Facial Recognition Market (Updated Version Available)
Facial Recognition Market Size, Share & Trends Analysis, By Technology (2D Facial Recognition, 3D Facial Recognition, Facial Analytics, and Others), Application (Access Control, Security and Surveillance, and Other Applications), Vertical (BFSI, Automotive & Transportation, Healthcare, Government & Defense, IT and Telecom, Retail and E-commerce, Others), By Region and Segment, Forecast Period 2023 - 2030
Report ID : RI_673841 | Date : March 2023 |
Format : 
Key Market Overview:
Facial recognition market size was worth USD 5.79 Billion in 2022 and is expected to surpass USD 16.5 Billion by 2030, growing at a CAGR of 16.13% during the forecast period (2023-2030).
Facial recognition technology uses facial features to identify or verify the identity of individuals. The technology analyzes images and videos to identify human faces, compare faces in different images of the same person, and search for a specific face among a vast collection of images. Biometric security systems typically rely on facial recognition technology to provide unique identification during user registration or login and strengthen authentication activities. Also, the employment of facial recognition technology in mobile phones and demand among population.
Further, growing investments by government in AI technology to help foster collaboration and partnerships between private companies and government agencies are expected to create favorable opportunities for the market growth. Such investments are expected to result in the development of new facial recognition products and services that are anticipated to improve the facial recognition market circumstances during the forecast period. For instance, the European Union stated that in February 2020, an investment of approximately USD 22 billion by the European government was initiated for the advancement of face detection systems and related services that use advanced AI technology. Thus, government funding to support research and development efforts in AI technology, including facial recognition technology is estimated to propel market growth in terms of improvements in the accuracy and effectiveness of facial recognition systems.
Facial Recognition Report Coverage:
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Market Dynamics:
Driver:
Growing adoption of authentication and surveillance without physical contact drives the demand for facial recognition in various industries such as healthcare, retail, banking, and hospitality. Moreover, favorable government initiatives to improve security systems and reduce crime rates also boost market growth. Furthermore, growing public infrastructural and commercial developments in developing countries such as India, Brazil, and Mexico also boost the demand for facial recognition technology especially in public places such as airports and train stations to improve security and prevent crimes.
Restraint:
The high vulnerability of facial recognition technology to security risks and privacy concerns such as data breaches and cyberattacks hampers the wide adoption of the technology among businesses. Further, the expensive costs of implementation also restrict market growth. Also, the compromised accuracy for certain demographic groups such as women and people of color limits the demand for technology in various industries.
Opportunities:
The emerging adoption of cloud-based facial recognition is anticipated to offer lucrative opportunities for market growth during the forecast period. Furthermore, the scope of improvements in advanced artificial intelligence (AI) and deep learning algorithms to accurately identify and authenticate individuals is estimated to create creative opportunities for the facial recognition market demand.
Facial Recognition Market Segmentation:
By Technology
The technology segment is divided into 2D facial recognition, 3D facial recognition, facial analytics, and others. The 3D segment dominated the market circumstances in 2022 with the highest share contribution of over 43.5% to the market growth. The precise accuracy even in light differences and accurate recognition of a target from various angles supports the high adoption of 3D facial recognition technology among businesses. Further, the 2D facial technology segment is also anticipated to support the market growth in terms of volume. The large-scale adoption among several businesses due to efficiency in a constricted budget is estimated to support segmental growth.
By Application
The application segment is separated into access control, security and surveillance, and other applications. The access control segment accounted for largest share contribution to the market growth in 2022. The factors such as easy integration with existing platforms of access control, counterfeit alerts, and liveness detection in real-time boost the segmental growth. Moreover, the security and surveillance segment is also expected to contribute substantial shares to the market growth. The ability to recognize geometric patterns and process vast amounts of data in seconds supports the large-scale adoption of facial recognition for security and surveillance. Also, the capacity to perform verification tasks even in the core of large crowds, along with the identification of thousands of faces simultaneously, even in constantly changing and unpredictable environments boosts segmental growth.
By Vertical
The vertical segment is categorized into BFSI, automotive & transportation, healthcare, government & defense, IT and telecom, retail and e-commerce, and others. The retail and e-commerce segment contributed the highest shares to the facial recognition market growth in 2022. The recent technological advancements in facial recognition in smart retail or self-services in physical storefronts support the segmental demand for alerting the sales associate on the basis of user preferences, demographic information, and transaction history. Furthermore, the BFSI segment is also estimated to support market growth in terms of value and volume. A high rate of deployments especially in bank ATMs for preventing unauthorized withdrawal of money from bank accounts is expected to be a major factor propelling the adoption of facial recognition in the BFSI sector.
