Biometrics As a Service in Healthcare Market

The global biometrics as a service in the healthcare market in terms of revenue was estimated to be worth $0.4 billion in 2023 and is poised to reach $1.1 billion by 2028, growing at a CAGR of 20.7% from 2023 to 2028. The new research study consists of an industry trend analysis of the market. The new research study consists of industry trends, pricing analysis, patent analysis, conference and webinar materials, key stakeholders, and buying behaviour in the market.

Significant strides in biometric technologies, including innovations like palm vein scanning, iris recognition, and facial recognition, have ushered in a new era of heightened accuracy and user-friendliness. These advancements, characterized by their precision and ease of implementation, have played an instrumental role in propelling the adoption of biometrics within the healthcare sector. As healthcare organizations increasingly recognize the potential for enhanced security, streamlined workflows, and improved patient experiences that these cutting-edge biometric solutions offer, the market experiences a substantial boost, with providers and stakeholders embracing these technologies as indispensable tools for elevating healthcare standards and operational efficiency. Technical challenges such as the occurrence of false positives or negatives, particularly notable in biometric methods like facial recognition, can exert a considerable influence on the accuracy of patient identification processes, potentially acting as a restraint and hindrance to the growth of the market within healthcare.

Attractive Opportunities in Biometrics as a Service in Healthcare Market

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Biometrics as a Service in Healthcare Market Dynamics

Driver: Growing focus on Government initiatives supporting the adoption of biometrics in healthcare

Governments across the globe are firmly committed to establishing and operationalizing legally sanctioned, trusted identities for their citizens. As such, they are steadfastly focused on the integration of biometric technologies into governmental operations to authenticate and verify the identities of individuals. Government-led initiatives are playing a pivotal role in advocating for the adoption of biometrics within healthcare systems.

Biometric technologies offer a heightened level of security, precision, and efficiency in the critical domains of patient identification, data safeguarding, and overall healthcare processes. According to a report published by Mint in April 2023, the National Health Authority is currently in the process of enhancing the Ayushman Bharat Health Account (ABHA) application. This enhancement will empower individuals to utilize a facial authentication service linked to their Aadhar number to establish their identity within the Ayushman Bharat Health Account (ABHA) application.

This application functions as a digital health ecosystem platform, facilitating the seamless digital exchange and accessibility of health records for users. In essence, governments worldwide are increasingly acknowledging the advantages of integrating biometric solutions into healthcare data security and patient identification. This recognition has driven the incorporation of biometric solutions into diverse healthcare systems and services. Consequently, these initiatives are expected to generate significant demand for biometric solutions in the forthcoming years.

Restrain: High costs associated with biometric systems

Providers of biometric systems must adhere to stringent requirements when catering to specialized healthcare applications. The production of advanced biometric systems necessitates substantial capital investment across various stages, encompassing research and development (R&D), manufacturing, installation, maintenance, and shipping of both software and hardware components. Notably, high-performance biometric systems comprise components such as fingerprint readers, electronic locking systems, scanners, sensors, and cameras, each incurring significant installation and maintenance expenses. Moreover, the incorporation of more sophisticated biometric technologies demands the utilization of modernized raw materials and subcomponents, adding further to the overall costs.

End-users, on their part, are burdened with the expenses associated with shipping, installation, and proactive maintenance. Consequently, the substantial capital outlay required poses a hindrance to the growth of the market. Nonetheless, in the future landscape, services like cloud computing and Software-as-a-Service (SaaS) are poised to attract small and medium-sized enterprises (SMEs). This shift is expected to reduce the cost barriers associated with implementing biometric systems within their organizational setups.

Opportunity: Increasing demand for advanced biometric solutions designed for authentication and identification applications

Biometric solutions have experienced substantial technological advancements in recent times, driven by innovations in sensing technologies and the ubiquitous presence of computing devices like computers and mobile phones. These developments offer fresh opportunities for capturing both physiological and behavioral human traits, with the subsequent analysis of this data enabling robust biometric authentication. Biometric systems, empowered by machine learning and artificial intelligence, present new avenues for effectively identifying unusual behavior and providing supplementary authentication layers when necessary.

