Behavioral Biometric Market in Indonesia

Behavioral Biometric in Indonesia Trends and Forecast

The future of the behavioral biometric market in Indonesia looks promising with opportunities in the BFSI, retail and e-commerce, healthcare, IT & telecom, and government and defense markets. The global behavioral biometric market is expected to reach an estimated $3.2 billion by 2031 with a CAGR of 23.4% from 2025 to 2031. The behavioral biometric market in Indonesia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are an increase in fraudulent activities and online transactions worldwide and the growing demand for multi-layer security in the finance sector.

• Lucintel forecasts that, within the application category, identity verification & validation will remain the largest segment over the forecast period because the users are given several authentication choices based on their privilege levels.

Emerging Trends in the Behavioral Biometric Market in Indonesia

Indonesia’s behavioral biometric market is rapidly evolving as businesses and government agencies increasingly adopt advanced security technologies to enhance user authentication. The rising demand for secure, frictionless access to digital services, coupled with the nation’s growing digital infrastructure, has led to the integration of behavioral biometrics across various sectors. These emerging trends highlight the drive for more secure, user-friendly, and cost-effective methods to combat cybercrime and fraud.

• Adoption of Behavioral Biometrics in Financial Services: Financial institutions in Indonesia are integrating behavioral biometrics to combat online fraud and enhance digital banking security. By analyzing user behavior such as typing speed, mouse movement, and touchscreen gestures, banks can verify identities without additional authentication steps. This trend improves customer experience by reducing friction while enhancing fraud detection, making financial transactions more secure in a country with an increasing reliance on digital payments.
• Integration with Mobile Payment Solutions: With the rapid growth of mobile payments in Indonesia, behavioral biometrics are being integrated into mobile wallets like GoPay and OVO. These platforms now use behavioral patterns to authenticate users during transactions, providing a more secure and seamless payment experience. This trend helps businesses minimize fraud, protect sensitive user data, and enhance consumer trust in digital payment solutions, making mobile commerce safer and more user-friendly.
• Behavioral Biometrics for Government Services and Identity Verification: The Indonesian government is exploring the use of behavioral biometrics to enhance security for public services, including online tax filing, social welfare distribution, and e-government services. By integrating behavioral traits such as typing dynamics or interaction patterns with the country’s national ID system, the government can ensure more accurate identity verification, improving service delivery and reducing fraud in essential public services.
• Use of Behavioral Biometrics in E-Commerce Platforms: E-commerce platforms in Indonesia, including Tokopedia and Bukalapak, are increasingly using behavioral biometrics to prevent fraud and enhance the user experience. By analyzing how consumers interact with the platform—such as their mouse movements, typing speed, and scrolling behavior—e-commerce companies can identify irregularities that may signal fraudulent activities. This development improves the security of online shopping and helps build consumer confidence in the e-commerce sector.
• Behavioral Biometrics for Cybersecurity in Enterprises: As cyber threats continue to evolve, enterprises in Indonesia are incorporating behavioral biometrics into their cybersecurity protocols to protect sensitive data and prevent unauthorized access. By monitoring employee behavior—such as login patterns, typing rhythm, and device usage—businesses can enhance internal security without compromising productivity. This trend ensures that companies can securely manage their operations while minimizing the risk of internal threats and data breaches.

The behavioral biometric market in Indonesia is being reshaped by trends that prioritize user security, convenience, and trust across multiple industries. From financial services and mobile payments to government services and cybersecurity, the adoption of behavioral biometrics is creating a more secure and seamless digital ecosystem. These trends not only help prevent fraud but also provide businesses and consumers with an enhanced experience, contributing to the country’s ongoing digital transformation.

Recent Developments in the Behavioral Biometric Market in Indonesia

Indonesia’s behavioral biometric market is undergoing transformative changes, with both private and public sectors investing in technologies that improve security and enhance the user experience. With growing digital adoption across sectors like banking, e-commerce, and government services, behavioral biometrics are increasingly becoming a part of the security infrastructure.

