Global Facial Recognition Market By Technology (2D, Facial Analytics, and 3D), By Application (Emotion Recognition, Security & Surveillance, Access Control, Attendance Tracking and Monitoring, and Other Applications), By End-Use, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Oct. 2023
- Report ID: 34100
- Number of Pages: 295
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Report Overview
The global facial recognition market size value was USD 5.1 Bn in 2022. This market is expected to grow at a CAGR of 14.6% between 2023 and 2032. It is expected to reach USD 19.3 Bn during the forecast period.
Technology is evolving rapidly and improving and the use of this technology is highly versatile; therefore, it is quickly being adopted by many end-users. With this technology, users can enjoy safe and secure hotel stays. It can pay cashless, access entertainment, and check in rooms. Facial recognition technology is the digital mapping of a person’s facial geometry using Biometrics. It is a biometric technology used to identify and authenticate persons by comparing face photos to an existing database. The process of identification and verification is made easier with facial recognition.
Note: Actual Numbers Might Vary In Final Report
The facial geometry comprises features like the nose’s width, the distance between the eyes, and the distance between the forehead and chin. These measurements are used to create the mathematical formula known as a “facial signature”. The stored signature compares their face’s physical structure to confirm an individual’s identity. Facial recognition can unlock mobile phones and is a reliable method of protecting data. This technology has dramatically improved business operations, including access, authentication, identity fraud prevention, and accessibility to accounts, services, and other aspects.
Facial recognition platforms are increasingly popular across many industry verticals, including banking & financial, retail and online, transportation, media, entertainment, IT, telecom, Government, and the public sector. Biometric self-boarding gates have been installed in multiple countries to verify passenger identities using facial recognition technology.
Key Takeaways
- Market Growth and Size: The global facial recognition market was Expected market size to reach USD 19.3 billion by 2032, Anticipated CAGR of the market is 14.6%.
- Technology Analysis: The 3D segment dominates the market with 36.8% of the global revenue.
- Application Insight: Access control holds the dominant share (36%) in the market.
- End-User Analysis: Retail and e-commerce lead with 22.1% of global revenue.
- Regional Analysis: North America holds the largest market share at 37.8%, followed by Europe and the Asia-Pacific region.
- Driving Factor: Increasing government investment in facial recognition technology for security and border control.
- Growth Opportunities: Preference for cloud-based facial technologies and advanced facial recognition modeling.
- Challenges: Concerns about low assurance in the systems and potential privacy issues.
- Key Players: Major companies in the facial recognition market include IBM Corporation, Microsoft Corporation, NEC Corporation, and Thales Group. Other key players contributing to market growth are Cognitec Systems GmbH, Fujitsu, and Gemalto NV.
Driving Factors
Increasing Investment in Facial Recognition Technologies by Government
Market growth can be attributed to the widespread adoption and use of this technology in various applications. This technology is used by border authorities to verify the identity of travelers, in particular at airports. Law enforcement agencies use face recognition software to identify and scan people’s faces on CCTV. Another area where this technology is being utilized is smartphones. You can use the software to unlock your smartphone, sign into mobile apps, verify your payment, and more.
The iPhone X series, along with nine other smartphone models, was the most commonly used device for facial recognition technology in January. Other smartphones like the OnePlus 6, Oppo Find X, Moto G6, Huawei Hon 7X (LG G7), or Moto G6 all use 2D technology. Iris scanners are used to scan users’ faces. The iPhone X series’ Face ID includes a depth sensor with a dot projection and an infrared camera that maps 30,000 points on the face. This data is used to create an artificial scanner that unlocks phones and authenticates electronic payments using Apple Pay.
Rising Popularity Among Security and Surveillance Applications to Gain Traction.
The growing use of technology by law enforcement agencies is a significant growth factor in the market. Moscow announced that NtechLab (an algorithm developer for artificial intelligence) would offer live facial recognition cameras. The live cam will allow the police authority of the city to use facial recognition to locate suspects. If the software finds a match, it will notify the police. MorphoTrust, a subsidiary of IDEMIA, is known for developing facial recognition technology for state DMVs, federal and state law enforcement security agencies, and state departments. It also provides airport security.
Increasing Productivity and Less Human Interference
Facial recognition, a form of biometric AI, is an AI that performs identity verification through comparison among digital images or video frames and matches them with the storage of facial images within a database that is based on skin texture and facial features. This technology is becoming more popular in recent years. As it is driven primarily by the necessity for increased productivity and less human interference, facial recognition technology is booming. The future of facial recognition technology lies in its use in mobile and social media, as well as airport security. For example, the travel industry has started looking into the perks of facial identification. It helps speed up authentication and documentation and allows restricted access to sensitive areas.
Growth Opportunities
Preference for Cloud-Based Facial Technologies and Highly Advanced Facial Recognition Modeling & Restructuring
Positive government initiatives are anticipated to affect the industry’s growth positively. The creation of subcommittees within the federal government on machine learning and AI has helped attract attention to the AI sector. BFSI will see significant change because of the increasing adoption of facial recognition systems in data analytics and fraud detection. Facial recognition allows for an instant, seamless, and quick verification experience. Physical contact, such as fingerprints or other security measures, must be avoided. It does not deal with lost or stolen keys or ID cards. Facial recognition allows people to access their wallets without pulling out cash or credit cards.