Traditionally, fingerprint recognition has held sway as the predominant biometric technology. However, there has been a noteworthy shift towards facial and iris recognition technologies among end users. Iris recognition technology, in particular, is gaining significant traction in healthcare applications. The healthcare sector has grappled with the persistent challenge of precise patient identification, and biometric iris recognition technologies are increasingly being harnessed for various purposes, such as accessing patient records and details within the healthcare industry.

The emergence of innovative technologies and cost-effective multi-layered authentication systems is expected to foster greater adoption of iris recognition within global healthcare systems. Precise patient identification remains a paramount concern in healthcare management applications, encompassing tasks like personal identification, attendance tracking, individual matching to medical records, and the implementation of efficient authentication and authorization mechanisms across diverse healthcare domains. These domains include patient registration monitoring, treatment pathways, checkup scheduling, recurring treatments, and support for national or private health insurance cards, as well as ambulatory treatment documentation.

Challenge: Complexities in implementing recognition technologies within existing healthcare systems

The integration of recognition technologies into existing healthcare systems in the realm of healthcare biometrics presents a multifaceted challenge for several compelling reasons. Firstly, the transition from conventional identification methods, such as plastic ID cards and barcoded wristbands, to newer solutions built upon one of three biometric technologies (facial, fingerprint, or iris recognition) necessitates substantial investments by healthcare organizations. These investments encompass both technological upgrades and infrastructural enhancements required to facilitate the seamless integration of biometric solutions.

Secondly, the implementation of biometric-based patient identification on a large scale entails overcoming a myriad of barriers. These barriers encompass cost considerations for healthcare systems, sustainability concerns, consumer and healthcare system acceptance, limitations in the array of biometric options currently available in the market, workflow intricacies within individual healthcare systems, as well as the complexities inherent in aligning workflows across interconnected healthcare systems. Additionally, privacy concerns loom prominently, adding to the challenges faced in the adoption and integration of biometric solutions.

For instance, as reported in a June 2023 article by BiometricUpdate.com, the Japanese government's My Number digital ID initiative has struggled to assuage concerns about the mishandling of personal data, especially in relation to disability certificates. This apprehension has sparked objections, particularly in light of the impending substitution of health insurance cards with My Number IDs. Japanese medical practitioners have even initiated legal actions, contesting the mandatory replacement of health insurance cards due to concerns related to financial burdens and implementation costs.

Notably, one significant hurdle in deploying iris recognition technology lies in its integration with existing systems to enhance security, surveillance, and access control. The ever-evolving nature of iris biometrics technology, including advancements in high-definition camera technology, algorithms, and analytics solutions, has amplified the complexity of integrating this technology with other biometric devices. Despite these challenges, the seamless amalgamation of iris recognition technology with other biometric modalities holds the potential to unlock numerous applications and significantly contribute to precise patient identification. The integration of multiple biometric modalities also stands to bolster accuracy and security within the domain of healthcare biometrics.

In light of these considerations, healthcare organizations must meticulously evaluate both the advantages and obstacles associated with integrating biometric solutions into their existing systems, devising comprehensive strategies to navigate these challenges effectively.

Biometrics as a Service in the Healthcare Industry Ecosystem

The aspects present in this market are included in the ecosystem market map of the overall healthcare biometrics/biometrics as a service in the healthcare market, and each element is defined with a list of the organizations involved. Products and services are included.  The manufacturers of various products include the organizations involved in the entire process of research, product development, optimization, and launch. Vendors provide the services to end users either directly or through a collaboration with a third party.

In-house research facilities, contract research organizations, and contract development and manufacturing companies are all part of research and product development and are essential for outsourcing product development services.

Source: Secondary Literature, Interviews with Experts, and MarketsandMarkets Analysis

The global biometrics as a service in the healthcare industry is segmented by component, modality, solution type, application, end-user, and region.

Software segment accounted for the largest share of the biometrics as a service in the healthcare industry and is expected to grow at the highest rate during the forecast period.

