Report Overview

The global facial recognition market value was USD 4.42 billion in 2021. This market is expected to grow at a CAGR, of 14.6% between 2023-2032. It is expected to reach USD 19.79 billion during the forecast period. Technology is evolving rapidly and improving. To enhance security, biometrics are used extensively. These technologies are used for attendance tracking, access control, security, and others.

The technology of biometrics is unique, universal, and measurable, which makes them useful in security solutions. Varied biometrics that is used today, include fingerprint, iris, face recognition, and speech recognition. The image recognition technology known as facial recognition has enjoyed wide approval over time. This technology utilizes a connected camera to recognize faces in the images. It then quantifies the image’s features to match the templates in the database.

The use of this technology is extremely versatile. Therefore, it is quickly being adopted by many end-users. NEC Corporation offers smart hospitality services, which are based on facial recognition technology. With this technology, users can enjoy safe and secure hotel stays. It can be used to pay cashless, access entertainment, check-in, and enter rooms.

Facial recognition technology refers to the digital mapping of a person’s facial geometry using biometrics. By taking face photos using a camera and comparing them to an existing database, facial recognition is a biometric technology that is used to identify and authenticate persons. The process of identification and verification is made easier with facial recognition.

The facial geometry is made up of 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”. To confirm an individual’s identity the stored signature is used for comparing their face’s physical structure.

Facial recognition can be used to unlock mobile phones and is a reliable method of protecting data. This technology has dramatically improved business operations in many ways, including access, authentication, identity fraud prevention, as well 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.

Global Facial Recognition Market Scope:

Technology Analysis

The 3D category was the leader in this market, accounting for 36.8% of global revenue. Market growth will be driven by technologies such as cloud-based solutions or facial analytics. A facial recognition software that uses facial analytics can help users identify the location of a face in a video or image, and its attributes. Amazon Rekognition is able to analyze facial characteristics like visual geometry, mood, hair color, and eye position.

These attributes enable customers to organize millions upon millions of images through metadata tags. Facial analytics offers high detection and accuracy. It is being increasingly used in education and research as well as healthcare, retail, and police services to identify changes in facial characteristics such as gender, age, and height.

These systems are also highly recommended for use in public safety applications such as border surveillance and border protection. 3D recognition systems are preferable to 2D systems in high-security spaces such as airports. Chenega Europe Ltd, which is a wholly-owned subsidiary, offers long-range LiDAR-enabled, 3D facial identification for identity verification. The company provides professional services in intelligence and military 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 have a favorable effect on 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

Access control accounted for 36% of global revenue and led the market in 2021. This is due in large part to the increasing focus of companies on access control systems. Precise Biometrics is an authentication provider that announced a product enhancement in November 2019. The company has announced the integration of liveness detection capabilities in physical access control systems that are based on facial recognition. These innovations are driving higher revenues and increasing the adoption of access control systems based on facial recognition.

Due to the increasing use of facial recognition technology within security and surveillance systems, which is being implemented in high-security locations, the segment of security and surveillance is expected to see a substantial CAGR during the forecast period. Police agencies, for example, use security and surveillance systems to identify criminals or find missing children. Facial recognition-based security systems are preferred by business owners to identify customers and monitor their employees when they visit their stores. A growing number of airports use facial recognition technology to check passengers at security checkpoints. This is because when people are being monitored by security systems, there is a lower possibility of them committing crimes. This technology prevents criminal activities in social places.

This has aided several authorities by assisting in the resolution of numerous criminal investigations.

End-Use Analysis

With 22.1% of all global revenue, the top two segments in the market were e-commerce and retail. E-commerce and retail have adopted face recognition technology rapidly to increase efficiency in operations 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 the involvement of staff is high. However facial recognition technology is now available for payment modes that do not require any hardware. It is possible to quickly pay your bill even by scanning the face of a customer using a smart device or kiosk. This allows for faster, more secure, and more accessible payment. 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 technology is used by the government 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. Alibaba.com and Jingdong JD.com both announced in June 2019 that facial recognition technology would be combined with sales data. This will enable the company to understand specific sales behavior and optimize resource allocation.

