Facial Recognition - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2024 - 2029

The Facial Recognition Market size is estimated at USD 6.61 billion in 2024, and is expected to reach USD 14 billion by 2029, growing at a CAGR of 16.20% during the forecast period (2024-2029).

Facial recognition refers to the way of identifying or confirming an individual's identity using their face. Facial recognition systems can be utilized to identify people in photos, videos, or in real-time.

Key Highlights

• Rising criminal activities worldwide have resulted in the increasing installation of surveillance systems across all verticals. For instance, according to the Council on Criminal Justice, thefts and robberies in major cities across the United States increased by around 20% in the first half of 2022. Integrating facial recognition in security systems can significantly enhance the effectiveness of security and surveillance across sectors and reduce overall costs.
• The market is witnessing various developments from private and public organizations, further boosting market growth. For instance, in August 2022, DRDO (Defence Research and Development Organization) developed an advanced Facial Recognition Technology (FRT) to increase surveillance. The DRDO has developed FRSD to solve the issue of facial recognition in the wild, where there are wide-ranging issues like low-resolution cameras.
• Government initiatives are expected to contribute to the significant growth of such technologies. For instance, As of July 2022, the CBP had deployed facial recognition technology to 32 airports for travelers leaving the U.S. and all airports for travelers entering the country.
• With the outbreak of the pandemic, facial recognition systems were adopted for wider use as they were used to track COVID-positive people who needed to stay home. Moreover, since the outbreak of COVID-19, facial recognition software vendors have upgraded their algorithms with new features, such as recognizing faces with a mask on.
• However, data breaches involving facial recognition data increase the potential for identity theft, stalking, and harassment as, unlike passwords and credit card information, faces cannot easily be changed. Such factors may hinder the market growth.

Facial Recognition Market Trends

Retail and E-commerce is Expected to Hold Significant Share

• While facial recognition technology did not initially absorb a massive demand from the retail industry, it provided adequate potential for the technology over the past few years. The advancement in three technical fields, neural networks, big data, and graphical processing units (GPU), has played a significant role in the widespread use of facial recognition technology in the sector. For instance, apparel retailers leverage technology to deliver customized products to customers visiting their stores.
• Facial recognition technology is expected to help retailers analyze mood and facial expressions at different SKUs and further enhance their shopping experience, preventing theft and shoplifting, as the technology helps increase security at the store level.
• The demand for cameras equipped with facial recognition technology among the stores is expected to surge over the forecast period. In addition to security and surveillance, the demand for technology in the industry is fueled by the growing application of enhancing consumer insights to offer a better customer experience.
• Facial recognition also allows retailers to personalize the shopping experience for customers. For instance, the technology could be used to identify a customer as they enter the store and then display personalized recommendations or offers on digital displays throughout the store.
• Moreover, receiving updates about the actual demographics of customers visiting the store at any given point can be a major challenge for any retail store management. Implementing facial recognition technology can help store authorities access the demographics of the footfall entering the store hourly and create business decisions based on that.

Asia-Pacific is Expected to Register Fastest Growth

• The Asia-Pacific is one of the most prominent regions for adopting facial recognition, owing to technological development, rising infrastructure growth, and increasing application in numerous areas. Massive industrialization and the growing consumer electronics industry in the region showcase exciting opportunities for the players in the market and the scope for significant growth.
• Currently, India is one of the largest global destinations in the retail space. In recent years, the retail industry in India has been becoming increasingly more dynamic and fast-paced, owing to the entry of many new players. The industry accounts for over 10% of the country's gross domestic product (GDP) and about 8% of the employment (as per IBEF). Thus, the expanding retail sector in the region offers considerable growth opportunities for the market.
• Further, in August 2022, Hyderabad International Airport announced using facial recognition to enable seamless and hassle-free travel. In line with the DigiYatra program, the Hyderabad International Airport rolled out the digital processing of passengers as a proof of concept through the DigiYatra platform.
• China has used facial recognition technology for a long time. Moreover, the country has deployed facial recognition glasses for the country's police force to spot citizens and tourists and use real-time ID authentication to primarily fight crimes during celebrations.
• The country is also embracing facial authenticated payments. Alipay, China's biggest payment app, started a trial for the smile-to-pay feature at a branch of KFC in Southern China, which uses facial recognition to identify customers and automatically charges them through the app.

Facial Recognition Industry Overview

The facial recognition market is moderately competitive, with significant players operating in the market, such as NEC Corporation, Gemalto NV, Panasonic Corporation, etc. With the number of startups growing substantially, the market studied is expected to witness a highly competitive scenario shortly.

In June 2023, Hitachi, Ltd. and Panasonic Connect Co., Ltd. collaborated to develop a new service that combines Hitachi's technology for preventing biometric data leakage with Panasonic Connect's facial recognition technology.

In November 2022, NEC Corporation developed a Gateless Access Control System using Biometric Recognition that combines NEC's face recognition technology with person re-identification technology, which matches people even if they are facing away or their bodies are occluded, to provide fast and reliable entry control that is free from gates.

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