HYDERABAD, India, Dec. 30, 2019 /PRNewswire/ -- The facial recognition market was valued at USD 4.51 billion in 2018 and is expected to reach a value of USD 9.06 billion by 2024, at a CAGR of 12.5%, for the forecast period (2019-2024). Facial recognition has been gaining prominence in recent times, owing to the benefits it offers over traditional surveillance techniques, like biometrics. Governments across the world have been investing significant resources in facial recognition technology, among which, the United States and China are leading adopters.
Facial recognition is defined as a method of recognizing a human face through hardware like video cameras. The scope of this study is limited to standalone facial recognition solutions and services offered by various vendors like NEC. The hardware components involved for facial recognition services like video cameras, sensors, etc. are not considered for arriving at the revenue estimates during the forecast period.
Highlights of the Market: 3D Facial Recognition is Expected to Hold a Highest Market Share
Presently, around 94% of smartphones features fingerprint sensors, but this is expected to drop to 90% by 2023. With technologies like 3D facial recognition becoming a standard approach to user authentication, growing technological advancement is expected to increase its penetration rate.
The development in 3D cameras market is also expected to bring advancement and new applications for 3D facial recognition technology, especially the healthcare IT solutions, payments, and commerce sector. For instance, in June 2018, SensibleVision, a Florida-based firm launched its 3DWALLET technology, designed to let retailers replace cash and card payments and eliminate the need for checkout lines through a 3D facial recognition platform that identifies customers automatically and charges them for their purchases.
Increasing demand for surveillance systems to enhance safety and security are increasing the adoption of facial recognition systems.
Government initiatives are expected to contribute to the double-digit growth of such technologies. For instance, the US government has plans to reshape airport security through facial recognition, to register and identify the visitors.
North America is Expected to Hold the Highest Market Share
The region offers lucrative opportunities for market growth, exhibiting a massive demand for facial recognition technology for homeland security and criminal investigation.
The biggest facial recognition surveillance system in the region is operated by the FBI. The FBI's ID system maintains a facial recognition database with images of more than 117 million Americans. The FBI conducts, on average, 4,055 searches every month to identify individuals with facial recognition systems.
The United States alone witnessed a total of 1,579 data breaches in 2017, of which, 8% of data breaches were accounted by banking institutes. Although this number is small, the amount of sensitive data available in the banking industry is very high, making it a prime target for hackers. These factors are further expected to provide significant opportunities for the facial recognition market.
Canadian companies are also taking advantage of this facial recognition technology. For instance, Mexia One used facial recognition systems to provide secure event access at the popular industry event, Mobile World Congress 2018.
The competitive rivalry is not consolidated in this market, despite the presence of a few major players operating in the market, such as Aware, and Gemalto among others. With the number of startups in the study market growing at a substantial rate, the market is expected to witness a highly competitive scenario in the near future.
Caxia Bank introduced the first of its kind face recognition for withdrawal of money from the ATM. This was done by Caxia in partnership with Fijitsu and Facephi in 2019.
In July 2018, Cognitec Systems, the face recognition company, launched an extensive research and development efforts to greatly advance the accuracy and speed of its face matching algorithm. The high-performance algorithm has been integrated into Cognitec's FaceVACS engine and is now available in new releases of all market-focused Cognitec products.
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