Latest added Facial Recognition Market research study by MarketDigits offers detailed product outlook and elaborates market review till 2027. The market Study is segmented by key regions that is accelerating the marketization. At present, the market is sharping its presence and some of the key players in the study are NEC Corporation, Aware, Inc., Ayonix Corporation, Cognitec Systems GmbH , NVISO SA, Animetrics , Neurotechnology, Daon, Stereovision Imaging, Inc. , Techno Brain, Innovatrics, id3 Technologies, Thales, Idemia, Nuance Communications. The study is a perfect mix of qualitative and quantitative Market data collected and validated majorly through primary data and secondary sources.
The Facial Recognition market size is estimated to grow from USD XX Billion in 2020 to USD XX Billion by 2027, growing at a CAGR of 17% during the forecast year from 2021 to 2027.
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The major factors driving the growth of the facial recognition market are the growing importance of the surveillance industry, increasing investment in facial recognition technologies by the government and defense sector, and increasing technological advancement across industry verticals. However, facial occlusion and face detection error, and lack of knowledge and awareness are some of the major challenges hindering the growth of the facial recognition market.
COVID 19 Impact Analysis on Facial Recognition Market
Given the scale of the pandemic, technology will play a crucial role in addressing every facet of COVID-19. There is also a gradual increase in the number of use cases of facial recognition to surge the demand. Major applications introduced using facial recognition systems are for security assessment and identity verification. In many countries, law enforcement and organization have shifted from legacy systems to facial recognition solutions to reduce the overall spread of COVID-19. Also, the application of thermal camera checks through these systems and are being adopted by healthcare systems worldwide.
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The demand for facial recognition in monitoring and tracking of peoples movement, identity verification, security measures, patient identification, adoption of facial recognition technology by Q4 2021, will be a common phenomenon among various sectors across the globe. New use cases such as biometric sign-in, public security, travel security, authorized healthcare services, eLearning platforms, and many other facial recognition systems are expected to be deployed at a large scale. These kinds of contactless verification technologies have become of prior importance amid the pandemic situation. To avoid the social distancing, scanners that involve touch and transfer bacteria and viruses, such as fingerprint scanners, are expected to lose demand in the future, which will create demand for contactless technologies, such as facial recognition, by 2021
Market Dynamics
Driver: Increasing investments in facial recognition technologies by government and defense sectors
Governments across the world have been investing a significant amount of their resources in the adoption of facial recognition technologies, among which the US and China can be considered as the leading adopters. China is considered as one of the major adopters and exporters of facial recognition tools. The government in the country adopted surveillance technologies, which is one of the main reasons for the growth of the facial recognition market in the region. Currently, the country has the most extensive public surveillance system. According to Comparitech, the number of CCTV cameras in China range from 200 million to 626 million by 2020. Facial recognition technologies have been deployed via homeland security, federal and regional law enforcement departments, and other security agencies across the globe.
This has helped solve numerous criminal investigations, thereby facilitating various departments. This has helped in the rapid identification of offenders, thus solving numerous criminal investigations. Government organizations are spending large amounts on the deployment of these solutions across different government applications, such as law enforcement, military and defense, and homeland security. The Defense Advanced Research Products Agency (DARPA), an agency of the US Department of Defense, funded the Facial Recognition Technology (FERET) evaluation from 19931997, to boost the advancement of face recognition algorithms and technologies This, in turn, has helped in evaluating the prototypes of facial recognition systems and propelled these systems from to become commercial market products.
Restraint: Difficulty in countering legal risks and eDiscovery
Facial recognition technology is used across industry verticals ranging from healthcare and retail to government and defense. Federal and police departments also use facial recognition technologies to catch suspected criminals in different cases. Even though the federal and police departments use this technology, the possibility of false matches poses a major problem in the implementation of facial recognition technologies.
For example, Bostons Logan Airport ran two separate facial recognition system tests at its security checkpoints, using volunteers posing as terrorists over a three-month period and posted disappointing results. Throughout the testing period, the systems correctly identified the volunteers 153 times and failed to identify the volunteers 96 times. The high number of false alarms can result in the arrest of innocent people that do not have any criminal records against them. The arrest of innocent individuals could further lead to them taking legal action against the concerned authorities. Hence, this also remains a major restraint in the implementation of facial recognition technology.