• Introduction of Behavioral Biometrics in Digital Banking: Indonesia’s leading banks have begun integrating behavioral biometrics to strengthen digital banking security. By analyzing behavioral patterns such as typing speed and finger pressure, banks can identify legitimate users and prevent fraud in real-time. This development helps reduce fraudulent transactions while improving the overall banking experience, especially in mobile banking, where users increasingly demand security and convenience.
• Collaborations with E-Commerce Giants for Fraud Prevention: Major e-commerce players in Indonesia, such as Tokopedia and Lazada, are working with cybersecurity firms to implement behavioral biometric solutions for fraud detection. By analyzing how users interact with the website—such as mouse movements and typing rhythm—these platforms can detect abnormal behavior indicative of fraud. This helps mitigate account takeovers and unauthorized purchases, strengthening consumer trust in online shopping.
• Government Initiatives for Secure Digital Services: Indonesia’s government has initiated programs to incorporate behavioral biometrics into national digital services. By utilizing behavioral patterns alongside traditional biometrics, the government aims to improve identity verification and reduce fraud in public services like tax filing and welfare programs. This development aligns with Indonesia’s Digital Roadmap 2020-2024, emphasizing secure and efficient public services for citizens.
• Growth of Mobile Payments and Behavioral Biometrics Integration: With mobile payments growing rapidly, companies like GoPay and OVO have started using behavioral biometrics to authenticate users during financial transactions. By analyzing behavioral traits, these platforms can offer a higher level of fraud prevention while making the payment process more user-friendly. As mobile payment adoption increases in Indonesia, the role of behavioral biometrics in securing these transactions is becoming even more critical.
• Increased Investment in Cybersecurity by Enterprises: Enterprises in Indonesia are investing in behavioral biometrics as part of their broader cybersecurity strategy. By focusing on employee behavior during system logins and internal operations, businesses can detect anomalies and protect against internal threats. This technology is helping companies safeguard sensitive data while maintaining secure access for authorized users, particularly in sectors like finance and technology.

Recent developments in Indonesia’s behavioral biometric market highlight the growing importance of security, fraud prevention, and seamless digital experiences across industries. From the banking sector to e-commerce and government services, these advancements are creating a safer digital ecosystem for users and businesses alike. As these technologies continue to evolve, Indonesia is positioned to be a key player in the global behavioral biometric market, driving innovations in digital security and user authentication.

Strategic Growth Opportunities for Behavioral Biometric Market in Indonesia

The behavioral biometric market in Indonesia is poised for significant growth due to an increasing demand for secure and frictionless authentication methods across various industries. With the expansion of digital services and rising cybersecurity threats, businesses are seeking innovative ways to authenticate users while ensuring a seamless experience. Behavioral biometrics, which focus on unique patterns in human behavior, provide a non-intrusive, efficient solution. Key sectors such as banking, e-commerce, and government services are adopting these technologies to enhance security and user experience, presenting substantial growth opportunities in Indonesia.

• Financial Services Applications: The financial services sector in Indonesia is increasingly focusing on secure and efficient authentication to protect users from fraud. Behavioral biometrics provide a reliable solution by continuously monitoring unique patterns like keystroke dynamics and device interactions. These patterns help detect unusual behavior and prevent fraudulent activities, such as account takeovers. With the rapid rise in digital banking and mobile payment apps, behavioral biometrics enable seamless, non-intrusive authentication, enhancing user experience while improving security. The demand for such technologies is expected to grow as online transactions continue to increase in Indonesia.
• E-commerce and Retail Applications: Indonesia‘s e-commerce sector is growing rapidly, and behavioral biometrics can play a crucial role in securing online transactions and preventing fraud. By analyzing user behavior, such as browsing patterns, click paths, and transaction histories, behavioral biometrics systems can effectively identify anomalies and fraud attempts. This technology offers frictionless authentication, improving customer satisfaction by reducing the need for multiple login attempts or verification steps. As the e-commerce market in Indonesia expands, businesses are looking for cost-effective ways to secure user transactions, and behavioral biometrics offer a scalable, efficient solution.
• Telecommunications Applications: The telecommunications sector in Indonesia is also embracing behavioral biometrics to enhance security and protect users from SIM card fraud, account hijacking, and unauthorized access. Telecom companies are adopting behavioral biometrics to monitor user behavior, including call frequency and device usage, to continuously verify the identity of users. This background authentication reduces the risk of fraud and offers seamless security, ensuring that users do not face disruption in their service experience. With the growing demand for mobile-based services, the application of behavioral biometrics in telecom is expected to rise significantly.
• Healthcare Applications: As healthcare services in Indonesia increasingly adopt digital platforms, protecting sensitive patient data becomes paramount. Behavioral biometrics can help secure patient information by ensuring that only authorized personnel can access medical records. Additionally, these systems streamline patient check-ins by providing non-intrusive identity verification, reducing wait times. The application of behavioral biometrics in healthcare also extends to telemedicine, where secure user authentication is crucial. With increasing concerns over medical data breaches, behavioral biometrics provide an effective, frictionless solution to enhance both security and patient experience in Indonesia’s healthcare sector.
• Government and Public Sector Applications: The Indonesian government is adopting behavioral biometrics for secure identification and authentication across various public service platforms. These technologies help secure access to government services, such as tax filing, welfare programs, and digital identity verification. Behavioral biometrics offer a seamless way to ensure that only authorized users can access sensitive governmental data, reducing fraud risks. With Indonesia’s push for digitalization and online public services, integrating behavioral biometrics will play a critical role in ensuring security and trust in the digital government infrastructure.

