Biometric security technologies—such as fingerprint, facial recognition, iris scanning, and voice authentication—are increasingly vital for secure access control, identity verification, and fraud prevention. As cyber threats escalate and digital identity becomes central to personal and corporate security, biometric security companies are positioned for robust growth in 2025 and beyond.
Why invest in biometric security?
- Rising security threats: Increasing cyberattacks and identity fraud drive demand for stronger authentication methods.
- Regulatory push: Governments mandate multi-factor and biometric authentication in financial services, healthcare, and border control.
- Consumer adoption: Smartphones, laptops, and IoT devices widely integrate biometrics for user convenience and security.
- Enterprise and government use: Biometric systems are used in physical security, workforce management, and law enforcement.
Leading publicly traded biometric security companies
1. IDEX Biometrics ASA (OTC: IDXBF / OSE: IDE)
- Focus: Fingerprint sensor technology for smart cards, mobile devices, and IoT applications
- Innovation: Developing thin, flexible sensors with high accuracy and security
2. NEC Corporation (TYO: 6701)
- Business: Offers facial recognition, fingerprint, and iris scanning systems worldwide
- Strength: Strong government and enterprise customer base; extensive R&D
3. Thales Group (EPA: HO)
- Focus: Provides biometric identity management solutions for border control, defense, and civil applications
- Portfolio: Combines biometrics with cybersecurity and encryption technologies
4. F5, Inc. (NASDAQ: FFIV)
- Offering: Integrates biometric authentication into broader cybersecurity and application delivery platforms
- Strategy: Enhances identity and access management solutions with biometrics
5. BIO-key International, Inc. (NASDAQ: BKYI)
- Products: Fingerprint biometrics and multi-factor authentication solutions for enterprises
- Growth: Expanding cloud-based biometric identity services
Emerging trends driving growth
- AI-enhanced biometrics: Improved accuracy and spoof detection using machine learning
- Biometrics-as-a-Service: Cloud delivery models making deployment scalable and cost-effective
- Integration with blockchain: Secure, decentralized identity verification systems
- Contactless authentication: Accelerated by pandemic-related hygiene concerns
ETFs with biometric and cybersecurity exposure
- Global X Cybersecurity ETF (BUG)
- ETFMG Prime Cyber Security ETF (HACK)
- ARK Next Generation Internet ETF (ARKW)
These ETFs include biometric technology firms as part of broader security and digital identity themes.
Investment considerations
- Privacy concerns: Regulatory and consumer pushback may affect adoption
- Technology competition: Multiple modalities and providers compete for market share
- Integration challenges: Biometric systems must work seamlessly with existing infrastructure
- Global expansion: Growth potential varies by region due to regulations and infrastructure
Biometric security companies are at the forefront of identity verification and access control in an increasingly digital world. Investors focusing on innovators with strong technology, diverse applications, and global reach can capture growth in this expanding security segment in 2025 and beyond.