million in the same year.

The Federal Trade Commission’s (FTC) Consumer Sentinel Network received over 5.1 million reports in 2022, with 46 percent related to fraud and 21 percent to identity theft. Within identity theft, credit card fraud constituted 43.7 percent, with miscellaneous identity theft, covering online shopping, payment account fraud, email and social media fraud, and other forms, following closely at 28.1 percent.

The adoption of biometric authentication emerges as a strategic response to mitigate the risks associated with unauthorized access, fraudulent transactions, and identity theft in the context of ATM operations. The inherent ability of biometric systems to uniquely identify individuals based on their biological traits introduces an additional and crucial layer of protection to the realm of ATM transactions.

As a result, it is anticipated that throughout the projection period, demand for the Biometric ATM Market will increase due to the pressing need for advanced security measures in the face of escalating cyber threats. Thus, driving the Biometric ATM Market revenue.

Governments worldwide are implementing stringent regulations to enhance security measures in the financial sector. Compliance with these regulations is becoming a critical factor for financial institutions, thereby driving the demand for biometric ATMs. The Global Biometric ATM Market Industry is likely to benefit from these regulatory frameworks, as institutions seek to adopt technologies that align with compliance requirements. For instance, regulations that mandate stronger customer authentication methods are pushing banks to invest in biometric solutions. This trend is expected to contribute to the market's growth, with a projected CAGR of 3.2% from 2025 to 2035.

The increasing prevalence of financial fraud and identity theft has heightened security concerns among consumers and financial institutions alike. As a result, the Global Biometric ATM Market Industry is witnessing a surge in demand for advanced security measures. Biometric ATMs, which utilize fingerprint, facial recognition, or iris scanning technologies, provide enhanced security features that traditional ATMs lack. This shift towards biometric solutions is expected to drive the market's growth, as financial institutions aim to protect their customers' sensitive information. With the market projected to reach 37.5 USD Billion in 2024, the emphasis on security is likely to remain a primary driver.

Rapid advancements in biometric technology are significantly influencing the Global Biometric ATM Market Industry. Innovations in artificial intelligence, machine learning, and sensor technology have led to more accurate and efficient biometric systems. These advancements not only improve the user experience but also enhance the reliability of biometric authentication methods. As technology continues to evolve, financial institutions are increasingly adopting biometric ATMs to stay competitive and meet consumer expectations. The anticipated growth of the market to 53.0 USD Billion by 2035 suggests that ongoing technological improvements will play a crucial role in shaping the future of biometric ATMs.

As consumers increasingly prioritize convenience in banking services, the Global Biometric ATM Market Industry is experiencing a shift towards biometric solutions. Biometric ATMs offer quick and seamless transactions, reducing wait times and enhancing customer satisfaction. This preference for convenience is prompting financial institutions to invest in biometric technologies to attract and retain customers. The growing trend of digital banking and mobile payments further supports this shift, as consumers seek integrated and user-friendly banking experiences. Consequently, the market is poised for growth, with projections indicating a rise to 37.5 USD Billion by 2024.

Efforts to promote financial inclusion globally are driving the adoption of biometric ATMs, particularly in developing regions. The Global Biometric ATM Market Industry is likely to benefit from initiatives aimed at providing banking services to unbanked populations. Biometric technology can facilitate secure and accessible banking solutions for individuals without traditional identification documents. Governments and NGOs are increasingly recognizing the potential of biometric ATMs to bridge the gap in financial services. As these initiatives gain momentum, the market is expected to expand, contributing to the overall growth trajectory of the industry.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The anticipated expansion of the Biometric ATM market in North America can be attributed to several key factors. North America demonstrates a robust commitment to security and regulatory compliance within the financial sector. The integration of biometric authentication into ATMs aligns seamlessly with the region's dedication to facilitating secure and compliant financial transactions. Notably, the market revenue for Automated Fingerprint Identification Systems (AFIS) reached nearly 9 billion U.S. dollars in 2022.

This financial commitment underscores the region's proclivity for embracing technological advancements, a key driver in the growth of the biometric ATM market. As biometric technology undergoes continuous evolution, financial institutions in North America may find increased willingness to invest in these cutting-edge systems as part of their strategic efforts to maintain competitiveness in the industry.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: BIOMETRIC ATM MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Biometric ATM Market accounts for the second-largest market share as European consumers consistently prioritize trust and convenience in their financial transactions. The incorporation of features like fingerprint or facial recognition in Biometric ATMs provides an elevated level of security and streamlines the overall user experience. As per the European Central Bank, a substantial 74% of all cash withdrawals are primarily conducted through automated teller machines (ATMs). This alignment with the preferences of European consumers creates a potential impetus for the increased adoption of biometric technologies within the ATM market.

Further, the German Biometric ATM Market held the largest market share, and the UK Biometric ATM Market was the fastest-growing market in the European region

The Asia-Pacific Biometric ATM Market is expected to grow at the fastest CAGR from 2023 to 2032. The Asia Pacific region consistently exhibits a swift uptake of emerging technologies, reflecting a proactive approach to innovation. This penchant for cutting-edge solutions finds resonance in the adoption of biometric ATMs, aligning seamlessly with the region's affinity for technological advancements. The surge in the adoption of biometric ATMs is propelled by escalating concerns around security, especially in the realm of financial transactions.

Biometric authentication methods, notably fingerprint and facial recognition, provide an elevated level of security, effectively mitigating the escalating challenges posed by fraud and identity theft in the region. Moreover, China’s Biometric ATM Market held the largest market share, and the Indian Biometric ATM Market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Biometric ATM market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Biometric ATM industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Biometric ATM industry to benefit clients and increase the market sector. In recent years, the Biometric ATM industry has offered some of the most significant advantages to the banking and financial sector. Major players in the Biometric ATM Market, including Miaxis, Techshino, Safran, Synaptics, Infineon Technologies, NEC Corporation, Bioenable, Crossmatch Technologies, Fulcrum Biometrics, Suprema are attempting to increase market demand by investing in research and development operations.

NEC Corp (NEC) is a leading provider of information and network technology solutions, offering a comprehensive product portfolio that includes servers, telecommunication equipment, ATMs, storage devices, video systems, supercomputers, personal computers, aerospace systems, fire and disaster prevention systems, and software. Additionally, NEC provides electronic components like lithium-ion rechargeable batteries, LCD panels, and lighting equipment. The company extends services such as system integration, support, and outsourcing to a diverse range of industries, including aviation, healthcare, agriculture, retail, broadcasting, logistics, finance, government, hospitality, manufacturing, transportation, and telecom.

Operating globally, with a presence in the Americas, Europe, the Middle East Africa, and Asia-Pacific, NEC is headquartered in Minato-ku, Tokyo, Japan. In May 2020, NEC Corporation announced the development of a state-of-the-art multimodal biometric authentication terminal incorporating face and iris recognition technologies, recognized as world-leading by the U.S. National Institute of Standards and Technology (NIST). These technologies are integral to NEC's "Bio-IDiom" multimodal biometric authentication brand.

Suprema stands as a prominent global provider of access control, time & attendance, and biometrics solutions. Leveraging world-renowned biometric algorithms and top-notch engineering, Suprema has been at the forefront of introducing innovations to the security industry over the past decades. The extensive portfolio offered by Suprema encompasses biometric access control systems, time & attendance solutions, fingerprint live scanners, mobile authentication solutions, and embedded fingerprint modules.

Recognized among the world's top 50 security manufacturers, Suprema boasts a widespread global presence, with a sales network spanning over 140 countries and holding the leading market share in biometric access control within the EMEA region.