The growth of the behavioral biometric market in Indonesia is driven by the need for secure, non-intrusive authentication solutions across sectors such as finance, e-commerce, telecommunications, healthcare, and government. These applications are increasingly critical as Indonesia’s digital infrastructure expands. Behavioral biometrics provide the dual benefit of enhanced security and improved user experience, positioning them as a key technology for the future. The growing adoption across industries presents significant market opportunities as businesses and government agencies look for reliable solutions to combat fraud and ensure seamless digital interactions.

Behavioral Biometric Market in Indonesia Driver and Challenges

The behavioral biometric market in Indonesia is influenced by a mix of technological advancements, economic growth, regulatory changes, and security concerns. Key drivers include the growth of digital services, the increasing frequency of cyber threats, and the push for secure digital identities by the government. However, challenges such as privacy concerns, high implementation costs, and limited market awareness pose obstacles. To unlock the market’s potential, addressing these issues through education, regulation, and affordable solutions is critical.

The factors responsible for driving the behavioral biometric market in Indonesia include:
• Technological Advancements: Advancements in artificial intelligence (AI) and machine learning are key drivers of the behavioral biometric market in Indonesia. These technologies enable systems to analyze complex user behaviors, such as keystroke patterns and device interactions, to improve security. AI algorithms continuously evolve and learn from user interactions, leading to more accurate authentication and fraud detection. As these technologies become more accessible and cost-effective, their adoption is expected to grow rapidly, providing Indonesian businesses with scalable and reliable security solutions.
• Increase in Cybersecurity Threats: With the rise in cybercrime and identity theft, businesses in Indonesia are seeking more robust security measures. Behavioral biometrics address this issue by continuously monitoring and analyzing user behavior, helping to detect and prevent fraudulent activities in real-time. As digital transactions and online services increase, the risk of cyber threats also rises, driving the need for enhanced security measures. Behavioral biometrics provide a non-intrusive solution to protect sensitive data and reduce the impact of cybersecurity breaches in various sectors such as banking and telecommunications.
• Government Initiatives for Digitalization: Indonesia’s push for digitalization, especially through initiatives like the Digital Indonesia program, has created a strong demand for secure authentication technologies. The government is actively encouraging the adoption of digital identity systems, which require secure and seamless user authentication. Behavioral biometrics offer an ideal solution by providing continuous, background authentication without the need for traditional passwords. As Indonesia‘s government continues to expand digital services, the adoption of behavioral biometrics will become increasingly essential for securing online interactions and public sector services.
• Growing E-commerce Market: Indonesia’s booming e-commerce industry is another major driver for the adoption of behavioral biometrics. As online shopping grows, so does the need for secure and frictionless user authentication. Behavioral biometrics can analyze user patterns, such as browsing and purchasing behavior, to prevent fraudulent transactions, providing a seamless shopping experience. This technology also allows businesses to build trust with consumers by offering an additional layer of security. The expansion of e-commerce in Indonesia is expected to drive the demand for behavioral biometrics in the coming years.
• Need for Seamless User Experience: Consumers in Indonesia are demanding more user-friendly, frictionless digital experiences, especially in online banking, e-commerce, and telecommunications. Behavioral biometrics provide continuous authentication in the background, eliminating the need for multiple logins or password entries. This seamless authentication process enhances the user experience by reducing friction and improving convenience. As digital services in Indonesia grow, the demand for solutions that combine security with ease of use will continue to drive the adoption of behavioral biometrics.

