Facial Recognition Market Outlook
The Facial Recognition Market size was USD 5.13 Billion in 2022 and is likely to reach USD 18.47 Billion by 2031, expanding at a CAGR of 15.3% during 2023–2031. Facial recognition is a category of biometric security that identifies or confirms an individual’s identity using their face. This system can be used to identify people in photos, videos, or in real time.
Facial recognition is mainly used for the purpose of security and maintaining privacy. It does not depend on a massive database to determine someone’s identity, but simply identifies and recognizes a person as the sole owner of the device, thus restricting access to others. Apart from unlocking phones, facial recognition can be used for identifying different people in a video. Facial technology varies on the requirement of the user and the components involved in the making of the software technology.
Market Trends, Drivers, Restraints, and Opportunities
- Upsurge in the demand for phones with face unlock and installed facial recognition software systems is driving the market growth.
- Increasing investments by the government and defense sector in facial recognition boosts the market growth.
- Adoption of surveillance technologies and rising demand for facial recognition in solving criminal investigations drives the growth of the market.
- Problems in countering legal risks due to security and privacy issues can restrict the market growth.
- The possibility of false matches through facial recognition in the defense sector is a restraint for the market growth.
- Preference for cloud based facial technologies and highly advanced facial recognition modelling and restructuring poses as a lucrative opportunity for the market.
Scope of Facial Recognition Market Report
The report on the global facial recognition market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
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Attributes
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Details
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Report Title
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Facial Recognition Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016 -2021
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Forecast Period
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2023–2031
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Segmentation
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Technologies (2D, 3D, and Facial Analytics), Applications (Access Control and Security & Surveillance), End-users (Retail & E-commerce, Media & Entertainment, Automobile & Transportation, Telecommunication & IT, Government, Healthcare, and Others)
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Regional Scope
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Asia Pacific, North America, Europe, Latin America, and Middle East & Africa
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Report Coverage
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Market scope, analysis, share, competitive analysis, growth facts, restraints, opportunities, and revenue forecast
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Key Players Covered in the Report
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Aware, Inc., Ayonix Corporation, Cognitec Systems GmbH, FacePhi; Fujitsu, Gemalto NV, NEC Corporation, and Onfido.
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Facial Recognition Market Segment Insights
3D segment led the market in 2020
Based on technologies, the facial recognition market can be segmented into 2D, 3D, and facial analytics. The 3D segment generated significant revenue in the market due to the advent of advanced technologies such as cloud-based software systems, which shifted user preference toward this segment. The accuracy provided by 3D technology encourages the deployment of this type of technology for the purpose of public safety including border protection and security. 3D technology is also used by the defense sector for criminal investigations due to its accuracy.
Additionally, the facial analytics segment held a substantial market share due to the descriptive analysis of the image. Facial analytics allows the user to understand where a face exists in a video or an image and also provides the characteristics of the face. Facial analytics provide high accuracy and detection efficiency, which results in the use of this technology in education, retail, healthcare, and research.
Rising corporate focus on enhancement drives the access control segment
On the basis of applications, the market can be bifurcated into access control and security & surveillance. The access control segment is projected to exhibit a significant growth rate due to rising focus of the companies on enhancing their access control systems. The security and surveillance segment is also estimated to register a significant CAGR during the forecast period due to increasing use of facial recognition in the security and surveillance department of nations and the rising government expenditure on the maintenance of public safety.
Additionally, business owners prefer installing facial recognition systems for security purposes when the people arrive at their offices or stores or workplaces. The rising security concerns also compels the government to install facial recognition in airports for the purpose of national safety.
Increasing adoption of facial recognition drives the retail & e-commerce segment
In terms of end-users, the market can be classified into retail & e-commerce, media & entertainment, automobile & transportation, telecommunication & IT, government, healthcare, and others. The retail and e-commerce segment dominated the market in 2020 due to the adoption of facial recognition among the key retailers to ensure enhancement of operational efficiency and in-store experience. Previously customers have to make payments through online payment modes or cash which required electronic hardware items such as POS terminal systems.
However, the requirement for hardware is eliminated as shoppers can quickly scan the code and pay the bill quickly, which results in a user-friendly and cashless transaction. Additionally, a unique authentication service is also provided that identifies and recognises faces from user database with advanced computer vision-based machine learning algorithms.
North America to dominate the global market
On the basis of regions, the global facial recognition market can be split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America constituted a significant share of the market in 2020 due to mergers and acquisitions conducted by key market players. Moreover, increase in R&D spending by the companies to integrate facial recognition technologies in various departments like healthcare, homeland security, and education and growing technological advancements in the US are driving the market in North America.
The market in Asia Pacific is projected to expand at a significant CAGR during the forecast period due to growing R&D expenditure and government initiatives in the field of information technology.
Segments
By Technologies
By Applications
- Access Control
- Security & Surveillance
By End-users
- Retail & E-commerce
- Media & Entertainment
- Automobile & Transportation
- Telecommunication & IT
- Government
- Healthcare
- Others
By Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Key players in the global facial recognition market include Aware, Inc., Ayonix Corporation, Cognitec Systems GmbH, FacePhi; Fujitsu, Gemalto NV, NEC Corporation, and Onfido. These players are actively engaged in several market development strategies such as collaborations, agreements, mergers & acquisitions, production capacity expansion, new product launches, and partnerships to strengthen their geographical presence and increase their market share.
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