Vein Recognition Biometrics Market

Vein Recognition Biometrics Market Outlook (2024 to 2034)

The global vein recognition biometrics market is forecast to attain a valuation of US$ 7.46 billion by the end of 2034, up from US$ 1.43 billion in 2024. The market has been projected to expand at a CAGR of 18% through 2034 in its latest revised research report.

Demand for vein recognition biometrics is driven by the growing adoption of contactless biometric technologies, increasing security concerns, and governmental support for these technologies. These technologies play a crucial role in ensuring a secure banking environment by minimizing identity fraud, establishing a transaction audit trail, and safeguarding financial data. As a result, the banking and finance sector significantly contributes to market growth.

The shift toward contactless biometric systems is driven by the inadequacy of traditional security measures such as PINs, passwords, and tokens to provide effective protection, especially against advanced intruder attacks.

• For example, a recent study conducted by VISA Inc. disclosed that over 85% of transactions in Austria and the Czech Republic employ biometric banking.

Applications of vein recognition biometric systems include access control, onboarding & KYC, and criminal identification & forensics. The use of these systems for criminal identification and forensic purposes is primarily propelled by the increase in fraudulent activities and cases of identity theft and the proliferation of digital identity use cases across various sectors.

The government sector is the predominant revenue contributor to the market, accounting for a 40% share of overall market revenue. This is attributed to the implementation of contactless biometric technologies by many governments to curb and control criminal activities. The market is growing at a significant pace along with the contactless biometrics market, the face and voice biometrics market, and more.

Report Attributes	Details
Vein Recognition Biometrics Market Size (2024E)	US$ 1.43 Billion
Projected Market Value (2034F)	US$ 7.46 Billion
Global Market Growth Rate (2024 to 2034)	18% CAGR
China Market Value (2034F)	US$ 818.8 Million
Canada Market Growth Rate (2024 to 2034)	18.5% CAGR
North America Market Share (2024E)	23.9%
East Asia Market Value (2034F)	US$ 1.72 Billion
Key Companies Profiled	Futronic IDEMIA Mofiria Fujitsu Limited Mantra Softech Pvt. Ltd. IdentyTech Imprivata Mofiria

What are the Key Vein Recognition Biometrics Market Trends?

“Increasing Prevalence of Data Theft and Breaches in Banking Sector”

Increasing incidents of data theft and breaches are raising concerns about security measures, especially in the financial sector. Vein recognition biometrics, used for security purposes in the BFSI sector to protect customers from identity and data theft are emerging as a reliable and trusted solution.

Developing countries such as Argentina, Mexico, India, China, Brazil, and South Africa are adopting vein recognition biometrics to verify the identities of their customers in banks and other financial institutions. Vein recognition biometric system sales are increasing due to their superior accuracy compared to other biometric systems, and their lower false rejection rate (FRR) and false acceptance rate (FAR). As a result, there is a strong demand for vein recognition biometrics in the banking sector to ensure privacy.

Which Challenges are Vein Recognition Biometrics System Providers Tackling?

“High Cost of Implementation and Challenges Related to Age-Related Pattern Changes”

There are certain limitations and challenges associated with finger vein biometrics. For example, the patterns of a person’s finger veins alter as they age. Individuals who are younger or older need to update their finger vein records periodically, as these patterns remain stable only between the ages of 20 and 50.

Environmental factors also influence the efficacy of finger vein recognition. For instance, in colder temperatures, the increased blood viscosity causes finger veins to constrict, leading to inferior image patterns. Conversely, in warmer temperatures, the finger veins expand. This can cause false negatives during identification in extreme weather conditions.

Despite these challenges, finger vein recognition is an emerging technology that offers a safer and more secure alternative, with the potential to supplement or even replace fingerprint-identifying biometrics in the future. It has the potential to eradicate bias from biometric identification methods, leading to more reliable, inclusive, and diverse digital verification systems worldwide.

Country-wise Insights

Fact.MR, a market research and competitive intelligence provider, asserts through its newly published analysis that East Asia is projected to hold 22.4% of the global market share by 2034. Vein recognition biometrics providers across the world are effectively catering to evolving consumer preferences.

Why is the United States a Profitable Market for Vein Recognition Biometrics Providers?

“Rising Use of Smart Appliances Necessitating Development of Advanced Authentication Methods”

Attribute	United States
Market Value (2024E)	US$ 151.6 Million
Growth Rate (2024 to 2034)	18.5% CAGR
Projected Value (2034F)	US$ 826.9 Million

The United States will account for 44.5% of the vein recognition biometrics market share in North America in 2024. The growing use of smart appliances in the United States has spurred the demand for vein recognition biometrics. As smart homes become increasingly prevalent, individuals seek advanced and secure authentication methods to safeguard their devices and data. The unique and highly secure identification process of vein recognition aligns with the increasing need for strong security in smart appliance systems.