By Region
The regional segment includes Asia Pacific, North America, Europe, Latin America, and the Middle East and Africa. North America contributed largest shares to the market growth in 2022. The large adoption of facial recognition technology, especially in the established healthcare industry to improve patient identification and security and track patient health data is the major factor attributed to the market growth in the North American region. Also, the implementation of facial recognition technology at various airports and border crossings by the U.S. government supports the market growth in the region.
Moreover, Asia Pacific is estimated to register the fastest CAGR growth of over 18.2% during the forecast period. A rise in security concerns such as terrorism, cybercrime, and identity theft especially in countries such as India, China, and Japan is anticipated to support the segmental growth during the projected period.
Facial Recognition Market Competitive Landscape:
The market of facial recognition is a rapidly growing and highly competitive industry due to the presence of established market players. The constant advancements by companies in developing and refining facial recognition technology, improving accuracy, and expanding applications for usage in various industries, such as law enforcement, retail, healthcare, and banking strengthen the competitive landscape of market. However, companies are expected to balance product innovations with ethical considerations to maintain trust and credibility in the market. Mentioned are market players that currently function in the market environment–
• NEC Corporation
• Thales
• Softweb Solutions Inc. (An Avnet Company)
• Cognitec Systems GmbH (Germany)
• Aware, Inc.
• Daon, Inc.
• FaceFirst, Inc.
• Face++
• Fulcrum Biometrics, Inc.
• Amazon Web Services, Inc.
• Google Developers
Recent Developments:
• In January 2020, NEC Corporation stated that the business entered into an agreement to offer a Smart Hospitality Service that utilizes facial recognition technology for the recently launched hotel brand Sequence by Mitsui Fudosan and Mitsui Fudosan Hotel Management.
• In March 2022, SALTO completed the acquisition of Cognitec Systems and formed a robust partnership to foster business synergy and innovation. The facial recognition company, Cognitec Systems, is expected to improve established product portfolios research, development, and market reach due to collaboration with SALTO on new technologies to expand biometric markets.
• In December 2022, Thales, a global leader in border and travel management, introduced a new multimodal biometric solution that streamlines border processes and improves user experience. Such cutting-edge Pod incorporates iris and Facial Recognition technology to provide a comprehensive biometric capture and authentication solution for both enrollment and identity verification of travelers.
Facial recognition market size was worth USD 5.79 Billion in 2022 and is expected to surpass USD 16.5 Billion by 2030, growing at a CAGR of 16.13% during the forecast period (2023-2030).
Facial recognition technology uses facial features to identify or verify the identity of individuals. The technology analyzes images and videos to identify human faces, compare faces in different images of the same person, and search for a specific face among a vast collection of images. Biometric security systems typically rely on facial recognition technology to provide unique identification during user registration or login and strengthen authentication activities. Also, the employment of facial recognition technology in mobile phones and demand among population.
Further, growing investments by government in AI technology to help foster collaboration and partnerships between private companies and government agencies are expected to create favorable opportunities for the market growth. Such investments are expected to result in the development of new facial recognition products and services that are anticipated to improve the facial recognition market circumstances during the forecast period. For instance, the European Union stated that in February 2020, an investment of approximately USD 22 billion by the European government was initiated for the advancement of face detection systems and related services that use advanced AI technology. Thus, government funding to support research and development efforts in AI technology, including facial recognition technology is estimated to propel market growth in terms of improvements in the accuracy and effectiveness of facial recognition systems.
Facial Recognition Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Billion) | 16.5 Billion |
| CAGR (2023-2030) | 16.13 % |
| Base Year | 2022 |
| By Technology | 2D Facial Recognition, 3D Facial Recognition, Facial Analytics, and Others |
| By Application | Access Control, Security and Surveillance, and Other Applications |
| By Vertical | BFSI, Automotive & Transportation, Healthcare, Government & Defense, IT and Telecom, Retail and E-commerce, Others |
| By Geography |
|
| Key Players | NEC Corporation, Thales, Softweb Solutions Inc. (An Avnet Company), Cognitec Systems GmbH (Germany), Aware, Inc., Daon, Inc., FaceFirst, Inc., Face++, Fulcrum Biometrics, Inc., Amazon Web Services, Inc., Google Developers |
Market Dynamics:
Driver:
Growing adoption of authentication and surveillance without physical contact drives the demand for facial recognition in various industries such as healthcare, retail, banking, and hospitality. Moreover, favorable government initiatives to improve security systems and reduce crime rates also boost market growth. Furthermore, growing public infrastructural and commercial developments in developing countries such as India, Brazil, and Mexico also boost the demand for facial recognition technology especially in public places such as airports and train stations to improve security and prevent crimes.
