The global facial recognition market was valued at USD 5.21 billion in 2022. It is projected to reach USD 21.56 billion by 2031, growing with a CAGR of 17.1% during the forecast period (2023–2031).
The growing number of cyber threats has taken the world by storm, where the traditional access method for digital identity is no longer safe. To secure the credentials, the influx of various biometrics recognition technologies essayed to bring forth an unbreachable system. One of the technologies improving the security and adaptability of digital identities is facial recognition. The technology uses biometrics to map the facial contours from a video or an image, analyzing information with the database that assists in verifying personal identity. Facial recognition technology is employed across several application areas — airports, smartphones, social networking platforms, education institutes, and retail stores, among others.
The facial recognition market is expected to grow rapidly, owing to its utilization in several fields, from surveillance to marketing. The growing awareness regarding facial recognition technology across the industry verticals is attributed to propel the demand for the facial recognition technology market in the near future. For instance, in September 2019, the Norfolk Animal Care and Adoption Center partnered with Finding Rover to help find lost pets in Norfolk, Virginia.
The facial recognition system is able to identify a specific individual within a crowd. This skill has the potential to serve a number of applications, including law enforcement, national security, and counterterrorism. Facial recognition technology can detect suspicious activities or questionable individuals from a mile away without any physical interaction. After being connected to a surveillance system, the device monitors outdoor and indoor areas and warns authorities if it detects the presence of known or suspected terrorists and criminals whose images are already stored in the system's database. Due to the ability to spot suspicious behavior from a mile away and the rise in criminal activities such as terrorist attacks, frauds, robberies, and murders, businesses and governments are interested in deploying face recognition technology at their facilities. Consequently, it is emerging as a highly advantageous security solution used at ATMs, airports, supermarkets, and other public spaces. Governments all over the globe are investing a substantial amount of their resources in this industry, with the US and China being considered the major adopters of facial recognition systems.
Although facial recognition software offers many advantages over fingerprint and voice recognition technology, its technical limitations prevent it from delivering 100 percent accurate results. The image quality, image size, face angle, and storage concerns are among the most significant technological obstacles investigators who use facial recognition technology must overcome. Current face recognition still occasionally identifies the wrong suspect, leading to criticism. Insufficient illumination or if the subject's face is partially obscured by sunglasses, hats, scarves, long hair, makeup, or a mask are additional circumstances in which face recognition cannot provide accurate results. These issues hinder the market's expansion.
The global facial recognition market is segmented by component, technology, application area, and industry.
Based on components, the market is segmented into software and hardware.
The hardware segment holds the largest market share.
Based on technology, the market is segmented into 2D facial recognition, 3D facial recognition, and facial analytics.
The 3D facial recognition technology segment, among other technology segments, offers intricate details of facial contours. It provides improved identification and verification of facial expressions of an individual with cameras that sense depth using sensors in dark or low-light areas. Thus, resulting in several organizations and companies embracing the technology.
Based on the application area, the market is segmented into emotion recognition, attendance tracking and monitoring, law enforcement, and others.
The emotion recognition segment, among other application area segments, is projected to hold a strong share in the global market because of its ability to track facial expressions for emotions — happiness, anger, and surprise, among others. It also assists in other facial profiling, viz., biometric image resolution, for enhanced security purposes. For instance, in November 2018, Robbie.AI — a company that provides facial recognition and emotion prediction in natural settings and real-time, announced a partnership with SureID — biometrics and fingerprint services company. This partnership will result in joint research and development of the United Nation’s first nationwide biometrics gathering systems for a broad spectrum of consumer-focused initiatives.
Based on industry, the market is segmented into IT & telecommunication, BFSI, retail, healthcare, automotive, government and defense, and others.
The retail sector dominates the market. In order to optimize operational efficiency and enhance the in-store experience, it has been aggressively embracing face recognition technology.
Geographically, the global facial recognition market is studied across North America, Europe, Asia-Pacific, and LAMEA.
North America holds the largest market share and is expected to witness dynamic growth during the forecast period. This is attributed to the presence of key players and burgeoning investments in facial recognition technology for innovation and research purposes. For instance, in August 2019, Texas A&M University researchers collaborated with MoodMe to enhance algorithms used in the company’s facial recognition analysis. Thus, by adopting AI and deep learning techniques, the researchers are strengthening the state-of-the-art algorithms in human facial analysis, thereby boosting the regional facial recognition market. It is anticipated that government measures will also contribute to the expansion of these technologies. For instance, the US government intends to revamp airport security by registering and identifying passengers using facial recognition. In addition, numerous banks that are members of the North American Free Trade Agreement have mandated using voice and facial recognition technologies for online identity verification. Companies and federal governments have collaborated to implement the technologies for surveillance and identity management.
In Europe, the facial recognition market is expected to witness significant growth on account of government agencies and organizations increasingly adopting facial recognition technology undeterred by several acts and data protection legislation in the region. For instance, in September 2019, the UK court allowed police to use facial recognition technology, stating that the use of facial recognition technology is legal and does not violate the Human Rights Act or Data Protection legislation. The French government has implemented face recognition technology in a variety of areas. They have developed a police database containing digital photographs of previous suspects. CaixaBank clients in Spain can withdraw cash from ATMs without entering a PIN by utilizing facial recognition software. This change has improved the user experience for the bank's clients. In Europe, facial recognition technology has emerged as an ingenious means of addressing the identification and authentication of identity claims.
Asia-Pacific is expected to witness significant growth in the facial recognition market during the forecast period as developing countries — China, India, and others, are readily embracing advanced technologies to be on the vanguard of technological evolution. China is one of the largest consumers and exporters of facial recognition technology. The adoption of surveillance technology by the country's government is one of the primary factors driving the rise of the facial recognition market in the region. For instance, in April 2019, Jinan in Shandong province, China, incorporated 3D facial recognition technology in its Metro Line 1, where the passengers have to face a verification device at the 3D facial recognition technology-empowered gate. This 3D recognition technology is equipped with a built-in 3D camera, capturing 3D facial features and permitting entry upon validation. Besides, in September 2019, the Gujarat government of India launched a facial recognition-based biometric online attendance system for nearly 2.5 lakh government teachers in the state, thus, promoting operational efficiency and fostering the growth of the facial recognition market during the forecast period.
The LAMEA region is expected to observe a considerable growth rate in the facial recognition market during the forecast period. With technology propagating across borders, adopting advanced technologies plays a vital role in the economic development of the country. Brazil is embracing technological advancements, thus, influencing the market growth in the region. For instance, in July 2019, the Brazilian city of São Paulo announced the deployment of a surveillance system with facial recognition. The company operating the city’s subway network launched a tender for a new set-up to replace its current legacy system of 2200 cameras with 5200 digital cameras to control it centrally.
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