May 21, 2024
Consumer Product and Retail Market

Consumer Product and Retail Market Poised for Growth with Rising Adoption of Biometric Technology

The consumer product and retail market has witnessed substantial growth over the past few years owing to the rising demand for more convenient and secure identification authentication methods for payments and access control applications. Biometric technologies, in particular, provide a natural and user-friendly way to authenticate users without the need to remember passwords or PINs. Biometric attributes such as fingerprints, facial features, iris patterns, and voice patterns offer highly accurate personalized identification. Biometric identifiers are also virtually impossible to share, steal, or forget, making them more secure than traditional authentication methods.

The Global Consumer Product and Retail Market Size is estimated to be valued at US$ 24.21 Bn in 2024 and is expected to exhibit a CAGR of 18% over the forecast period from 2024 to 2030. Biometric modalities are being integrated across various consumer touchpoints such as smartphone biometrics, payment terminals, entrance security, and computer/laptop logins to enhance security and optimize user experience for customers. Fingerprint recognition continues to dominate the market for its low-cost functionality and easy enrollment process. However, advanced modalities such as iris recognition and facial recognition are gaining traction due to their non-invasive nature and inability to be compromised even if biometric templates are stolen.

Key Takeaways

Key players operating in the consumer product and retail market are IDEMIA, Iritech Inc., IrisGuard UK Ltd., BioEnable Technologies Pvt. Ltd., NEC Corporation, Aware Inc., Gemalto NV (Thales Group), Iris ID Inc., Princeton Identity Inc., HID Global, and EyeLock LLC. These established biometric solution providers have been pivotal in driving mass-market adoption through innovative product development and strategic partnerships with OEMs and service providers.

The growing demand for contactless verification solutions post-COVID-19 presents significant opportunities for biometric technology providers to expand into new verticals such as healthcare, transportation, and government ID programs. Major investment is also expected towards the integration of multimodal biometric platforms that can leverage multiple modalities based on use cases.

Advances in deep learning and AI are enabling major improvements in the accuracy and scalability of biometric recognition systems. Ongoing research into passive biometric modalities such as gait and heartbeat recognition also promise to introduce new avenues for convenient yet secure user authentication.

Market Drivers

The key driver influencing growth in the consumer product and retail biometric market is the need for enhanced security without compromising consumer experience. As daily online and in-person transactions continue rising, the demand for biometric authentication over traditional passwords is surging due to its stronger security, ease of use and improved user convenience. The growing importance of contactless verification post COVID-19 is further fueling adoption. Regulatory pushes towards digital ID programs also prompt organizations to invest in biometric solutions for Aadhaar-like identification schemes. The ecosystem is thus poised for exponential growth over the next decade with advancements across modalities, use cases and enabling technologies.

Current Challenges in Consumer Product and Retail Market

The Consumer Product and Retail Market is facing several challenges currently including supply chain disruptions, labour shortage and inflationary pressure. The ongoing Covid-19 pandemic has impacted manufacturing and logistics globally resulting in delayed shipments and shortage of raw materials. This has posed operational difficulties for retailers and consumer product companies. Finding and retaining skilled labour has also become a challenge with rising employee attrition rates. High inflation has reduced consumer spending power impacting overall demand. Retailers need to focus on effective inventory management and offer competitive pricing to tackle these near term headwinds.

SWOT Analysis

Strength: Large customer base and higher spending on essential items provides resilience. Weakness: Exposure to economic slowdowns impacting discretionary spending. Opportunity: Shift to online shopping driving new business models. Threats: Intense competition from e-commerce players and changing consumer preferences.

Geographical Regions

North America accounts for the largest share currently due to high per capita spending and presence of large retailers. Europe is the second largest region driven by strong retail infrastructure and spending across major countries.

Fastest Growing Regions

Asia Pacific region is expected to be the fastest growing market for Consumer Product and Retail during the forecast period supported by rising middle class, urbanization and penetration of organized retail in emerging countries. Countries like India, Indonesia, Vietnam offer immense growth opportunities.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it