Restraint:
The high vulnerability of facial recognition technology to security risks and privacy concerns such as data breaches and cyberattacks hampers the wide adoption of the technology among businesses. Further, the expensive costs of implementation also restrict market growth. Also, the compromised accuracy for certain demographic groups such as women and people of color limits the demand for technology in various industries.
Opportunities:
The emerging adoption of cloud-based facial recognition is anticipated to offer lucrative opportunities for market growth during the forecast period. Furthermore, the scope of improvements in advanced artificial intelligence (AI) and deep learning algorithms to accurately identify and authenticate individuals is estimated to create creative opportunities for the facial recognition market demand.
Facial Recognition Market Segmentation:
By Technology
The technology segment is divided into 2D facial recognition, 3D facial recognition, facial analytics, and others. The 3D segment dominated the market circumstances in 2022 with the highest share contribution of over 43.5% to the market growth. The precise accuracy even in light differences and accurate recognition of a target from various angles supports the high adoption of 3D facial recognition technology among businesses. Further, the 2D facial technology segment is also anticipated to support the market growth in terms of volume. The large-scale adoption among several businesses due to efficiency in a constricted budget is estimated to support segmental growth.
By Application
The application segment is separated into access control, security and surveillance, and other applications. The access control segment accounted for largest share contribution to the market growth in 2022. The factors such as easy integration with existing platforms of access control, counterfeit alerts, and liveness detection in real-time boost the segmental growth. Moreover, the security and surveillance segment is also expected to contribute substantial shares to the market growth. The ability to recognize geometric patterns and process vast amounts of data in seconds supports the large-scale adoption of facial recognition for security and surveillance. Also, the capacity to perform verification tasks even in the core of large crowds, along with the identification of thousands of faces simultaneously, even in constantly changing and unpredictable environments boosts segmental growth.
By Vertical
The vertical segment is categorized into BFSI, automotive & transportation, healthcare, government & defense, IT and telecom, retail and e-commerce, and others. The retail and e-commerce segment contributed the highest shares to the facial recognition market growth in 2022. The recent technological advancements in facial recognition in smart retail or self-services in physical storefronts support the segmental demand for alerting the sales associate on the basis of user preferences, demographic information, and transaction history. Furthermore, the BFSI segment is also estimated to support market growth in terms of value and volume. A high rate of deployments especially in bank ATMs for preventing unauthorized withdrawal of money from bank accounts is expected to be a major factor propelling the adoption of facial recognition in the BFSI sector.
By Region
The regional segment includes Asia Pacific, North America, Europe, Latin America, and the Middle East and Africa. North America contributed largest shares to the market growth in 2022. The large adoption of facial recognition technology, especially in the established healthcare industry to improve patient identification and security and track patient health data is the major factor attributed to the market growth in the North American region. Also, the implementation of facial recognition technology at various airports and border crossings by the U.S. government supports the market growth in the region.
Moreover, Asia Pacific is estimated to register the fastest CAGR growth of over 18.2% during the forecast period. A rise in security concerns such as terrorism, cybercrime, and identity theft especially in countries such as India, China, and Japan is anticipated to support the segmental growth during the projected period.
Facial Recognition Market Competitive Landscape:
The market of facial recognition is a rapidly growing and highly competitive industry due to the presence of established market players. The constant advancements by companies in developing and refining facial recognition technology, improving accuracy, and expanding applications for usage in various industries, such as law enforcement, retail, healthcare, and banking strengthen the competitive landscape of market. However, companies are expected to balance product innovations with ethical considerations to maintain trust and credibility in the market. Mentioned are market players that currently function in the market environment–
• NEC Corporation
• Thales
• Softweb Solutions Inc. (An Avnet Company)
• Cognitec Systems GmbH (Germany)
• Aware, Inc.
• Daon, Inc.
• FaceFirst, Inc.
• Face++
• Fulcrum Biometrics, Inc.
• Amazon Web Services, Inc.
• Google Developers
Recent Developments:
• In January 2020, NEC Corporation stated that the business entered into an agreement to offer a Smart Hospitality Service that utilizes facial recognition technology for the recently launched hotel brand Sequence by Mitsui Fudosan and Mitsui Fudosan Hotel Management.
• In March 2022, SALTO completed the acquisition of Cognitec Systems and formed a robust partnership to foster business synergy and innovation. The facial recognition company, Cognitec Systems, is expected to improve established product portfolios research, development, and market reach due to collaboration with SALTO on new technologies to expand biometric markets.
• In December 2022, Thales, a global leader in border and travel management, introduced a new multimodal biometric solution that streamlines border processes and improves user experience. Such cutting-edge Pod incorporates iris and Facial Recognition technology to provide a comprehensive biometric capture and authentication solution for both enrollment and identity verification of travelers.
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| Multi user | : $5460 |
| Corporate user | : $7460 |
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