Challenges in the behavioral biometric market in Indonesia are:
• Privacy Concerns: Privacy is a significant concern for both businesses and consumers in Indonesia, especially with the growing use of personal data for authentication. While behavioral biometrics enhance security, they also raise questions about data privacy and user consent. The collection of behavioral data, such as keystrokes and device patterns, must be carefully managed to avoid privacy violations. To overcome this challenge, businesses must ensure transparency in their data collection practices, comply with data protection regulations, and educate consumers on how their data is used.
• High Costs of Implementation: Implementing behavioral biometrics can be costly, particularly for small businesses in Indonesia. The technology requires investment in software, hardware, and infrastructure to integrate with existing systems. Additionally, ongoing maintenance and training costs can further increase the financial burden. To mitigate this, vendors should focus on providing affordable and scalable solutions that cater to businesses of all sizes. By reducing implementation costs, the broader adoption of behavioral biometrics can be facilitated in the Indonesian market.
• Limited Market Awareness: Despite the growing demand for secure digital services, there is still limited awareness about the benefits and applications of behavioral biometrics in Indonesia. Many businesses are unfamiliar with this technology, and consumers may have concerns about its reliability and privacy. To overcome this challenge, companies must educate both businesses and consumers about the advantages of behavioral biometrics through awareness campaigns and demonstrations. Building trust and understanding will be key to accelerating market growth in Indonesia.

The behavioral biometric market in Indonesia is experiencing strong growth, driven by technological advancements, an increase in cyber threats, and the government’s push for digitalization. However, privacy concerns, high implementation costs, and limited market awareness remain challenges. Overcoming these challenges through transparent practices, affordable solutions, and increased education will accelerate adoption. As digital services continue to grow in Indonesia, behavioral biometrics will become an essential tool for secure and seamless user authentication, providing significant growth opportunities across multiple industries.

List of Behavioral Biometric Market in Indonesia Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, behavioral biometric companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the behavioral biometric companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10

Behavioral Biometric Market in Indonesia by Segment

The study includes a forecast for the behavioral biometric market in Indonesia by solution, organization size, application, and end use.

Behavioral Biometric Market in Indonesia by Solution [Analysis by Value from 2019 to 2031]:

• Behavioral Biometrics Software
• Services

Behavioral Biometric Market in Indonesia by Organization Size [Analysis by Value from 2019 to 2031]:

• Small and Medium-Sized Enterprises
• Large Enterprises

Features of the Behavioral Biometric Market in Indonesia

Market Size Estimates: Behavioral biometric in Indonesia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Behavioral biometric in Indonesia market size by solution, organization size, application, and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different solution, organization size, application, and end use for the behavioral biometric in Indonesia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the behavioral biometric in Indonesia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

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FAQ

Q1. What are the major drivers influencing the growth of the behavioral biometric market in Indonesia?
Answer: The major drivers for this market are an increase in fraudulent activities and online transactions worldwide and the growing demand for multi-layer security in the finance sector.
Q2. What are the major segments for behavioral biometric market in Indonesia?
Answer: The future of the behavioral biometric market in Indonesia looks promising with opportunities in the BFSI, retail and e-commerce, healthcare, IT & telecom, and government and defense markets.
Q3. Which behavioral biometric market segment in Indonesia will be the largest in future?
Answer: Lucintel forecasts that identity verification & validation will remain the largest segment over the forecast period because the users are given several authentication choices based on their privilege levels.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 10 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the behavioral biometric market in Indonesia by solution (behavioral biometrics software and services), organization size (small and medium-sized enterprises and large enterprises), application (identity verification & validation, fraud prevention, multi-factor authentication, and others), and end use (BFSI, retail and e-commerce, healthcare, IT & telecom, and government and defense)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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