Facial Recognition Market Size, Share & Trends Analysis Report By Component (Software, Service), By Technology (2D Facial Recognition, 3D Facial Recognition, Facial Analytics), By Application Area (Emotion Recognition, Attendance Tracking and Monitoring, Law Enforcement, Others), By Industry (IT & Telecommunication, BFSI, Retail, Healthcare, Automotive, Government and Defense, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global facial recognition market was valued at USD 5,037.2 million in 2022. It is estimated to reach USD 16,380.8 million by 2031, growing at a CAGR of 14% during the forecast period (2023–2031). The accuracy provided by 3D facial recognition systems encourages deploying these systems for public safety solutions, such as border protection and surveillance, stimulating market growth.

Face recognition is a technique that analyzes and compares face characteristics in real time using biometric data and artificial intelligence to identify and authenticate individuals' identities. Several companies in the worldwide facial recognition market sell face recognition technologies, such as cameras, software, and apps, in various scenarios, such as security, marketing, and healthcare.

Security and surveillance systems, access control in high-security areas, detection and prevention of criminal activities, smart advertising and marketing, and healthcare systems are just a few of the applications of face recognition technology. For example, face recognition technology is widely utilized for security purposes at airports, retail establishments, and financial institutions, as well as in social media and e-commerce platforms to customize user experiences and target specific audiences.

Highlights

• The 3D segment holds a significant share of the technology segment.
• Access control dominates the application segment.
• Retail and E-commerce segment holds a significant share of the end-use segment.
• North America is the highest shareholder in the global market.

Market Dynamics

Global Facial Recognition Market Drivers:

Technological Advancements Such as 3D Recognition Systems and Cloud-Based Solutions

3D recognition is a newly emerging facial recognition trend aiming to provide more accuracy and authentication. 3D facial recognition uses the unique characteristics of an individual's face, such as the curves of the face, the shape of the nose, and the chin, to identify the individual. With the introduction of 3D facial recognition, identification has taken a step toward recognizing an individual's face, even if it is dark, and can identify the person at different angles (up to 90 degrees). Although 2D face recognition has significantly progressed, its accuracy and authenticity depend highly on light conditions and individual poses.

Moreover, the accuracy provided by 3D facial recognition systems encourages deploying these systems for public safety solutions, such as border protection and surveillance. 3D recognition systems are preferred over 2D systems in high-security spaces like airports. All these factors will be going to boost the global market.

Global Facial Recognition Market Restraint:

High Implementation Costs

A biometric identification system application suite and a mix of high-resolution cameras are used for the practical implementation of face-recognition systems. These systems require advanced software and top-quality cameras to ensure speed and accuracy. The equipment comprises an AI platform, several cameras, and a server, which results in high implementation costs for the system. Furthermore, with the advent of 3D face recognition technology, the equipment requires high-resolution 3D surveillance cameras, network fabric, and biometric sensors. Also, maintenance and middleware costs are associated with the implementation costs. These costs may hamper the facial recognition market's growth.

However, some companies, such as FaceFirst, are implementing more efficient algorithms, such as PCA (Principal Component Analysis) and FFT (Fast Fourier Transform), for the cost reduction of facial recognition implementation. Therefore, the implementation cost is anticipated to reduce with more R&D activities.

Global Facial Recognition Market Opportunities:

Growing Adoption of Face Recognition in Different Verticals

Facial recognition technology is a form of biometric artificial intelligence (AI) that executes identity verification by comparing video frames or digital images and matching them with the facial images stored in a database based on facial features and skin texture. Its popularity has recently increased significantly, becoming a common trend in the digital era. The market for facial recognition technology is growing enormously as it is driven mainly by the need to increase productivity and minimize human interference. From its application in social media and mobile technology to security applications at airports, law enforcement, and targeted marketing campaigns, the deployment of facial recognition technology is inevitably part of our future.

Additionally, the banking and financial services industry is one of the major verticals for deploying facial recognition technology as consumers are increasingly transitioning toward mobile banking. Also, companies are taking strategic initiatives to expand their client portfolio and global reach in different verticals. Several other verticals, such as airlines, manufacturing, retail, social events, and hospitality, use facial recognition technologies for security and biometrics purposes, along with several other use cases, such as marketing.

Regional Analysis

North America Dominates the Global Market

Based on region, the global facial recognition market is bifurcated into North America, Europe, Asia-Pacific, South America, the Middle East and Africa.

North America is the most significant global facial recognition market shareholder and is estimated to grow at a CAGR of 12.5% over the forecast period. The widespread use of face recognition technology in security and surveillance systems is a crucial contributor to regional growth. Furthermore, the increasing implementation of face recognition technology in different sectors, such as homeland security, law, and military, is driving market expansion in the United States. For example, MorphoTrust, a subsidiary of IDEMIA, is one of the most notable providers of biometry goods and services in the United States. State and federal law enforcement agencies, DMVs, governments, and airports have used its face recognition technologies.

Asia-Pacific is anticipated to exhibit a CAGR of 17.8% over the forecast period. In developing nations such as India, facial recognition technology is routinely employed to solve inquiry cases. For example, in April 2018, an Indian police agency in New Delhi employed facial recognition to identify youngsters who had gone missing or been kidnapped. It was used on roughly 45,000 youngsters throughout the city, with approximately 3000 of them going missing. Several Asia-Pacific nations are taking steps to develop electronic identification for individuals. Initiatives such as Indonesia's e-KTP project and India's UIDAI initiative are opening up new chances for market penetration in the area.

The European Union (EU) GDPR (General Data Protection Regulation) has rolled out a framework for biometric data protection practices in Europe. These regulations on using facial recognition could cause organizations to assess the privacy implications before using any face recognition application. Also, under the EU GDPR, organizations must have a specific reason to use biometric data, such as facial images. In January 2020, Germany's Interior Minister announced a plan to use automatic facial recognition at 14 airports and 134 railway stations to expand Germany's facial recognition technology.

