Facial Recognition Market Research Report and Outlook by 2028

The Facial Recognition industry is anticipated to achieve a valuation of approximately US$ 12,670.22 million by 2028, rising from US$ 5,012.71 million in 2021, reflecting a compound annual growth rate (CAGR) of 14.2% during the period from 2021 to 2028.

The use of facial recognition technology is expected to expand significantly in both law enforcement and various non-law enforcement sectors throughout the forecast period. Its non-invasive nature and straightforward implementation make it a preferred option compared to other biometric methods, including iris scanning, fingerprint recognition, skin texture analysis, and voice identification. The ongoing fourth industrial revolution, often referred to as Industry 4.0, characterized by rapid technological advancements in areas such as artificial intelligence (AI), is a key factor propelling this growth. Modern AI-driven facial recognition systems leverage machine learning algorithms, internet protocol (IP) cameras, and cognitive technologies to verify identities from digital images or video feeds, providing enhanced accuracy over traditional systems. As a result, numerous organizations are transitioning from conventional fingerprint scanners to AI-enhanced facial recognition systems, further accelerating their adoption.

The expansion of the facial recognition market is significantly influenced by increasing governmental initiatives and investments aimed at fostering AI-based facial recognition technologies. In 2020, the US Department of Defense's Defense Advanced Research Projects Agency (DARPA) committed over US$2 billion for AI-focused research and development over a five-year span. This funding is particularly advantageous for numerous AI startups concentrating on facial recognition, thereby contributing to the market's growth.

The global repercussions of the COVID-19 pandemic have varied across different regions. Nevertheless, during this health crisis, organizations are striving to create safe working environments for their employees, leading to the emergence of contactless attendance monitoring through facial recognition software as a valuable tool. This technology aids businesses in resuming on-site operations while prioritizing employee health and safety. For instance, CyberLink's FaceMe technology, which specializes in facial recognition and tracking, is utilized by various physical retail locations in the US for biometric attendance management. Additionally, two Chinese firms have developed AI-driven software for diagnosing coronavirus through CT scans to identify lung issues. This technology was employed by at least 34 hospitals in China to screen 32,000 suspected cases in February 2020. Consequently, the overall effect of the COVID-19 pandemic on the facial recognition market is projected to be moderate to low.

The global facial recognition market is divided into three primary segments based on components, applications, and verticals. The components segment encompasses software, hardware, and services, with the software segment leading the market in 2021. The applications segment is further divided into security & surveillance, access control, and other uses, where security & surveillance was the dominant segment in 2021. The verticals segment includes banking, financial services, and insurance (BFSI), retail and e-commerce, government, healthcare, education, automotive and transportation, among others, with the government sector holding the largest market share in 2021. Regionally, the facial recognition market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM), with APAC representing a substantial portion of the market in 2021.

Key players in the global facial recognition market include Tech5, IDEMIA, Aware Inc., Cognitec Systems GmbH, Ayonix Corporation, Fujitsu Limited, Onfido, NEC Corporation, Thales Group, and Face PHI, all of whom are featured in the market analysis.

The size of the facial recognition market has been assessed through a combination of primary and secondary research methodologies. The initial phase involved extensive secondary research utilizing both internal and external sources to collect qualitative and quantitative data pertinent to the market. This approach facilitated a comprehensive understanding and forecasting of the facial recognition market across all segments. Furthermore, numerous primary interviews were conducted with industry stakeholders, including vice presidents, business development managers, market intelligence managers, national sales managers, external consultants, research analysts, valuation experts, and key opinion leaders specializing in the facial recognition sector, to validate the findings and obtain deeper analytical insights.