Trending Analysis
Demand for Phones With Face Unlock and Installed Facial Recognition Software Systems
Favorable government actions are anticipated to affect the industry’s development positively. The Federal Government’s establishment of machine learning and AI subcommittees has highlighted the AI sector. As more data analysis, fraud detection, network security, and database systems adopt facial recognition solutions, the BFSI sector is predicted to experience significant growth in the facial recognition market size, driven by recognition and verification applications. Companies are strategically broadening their client base and global presence in various industries.
Airlines, manufacturing, retail, social events, and hospitality are just a few industries that use facial recognition technology for security and biometrics, in addition to other use cases like marketing. For instance, by examining users’ facial expressions and eye contact, marketers use this technology to comprehend consumers’ behavior. However, the applications for facial analysis and recognition are constantly growing.
Restraints
Low Assurity Regarding Systems Restrains the Market Growth
Issues of defense against legal risks due to security and privacy issues may limit the market growth. The possibility of false matches through the facial recognition market growth in the defense sector is restraining market growth. Also, the glitches in the technology make it complex sometimes and it can hamper the market’s growth.
Technology Analysis
3D Segment is Dominant
The basis of the technology market is segmented into 2D, facial analytics, and 3D. The 3D segment category was the leader in this market, accounting for 36.8% of global revenue. Cloud-based solutions or facial analytics technologies will drive facial recognition market growth. Software that uses facial analytics can help users identify the location of a face in a video or image and its attributes. Some software can analyze facial characteristics like visual geometry, mood, hair color, and eye position. These attributes enable customers to organize millions of images through metadata tags. Facial analytics offers high detection and accuracy. It is increasingly used in education, research, healthcare, retail, and police services to identify changes in facial characteristics such as gender, age, and height.
These systems are also highly recommended for public safety applications such as border surveillance and border protection. 3D recognition systems are preferred to 2D designs in high-security areas like airports. The business offers expert assistance in military and intelligence operations. One government in the Middle East uses 3D biometric surveillance technology from the company to increase its surveillance capabilities at airports. Technological advancements like cloud-based services and 3D-based recognition systems favor the facial recognition market growth. Because of the rising number of terrorist activities and the rising number of thefts of sensitive data and information, which have sparked worries about national security, the biometrics industry is expected to grow.
Application Analysis
The access Control Segment is Dominant
Based on application, the market is divided into emotion recognition, security & surveillance, access control, attendance tracking & monitoring, and other applications. Access control accounted for 36% of global revenue in 2022. It affects the increasing focus of companies on access control systems. Precise Biometrics is an authentication provider that declared a product improvement in November 2022. These innovations are driving higher revenues and increasing the adoption of access control systems based on facial recognition.
With the increasing use of facial recognition technology within security and surveillance systems, which is being implemented in high-security locations, the security and surveillance segment is expected to see substantial CAGRs. Police agencies, for example, use security and surveillance systems to identify criminals or find missing children. Business owners prefer facial recognition-based security systems to place customers and monitor their employees when they visit their stores. Many airports use facial recognition technology to check passengers at security checkpoints. This technology prevents criminal activities in social places.
End-User Analysis
The retail and E-commerce Segment is Dominant
Based on the end-use market is classified into automobile & transportation, healthcare, telecom & IT, government, media & entertainment, BFSI, retail & e-commerce, and other end-uses. With 22.1% of all global revenue, the top two segments in the market were e-commerce and retail. E-commerce and retail have rapidly adopted face recognition technology to increase operations efficiency and enhance customer experience. Customers used to make payments using cash, card, and QR code. The payment methods have a wide range of POS terminals and high staff involvement.
However, facial recognition technology is now available for payment modes that do not require any hardware. It is possible to quickly pay your bill by scanning a customer’s face using a smart device or kiosk. It also provides an authentication service that instantly identifies and recognizes faces from existing databases. Additionally, the machine can use computer vision-based algorithms to locate the shopper’s face from the entire database. The Government uses the technology for covert monitoring. This technology is widely utilized in banking and finance to fight fraud. This technology can be used to boost sales in retail and e-commerce.
Note: Actual Numbers Might Vary In Final Report
Key Market Segments
By Technology
- 2D
- Facial Analytics
- 3D
By Application
- Emotion Recognition
- Security & Surveillance
- Access Control
- Attendance Tracking and Monitoring
- Others
By End-Use
- Automobile & Transportation
- Healthcare
- Telecom & IT
- Government
- Media & Entertainment
- BFSI
- Retail & E-commerce
- Other End-Uses
Regional Analysis
North America Region Holds Largest Market Share
In 2022, North America ruled the market with 37.8% of global revenues. The region’s success is due to the widespread use of facial recognition technology for surveillance and security systems. Market growth is also driven by the overall implementation of facial technology in many departments across the US, such as homeland security, justice, and defense sectors. MorphoTrust is a subsidiary of IDEMIA and one of the largest sellers of biometry products. It has created facial recognition systems for federal and state law enforcement agencies, state DMVs, and state departments.