In South America, In March 2020, the Brazilian authorities installed 106 smart cameras across Bahia and São Paulo to strengthen their security and surveillance and catch criminal offenses. The government of São Paulo has deployed an algorithm for real-time facial image analysis with the strategic placement of drones and intelligent cameras. Similarly, in February 2020, Brazil's President signed a pair of decrees that aim to develop a centralized and vast database of biometric and personal information on over 200 million citizens of Brazil. Moreover, Latin American NGOs have launched advocacy campaigns against face recognition technology. For instance, Derechos Digitales, a Chile-based non-profit organization, launched an advocacy campaign against biometric recognition proposals being considered in Latin America.

In the Middle East and Africa, Careem, a taxi-hailing service in the Middle East, uses facial recognition solutions offered by a U.K.-based security company, Digital Barriers. The software verifies drivers in real-time by integrating it with the driver's mobile application. Several African countries, such as Uganda and Kenya, have received financing and infrastructure from Chinese companies, including Huawei Technologies Co., Ltd., to develop surveillance and telecommunications. In Turkey, approximately 30 domestically-developed drones equipped with AI and facial recognition are used for border security. Amid the COVID-19 pandemic, Dubai police officials are using smart helmets equipped with facial recognition and an infrared camera to detect the high body temperature of public transport users and identify them. Face recognition and car number reading technology help identify individuals with high temperatures.

Segmental Analysis

The global facial recognition market is bifurcated into technology, applications, and end-use.

The global facial recognition market is bifurcated based on technology into 2D and 3D and facial analytics.

The 3D segment dominates the global market and will likely exhibit a CAGR of 14.7% over the forecast period. Introducing new technologies like cloud-based solutions and face analytics will drive market expansion. Users may utilize facial recognition software's facial analytics skills to comprehend where a face resides in a video or picture, as well as the qualities of the face. Amazon Rekognition, for example, can evaluate face traits such as mood, visual geometry, eyes open or closed, and hair color. These features assist consumers in organizing millions of photographs using metadata tags. Facial analytics enables excellent detection accuracy and efficiency. As a result, it is increasingly being utilized in education and research, retail, healthcare, and law enforcement to assess changing features such as gender, age, height, and other face traits.

Furthermore, the precision of 3D technology face recognition systems stimulates its use in public safety applications such as border protection and surveillance. 3D recognition technologies are favored over 2D systems in high-security areas like airports. Chenega Europe Ltd, for example, is a wholly-owned subsidiary of Chenega Corporation that offers long-range LiDAR-enabled 3D face recognition for identity acquisition and verification. The firm specializes in professional services delivery for military and intelligence activities, and a Middle Eastern government employs its 3D biometric surveillance technology to improve airport monitoring capabilities.

Based on application, the global facial recognition market is bifurcated into emotion recognition, attendance tracking and monitoring, access control, security and surveillance, and others.

The access control segment owns the global market and is predicted to exhibit a CAGR of 10% over the forecast period. This is because many businesses are working on improving their access control systems. For example, in November 2019, Precise Biometrics, a producer of authentication products, released a new product upgrade. The business announced the integration of liveness-detecting capabilities into face recognition-based physical access control systems. Such advancements are encouraging the use of access control technology, resulting in more significant profits.

Based on end-use, the global facial recognition market is segmented into retail and e-commerce, media and entertainment, BFSI, automobile and transportation, telecom and IT, government, healthcare, and others.

The retail and e-commerce segment dominates the global market and is predicted to exhibit a CAGR of 13.4% during the forecast period. The retail and e-commerce sectors quickly use Face recognition technology to increase operational efficiency and the in-store experience. Customers previously made payments using a variety of ways, such as cash, credit, or QR code. These payment methods need numerous POS terminal systems and high staff engagement. Still, using face recognition technology for payment methods reduces the need for varied hardware. Customers may pay their bills quickly by scanning their faces on smart devices or at kiosks, resulting in more secure, rapid, and user-friendly payment. It also provides a one-of-a-kind authentication service that detects and recognizes faces from user databases and, thanks to computer vision-based machine learning algorithms developments, can readily discover the shopper's face from the full database.

Impact of covid-19

As part of steps to control the transmission of the COVID-19 pandemic, governments in several nations have limited the movement of commodities and people and suspended the functioning of manufacturing facilities. It has impacted power usage throughout the world. As per the short-term forecast of the United States Energy Information Administration (EIA), electricity consumption in the United States is expected to fall by a record 4.5% by the end of 2020, as businesses have temporarily shut down due to the government lockdowns to stop the prevalence of the coronavirus. As a result, global demand for and manufacturing instrument transformers is expected to fall.

Recent Developments

• May 2021- NEC announced the development of artificial intelligence technology that analyses time series data in real time with high precision and speed. This technique is anticipated to enable face recognition and intrusion detection and analysis to be sped by up to 20 times while keeping the same level of accuracy as current methods.
• March 2022- Cognitec joined the Salto Group, adding the German company's facial biometrics technology to the portfolio of the Spanish electronic security and access control company. It is anticipated that the acquisition will increase Cognitec's research and development efforts and product line market penetration as the company collaborates with Salto to develop new technologies for developing biometric markets.
• April 2023- Apple revealed that face recognition will be added to its following iPhone models. Face ID is a function that employs a TrueDepth camera system to scan and authenticate a user's face.
• February 2023- Microsoft announced the acquisition of Face++, a top Chinese face recognition business. Microsoft gained access to Face++'s technology and experience, which it said would help it extend its face recognition products in the Chinese market.