(MENAFN- GlobeNewsWire - Nasdaq) The market is rapidly maturing, driven by urgent cybersecurity needs. Financial institutions are leading adoption, proving the technology's value in fraud reduction. A key focus is now on balancing robust security with a seamless, non-intrusive user experience.

Chicago, Nov. 21, 2025 (GLOBE NEWSWIRE) -- The global behavioral biometrics market was valued at US$ 2.98 billion in 2024 and is expected to reach US$ 18.39 billion by 2033, growing at a CAGR of 22.41% from 2025 to 2033.

The behavioral biometrics market is experiencing a significant surge in demand. A primary driver for this growth is the astronomical financial toll of digital fraud. Organizations are seeking more sophisticated security layers beyond traditional methods. Global cybercrime costs are forecasted to hit an astonishing US$ 9.5 trillion in 2024. Consequently, a need for continuous and passive authentication solutions is becoming paramount. These advanced systems offer a defense against evolving threats by analyzing user-specific interaction patterns.

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On a daily basis, these damages translate to US$ 26 billion in 2024. Furthermore, the value of e-commerce fraud was projected to reach US$ 44.3 billion in 2024, with forecasts showing potential losses exceeding US$ 107 billion by 2029. During the critical 2024 holiday season alone, e-commerce businesses faced potential losses of US$ 1.79 billion. Between November 22 and December 2, 2024, the industry saw an estimated US$ 681.12 million in fraud-related losses, highlighting a critical vulnerability that is accelerating the adoption of behavioral biometrics.

Key Findings in Behavioral Biometrics Market

Market Forecast (2033)	US$ 18.39 billion
CAGR	22.41%
Largest Region (2024)	North America (37.50%)
By Component	Software (69.38%)
By Type	Voice Recognition (37.38%)
By Application	identity-proofing (33.17%)
By Industry	BFSI (27.82%)
By Organization Size	Large Enterprises (73.84%)
By Deployment	On-Premise (63.44%)
Top Drivers	Escalating threats from sophisticated, AI-powered deepfakes and synthetic identities. Growing consumer demand for seamless and non-intrusive authentication experiences. The imperative to secure expanding remote workforces and cloud-based assets.
Top Trends	Combining multiple biometric modalities for more resilient, layered security defenses. Shifting from one-time login to continuous authentication during user sessions. Adopting privacy-enhancing technologies to safeguard sensitive biometric template data securely.
Top Challenges	Addressing public and regulatory concerns over biometric data privacy effectively. Improving algorithmic accuracy and fairness across diverse global user populations. Staying ahead of rapidly evolving adversarial attacks designed to fool systems.

Escalating Volume of Digital Threats Fuels Unprecedented Market Expansion

The sheer volume of cyberattacks is exposing the weaknesses of legacy security systems. In the first half of 2025, there were 1,732 publicly reported data breaches in the United States alone. These incidents resulted in an astounding 114,582,621 victim notices being issued. The financial services sector was the most targeted industry in the behavioral biometrics market, suffering 387 data breaches in that same period. Such statistics reveal a security landscape where static credentials are no longer sufficient for protection.

A series of high-profile incidents further underscores the urgent need for market evolution. For example, a major breach at Flagstar Bank in 2021 resulted in a fine of US$ 3.5 million. In 2025, a former employee of the Consumer Financial Protection Bureau (CFPB) compromised the data of 256,000 consumers and exposed confidential information from 45 financial institutions. More recently, in November 2025, the Qilin ransomware group claimed to have stolen over 2.5 terabytes of data, compromising nearly two million files from Habib Bank AG Zurich.

Stringent Global Regulations are Forcing Widespread Industry-Wide Technology Adoption in the Behavioral Biometrics Market

Governments and regulatory bodies worldwide are enacting stricter data protection laws. Consequently, the cost of non-compliance is becoming a powerful motivator for technological investment. The cumulative fines levied under GDPR, for example, reached a staggering EUR 1.2 billion in 2024. Enterprises are actively seeking solutions that can help them meet these stringent requirements. The behavioral biometrics market offers a viable path toward enhanced compliance and data security.

High-profile penalties illustrate the severe consequences of data mismanagement. In a single 2024 case, LinkedIn was fined EUR 310 million by the Irish Data Protection Commission. Ride-hailing app Uber faced a EUR 290 million fine in August 2024, while Meta received a fine of EUR 251 million for a past data breach. Other significant penalties include a EUR 79.1 million fine for Italian energy company Enel Energia, a EUR 32 million fine for Amazon France Logistique, and a EUR 30.5 million fine for Clearview AI. In 2025, TikTok was fined EUR 530 million, reinforcing the financial imperative for robust security.

Obsolete Security Systems Create Huge Cost Burdens and Drive Modernization

Traditional authentication methods are not only insecure but also incredibly inefficient and expensive. The reliance on passwords creates significant operational overhead for businesses. For instance, the average cost for a single, manually handled password reset is estimated to be a substantial US$ 70. For a company with just 1,000 employees, two resets per employee annually can accumulate to US$ 140,000 in operational costs, diverting resources from core business functions.

These expenses scale dramatically in larger organizations, where password-related support costs can easily exceed US$ 1 million annually. A firm with 5,000 employees might face US$ 350,000 in wasted costs each year from password reset incidents alone. The direct help-desk cost for a Level-1 ticket is approximately US$ 22. In stark contrast, a fully automated self-service password reset costs only US$ 2, presenting a clear financial argument for modernizing authentication workflows. The behavioral biometrics market is positioned to address these inefficiencies directly.

