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Facial Recognition Market Size, Trends | Industry Analysis

NehaDPatil

posted on 4 months ago — updated on 1 second ago

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The market size for industrial refrigeration systems was USD 3925.1 million in 2021, and it is projected to grow at a CAGR of 15.2 percent during the forecast period. Due to its many application possibilities, facial recognition technology is quickly being used by a wide range of end users. For instance, the electronics and IT business NEC Corporation declared in January 2020 that it will provide facial recognition technology to the Japanese real estate firm Mitsui Fudosan Co., Ltd.

Facial Recognition Market Size, Trends | Industry Analysis

The facial recognition market is experiencing substantial growth due to its expanding application across various industries. In 2021, the market size for industrial refrigeration systems was USD 3925.1 million, and it is projected to grow at a CAGR of 15.2 percent during the forecast period. This growth is driven by the rapid adoption of facial recognition technology by diverse end users. For instance, in January 2020, NEC Corporation announced its collaboration with Mitsui Fudosan Co., Ltd., a Japanese real estate firm, to implement facial recognition technology in smart hospitality services. This system enhances hotel security and convenience by enabling facial recognition for check-ins, cashless transactions, entertainment access, and room entry.

Know More:https://www.fairfieldmarketresearch.com/report/facial-recognition-market

Market Growth Drivers

The increasing use of facial recognition technology in various applications is a primary driver of market growth. Airports and border control officials utilize this technology to verify travelers' identities, enhancing security measures. Law enforcement agencies also employ facial recognition software to identify individuals from CCTV footage. The technology has seen significant adoption in smartphones, enabling secure payments, app logins, and phone unlocking. Notably, the iPhone X series and Samsung Galaxy Note 8 and 9 models feature advanced facial recognition systems that map thousands of points on the user's face to create secure 3D scans.

Impact of COVID-19 on the Market

The COVID-19 pandemic has had a profound impact on the facial recognition market, driving increased adoption of the technology. To mitigate the spread of the virus, many organizations and law enforcement agencies have integrated thermal camera inspections and facial recognition technology into their systems. This technology helps in tracking and monitoring movements, verifying identities, and providing secure access to authorized healthcare services and public security. The demand for facial recognition systems has surged, particularly as touch-based fingerprint scanners pose a risk of transmitting bacteria.

Government Funding and Investments

Government funding and investments are crucial to the market's growth. Countries like the US and China are major adopters of facial recognition technologies, with substantial government resources allocated to this field. China, in particular, is a leading user and exporter of facial recognition technology, with extensive public surveillance infrastructure. By 2020, China was estimated to have between 200 million and 626 million CCTV cameras. Globally, homeland security, law enforcement, and other security agencies have implemented facial recognition technology, aiding in the swift identification of criminals and resolution of criminal investigations.

Work from Home Model

The COVID-19 pandemic has significantly increased internet usage, driving the need for robust IT infrastructure to support the work-from-home model. This shift has led to a substantial rise in internet traffic, with network operators reporting increased demand for streaming video and online gaming. IT infrastructure providers are compelled to migrate their systems to support this new model, contributing to the growth of the facial recognition market.

Market Restraints

Despite its widespread use, the implementation of facial recognition technology faces significant challenges, particularly regarding false matches. Instances of false alarms, such as those reported during tests at Boston's Logan Airport, highlight the potential for innocent individuals to be wrongly identified and detained. This issue poses legal risks and hampers the widespread adoption of facial recognition technology.

Segment Overview

The 3D segment dominates the facial recognition market, accounting for over 36% of global revenue in 2021. The introduction of advanced technologies like cloud-based services and facial analytics is expected to drive market growth. Facial analytics capabilities enable users to determine facial characteristics, such as emotions and visual geometry, from images or videos. High detection efficiency and accuracy make 3D facial recognition systems preferable for public safety applications like border security and surveillance. These systems are increasingly used in education, healthcare, retail, and law enforcement to identify altered traits and ensure security.

The access control segment also leads the market, accounting for more than 37% of global sales in 2021. Companies are increasingly focusing on enhancing their access control systems. For instance, Precise Biometrics introduced liveness detection features in facial recognition-based access control systems in November 2019. Such innovations encourage the adoption of access control technology, boosting market revenues.

Regional Landscape

North America leads the facial recognition market, accounting for over 37% of global revenue in 2021. The widespread adoption of facial recognition technology in security and surveillance systems drives regional growth. The US, in particular, sees significant use of this technology across sectors like homeland security, justice, and defense. Companies like MorphoTrust, a division of IDEMIA, provide facial recognition software to state and federal law enforcement agencies, state DMVs, and airports.

The Asia Pacific region is expected to experience the highest CAGR during the forecast period. Developing countries like India are increasingly using facial recognition technology to solve criminal cases. For instance, New Delhi's police department used facial recognition in April 2018 to identify and locate missing children. Several APAC countries are launching initiatives to create electronic identification systems, such as Indonesia's e-KTP project and India's UIDAI project, creating new opportunities for market growth.

Competitive Landscape

The facial recognition market is highly competitive, with key players continuously innovating and forming strategic partnerships. In April 2022, PopID partnered with Visa to launch its facial payment system, PopPay, in the Middle East. In March 2021, RealNetworks Inc.'s SAFR and Convergint Technologies collaborated to offer a facial recognition platform for live video intelligence.

Notable players in the market include 3M, Cognitec Systems GmbH, Animetrics Inc., Crossmatch, Daon Inc., FaceFirst, Inc., IBM Corporation, Microsoft Corporation, NEC Corporation, and Nuance Communications Inc.

Regional Classification