Iris Recognition Market Size, Share & Trends Analysis Report By Component, By Application (E-payment, Identity Management & Access Control, Time Monitoring), By End-user, By Region, And Segment Forecasts, 2023 - 2030

Iris Recognition Market Size & Trends

The global iris recognition market size was estimated at USD 6.35 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 23.9% from 2023 to 2030. Iris scan technology is extensively distinct from retina scan. Iris recognition involves the scanning of the iris muscle to perform identification, while retinal recognition analyzes the unique pattern of blood vessels on an individual’s retina. The eminent growth of iris sensors, as they offer very high accuracy with little risk of false authentication, is augmenting the segment growth during the forecast period.

High scalability, non-invasiveness, and stability offered by iris recognition are expected to propel the growth of this market. A major advantage of the technology is that the patterns of the iris remain stable throughout life, and the technology's accuracy is extremely high, making it a highly reliable authentication system. Iris recognition is the most accurate biometric technology that can be accessed from a distance. Compared to other biometric systems, it has a very low false acceptance and rejection rate. Moreover, iris recognition is used in high-security applications such as border control, military, and law enforcement.

Global airport security systems have undergone significant adjustments due to growing security concerns. Modern biometric and radio frequency identification technology (RFID) has become increasingly popular. Iris recognition technology has been used at major Canadian airports to speed up the customs processes for travelers. This facility uses iris scanning equipment to record data, which is verified against data from the enrollment database. Similarly, the Netherlands implemented an iris recognition technology that enables users to bypass lines at immigration by using a fast-track system. The government set up iris scanners at several viewpoints so tourists could compare live iris data with the information on the e-Visa.

The iris recognition market is expanding due to the provision of better security to avoid fraud, shorter transaction times, and increasing use of the technology by government sector banks. However, the market's expansion is anticipated to be constrained by customers' need to understand iris recognition-based ATMs. On the other hand, increased iris recognition-based ATM penetration in developing nations like China, Brazil, and others can be viewed as a commercial opportunity.

In healthcare, technologies like iris recognition in patient identification are gaining traction not only for their accuracy in identifying a patient upon entry into a facility but also for their usefulness in quickly and accurately determining the patient's current location within the hospital, among various departments, such as home health, the ER, and other mobile environments, or in any other location before providing long-term care.

ATMs, which have undergone substantial development, continue to play a crucial role in offering cardholders worldwide quick and safe banking services. As ATM channels increase, the likelihood of ATM fraud in banking operations has increased. Iris technology is increasingly developed and being included in ATMs, especially in Asia and America. Through biometric authentication, the solution increases security on a new level and improves consumer satisfaction. Jing King Tech Group, a Singapore-based organization specializing in financial automation, has installed ATMs with IriTech's Gemini-Core, a next-generation iris camera with excellent recognition capabilities. At Fintech Singapore, the company showcased its Gemini built-in ATM and garnered enthusiastic interest. The terminal can authenticate users using Iris & face recognition biometrics, which helps considerably cut down on time, improve security, and improve usability.

Component Insights

The hardware segment held a significant share of over 44.9% of global revenue in 2022. Hardware improvements are crucial for enhancing iris recognition systems' accuracy, speed, and overall performance. High-resolution cameras are essential for capturing detailed images of the iris. Advances in camera technology have led to the development of smaller, more efficient, and high-resolution sensors that can capture iris images with greater clarity and precision. Significant initiatives by major companies are also fueling the market growth. In September 2022, The MinMoe Iris Recognition Terminal from Hikvision was released, offering a higher-level security solution for the access control market. With a recognition distance of up to 70 cm, the MinMoe Iris Recognition Terminal checks the distinctive characters of an iris within a second. The product also includes color imaging and video anti-counterfeiting to safeguard the precision and security of access authentication.

The software segment is expected to grow at the highest CAGR of more than 25% over the forecast period. Iris recognition software has seen significant growth over the years as software has improved in accuracy due to the development in hardware and image processing techniques. Due to its increased accuracy, it is now a favored option for applications needing a high level of security, like border control and access control systems. Additionally, as software technology develops and spreads, the cost of installing Iris recognition systems has gradually decreased, making it more affordable for a wider range of businesses.