Strong Venture Capital Investment Signals Immense Confidence In Market Growth Potential

The investment community has shown tremendous confidence in the behavioral biometrics market. Significant capital inflows are fueling innovation and expansion across the sector. The average investment value per funding round in the broader biometrics industry stands at a healthy US$ 15.5 million. There are currently 17 behavioral biometrics startups with an aggregate funding of US$ 576.6 million as of late 2025, indicating a vibrant and competitive landscape.

Leading players are attracting substantial financial backing. For example, BehavioSec has successfully raised a total of US$ 25.8 million in funding, which includes a successful Series B round that brought in US$ 17.5 million. In a landmark deal, BioCatch was acquired by Permira in May 2024 for a valuation of US$ 1.3 billion. Prior to its acquisition, BioCatch had raised over US$ 200 million in total funding, including a US$ 40 million growth investment from Permira in May 2023, showcasing strong investor belief in the technology's future.

Banking and Financial Sector Dominates as Primary Market Adopter

The Banking, Financial Services, and Insurance (BFSI) industry remains the largest and most crucial segment for the behavioral biometrics market. Market leader BioCatch exemplifies this dominance with impressive performance indicators. In 2024, the company achieved a fiscal-year record for new sales, surpassing US$ 40 million. By the second quarter of 2025, its annual recurring revenue (ARR) exceeded US$ 160 million. ARR generated through its partner ecosystem also surpassed US$ 10 million in that same quarter.

The company's growth trajectory is remarkable in the behavioral biometrics market. Its North America business alone surpassed US$ 50 million in ARR during Q2 2025. Customer acquisition has been rapid, with 36 new customers onboarded in the first half of 2024, another 31 in the third quarter of 2024, and over 20 more in the second quarter of 2025. As of June 2025, BioCatch's global customer roster surpassed 280 financial institutions. This competitive landscape features 73 active competitors, with key players like BehavioSec holding 59 patents.

Advanced Platform Scalability Demonstrates Readiness For Enterprise-Level Global Deployments

The technological maturity of leading platforms is a key driver of market growth. These systems are now capable of processing immense volumes of data in real-time. As of July 2025, BioCatch analyzes more than 15 billion user sessions per month, a significant increase from the 11 billion sessions processed monthly in the first half of 2024. The platform protects a massive user base of more than 525 million people globally, up from 400 million banking customers in H1 2024.

This scalability extends to device protection, with over 1.6 billion devices currently secured by the technology. The platform's effectiveness is clear across the behavioral biometrics market; in 2024 alone, BioCatch's technology stopped an estimated US$ 3.7 billion in fraudulent transactions. Cumulatively, the company has prevented an estimated US$ 4.72 billion in fraud as of the first half of 2024. Furthermore, in 2024, its systems helped APAC banks shut down more than 150,000 money mule accounts, demonstrating powerful, real-world impact.

Expanding Global Workforce and Geographic Reach Underscore Widespread Market Maturity

The growth of the behavioral biometrics market is also reflected in its human capital and geographic expansion. Leading companies are rapidly expanding their teams to support global demand. BioCatch's total headcount grew to more than 400 employees by mid-2025, representing an addition of 74 new employees in the first half of the year alone. This follows the onboarding of 48 new employees in H1 2024, which brought the total to over 330. Today, its employees are spread across 25 different nations.

This global footprint is mirrored in its customer base and strategic initiatives. As of 2025, BioCatch's customers are located in more than 20 countries. The company achieved a major milestone by landing its first customer in France in 2024. The APAC region is a key growth area, with India's ARR multiplying by a factor of nearly six in H1 2024. Strategic launches, such as BioCatch TrustTM Australia in November 2023 and BioCatch TrustTM Argentina in May 2025, further demonstrate a commitment to building international intelligence-sharing networks.

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Exceptional Customer Satisfaction Scores Solidify Trust and Drive Long-Term Partnerships

Ultimately, the value of the behavioral biometrics market is measured by customer trust and satisfaction. Leading providers are not only preventing fraud but are also enhancing the user experience. BioCatch holds a world-class Net Promoter Score (NPS) of 72, indicating exceptional customer loyalty and satisfaction. High praise from users further validates the technology's performance and service quality in real-world scenarios.

In 2024, the company received 20 Gartner Peer Insights reviews, achieving an outstanding average rating of 4.95 out of 5. This level of positive feedback in the behavioral biometrics market is a powerful testament to the solution's effectiveness and the company's commitment to service excellence. Furthermore, the strong backing from the investment community, such as the 15 institutional investors supporting BehavioSec, reinforces the long-term viability and promise of these technologies. High satisfaction ensures strong, lasting partnerships with clients.

Global Behavioral Biometrics Market Major Players:

• Mastercard Incorporated.
• BioCatch Ltd.
• Ping Identity
• Prove Identity Inc.
• Fair Issac Corporation
• ThreatMark
• Plurilock Security Solutions Inc.
• SecureAuth Corporation
• Zighra
• IBM Corporation
• NEC Corporation
• Microsoft Corp.
• Other Prominent Players

Market Segmentation Overview:

By Component

• Software
• Services

By Type

• Voice Recognition
• Keystroke Dynamics
• Gait Analysis
• Signature Analysis
• Others

By Deployment

• On Premise
• Cloud

By Application

• Risk & Compliance Management
• Identity Proofing
• Continuous Authentication
• Fraud Detection & Prevention

By Organization Size

• Large Enterprises
• SMEs

By Industry

• Retail & E-commerce
• Healthcare
• BFSI
• Government & Defense
• IT & Telecom
• Others

By Region

• North America
• Europe
• Asia Pacific
• Middle East & Africa (MEA)
• South America

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