The software segment plays a pivotal role in bolstering the healthcare biometrics and biometrics-as-a-service (BaaS) market. With the increasing emphasis on patient data security and accurate identity verification in healthcare, software solutions have become the linchpin of this sector. These software offerings encompass a range of applications, including biometric authentication systems, data encryption, and identity management platforms, enabling healthcare providers to safeguard patient information while ensuring seamless and efficient access for authorized personnel. Furthermore, software-based BaaS solutions are poised to drive cost-efficiency and scalability in healthcare operations, facilitating rapid adoption and integration across the industry. As the healthcare landscape continues to prioritize data protection and accessibility, the software component of biometrics solutions is set to be a catalyst for transformative change in the healthcare sector, fostering trust and compliance among healthcare stakeholders.

The multimodal modality segment accounted for the largest share of the biometrics as a service in the healthcare industry and is expected to grow at the highest rate during the forecast period.

The multimodal segment is emerging as a key driver in propelling the growth of the healthcare biometrics and biometrics-as-a-service (BaaS) market. Multimodal biometrics, which integrates multiple biometric authentication methods such as fingerprint, facial recognition, iris scanning, and voice recognition, offers healthcare organizations a robust and versatile solution for identity verification and access control. This approach enhances security and minimizes the risk of unauthorized access to sensitive patient data and medical facilities, ultimately enhancing patient trust and regulatory compliance. Moreover, multimodal biometrics can improve the overall patient experience by streamlining authentication processes, reducing the need for multiple credentials, and ensuring accurate patient identification at various touchpoints within the healthcare ecosystem. As healthcare providers seek comprehensive, efficient, and secure biometric solutions, the multimodal segment is positioned to play a pivotal role in shaping the future of biometrics adoption in the healthcare industry.

Fingerprint solution segment accounted for the largest share of the global biometrics as a service in healthcare industry.

The fingerprint segment is exerting a significant influence on the growth trajectory of the healthcare biometrics and biometrics-as-a-service (BaaS) market. Fingerprint biometrics offer a highly reliable and easily deployable solution for patient identification and access control within healthcare settings. With an increasing emphasis on data security, patient privacy, and compliance with regulatory standards like HIPAA, healthcare organizations are turning to fingerprint recognition as a fundamental layer of their security infrastructure. Fingerprint-based BaaS solutions not only enhance the accuracy of patient identification but also streamline workflows by providing healthcare professionals with quick and secure access to electronic health records and medical facilities. Furthermore, the scalability and cost-effectiveness of fingerprint biometrics make them an attractive option for healthcare providers looking to bolster security without significant capital investment. As the healthcare industry continues its digital transformation, the fingerprint segment is poised to play a pivotal role in ensuring data integrity and patient safety.

Medical record and data center security application segment accounted for the largest share and is expected to grow at the highest rate during the forecast period of the global biometrics as a service in the healthcare industry.

The medical record and data center security segment are emerging as vital catalysts for the growth of the healthcare biometrics and biometrics-as-a-service (BaaS) market. In an era characterized by the digitization of patient records and the increasing volume of sensitive healthcare data, ensuring robust security within medical record repositories and data centers has become paramount. Biometric solutions, including fingerprint recognition, iris scanning, and facial recognition, are being integrated into data center access points and electronic health record systems to fortify the protection of patient information. This integration not only safeguards patient privacy and meets stringent regulatory requirements but also enhances operational efficiency by providing authorized personnel with swift and secure access to critical data. As healthcare organizations continue to grapple with the challenges of data breaches and identity theft, the medical record and data center security segment within the healthcare biometrics market is poised to experience significant growth, underlining its indispensable role in fortifying the healthcare industry's digital infrastructure.

Hospitals and clinics end user segment held the largest market share growing at the highest CAGR during the forecast period of the biometrics as a service in the healthcare industry.

