Facial Recognition Market Size, Share

Written by Neha Patil  »  Updated on: July 09th, 2024

Facial Recognition Market Size, Share

The global market for facial recognition technology has witnessed significant growth and transformation, with its size for industrial refrigeration systems reaching USD 3925.1 million in 2021. This market is projected to expand at a compound annual growth rate (CAGR) of 15.2 percent during the forecast period. The versatile application possibilities of facial recognition technology have spurred its rapid adoption across various end-user sectors.

Know More:https://www.fairfieldmarketresearch.com/report/facial-recognition-market

In January 2020, the electronics and IT giant NEC Corporation announced the provision of its facial recognition technology to the Japanese real estate company Mitsui Fudosan Co., Ltd. This partnership aims to integrate smart hospitality services, offering a facial recognition-based solution to ensure secure and convenient hotel stays. This technology facilitates various services, including seamless check-ins, cashless purchases, access to entertainment options, and room entry.

Market Growth Drivers

One of the primary drivers of market expansion is the increasing application of facial recognition technology in numerous fields. Airport security officials, particularly at border controls, utilize this technology to verify travelers' identities. Law enforcement agencies also deploy facial recognition software to scan faces captured on CCTV to identify individuals of interest. The technology has found extensive use in smartphones for functions such as unlocking devices, verifying payments, and logging into mobile apps. Leading devices like the iPhone X series and Samsung's Galaxy Note 8 and 9 utilize advanced facial recognition features, including depth sensors, dot projectors, and infrared cameras, to map facial points accurately. This secure technology enables safe phone unlocking and online purchase verifications via Apple Pay.

The law enforcement sector's increasing use of facial recognition technology significantly contributes to market growth. For instance, in January 2020, Moscow City announced the deployment of live facial recognition cameras provided by NtechLab to identify offenders. The software alerts the police when a match is found, enhancing security and aiding in criminal investigations. Additionally, MorphoTrust, a division of IDEMIA, has developed facial recognition systems for various U.S. state and federal law enforcement agencies, contributing to the sector's expansion.

Impact of COVID-19 on the Facial Recognition Market

The COVID-19 pandemic has had a profound impact on the global economy, including the facial recognition market. However, the pandemic has also driven the adoption of this technology to address its effects. Law enforcement and various organizations have leveraged facial recognition to manage the pandemic's spread. The integration of thermal camera inspections into healthcare systems worldwide exemplifies this trend. Facial recognition technology is expected to gain popularity across numerous industries for tracking and monitoring individuals, verifying identities, and identifying patients. The demand for contactless solutions, such as biometric sign-ins and authorized healthcare services, has surged, further propelling market growth.

Market Drivers and Government Investments

Government funding and increasing investments play a crucial role in driving the facial recognition market. Countries like the U.S. and China are major adopters, with substantial resources allocated to facial recognition technologies. China, in particular, is a leading user and exporter of facial recognition technology, driven by government initiatives to adopt surveillance technologies. Comparitech estimates that China had between 200 million and 626 million CCTV cameras by 2020, highlighting the extensive public surveillance infrastructure.

Facial recognition technology is widely used by homeland security, federal and local law enforcement, and other security agencies globally. This technology has assisted in resolving numerous criminal investigations, enabling quick identification of criminals and enhancing public safety.

Work-from-Home Model and Market Growth

The COVID-19 pandemic has significantly impacted internet usage, necessitating the migration of networking infrastructure by IT providers to support the work-from-home model. The increased reliance on VPNs for teleconferencing has led to a substantial rise in global internet traffic. IT infrastructure providers have been compelled to adopt software-defined networking (SDN) to manage this surge. Network operators in the U.S. have reported that streaming video and online gaming account for the majority of internet usage, influenced by the pandemic's impact on business network traffic patterns.

Market Restraints: Legal Risks and False Matches

Despite the widespread adoption of facial recognition technology, minimizing legal risks and managing false matches remain significant challenges. Federal and police agencies use this technology to apprehend suspects in various crimes. However, the possibility of false matches poses a risk, leading to the wrongful arrest of innocent individuals. For instance, Logan Airport in Boston conducted tests of facial recognition systems, which resulted in a high number of false alarms. Such incidents can lead to legal challenges and hamper the technology's widespread adoption.

Segment Overview: 3D Facial Recognition Dominates

In 2021, the 3D facial recognition segment led the market, accounting for over 36% of global revenue. The introduction of advanced technologies such as cloud-based services and facial analytics is expected to drive market growth. Facial analytics capabilities allow users to determine the presence of faces in images or videos and analyze facial characteristics. For example, Amazon Rekognition can assess emotions, facial geometry, eye openness, and hair color, assisting clients in organizing large volumes of images with metadata tags. The accuracy and efficiency of 3D facial recognition systems make them suitable for public safety applications, including border security and surveillance. These systems are preferred in high-security locations such as airports due to their superior performance compared to 2D recognition systems.

Regional Landscape: North America Leads

North America dominated the facial recognition market in 2021, with over 37% of global revenue. The widespread adoption of facial recognition technology in security and surveillance systems is a key factor driving regional growth. The technology's increasing use across sectors such as homeland security, justice, and defense in the U.S. contributes to market expansion. Companies like MorphoTrust, a division of IDEMIA, have developed facial recognition software for state and federal law enforcement agencies, state DMVs, and airports, highlighting the region's significant adoption.

The Asia Pacific region is expected to register the highest CAGR during the forecast period. Countries like India are increasingly using facial recognition technology to solve inquiry cases, with notable examples such as the New Delhi police department's use of facial recognition to identify missing children. Several APAC countries are also implementing electronic identification programs, creating new market opportunities.

Competitive Landscape

The competitive landscape of the facial recognition market includes key players such as 3M, Cognitec Systems GmbH, Animetrics Inc., Crossmatch, Daon Inc., FaceFirst, Inc., IBM Corporation, Microsoft Corporation, NEC Corporation, and Nuance Communications Inc. Noteworthy developments include PopID's collaboration with Visa to launch a facial payment system in the Middle East and RealNetworks Inc.'s partnership with Convergint Technologies to provide a facial recognition platform for live video intelligence.

Regional Classification

North America: U.S., Canada

Europe: Germany, France, Spain, U.K., Italy, Russia, Rest of Europe

Asia Pacific: China, Japan, India, Southeast Asia, Rest of Asia Pacific

Latin America: Brazil, Mexico, Rest of Latin America

Middle East and Africa: GCC, South Africa, Rest of Middle East and Africa

Related Posts