Over the forecast period, critical markets in Europe, such as France, the UK, and Germany, will be driving the market region. Key players have worked with distributors, system integrators, and retailers to sell and market their products to large customers. Asia-Pacific markets will see the largest CAGR in the forecast period. The facial recognition market has been widely adopted in India and other developing countries to solve investigation cases. Several countries in the Asia Pacific are taking steps to create electronic IDs for individuals. Market penetration is possible in this region thanks to initiatives like the eKTP in Indonesia and the UIDAI in India.
Key Regions and Countries Covered in this Report:
- North America
- The US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Russia
- Netherland
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia
- New Zealand
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
Key Players Analysis
Market vendors are involved in many strategic initiatives. These include acquisitions, mergers, and collaboration with other players in the market. The industry’s main success factor is expected to be continuous R&D to provide product differentiation.
Ayonix Corporation is a company that offers face recognition technology for sectors like banking, hospitality, retail, and others. Some vendors seek collaborations and acquisitions to increase their product offerings and make them more competitive in the market. Microsoft Azure enhanced its facial recognition solution in August 2022. The market expansion is driven by the widespread use of iris scanners in the government, military & defense, banking & finance, and travel & immigration verticals, mainly for identity management and access control applications.
Among the major companies involved in the facial recognition market are:
- Aware Inc.
- Ayonix Corporation
- Cognitec Systems GmbH
- IBM Corporation
- FacePhi
- 3M Company
- Fujitsu
- Gemalto NV
- IDEMIA
- NEC Corporation
- Microsoft Corporation
- Nuance Communications
- i-PRO Co., Ltd.
- Clarifai, Inc.
- Thales e-Security, Inc
- Thales Group
- Animetrics inc.
- Other Key Players
Recent Developments
- In April 2022, PopID company used facial recognition software to save customer costs in Middle Est Region for payment and visas.
- In January 2020, Cyber Link Corp., a facial recognition technology company, partnered with VIVOTECH to enhance user video applications worldwide.
- In May 2020 FacePhi, an Argentina-based fintech company signed an agreement with Nubi Fintech. Nubi Fintech, an Argentina-based financial services company, has signed the deal to integrate SelphID with its mobile application.
Report Scope
Report Features Description Market Value (2022) US$ 5.1 Bn Forecast Revenue (2032) US$ 19.3 Bn CAGR (2023-2032) 14.6% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By technology- 2D, Facial Analytics, and 3D; By Application- Emotion Recognition, Security & Surveillance, Access Control, Attendance Tracking & Monitoring, and Others; By End-Use- Automobile & Transportation, Healthcare, Telecom & IT, Government, Media & Entertainment, BFSI, Retail & E-commerce, and Other End-Uses Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; the Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape Aware, Inc. Ayonix Corporation Cognitec Systems GmbH, IBM Corporation, FacePhi, 3M Company, Fujitsu, Gemalto NV, IDEMIA, NEC Corporation, Microsoft Corporation, Nuance Communications, i-PRO Co., Ltd., Clarifai, Inc., Thales e-Security, Inc., and Other key players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is the scope of the Facial Recognition Market?The Facial Recognition Market encompasses a range of biometric technology solutions that utilize facial features for identity verification and authentication. These solutions are used across various sectors such as security and surveillance, banking and finance, retail, healthcare, and government, among others.
How big is the facial recognition market?The global facial recognition market size value was USD 5.1 Bn in 2022. This market is expected to grow at a CAGR of 14.6% between 2023 and 2032. It is expected to reach USD 19.3 Bn during the forecast period.
What is the facial recognition market trend?An important trend in facial recognition market is the increasing adoption of cloud-based solutions, as these offer several distinct advantages over on-premises solutions, including lower upfront costs, simpler deployment/maintenance and greater scalability. Another key trend in facial recognition market is the increasing adoption of deep learning algorithms for facial recognition. Deep learning algorithms are capable of discovering complex facial data patterns more quickly and reliably, leading to more accurate and reliable facial recognition performance.
What industry uses facial recognition?Facial recognition technology is used in a wide range of industries, including:
- Security and surveillance
- Law enforcement
- Access control
- Time and attendance tracking
- Customer relationship management (CRM)
- Marketing and advertising
- Banking and financial services
- Retail
- Healthcare
- Education
- Transportation
What country uses facial recognition the most?China stands out as the global leader when it comes to facial recognition technology usage, investing heavily in this form of identification for both public safety, social welfare, and commercial uses. Other countries that use facial recognition extensively include the United States, Great Britain and Russia.
- Aware, Inc.
- Ayonix Corporation
- Cognitec Systems GmbH
- IBM Corporation
- FacePhi
- 3M Company Company Profile
- Fujitsu
- Gemalto NV
- IDEMIA
- NEC Corporation
- Microsoft Corporation Company Profile
- Nuance Communications
- i-PRO Co., Ltd.
- Clarifai, Inc.
- Thales e-Security, Inc.
- Other Key Players
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