Jan. 7, 2025 /Mpelembe Media/ — The Prism Project’s report on the biometric digital identity market projects a $315 billion revenue opportunity by 2024, driven by increasing adoption across various sectors. Key findings highlight significant growth in biometric and digital identity transactions globally, alongside challenges and opportunities within the industry.
The Prism Project’s Flagship Report offers several key findings regarding the biometric digital identity market:
Market Size and Growth: The report projects a total market growth of $315 billion in revenue and 5.6 trillion biometric transactions globally in 2024.
Regional Dominance:
North America is expected to generate the highest revenue share at 35%.
The APAC region is projected to dominate in transaction volume.
Sector-Specific Revenue:
Financial Services is projected to generate $40 billion in revenue.
Travel and Hospitality is expected to generate $72 billion in revenue, with air travel accounting for 50%.
Government Services are forecast to generate $202.5 billion in revenue, driven by initiatives in Europe, North America, and APAC.
Driving Factors: The report highlights several factors driving the adoption of biometric digital identity solutions:
Regulatory compliance, fraud protection, and enhanced customer experience are primary motivators for companies implementing these solutions.
The need for user-friendly systems that are intuitive, secure, and respect user privacy is influencing the adoption of biometrics.
Biometric solutions are being implemented to combat fraud, enhance security, and improve operational efficiency.
User Experience: The report emphasises that biometric integration enhances customer satisfaction and operational efficiency, especially in travel, e-commerce and other sectors.
Fraud Mitigation: Biometrics offer a robust defence against synthetic identity fraud and anti-money laundering.
Deployment Trends: Authentication, onboarding, and access control are the most widely adopted types of deployment, with employee time and attendance showing a marked increase in market shifting.
Privacy and Ethics: The report underscores the importance of integrating biometric data with privacy-first design principles and fraud prevention tools. It calls for solutions that are user-friendly, secure and that prioritise user-privacy.
Transformative Impact: The report notes that the scale of biometric digital identity adoption is pivotal in shaping the evolution of digital transformation.
Industry Collaboration: The 2024 Flagship Prism Report is rooted in the collective commitment and forward-thinking contributions of 28 sponsors and partners who are working to advance digital identity.
The Prism Project’s report highlights that authentication, onboarding, and access control are the most widely adopted deployment types, with employee time and attendance showing a marked increase in market shifting.
Enhanced customer experience is a key factor. Biometric-centric digital identity aims to improve the customer experience, while reducing fraud and improving operational efficiency. This includes streamlining authentication.
Increased security and fraud prevention are major drivers. Biometric solutions are being implemented to combat fraud and offer robust identity verification.
Regulatory compliance is another key factor. The need to comply with various regulations is a significant driver for adopting biometric digital identity solutions.
Technological advancements in biometric technology also contribute to growth. The ability to integrate biometric data with privacy-first design principles and fraud prevention tools are helping to drive adoption.
Market trends like increasing use of digital transactions, especially in the financial and travel industries, are increasing the need for secure and convenient identity verification, driving the growth of biometric digital identity.
The demand for user-friendly systems is also influencing the adoption of biometrics. The goal is to create systems that are intuitive, secure, and respect user privacy.
The potential for cost savings is an incentive for businesses. By reducing fraud, streamlining operations and improving security, companies can potentially reduce operational costs.
The Prism Project’s Flagship Report evaluated more than 250 industry players and identified the key market dynamics driving extraordinary growth in the global digital identity ecosystem. The report provides a comprehensive analysis of the global digital identity industry, framed around common challenges and biometric solutions.
In addition to the industry players, the report’s analysis included over 250 vendors and organisations that are operating in and supporting the global digital identity landscape.
The Prism Project’s Flagship Report projects a substantial revenue opportunity for the biometric digital identity sector in 2024.
Here’s a detailed breakdown of the financial projections:
Total Market Growth: The report forecasts a total market growth of $315 billion in revenue globally. This encompasses the entire global market for biometric digital identity.
Biometric Transactions: In addition to the revenue projections, the report also forecasts 5.6 trillion biometric transactions globally in 2024.
Regional Revenue:
The report projects that North America is expected to generate the highest revenue share at 35%.
The APAC region is projected to dominate in transaction volume.
Sector-Specific Revenue: Several key sectors are anticipated to significantly contribute to the revenue:
Financial Services: This sector is projected to generate $40 billion in revenue.
Travel and Hospitality: This sector is expected to generate $72 billion in revenue, with air travel accounting for 50% of the revenue.
Government Services: This sector is forecast to generate $202.5 billion in revenue. The report highlights that initiatives in Europe, North America, and the APAC regions will drive this revenue.
The Prism Project’s Flagship Report evaluated more than 250 industry players in the biometric digital identity sector. The report identified key market dynamics that are driving growth in the global digital identity ecosystem. The report also analysed over 250 vendors and organisations operating in and supporting the global digital identity landscape.
The Prism Project plays a key role in the biometric digital identity field by acting as a bridge between technology experts and decision-makers. It aims to foster a human-centric digital identity future through collaboration and research.
Here are some of the specific functions and roles of The Prism Project as detailed in the sources:
Research and Education: The Prism Project is at the forefront of biometric and digital identity research and education. It analyses and reports on the market, identifying key trends, challenges, and opportunities in the biometric digital identity sector.
Industry Collaboration: The project facilitates collaboration between industry technology experts and organisations. By fostering collaboration, it enables the development of innovative solutions for digital transformation.
Informing Decision-Makers: The Prism Project produces reports that provide insights for decision-makers, such as the Flagship Report, which helps them understand and implement biometric digital identity technologies and solutions. This includes providing insights into market forecasts, key drivers for adoption and potential challenges.
Providing Market Analysis: The project offers analysis of the global digital identity industry and provides market forecasts, such as the projection of $315 billion in revenue and 5.6 trillion biometric transactions for 2024. It frames this analysis around common challenges and biometric solutions.
Promoting Ethical Implementation: The Prism Project seeks to ensure that biometric data is integrated with privacy-first design principles and fraud prevention tools. It advocates for solutions that are user-friendly, secure and that prioritise user-privacy.
Supporting Digital Transformation: The project contributes to the digital transformation through its research and by highlighting the transformative potential of biometric digital identity. This includes emphasizing its role in enhancing user experience, improving operational efficiency, and combating fraud.
Maintaining Independence and Integrity: The Prism Project is committed to maintaining independence, which is shown by its structure as an organisation and its funding. It aims to be transparent and objective in its research.
The Prism Project acts as a key resource for stakeholders in the biometric digital identity sector by offering research, analysis, and promoting industry collaboration. Its work supports the development and ethical implementation of biometric technologies, guiding decision-makers towards a secure and human-centric digital future.
The press release is available here