facial recognition Market

The Facial Recognition market is projected to reach US$ 12,670.22 million by 2028 from US$ 5,012.71 million in 2021; it is expected to grow at a CAGR of 14.2% from 2021 to 2028.

Facial recognition is anticipated to witness a surge in usage in law enforcement and non-law enforcement applications over the forecast period. Its non-contact procedure and easy deployment make it a popular choice over other biometric technologies, such as iris identification, fingerprint scanning, skin texture recognition, and voice recognition. The fourth industrial revolution, Industry 4.0, which features rapid advancements in multiple next-generation technologies such as artificial intelligence (AI), is also a driving force. Advanced AI-based facial recognition systems, which use machine learning algorithms, IP cameras, and cognitive technology to authenticate individuals from digital images or video sources, offer far superior accuracy compared to traditional systems. Many companies are replacing conventional fingerprinting scanners with AI-based facial recognition systems, further driving their adoption.

The development of the facial recognition market is being driven by increasing government initiatives and investments aimed at promoting AI-based facial recognition technologies. In 2020, the US Department of Defense's Defense Advanced Research Projects Agency (DARPA) allocated over US$2 billion for AI-related research and development over the next five years. This investment is benefiting many AI startups, with a particular focus on facial recognition, and is contributing to the growth of the facial recognition market.

The global impact of the COVID-19 pandemic varied by region. However, in the current health crisis, businesses strive to provide safe workplaces to employees, and contactless attendance tracking through facial recognition software has emerged as a helpful tool. This technology benefits businesses resuming on-premises operations while ensuring employee health and safety. For example, CyberLink's FaceMe, a facial recognition and tracking technology, is used by several US physical stores for biometric attendance tracking. Furthermore, two Chinese companies have developed AI-based coronavirus diagnostic software that uses CT scans to detect lung problems. At least 34 Chinese hospitals used this technology to screen 32,000 suspected cases in February 2020. Therefore, the overall impact of the COVID-19 pandemic on the facial recognition market is expected to be moderate to low.

The global facial recognition market is categorized into three segments based on component, application, and vertical. The component segment includes software, hardware, and services, where the software segment dominated the market in 2021. The application segment is further segmented into security & surveillance, access control, and others, with the security & surveillance segment leading the market in 2021. The vertical segment is categorized into BFSI, retail and e-commerce, government, healthcare, education, automotive and transportation, and others, where the government segment held the largest share in 2021. Geographically, the facial recognition market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM), with APAC accounting for a significant share in the market in 2021.

Tech5, IDEMIA, Aware Inc., Cognitec Systems GmbH, Ayonix Corporation, Fujitsu Limited, Onfido, NEC Corporation, Thales Group, and Face PHI are among the key players operating in the global facial recognition market and profiled in the market study.

The facial recognition market size has been determined by combining primary and secondary research methods. The initial stage involved comprehensive secondary research using internal and external sources to gather qualitative and quantitative data related to the market. This process helped to understand and forecast the facial recognition market across all segments. In addition, multiple primary interviews were conducted with industry participants, including VPs, business development managers, market intelligence managers, national sales managers, external consultants, research analysts, valuation experts, and key opinion leaders who specialize in the facial recognition market, to validate the data and gain more analytical insights.