Opportunity: Adoption of the cloud-based facial recognition technology
The adoption of IoT is witnessing exponential growth also proves to be a prerequisite for facial recognition technologies, such as facial recognition, middleware, modeling and restructuring, and analytics. The growing cloud storage, which is expected to reach USD 65.41 billion by 2020, has provided a robust cloud-based storage platform, enabling the captured data to be stored and accessed easily from mobile devices and platforms. Cloud-based solutions reduce various upfront costs and eliminate concerns related to the maintenance of servers. Hence, cloud-based solutions are best-suited for Small and Medium Enterprises (SMEs) and organizations that find on-premises solutions expensive. The increasing adoption of cloud-based technology and IoT is a great opportunity for the growth of the facial recognition vendors, which would eliminate the barriers related to high costs.
Challenge: Lack of knowledge and awareness leading to technical challenges
Facial recognition is cutting-edge technology and has several advantages in different sectors. The technical challenges faced needing immediate attention to make the facial imaging approach robust for out-of-the-lab applications. According to the Neurodata Lab, the lack of effective data to train the algorithms is expected to impact the market growth negatively. The emotion AI technology is used to transform traditional business approaches and redefine them to enhance the organizations productivity and profit margins. However, organizations lack AI skills and understanding that can help them design algorithms for governing a facial recognition system. This is due to the complexity of neural networks and Machine Learning (ML) algorithms in the facial recognition system and the unestablished regulatory environment for AI governance. An organization should have a skilled workforce for building critical ML models. Organizations around the world are challenged by the retention and increased attrition rates of skilled employees. Hence, inadequate AI expertise and skills pose a major challenge among organizations, which might reduce in the near future.
Among vertical segment, government and defense to hold the largest market size during the forecast period
The growing number of government and defense investments in implementing facial recognition technology for various activities, such as border control and criminal identification, are driving the adoption of the facial recognition technology solutions and services. Facial recognition eases the process of identification and verification; hence it is being adopted widely for immigration at airports and attendance tracking and monitoring. The increasing technological advancements across sectors are encouraging enterprises to adopt facial recognition tools and services for easier manual processing and time-saving.
Various governments are relying on ubiquitous sensors and powerful analytics algorithms, instead of the physical presence of a human. In the war against COVID-19, several governments have implemented these new surveillance devices in healthcare, public safety, and surveillance applications. There are some major surveillance and authentication use cases of facial recognition to fight against COVID-19. Governments of all the COVID-19 affected nations have allocated special budgets to fight the epidemic. Different countries are also using digital technology to tackle the pandemic by strict monitoring with Closed-Circuit Television (CCTV) cameras and using smart city services, such as smart transportation, smart parking, and smart citizen services for their citizens. People are advised to use delivery apps for essential items required. Maps are used to locate the real-time availability of essential items with confirmation from local people over the app. Digital banking transactions are also promoted to avoid touch and flow of contaminated cash.
Asia Pacific to grow with fastest growing CAGR during the forecast period
APAC includes big and developing economies, such as China, Japan, India, Singapore, and South Korea. The growing number of investments in security and surveillance, due to high criminal activities, leads to increased public awareness. Owing to these factors, the market in witnessing growth opportunities in the region.
The use of facial recognition technology is used across verticals, such as BFSI, healthcare, government, defense and places, including airports, country, and state borders. The growing number of investments in security and surveillance, due to high criminal activities, leads to increased public awareness. Owing to these factors, the market in witnessing growth opportunities in the region. For example, passengers at the Narita International Airport in Japan will be able to board flights with facial biometrics instead of a passport or boarding pass check, starting in spring, 2020.
