Facial Recognition Market

Market Overview:

The global facial recognition market size reached US$ 6.0 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 18.3 Billion by 2028, exhibiting a growth rate (CAGR) of 18.3% during 2023-2028. The growing utilization of efficient surveillance systems to enhance safety and security, rising installation in various stores and shopping complexes, and wide availability of various technologically advanced facial recognition systems represent some of the key factors driving the market.

Rising Demand for Security and Surveillance Systems in Civil and Government Agencies Impelling Market Growth

The demand for facial recognition technology in the government and the civil sector is increasing due to the rising occurrences of criminal activities and concern for supervision and safety maintenance. Moreover, the increasing cyber security breaches and malware and ransomware attacks to steal confidential and sensitive information are propelling the demand for facial recognition technology to secure systems and devices. In addition, governing agencies of various countries are undertaking initiatives to install numerous face recognition systems in airports and train stations to prevent unlawful activities of individuals and theft of luggage and other personal belongings of individuals.

Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. The market structure is fragmented, with a large number of global and regional players operating in the industry, and the competitive environment is expected to intensify in the coming years due to the rising investment in research and development (R&D) activities to produce more efficient facial recognition technology.  The volume of entrants is moderate in the facial recognition industry due to low product differentiation and reduced switching costs.

What is Facial Recognition?

Facial recognition refers to a system that can identify a human face from a digital picture or video frame against a database of faces. It functions in several comprehensive steps comprising detection of facial features by capturing single images, video sequences, views from multiple cameras, and three-dimensional (3D) data, analysis of the image by reading the geometry and expression, and recognition of the image to identify the individual. It is primarily employed to authenticate users through identification (ID) verification services and categorizes individuals according to various identifiable features, such as age, gender, and weight automatically. It is also capable of rendering blurred pictures to analyze and identify individuals accurately. It helps prevent crimes and increases efficiency in security maintenance by reducing unnecessary human interaction and involvement. It also enables individuals to secure their data and documents saved online or on computers with facial recognition-enabled network access control. It is also integrated into attendance systems and biometric systems used in airport and border control, banking, healthcare, and information technology (IT) sectors.

COVID-19 Impact:

The demand for facial recognition technology increased during the outbreak of COVID-19. The demand for various touchless solutions increased during the pandemic as businesses wanted to maintain hygiene in their office premises, and the government also imposed regulations on maintaining social distancing and preventing huge gatherings in any public place. Biometric companies sensed the opportunity and produced a wide range of products integrated with facial recognition technology as it was the best contactless alternative to fingerprints and traditional radio frequency identification (RFID) card readers. In addition, as the utilization of devices increased to limit physical contact, the demand for facial recognition also increased. Furthermore, the rising utilization of facial recognition systems in the real estate sector to prevent unauthorized building access is supporting the growth of the market.

Facial Recognition Market Trends:

At present, the increasing demand for facial recognition systems due to the rising utilization of efficient surveillance systems to enhance safety and security in private and public setups represents one of the primary factors influencing the market positively. Besides this, the growing installation of facial recognition systems in various stores and shopping complexes to provide information to the store manager or shopkeeper about the preference of specific customers, their transaction history, and demographic information to improve the overall shopping experience is offering a favorable market outlook. In addition, the increasing employment of facial recognition systems in various corporate offices, government buildings, and schools to eliminate the requirement of security personnel to check and authenticate the identity of individuals manually is propelling the growth of the market. Apart from this, the rising availability of various technologically advanced facial recognition systems which can operate entirely without human assistance is bolstering the growth of the market.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global facial recognition market report, along with forecasts at the global, regional and country level from 2023-2028. Our report has categorized the market based on component, technology, application and end use industry.

Component Insights:

• Software
• Services
   

The report has provided a detailed breakup and analysis of the facial recognition market based on the component. This includes software and services. According to the report, software represented the largest segment due to the rising availability of advanced features for biometric tracking. In addition, the increasing demand for innovative products integrated with facial recognition, such as facial recognition software enabled surveillance cameras, is propelling the growth of the respective segment.

Technology Insights:

• 2D Facial Recognition
• 3D Facial Recognition
• Facial Analytics
   

A detailed breakup and analysis of the facial recognition market based on the technology has also been provided in the report. This includes 2D facial recognition, 3D facial recognition, and facial analytics. According to the report, 3D facial recognition accounted for the largest market share as it is capable of providing real-time information about the shape of a face by utilizing 3D sensors. Moreover, the highly accurate capabilities of 3D sensors in identifying individuals are augmenting the growth of the respective segment.

Application Insights:

• Emotion Recognition
• Attendance Tracking and Monitoring
• Access Control
• Security and Surveillance
• Others
   

A detailed breakup and analysis of the facial recognition market based on the application has also been provided in the report. This includes emotion recognition, attendance tracking and monitoring, access control, security and surveillance, and others. According to the report, access control accounted for the largest market share on account of the increasing utilization of access control systems that regulates who or what can view or utilize resources in a computing environment. Besides this, the increasing occurrence of cyber attacks to steal confidential information is strengthening the market growth.

End Use Industry Insights:

• Retail and E-commerce
• BFSI
• Government and Defense
• Automotive and Transportation
• Media and Entertainment
• Healthcare
• Telecom and IT
• Others
   

A detailed breakup and analysis of the facial recognition market based on the end use industry has also been provided in the report. This includes retail and e-commerce, BFSI, government and defense, automotive and transportation, media and entertainment, healthcare, telecom and IT, and others. According to the report, retail and e-commerce accounted for the largest market share due to increasing online shopping activities of individuals to save time and avail lucrative discounts. Besides this, facial recognition systems allow retailers to send personalized product recommendations and messages to target customers, which is positively influencing the market growth.

Regional Insights:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (the United Kingdom, Germany, France, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest market for facial recognition. Some of the factors driving the North America facial recognition market included the rising availability of efficient facial recognition technology in security and surveillance systems, installation of surveillance cameras in various public places, increasing adoption of facial recognition systems in various departments, such as homeland security, justice, and defense, and the rising instances of terror attacks.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global facial recognition market. Some of the companies covered in the report include:

• 3M Company
• Animetrics Inc.
• Aware Inc.
• Ayonix Corporation
• Cognitec Systems GmbH
• Daon Inc.
• FaceFirst Inc.
• FacePhi Biometria 
• IDEMIA (Advent International)
• NEC Corporation
• Safran Group
• Thales Group
   

Please note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the facial recognition market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global facial recognition market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the facial recognition industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.