Facial Recognition Market Analysis Report By Technology, By Application, By End Use And Segment Forecasts From 2020 To 2027

Industry Insights

The global facial recognition market size was worth USD 3.4 billion in 2019, registering 14.5% CAGR from 2020 to 2027. Facial recognition identifies people with the help of a digital image or a video source. By capturing images using digital cameras, it matches the images feature against data stored in it. In the recent past, this technology is expanding at a considerable pace owing to its ability to provide enhanced security. Biometrics is universal and unique in nature, thereby offering a reliable solution.

Different kinds of biometrics used today are iris recognition, speech recognition, face recognition, and fingerprint among others. In an ideal situation, this technology offers enhanced reliability, thereby making it easier to identify individuals among the masses.

Enhanced security offered by this technology has led to its wide acceptance in various end-use industries. At airports, it is used to find the identity of travelers. On the other hand, law enforcement agencies use this application to find out the identity of a person captured in CCTV cameras to solve crime cases. Therefore, increasing the use of this technology to solve criminal cases by law enforcement agencies is propelling its market growth. For example, Moscow city allowed the use of NtechLab made cameras for live facial recognition.

Besides, the smartphone is one of the major applications where facial recognition is used to unlock the phone, for payment verification, and during sign-ups. Owing to the rapidly increasing smartphone penetration, facial recognition technology is further anticipated to gain traction.

Technology Insights

Based on technology, the facial recognition market is classified into facial analytics, 3D, and 2D. In 2019, the 2D division accounted for the highest share in the market. The use of 2D images is popular as it is used since earlier days. 2D images detection requires a person to look towards the camera with a little variance to ensure accuracy. However, owing to the inaccuracies faced due to various factors such as environmental conditions, expression and angles have limited its use.

To address the challenges faced in 2D technology, manufacturers introduced 3D variants that provide higher accuracy. In the 3D system, a captured image is processed using the data stored in the cloud. With the ability of the 3D system to analyze the data in the darkness and various viewing angles, its demand is witnessing significant growth. On the other hand, facial analytics include several features of the human face including local features analysis and surface texture analysis. Owing to the high accuracy of this feature, it is used in various applications such as research, education, and retail.

Application Insights

Depending on the application, the market is segregated into access control, emotion recognition, security & surveillance, attendance tracking & monitoring, and others. Owing to the rise in the number of crimes and fraudulent activities, the use of facial recognition in security & surveillance is gaining traction. By integrating this technology with a video surveillance network, security agents can easily track criminals.

In 2019, the access control segment accounted for the highest share in the market. The rise in the number of companies emphasizing improving their access control system is attributing to the growth of this segment. For example, Precise Biometrics announced an enhancement of a new product in 2019. The company integrated liveness detection features into physical access control. Therefore, such advancements are anticipated to supplement facial recognition market growth.

End-use Insights

Among different end-use industries, the healthcare segment is estimated to account for the highest share in the market from 2020 to 2027. To increase security and efficiency, the adoption of facial recognition technology in healthcare has increased in the recent past. With the advancement in healthcare technology, service providers are aiming to strengthen their security systems. By linking patients' faces with their medical records, medical records can be secured.

On the other hand, the government sector is projected to register considerable growth over the forecast duration. The increasing use of facial detection technology by law enforcement agencies to track criminals is a major factor driving the segment growth. Besides, facial recognition is gaining traction in the BFSI sector as it helps in countering fraudulent activities. Further, e-commerce and retail sectors are widely incorporating facial recognition technology to enhance their sales. For example, Alibaba.com and Jingdong JD.com announced in 2019 that they would combine their sales data with facial recognition technology to understand the sales behavior and use their resources better.

Regional Insights

Asia Pacific is estimated to grow at the highest CAGR over the forecast duration. This growth is attributed to the increasing penetration of technology in the region. Facial recognition adoption in India has surged in the recent past owing to its growing adoption in solving criminal cases. For example, the Delhi police used facial recognition technology in 2018 to identify kidnapped and missing children.

Other Asian countries are also introducing this technology to generate an electronic ID. Government-backed initiatives such as UIDAI in India and e-KTP in Indonesia are further anticipated to bode well for the market growth. On the other hand, the North American market is estimated to register significant growth over the forecast duration. The increasing adoption of facial recognition technology injustice, security, and defense is driving the market growth in North America.

Impact of COVID-19

COVID-19 outbreak has generated a mixed response for the market. The pandemic has led to the closure of various operations and a shortage of workforce, thereby, hampering the production and installation of facial recognition systems. While on the other hand, facial recognition technology also helped in addressing several challenges caused by the pandemic outbreak. For example, Germany-based DERMALOG developed the first of its kind border control solution integrated with temperature detection features. This has helped in the easy detection of infected travelers at borders, thereby helping in preventing the virus from the spread.

Facial Recognition Market Share Insights

Major players operating in the market are NEC Corporation, Gemalto NV, Precise Biometrics, Fujitsu, Ayonix Corporation, and Onfido among others. These players are focusing on introducing new products by increasing their investment in research and development. Companies like Ayonix Corporation offers real-time facial recognition solution to identify individual suspects in the public gathering. Further, merger and acquisition is also a key strategic initiative adopted by industry players to gain a competitive edge over their peers.

Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Million Insights has segmented the global facial recognition market report based on technology, application, end-use and region:

• Technology Outlook (Revenue, USD Million, 2016 - 2027)
    • 2D
    • 3D
    • Facial Analytics

• Application Outlook (Revenue, USD Million, 2016 - 2027)
    • Emotion Recognition
    • Attendance Tracking and Monitoring
    • Access Control
    • Security & Surveillance
    • Others

• End-use Outlook (Revenue, USD Million, 2016 - 2027)
    • Retail & E-commerce
    • Media & Entertainment
    • BFSI
    • Automobile & Transportation
    • Telecom & IT
    • Government
    • Healthcare
    • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • U.K.
        • France
    • The Asia Pacific
        • China
        • Japan
        • India
    • South America
        • Brazil
    • Middle East and Africa