According to the Biometric update, the facial recognition system is expected to increase convenience for travelers, including those attending the 2020 Tokyo Summer Olympics and Paralympics, for which a similar fast-matching facial recognition solution from NEC will be used for athlete screening. This varied application of facial recognition technology across various countries is driving the facial recognition market in APAC. During the COVID-19 pandamic, Countries such as South Korea and Singapore have done better than Spain and Italy. Asian countries have used technologies, which can resist the pandemic. For instance, South Korea has designed an app called Corona 100m, which alerts the users if they come within a range of 100 meters of a corona-affected person
Technology Analysis
Facial recognition is the process of detecting and identifying the identity of the individuals with the help of their face. Face recognition systems utilize images, videos or real-time footage for identification. Following are the steps of how a facial recognition system works:
Source: Electronic Frontier Foundation (EFF)
acial recognition systems use computer algorithms to detect and select specifics or characteristics of a persons face. These characteristics could be eyes, the shape of the eyes and chin, skin texture, and others. These details are then converted into mathematical models and compared with other face characteristics collected and stored in a database. AI, ML, deep learning, and neuroscience are the major and basic technologies behind facial recognition systems.
Adjacent Markets
The adjacent markets for the facial recognition market are Emotion Detection and Recognition Market, Image Recognition Market, Voice Biometrics Market, Biometric System Market, Biometric-as-a-Service Market, Access Control Market, Video Surveillance Market, Physical Security Market, Public Safety and Security Market.
Key market players
Major vendors in the global facial recognition market include NEC Corporation (NEC) (Japan), Aware, Inc. (Aware) (US), Ayonix Corporation (Ayonix) (Japan), Cognitec Systems GmbH (Cognitec Systems) (Germany), NVISO SA (nViso) (Switzerland), Animetrics (US), Neurotechnology (Lithuania), Daon (Ireland), Stereovision Imaging, Inc. (SVI) (US), Techno Brain (Dubai), Innovatrics (Bratislava), id3 Technologies (id3) (Israel), Thales (France), Idemia (France), Nuance Communications, Inc. (Nuance) (US), BioID (Germany), Fulcrum Biometrics, LLC. (Fulcrum Biometrics) (US), TrueFace.AI (US), Amazon (US), FacePhi (Spain), Herta Security (Herta) (Spain), Kairos AR, Inc. (Kairos) (US), SightCorp Inc. (SightCorp) (The Netherlands), and Microsoft Corporation (Microsoft) (US).
Thales:
Thales e-Security was founded in 2000 and is headquartered in La Defense, France. The company specializes in aerospace, defense, security, space, transportation, and cybersecurity. Thales e-Security, specializes in data encryption, tokenization, data masking, Hardware Security Model (HSM) management, key management, and digital signature. The company caters to various verticals, such as business services, CSPs, SaaS providers, connected vehicle security, education, financial services, government, healthcare, high-tech manufacturing, insurance providers, IoT, security and managed services, media and entertainment, outsourcing, retail, and pharmacies. Thales e-Security has a wide employee base with regional offices set up in more than 56 countries. The company, in April 2019, acquired Gemalto N.V., a Netherlands-based international digital security company that provides software applications and secure personal devices.
The company has a large clientele comprising both public and private sector clients from across the globe. Some of its major customers include Fujitsu, BMC Software, Delta Dental of Missouri, and McKesson.
A comprehensive analysis of the market structure along with the forecast of the various segments and sub-segments of the market have been delivered through this Facial Recognition market report. The market research and analysis performed in this business report assists clients to forecast investment in an emerging market, expansion of market share or success of a new product. The market is greatly transforming because of the moves of the key players & brands including developments, product launches, joint ventures, mergers & acquisitions that in turn changes the view of the global face of industry.
Table of Contents: Facial Recognition Market
Part 01: Executive Summary
Part 02: Scope Of The Report
Part 03: Research Methodology
Part 04: Market Landscape
Part 05: Pipeline Analysis
Part 06: Market Sizing
Part 07: Five Forces Analysis
Part 08: Market Segmentation
Part 09: Customer Landscape
Part 10: Regional Landscape
Part 11: Decision Framework
Part 12: Drivers And Challenges
Part 13: Market Trends
Part 14: Vendor Landscape
Part 15: Vendor Analysis
Part 16: Appendix
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