Seamless integration of vein recognition biometrics into smart devices such as locks, thermostats, and home automation systems offers users a convenient yet formidable means of access control. This reflects a broader societal shift toward embracing innovative and secure biometric solutions, as consumers prioritize the protection of their interconnected smart environments in the growing modern living landscape.

What is Driving Market Growth in China?

“Increasing Adoption of Biometrics in ATMs”

Attribute	China
Market Value (2024E)	US$ 156.2 Million
Growth Rate (2024 to 2034)	18% CAGR
Projected Value (2034F)	US$ 818.8 Million

Increasing use of vein recognition biometrics technology in countries such as China and Japan to deter thefts and break-ins is leading to increased expenditure on the development of strong firewalls and secure access devices. This is projected to contribute to the vein recognition biometrics market growth in East Asia.

• Bank of China is planning to incorporate finger vein recognition into all its ATMs due to its high accuracy and strong defense against counterfeiting.

The adoption of vein recognition biometrics is projected to rise throughout the forecasted period. China, being a manufacturing hub and a leading producer of smart devices, has the potential to drive the growth of the vein recognition biometrics market in the long term. The market in China is projected to reach US$ 818.8 million by the end of 2034.

Category-wise Insights

Which Vein Recognition Biometrics Technology Accounts for a Leading Market Share?

“Effective Bias Elimination Offered by Finger Vein Recognition”

Attribute	Finger Vein Pattern Recognition
Segment Value (2024E)	US$ 884 Million
Growth Rate (2024 to 2034)	17.2% CAGR
Projected Value (2034F)	US$ 4.32 Billion

Finger vein recognition identifies individuals based on their physical attributes and the unique characteristics of their vein patterns. Difficulty in duplicating vein images and their unchanging nature with age make finger vein recognition more precise than other biometric identification methods.

The issue of biometric bias is entirely circumvented with finger vein-based biometrics. This is because biometric bias arises from an algorithmic mistake when tasked with automatically identifying individuals based on their biological and behavioral characteristics. By disregarding physical attributes and relying solely on internal bodily processes for authentication, this problem is either completely avoided or significantly minimized.

Which Market Segment Accounts for High Revenue Generation?

“Physical Components Aligning with Diverse Industry Preferences”

Attribute	Hardware
Segment Value (2024E)	US$ 998.1 Million
Growth Rate (2024–2034)	17.5% CAGR
Projected Value (2034F)	US$ 4.99 Billion

Hardware for vein recognition biometric systems accounts for a leading market share due to several factors. Hardware-based systems, characterized by their tangible and physical components, offer a level of reliability and security that resonates across diverse industries. This increased assurance in authentication is particularly crucial in sectors such as finance, healthcare, and government, where stringent security measures are paramount.

The accuracy and speed of hardware vein recognition biometrics solutions further contribute to their widespread adoption, ensuring efficient and precise user identification. Technological advancements, especially in sensor technology, have bolstered the effectiveness of hardware solutions, making them indispensable in various applications.

Competitive Landscape

Market growth is being driven by several factors, including evolving consumer preferences, technological advancements, and global economic conditions. Several key players in the vein recognition biometrics market are Futronic, IDEMIA, Mofiria, Fujitsu Limited, Mantra Softech Pvt. Ltd., IdentyTech, Imprivata, and Mofiria.

Companies are investing in research and development to enhance the accuracy and efficiency of their vein recognition technologies. The market showcases several established biometric solution providers, each striving to carve a niche with unique features and applications. Partnerships with academic institutions and collaborations across industries contribute to the evolution of this landscape.

• In 2019, NEC forged a collaboration with Nagasaki University to institute a program focused on global health and biometric authentication within the framework of Nagasaki University’s Graduate School of Tropical Medicine and Global Health Studies.

Key Segments of Vein Recognition Biometrics Market Research

• By Technology :

  • Finger Vein Pattern Recognition
  • Palm Vein Pattern Recognition
  • Retina Vein Pattern Recognition

• By Solution :

  • Hardware
  • Software
  • Services

• By Sector :

  • BFSI
  • Healthcare
  • Manufacturing
  • Services, Communication, & Media
  • Retail
  • Transportation & Utilities
  • Institutions
  • Residential
  • Law Enforcement Offices

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa