The Palm Vein Biometrics Market is expected to witness a CAGR of over 12% during the forecast period (2020-2025). As palm vein biometrics relies on scanning the vein pattern under the skin, it is considered to be a reliable and extremely secure biometric modality. Unlike fingerprint biometric technology which depends on the integrity of the skin on the fingertip for precise identification and can be negatively impacted by cuts, bruises, and dirt, the integrity of the skin is not a problem with palm vein biometrics.
- Over the years, the requirement to control access to premises, and systems has grown. Currently, many organizations rely on passwords, or cards to confirm people’s identity for access. However, this traditional approach poses severe challenges. For instance, loss, or theft of cards causes security risks. With the correct combination of PIN and card, anyone could be granted access to restricted areas or data. Thus, increasing application of biometrics for security purpose is expected to positively impact the market growth.
- For instance, Bharat Petroleum Corporation Limited in India is using palm vein recognition technology to keep track of employees and provide authorized access to them. Companies such as Fujitsu, in 2018, announced that it will deploy its palm vein authentication technology to its employees in Japan. The palm vein authentication will replace password-based measures, and allow the employees to gain access to buildings and log in to their desktops with only their hand.
- With multiple options available for biometric identification, companies could choose to adopt multifactor authentication to reduce the probability of fraud even further. Such trends are also expected to influence market growth. For instance, Fujitsu has plans to combine its palm vein scanning technology with facial recognition in a new authentication concept for access control.
Scope of the Report
Palm vein patterns are unique for an individual. Palm vein biometric technology captures an image of the vein pattern beneath the skin and uses that image as the basis for identifying an individual. Palm vein biometric uses near-infrared light to capture a palm vein pattern, thus, it does not require high-quality skin integrity for precise identification. The market includes both hardware and software and solutions provided by companies. Companies such as M2SYS Technology offer scanners for palm vein biometrics whereas companies such as Fujitsu offers palm vein authentication technology.
Key Market Trends
BFSI is Expected to Hold the Largest Share
- With the increasing level of security breaches, need for highly secure verification and identification systems have increased in the BFSI sector. Various banks and financial institutions integrated biometrics technologies such as palm vein recognition technology with access control systems to provide customers with secure access. For instance, Bank of Tokyo-Mitsubishi, a commercial bank in Japan, implemented a palm vein biometric system to provide a secure and cost-effective solution to its customers.
- Apart from physical access control, palm vein biometrics is expected to gain traction for contactless payment authentication. For instance, in 2018, Japan’s AEON Credit Service and Fujitsu will begin a trial of a cardless retail payment system using biometric palm vein authentication technology at some convenience stores.
North America Expected to Hold a Significant Share
- According to the Federal Trade Commission, identity thefts related to payment and banking sector are prominent in North America, which in turn, is set to boost the adoption of advanced authentication services such as biometrics. According to the Federal Trade Commission, in 2018, California experienced the maximum number of identity theft complaints. Around 73,668 cases of identity thefts were reported.
- The region is also witnessing a growing interest among organizations in adopting systems that use biometric characteristics to identify people. For instance, a New Jersey-based healthcare company, Atlantic Health System uses Patient Secure’s biometric palm vein scanning solution to speed up the patient intake and improve record accuracy. This technology helps in preventing individuals from using someone else's medical data to receive treatment.
The palm vein biometrics market is competitive and consists of several major players. Many companies are increasing their market presence by introducing new products, by expanding their operations or by entering into strategic mergers and acquisitions.
- June 2019 - Redrock Biometrics launched its identification solution, PalmID-X. It expands the applicability of biometric identification to multiple people, creating a basis for seamless services and transactions without physical tokens. It captures palm prints and/or subdermal veins to create a unique palm signature.
- February 2018 - Fujitsu launched a new software solution, AuthConductor Client to automatically replace IDs and passwords with the company’s palm vein biometrics on notebook and tablet devices. This software package supports Active Directory, allowing various users to each use their own biometric authentication on a single device.
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