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

Market Dynamics:

Market growth can be attributed to the widespread adoption and use of this technology in a wide range of 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 the faces of people 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 9 other smartphone models, was the most commonly used device for facial recognition technology in January. Other smartphones like the OnePlus 6, Oppo Find X, MotoG6, Huawei Hon 7X (LG G7), or MotoG6 all use 2D technology. To scan the user’s face, Iris scanners can also be used. iPhone X series’ Face ID includes a depth sensor with a dot projection and an infrared cam that maps 30,000 points of the face. This data is used to create an artificial scanner that unlocks phones and authenticates electronic payment using Apple Pay.

The growing use of technology by law enforcement agencies is a significant growth factor in the market. Moscow announced NtechLab (an algorithm developer for artificial intelligence) would be offering live facial recognition cameras. The live cam will allow the police authority of the city to use facial recognition in order to locate suspects. If the software finds a match, it will notify the police. MorphoTrust, which is a subsidiary of IDEMIA is known for developing facial recognition technology for state DMVs, federal and State law enforcement agencies, and state departments. It also provides airport security.

Facial recognition, a form of biometric AI (AI), is an AI that performs identity verification through comparison among digital images or video frames and matches them with 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. The travel industry, for example, has started to look into the perks of facial identification. It helps speed up authentication and documentation and allows for restricted access to sensitive areas.

Positive government initiatives are anticipated to have a positive effect on the industry’s growth. The creation of subcommittees within the federal government on machine learning, and AI has helped to attract attention to the AI sector. BFSI will see significant growth 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 of any kind such as fingerprints or other security measures is to be avoided. It does not deal with lost or stolen keys or ID cards. Facial recognition also allows people to access their wallets and not pull out cash or credit cards.

Regional Analysis

In 2021, North America ruled the market with 37.8% of global revenues. The key factor behind the region’s success is the widespread use of facial recognition technology for surveillance and security systems. Market growth is also being driven by the widespread implementation of facial technology in many departments across the U.S., such as homeland security and 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, key markets of Europe such as France, the U.K., and Germany will be driving the market region.

In order to sell and market their products to large customers, key players have worked with distributors, system integrators, and retailers. FacePhi, an Argentina-based fintech company, signed a May 2020 agreement with Nubi Fintech. This allowed FacePhi to integrate its biometric recognition technology into Nubi’s services. Nubi Fintech, an Argentina-based company of financial services, has signed the agreement to integrate SelphID with its mobile application. This will enable secure authentication and improve the user experience.

APAC will see the largest CAGR in the forecast period. To solve cases of investigation, facial recognition technology has been widely adopted in India and other developing countries. In 2018, the Indian police force used facial recognition in New Delhi to identify missing or kidnapped children. Around 3000 of these were later found missing. A number of countries in APAC 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 UIDAI in India.

Key Regions and Countries covered in the report:

In 2022, Europe and North America together accounted for the largest share of the worldwide facial recognition market.

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Market Players Analysis:

Market vendors are involved in many strategic initiatives. These include acquisitions and mergers as well as 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 specializes in offering face recognition technology for sectors like banking, hospitality, retail, and others. To increase their product offerings, some vendors are also seeking collaborations and acquisitions. This helps them to be more competitive in the market.

FacePhi also entered into an agreement with Creditel SOCUR S.A., a Uruguayan bank, in April 2020. Creditel will include SelphID, a FacePhi biometric identification solution, in their security system under the terms. The strategic initiative was taken by Creditel to expand its presence in Latin America.

Microsoft Azure enhanced their facial recognition solution in August 2020.

The market expansion is being driven by the widespread use of iris scanners in the government, military & defense, banking & finance, and travel and immigration verticals, particularly for identity management and access control applications.

Market Key Players:

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.
• Other Key Players