AI Fuels Biometrics Market Growth: National ID Projects and Acquisitions.ge

Published Date : 10/18/2025 

The biometrics industry is experiencing a significant upswing, driven by advancements in AI and national digital ID projects. This article explores recent developments, including notable acquisitions and ambitious national ID initiatives in countries like Malaysia, Ethiopia, and Bhutan. 

The biometrics market is witnessing a surge, fueled by AI and favorable economic conditions. This environment is ripe for more acquisitions, as evidenced by recent notable examples. National digital ID projects are also providing a significant boost to biometrics and digital ID technology providers. From Malaysia to Ethiopia and India to Bhutan, these projects showcase the breadth of opportunities in this sector.

World is pushing back on the Philippines’ data privacy authority’s order that Tools for Humanity cease and desist biometrics collection in the country. The company is appealing the order, arguing that it represents a sudden change in interpreting the law after a full year of consultation. Tools for Humanity maintains that it does not store, sell, or purchase biometric data.

Meanwhile, deepfakes and synthetic content from generative AI video app Sora, founded by Sam Altman of OpenAI, are flooding social media. World predicts that 90 percent of online content will be AI-generated within a year, making the market for its humanity verification technology very large.

Malaysia aims to reach 15 million users for its national digital ID by the end of this year, as announced by Prime Minister Datuk Seri Anwar Ibrahim. The government is allocating millions of dollars to scale up both users and use cases for MyDigital ID, as part of a broader digital transformation.

Ethiopia is accelerating its efforts to issue the Fayda digital identity to 40 million more people by the end of the year, with more registration centers and rural outreach initiatives. The goal is to reach 63 million issued by the end of this year, on the way to a target of 90 million by 2027.

In the UK, debate has begun in Parliament over the proposed national digital ID, which would be mandatory for all working people. Representatives from various organizations, including the Tony Blair Institute and Yoti, have provided insights to address objections and inform the public.

In India, the UIDAI is enhancing its digital ID system with capabilities for deepfake and liveness detection and contactless fingerprint biometrics. To achieve this, the UIDAI has launched challenges for startups, academics, and industry players to develop domestic solutions and protect the system from fraud.

On the other end of the centralization spectrum, Bhutan is migrating its digital ID to Ethereum to gain the resiliency that comes with its highly decentralized nature. Ethereum Co-founder Vitalik Buterin was present for the start of the SSI system’s switchover.

BixeLab has unveiled its new, larger lab facility with robotic testing capabilities, dedicated areas for environmental control, and tools to accurately replicate advanced deepfake and presentation attacks. The internationally recognized biometrics testing lab has also expanded its accreditations, with Aware passing its first assessment for FIDO Face Verification Certification.

Visa is positioning its Payment Passkeys for growth in several regions. The company has signed its first deal with a payment service provider to bring them to ecommerce in the Middle East, which is expected to increase card payments in India. APAC is already leading in cashless payments.

The investment market in biometrics and digital identity remains steady, but conditions for acquisitions and stock launches have ripened. AI and lowering interest rates are seen as M&A tailwinds, and the U.S. government has signaled support for digital ID, albeit unevenly. Coppernic recently completed a deal for hardware provider Fovea, France, gaining a network of law enforcement and security customers.

HID is integrating IDmelon’s portfolio of passkey and FIDO authentication after reaching an agreement to acquire the Canadian logical access control provider. This move aligns with HID’s shift towards FIDO and provides customers with an easy path to passwordless authentication with identifiers they already use.

However, a cautionary note is necessary: people with facial differences, such as Freeman-Sheldon syndrome, are having their photos rejected by software making automated image quality checks. As face biometrics become more prevalent, alternative methods of verification are essential to avoid excluding these individuals.

Please share any videos, editorials, or other content relevant to the biometrics and digital identity community in the comments below or through social media. 

Frequently Asked Questions (FAQS): 

Q: What are the key drivers boosting the biometrics market?

A: AI advancements and favorable economic conditions are key drivers boosting the biometrics market, creating an environment ripe for acquisitions and growth.

Q: What is Malaysia's target for its national digital ID by the end of 2026?

A: Malaysia aims to reach 15 million users for its national digital ID, MyDigital ID, by the end of 2026, with significant funding allocated for this initiative.

Q: How is Ethiopia expanding its digital ID program?

A: Ethiopia is aiming to issue the Fayda digital identity to 40 million more people by the end of the year, with plans to reach 63 million by the end of 2023 and 90 million by 2027.

Q: What new capabilities is the UIDAI developing for India's digital ID system?

A: The UIDAI is developing capabilities for deepfake and liveness detection and contactless fingerprint biometrics to protect its digital ID system from fraud.

Q: Why is Bhutan migrating its digital ID to Ethereum?

A: Bhutan is migrating its digital ID to Ethereum to gain the resiliency that comes with its highly decentralized nature, enhancing the security and reliability of the system. 

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