Facial Recognition Market

Facial Recognition Market Statistics: 2030

The global facial recognition market size was valued at $3.83 billion in 2020, and is projected to reach $16.74 billion by 2030, growing at a CAGR of 16.0% from 2021 to 2030. Facial recognition is a way of recognizing a human face through technology. A facial detection system uses biometrics to map facial features from a photograph or video. It compares information with a database of known faces to find a match. Moreover, the accuracy of facial recognition systems has improved way better in the last decade. For instance, according to tests by the National Institute of Standards and Technology in April 2020, best face identification algorithm boasted an error rate of just 0.08%, which is a big improvement from 2014, when the best algorithm had an error rate of 4.1%.

The COVID-19 outbreak had a moderate impact on the growth of facial recognition market owing to, rise in adoption of facial recognition technology among various law and enforcement agencies for detecting various suspicious activities such as border control and criminal identification.

Rise in demand for face detection systems to enhance safety and security and increase in applications in physical security and intelligent signage propels growth of the global facial recognition market. In addition, technological advancements such as cloud-based services and 3D-based recognition systems positively impacts growth of the market size. However, lack of accuracy and high implementation cost of facial recognition technology hampers the market growth. On the contrary, increase in applications in mobile security and drones is expected to offer remunerative opportunities for expansion of the facial recognition market size during the forecast period.

Depending on technology, the 3D segment dominated the facial recognition market in 2020, and is expected to continue this trend during the forecast period as the drawbacks of using 2D technology are overcome by 3D facial recognition. However, the facial analytics segment is expected to witness highest growth in the upcoming years, owing to increase in use in the retail industry to deliver target messages to the audience and identification of criminals based on their changing facial expressions.

Region wise, the facial recognition market was dominated by North America in 2020, and is expected to retain its position during the forecast period, owing to high expenditure on security systems in the government as well as public sector. Moreover, the use of facial recognition technology by law enforcement agencies, military sector, and other public sector industries is expected to drive the market for facial recognition technology during the forecast period. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to government biometric based projects such as, National ID Program, Biometric Passports & Visas, and Biometric Driver's License are expected to create numerous opportunities for the facial recognition market in the years to come.

The report focuses on growth prospects, restraints, and analysis of the global facial recognition market trend. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global facial recognition market share.

Segment review

The global facial recognition industry is segmented on the basis of technology, application, industry vertical, and region. Depending on technology, the market is bifurcated into 2D, 3D, and facial analytics. On the basis of application, it is segregated into access control, attendance tracking & monitoring, emotion recognition, security & surveillance, and others. The industry vertical covered in the study include retail & e-commerce, media & entertainment, BFSI, automobile & transportation, telecom & IT, government, healthcare, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The global facial recognition market is dominated by key players such as 3M, Animetrics Inc., Cognitec Systems GmbH, Crossmatch, Daon Inc., FaceFirst, Inc. IBM Corporation, Microsoft Corporation, NEC Corporation and Nuance Communications Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.

COVID-19 impact analysis

The market for facial recognition has grown significantly in recent years; however, owing to the outbreak of the COVID-19 pandemic, the market experienced a sudden boom in 2020. This is attributed to governments implementing lockdowns in majority of countries and halting travel around the world to prevent the spread of the virus. Following the recovery from the COVID-19 epidemic, the facial recognition industry is expected to grow in the next years. Moreover, the global facial recognition market is influenced by several industry trends at present, including the use of multi-sensor cameras and increasing concerns related to cybersecurity, IoT video analytics & artificial intelligence, and cloud computing. In addition, impact of this factor is quite high as the number of cases is increasing drastically, and to keep a check, video surveillance technology is sometimes used. However, once the number of cases goes down, the impact of this factor is expected to also decrease in the future.

Top impacting factors

Rise in demand for surveillance systems to enhance safety and security

Increase in criminal activity and growing concerns for supervision and safety, the need for advanced security and surveillance systems in civil and government institutions to improve safety and security is growing significantly. Furthermore, owing to its precision and security, face search systems is widely used in criminal investigations. Moreover, increase in government investments in emerging technologies of CCTV cameras in most public places to minimize criminal activities and terrorist attacks and to enhance public safety boosts the facial recognition market growth. Other activities, such as theft, harassment, assault, and damaging public properties acts as market drivers leading to rise in adoption of facial recognition systems. Moreover, system works by using an intelligent criteria-based facial search whereby the system can detect and track persons of interest in a split second. It also has high levels of accuracy in detecting faces when they are partially covered with medical masks or clothes.

Technological advancements such as cloud-based services and 3D-based recognition systems

Technological advancements, a slew of face recognition systems that include cloud computing are hitting the facial recognition market. Hence, to provide a cloud-based face detection and identification service, manufacturers have created sophisticated technologies such as a "spin-off from terotechnology." Accuracy of identifying facial characteristics has increased, owing to advancements in facial recognition software such as SDK. Greater knowledge among consumers as a result of enhanced product quality is anticipated to lead to increased global adoption of face recognition biometrics. Moreover, various industries and governments across Asia-Pacific have already installed facial recognition systems to improve their security and convenient users. For instance, in Singapore, citizens can use their faces to gain access to various government services. The country specifically allows people to use facial recognition to log into their accounts when taking advantage of Singapore’s comprehensive SingPass digital identity program.

Key Benefits For Stakeholders     

• The study provides an in-depth analysis of the global forecast along with current & future trends to explain the imminent investment pockets.
• Information about key drivers, restraints, & opportunities and their impact analysis on global facial recognition facial recognition market trends is provided in the report.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
• The quantitative analysis of the market from 2021 to 2030 is provided to determine the facial recognition market potential.

 Facial Recognition Market Report Highlights