Depending on which figures you trust, the biometrics industry is forecast to reach as much as US$26.8 billion in revenues by 2020, according to ABI Research, or $19.7 billion by 2020, according to IndustryArc.Meanwhile, in 2015, ABI says the industry generated $13 billion, while IndustryArc pegged the industry size at $5.9 billion in 2014, growing at a healthy CAGR of 22%.ABI Research says that despite progress, significant challenges remain. Dimitrios Pavlakis, Research Analyst at the company, explains: “The overly advertised False Acceptance and False Rejection metrics are simply one part of a larger equation which includes: data quality, data storage, scalability, compatibility, application effectiveness, environmental fluctuations, and technical specifications among others.”ABI's report says near-infrared iris recognition technology is a promising up-and-comer for both smartphone applications and enterprise access control, while ultrasound fingerprint and vein recognition companies are looking to establish their dominance in banking and finance applications. Shortcomings in facial recognition, solid-state, and optical fingerprint technology are being revisited with companies unveiling new commercial deployments to secure their position in the market but some technical issues keep them from delivering to their full potential, the report author's claim.IndustryArc authors say that growing demand for data protection in electronic devices (laptops, tablets, and mobile), financial services and government documents is set to drive the biometric market.Americas dominated the market in 2014, said IndustryArc, followed by Europe. APAC and RoW regions are the growth regions, however, pacing at higher annual growth rates. With greater disposable income and high demand from consumers, these regions are projected to witness quick growth in the market. Apart from these, government initiatives in law enforcement and defense also immensely hike the market value, the company predicts.IndustryArc says the biometric market is characterized by established brands with high revenue; high R&D capital reserves and well instituted distribution channels. But, the market place is also being disrupted by firms with innovative solutions that have emerged to solve specific problems.IndustryArc said the introduction of biometrics into consumer electronics will further expand due to technological innovations and higher user demand. Meanwhile, the firm predicts that by 2020, 92% of the biometric devices employed in Enterprises will be Multi-factor.