Global Healthcare Biometrics Market: Global Size, Trends, Competitive, and Historical & Forecast Analysis, 2022-2028: The market will expand due to the increasing need for advanced security solutions to protect patient information, advancements in biometric technology, and growing investment in healthcare IT infrastructure in developing countries
Global Healthcare Biometrics Market is valued at USD 25.85 Billion in 2022 and it is expected to reach USD 83.52 Billion by 2029 with a CAGR of 18.24% over the forecast period.
Healthcare Biometrics refers to the use of biometric technologies, such as fingerprint recognition, facial recognition, and iris recognition, in healthcare settings for identification, authentication, and security purposes. This technology is increasingly being used in healthcare to ensure patient safety and security, prevent medical identity theft and fraud, and streamline healthcare operations.
Biometric technologies have been used in healthcare settings for decades. One of the earliest applications of biometrics in healthcare was in the form of fingerprint recognition for patient identification. However, with the advent of new biometric technologies such as facial recognition and iris recognition, the applications of biometrics in healthcare have expanded significantly.
The applications of healthcare biometrics include patient identification, access control, time and attendance tracking, electronic prescribing, and medical record access. Biometric technologies are also being used for patient monitoring and treatment adherence. The end-users of healthcare biometrics include hospitals, clinics, medical practices, and other healthcare organizations. The technology is also being used by government agencies and law enforcement for public health and security purposes.
The revenue generation model of the healthcare biometrics market is primarily based on the sale of biometric hardware and software solutions to healthcare organizations. The market also generates revenue through the provision of biometric services, such as consulting and support services.
The supply chain model of the healthcare biometrics market involves biometric technology vendors who develop and manufacture biometric hardware and software solutions, as well as system integrators who integrate these solutions into healthcare IT systems. The healthcare organizations that purchase and implement these solutions are the end-users of the healthcare biometrics market.
The value chain model of the healthcare biometrics market includes the development and manufacturing of biometric hardware and software solutions by technology vendors, the integration of these solutions into healthcare IT systems by system integrators, and the use of these solutions by healthcare organizations to improve patient safety and security, prevent medical identity theft and fraud, and streamline healthcare operations.
The COVID-19 pandemic has had a significant impact on the Healthcare Biometrics market, with both positive and negative effects. On the positive side, with the need to reduce physical contact, the demand for contactless biometric solutions has increased. This includes solutions such as facial recognition and iris scanning, which do not require physical contact with the device. The pandemic has highlighted the importance of healthcare security, and biometric solutions can help enhance security by providing accurate identification of patients and healthcare professionals.
However, on the negative side, the pandemic has resulted in reduced healthcare spending, and this has impacted the adoption of new technologies, including biometric solutions. Many healthcare organizations have delayed the implementation of new projects, including biometric solutions, due to financial constraints caused by the pandemic.
Rest of Middle East and Africa
Increasing need for advanced security solutions to protect patient information: With the increasing use of electronic health records (EHRs) and other digital healthcare systems, there is a growing need for advanced security solutions to protect patient information. According to the Office of the National Coordinator for Health Information Technology (ONC), as of 2020, the adoption of electronic health records (EHRs) among non-federal acute care hospitals in the United States reached 97%. Additionally, 90% of office-based physicians were using some form of EHRs. The use of biometric authentication methods, such as fingerprint, iris, and facial recognition, can provide a more secure and accurate method of verifying patient identity and accessing medical records. Biometric solutions can also help prevent medical identity theft and fraudulent activities in the healthcare industry, which is a major concern for patients and healthcare providers alike.
Advancements in biometric technology: the development of highly accurate and reliable identification and authentication solutions for the healthcare industry. Biometric solutions such as fingerprint recognition, facial recognition, iris recognition, and voice recognition are being increasingly adopted in healthcare for patient identification, access control, and security purposes. For example, fingerprint recognition is the most widely adopted biometric technology, accounting for over 60% of the global biometrics market.
These technologies not only enhance the security of patient information but also improve operational efficiency and patient care. Additionally, the integration of biometric technology with electronic health records (EHRs) and electronic prescribing (e-prescribing) systems further streamlines healthcare workflows and reduces errors.
High cost of biometric systems: The cost of deploying biometric systems, including hardware and software, can be substantial, making it difficult for smaller healthcare facilities and organizations to adopt these solutions. Additionally, the cost of maintaining and upgrading biometric systems over time can add to the overall expense. For example, the cost of implementing a biometric system for patient identification and verification in a single hospital can range from USD 10,000 to USD 500,000 depending on the size of the facility, the number of patients, and the type of biometric technology used. This cost barrier can limit the adoption of biometric solutions, especially in developing countries or underfunded healthcare organizations.
Concerns about data privacy and security: Biometric data, such as fingerprints, facial scans, and voice patterns, are unique and sensitive information that needs to be protected from potential data breaches and cyberattacks. For example, a 2021 study by IBM Security found that the healthcare industry had the highest average cost of a data breach compared to other industries, with an average cost of $9.23 million. Patients and healthcare organizations may be hesitant to adopt biometric solutions due to fears of data misuse and unauthorized access. Additionally, regulatory compliance requirements and legal barriers related to data privacy and security can hinder the adoption of biometric solutions in healthcare.
Integration of biometric systems with artificial intelligence (AI) and machine learning (ML) algorithms for enhanced accuracy and efficiency, development of biometric solutions for patient self-service kiosks and mobile apps, adoption of facial recognition and iris recognition technology in healthcare, growing use of voice biometrics for patient authentication and the development of biometric wearables for continuous health monitoring.
Increasing demand for patient-centered care and personalized medicine, growing awareness and concern for data privacy and security, preference for non-intrusive and touchless biometric solutions, need for interoperability and seamless integration with existing healthcare systems, and the growing adoption of telemedicine and remote patient monitoring solutions.
Key market players in the healthcare biometrics market include NEC Corporation, Fujitsu Limited, BIO-key International Inc., Crossmatch, Imprivata Inc., and ZKTeco Inc. Some of the strategies adopted by these players include:
North America is the largest Healthcare Biometrics market, primarily driven by the United States and Canada. The region has a well-established healthcare system and infrastructure, which has resulted in the early adoption of advanced biometric solutions. According to the World Health Organization (WHO), the United States has the highest per capita healthcare expenditure in the world, with an expenditure of $10,224 per person in 2019. The increasing need for advanced security solutions to protect patient information, growing healthcare fraud and medical identity theft cases, and rising adoption of electronic health records (EHRs) and electronic prescribing (e-prescribing) systems are driving the demand for healthcare biometric solutions in the region. for example, Canada has also made significant progress in the adoption of EHRs, with 96% of physicians and 85% of hospitals using some form of electronic medical records, according to Canada Health Infoway.
Europe is a significant market for healthcare biometrics due to the presence of well-established healthcare infrastructure, favorable government initiatives, and the high adoption of healthcare IT systems. Countries such as the UK, Germany, France, and Spain are driving the growth of the healthcare biometrics market in Europe. The increasing demand for patient identification and verification solutions, the rising prevalence of healthcare fraud, and the need for secure access to electronic health records are some of the factors driving the adoption of biometric technology in healthcare in Europe. A 2020 study by the European Parliament's Committee on Budgetary Control found that healthcare fraud and errors in EU member states accounted for an estimated 3-4% of total healthcare spending.