Application Insights

The identity management & access control segment led the market in 2022, accounting for over 36% share of the global revenue. Solutions for iris recognition are utilized in various industries for applications, including access control and identity management. For instance, these technologies are utilized by customers to access their bank accounts and staff to log in to their workstations in the banking and finance vertical. Similarly, this technology is used in travel and immigration to stop illegal immigrants from entering a nation using fake travel documents. These technologies are used in many airport terminals to improve the ease, promptness, and effectiveness of border-crossing formalities for authorized travelers. Government agencies widely use iris recognition technology for identification and authentication purposes.

The time monitoring segment is expected to register a CAGR of 24% during the forecast period. Thanks to this technology, employees now do not need to fill timecards physically or memorize passwords. Employers too do not have to worry about misplaced or lost key cards, which are frequently utilized with attendance tracking. Businesses may track employee time worked automatically and in real-time with Iris recognition time tracking alternatives that interface with payroll, helping them guarantee that data is consistent across all platforms. Eliminating the need to enter changes into various work systems several times also lessens the stress on HR employees.

End-user Insights

Based on end-user, the consumer electronic segment registered significant revenue in 2022, accounting for 21.4% of global revenue. Iris recognition is a precise and efficient method for safeguarding an individual’s sensitive data and other items. Iris recognition is becoming popular as more consumer electronics like PCs and laptops use it. The simplicity and trustworthiness of iris recognition technology have become more well-known due to its laptop application. Additionally, the market is being driven by factors including the incorporation of iris scanners in smartphones, growing use in government projects, increased fraud and security concerns, and higher demand from the consumer electronics sector.

The BFSI segment is expected to register a CAGR of 26.4% over the forecast period. In the BFSI industry, iris recognition is used for biometric verification, adding an extra layer of security to transactions and access to private financial data. Iris scans can be used by customers to securely enter their accounts and authorize financial activities. Moreover, for access control at branches and vaults, banks and other financial organizations use iris recognition technology. This increases physical security by ensuring that only authorized workers can enter restricted locations.

Regional Insights

North America held a leading market share of around 31% in 2022. Prominent initiatives by governments and authorities are propelling the market growth in this region. As part of its biometric entry-exit program, U.S. Customs and Border Protection (CBP) was looking at the use of iris recognition. To authenticate travelers' identities, improve border security, and speed up the immigration procedure, iris scans are being tried at airports and border crossings. Moreover, Governmental organizations in North America are funding iris identification technology research and development. This includes initiatives to improve law enforcement, public safety, and national security.

Asia Pacific is expected to grow at the highest CAGR of around 26% over the forecast period. Significant developments in different countries in the region are propelling the market growth. For instance, the iris biometrics database containing the information of 20 million people has already been created by China in July 2020, included in a system developed by Beijing Municipal Public Security Bureau and IrisKing. Similarly, in India, the banks are allowed to validate single transactions that go over a certain annual limit with an iris scan or facial recognition in some cases to lower tax evasion and fraud.  

Key Companies & Market Share Insights

The global iris recognition market is fragmented with the presence of several prominent players and large-sized companies taking significant initiatives in the sector. Major players adopt numerous strategies, such as contracts, agreements, acquisitions, mergers, implementation of improved services, and creating, testing, and launching new & enhanced solutions. In April 2023, Innovatrics introduced a new liveness detection technology. The ‘MagnifEye’ technology is a "semi-passive" technique of liveness recognition that induces a user to locate their eye during a selfie-based identity verification session, according to the business. Innovatrics also stated that the eye-scanning system "lays the foundations for the multimodal capability of liveness detection," presumably by integrating it with the company's superior facial recognition technology, which has performed well in independent tests. Some prominent players in the global iris recognition market include:

• Thales Group

• IDEMIA

• Iris ID, Inc.

• Iritech, Inc.

• NEC Corporation

• SAP SE

• HID Global Corporation

• EyeLock LLC

• Hangzhou Hikvision Digital Technology Co., Ltd.

Iris Recognition Market Report Scope

Global Iris Recognition Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the iris recognition market report based on component, application, end-user, and region:

• Component Outlook (Revenue, USD Billion, 2017 - 2030)

  • Hardware

  • Software

• Application Outlook (Revenue, USD Billion, 2017 - 2030)

  • E-payment

  • Identity Management & Access Control

  • Time Monitoring

• End-user Outlook (Revenue, USD Billion, 2017 - 2030)

  • BFSI

  • Healthcare

  • Consumer Electronics

  • Automotive

  • Military & Defense

  • Government

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa (MEA)

    • Kingdom of Saudi Arabia

    • UAE

    • South Africa