With the healthcare industry's increasing reliance on digital technologies and the imperative of safeguarding patient data, biometric solutions have become instrumental in enhancing security and efficiency within healthcare facilities. Hospitals and clinics are deploying biometrics to streamline patient check-in processes, ensuring accurate patient identification while reducing administrative bottlenecks. Additionally, biometrics are being utilized to restrict unauthorized access to critical areas, such as operating rooms and medication dispensaries, improving patient safety and compliance with stringent regulatory standards. The hospitals and clinics segment is thus poised to continue its significant role in the adoption of biometrics, shaping a future where healthcare delivery is not only more secure but also more seamless and patient-centric.

The rapid population growth in the Asia Pacific region has resulted in a surge in the demand for healthcare services.

In 2022, the Asia Pacific region is anticipated to exhibit the highest compound annual growth rate (CAGR) during the forecast period. The Asia-Pacific region is emerging as a dynamic force propelling the growth of the healthcare biometrics and biometrics-as-a-service (BaaS) market. With a burgeoning population, rising healthcare expenditures, and increasing digitalization of healthcare systems, the region presents a fertile ground for the adoption of biometric technologies. Governments and healthcare organizations in countries such as China, India, Japan, and South Korea are actively investing in biometric solutions to address critical healthcare challenges, including patient identification, fraud prevention, and data security. Furthermore, the proliferation of smartphones and internet connectivity in the region is driving the demand for BaaS solutions, allowing healthcare providers to leverage cloud-based biometric authentication services efficiently. As Asia-Pacific continues to prioritize healthcare infrastructure development and data protection, the region is poised to be a significant contributor to the global healthcare biometrics market's expansion, fostering innovation and resilience in the healthcare sector.

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Some of the prominent players operating in the biometrics as a service in the healthcare market are NEC Corporation (Japan), Fujitsu Limited (Japan), Imprivata, Inc. (US), Suprema Inc. (South Korea), BIO-key International, Inc. (US), Thales (US), ASSA ABLOY (HID Global Corporation) (US), Cognitec Systems GmbH (Germany), Hitachi, Ltd. (Japan), Idex Biometrics ASA (Europe), Spectra Technovision(India) Pvt. Ltd. (India), Aware, Inc. (US), Aratek (US), Advent International, L.P. (US), NICE Ltd. (Israel), Voice Biometrics Group (US), Imageware (US).

Scope of the Biometrics As a Service in Healthcare Industry

This study categorizes the global Biometrics As a Service in Healthcare Market to forecast revenue and analyze trends in each of the following submarkets:

By Component

• Software
• Services

By Modality

• Unimodal
• Multimodal

By Solution Type

• Fingerprint scanning
• Facial Recognition
• Iris Recognition
• Voice Recognition
• Palm & Vein Recognition
• Others (DNA, signature, and keystroke)

By Application

• Patient Identification & Tracking
• Medical Record Security & Data Center Security
• Care Provider Authentication
• RPM
• Pharmacy Dispensing
• Others (Insurance Frauds & Narcotic Security)

By End User

• Hospitals & Clinics
• Long term care centers and home care settings
• Ambulatory Surgical Centers
• Others (diagnostic centers, physicians and physician organizations, and private healthcare service providers)

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Rest of Europe (RoE)
• Asia Pacific
  • Japan
  • China
  • India
  • Rest of APAC (RoAPAC)
• Latin America
• Middle East and Africa

Recent Developments of Biometrics As A Service In The Healthcare Industry:

• In June 2023, NEC Corporation (Japan) announced the launch of its new biometric authentication solution, NEC Biometric Engine. The solution is designed to help healthcare organizations improve patient safety and security by providing a more secure and convenient way to identify patients.
• In May 2023, Fujitsu (Japan) announced the expansion of its biometrics portfolio with the launch of its new palm vein authentication solution. The solution is designed to be used in a variety of healthcare applications, such as patient identification, access control, and payment.
• In 2022, NEC Corporation (Japan) launched a multimodal biometric authentication solution, facilitating rapid and highly accurate authentication, achieved by requiring individuals to simply direct their face towards the authentication device, while maintaining a remarkably low false acceptance rate of less than one in 10 billion.
• In 2022, Imprivata (US) acquired OGiTiX Software AG (Germany), a leading provider of agile identity and access management (IAM) solutions for the DACH region. This development strengthened Imprivata’s presence in the DACH market.

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