The global facial recognition market size is expected to reach USD 15.84 billion by 2030 according to a new report by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 14.9% from 2023 to 2030. Facial recognition is a contactless biometric solution that is a critical factor contributing the market growth. Contactless solutions enable easy deployment in consumer devices. It is also effortless and convenient to use, further contributing to rising adoption. Apart from individual identities, the technology can gather demographic data on crowds; thus, increasing its usability. Such factors are anticipated to drive market growth.
Facial recognition is highly used for security and law enforcement applications, as it is led mainly by the need to combat terrorism and crime. For instance, in the U.S., 26 states permit law enforcement agencies to access facial recognition systems to perform searches against the databases of ID photos and driver’s licenses, to find drug dealers, bank robbers, amongst others who have left behind the images on social media platforms. Also, facial recognition CCTV systems are being used to improve performance in conducting public security missions, such as find missing children or adults, identifying and tracking criminals, and accelerating investigations. Furthermore, the trend of KYC (Know-Your-Customer) has undoubtedly boosted the growth of facial recognition in retail and marketing.
These are used across various applications, such as access control, attendance tracking, security, and surveillance. Biometrics are universal, unique, and measurable and thus can be used to provide security solutions. Various types of biometrics are used today, such as fingerprints, iris, face recognition, speech, and others. Facial recognition technology is a type of image recognition technology that has gained wide acceptance over the years. This technology leverages a connected or digital camera to detect faces in the captured images and then quantify the features of the image to match against the templates stored in the database.
Facial recognition technology is versatile and is rapidly being used by various end-users. For instance, in January 2020, NEC Corporation, an electronics and information technology company, announced that the company would offer facial recognition technology to Mitsui Fudosan Co., Ltd., a Japan-based real-estate company. The offering includes smart hospitality services, a solution using facial recognition technology. Further, the solution, with the help of facial recognition technology, would help the users with secure and safe stays at hotels. It would be used for various services, including cashless payments, entertainment facilities, entering rooms, and check-in.
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The increasing adoption of facial recognition technology across various applications is a driving force for market growth. The border authorities use the technology to verify identities, especially in airports. Law enforcement agencies also use face recognition software to scan faces captured on CCTV and find the targeted person. Another application where the technology has gained prominent adoption is smartphones. In smartphones, the software finds applications for unlocking the phone, signing into mobile apps, and verifying payment.
For instance, in January, Samsung’s Galaxy Note 8 and 9 smartphone models and iPhone X series were the most prevalent devices using facial recognition technology. Other smartphone devices such as OnePlus 6, Oppo Find X, MotoG6, Huawei Honor 7X, and LG G7 use 2D technology and iris scanners for scanning the user’s face. iPhone X face ID consists of a depth sensor, a dot projector, and an infrared camera to map 30,000 points on the user’s face. From this data, the software develops an artificial 3D scan that is safe to unlock phones and authenticate digital payments through Apple Pay.
The rising adoption of the technology by the law enforcement sector is substantially contributing the market growth. For instance, in January 2020, Moscow City announced using live facial recognition cameras provided by NtechLab, an artificial intelligence algorithm developer. The police authority in the city would use facial recognition to search for suspects on a live camera. The software would notify the police when a match is found. In another instance, MorphoTrust, a subsidiary of IDEMIA and one of the most prominent vendors of biometry products and services in the U.S. has developed facial recognition systems for state and federal law enforcement agencies, state DMVs, state departments, and airports.
Technology Insights
The 3D segment held the largest market share of 37.8% in 2022. The advent of advanced technologies, such as cloud-based solutions and facial analytics, is expected to boost market growth. Facial analytics capabilities in facial recognition software allow users to understand where a face exists in a video or image, along with the attributes of the face. For instance, Amazon Rekognition can analyze facial characteristics, including mood, visual geometry, eyes open or closed, and hair color. These attributes help customers organize millions of images using metadata tags. Facial analytics provides high accuracy and detection efficiency. Therefore, it is increasingly used in education and research, retail, healthcare, and police services to determine gender, age, height, and other facial characteristics.
The accuracy provided by 3D technology in facial recognition systems encourages the deployment of these systems for public safety solutions, such as border protection and surveillance. 3D recognition systems are preferred over 2D systems in high-security spaces like airports. For instance, Chenega Europe Ltd., a wholly-owned subsidiary of Chenega Corporation, provides long-range LiDAR-enabled 3D facial recognition for identity acquisition and verification. The company specializes in professional services delivery focused on military and intelligence operations, and its 3D biometric surveillance technology is used by a government in the Middle East to enhance its airport surveillance capabilities.
The facial analytics segment mainly comprises multiple gas extractors and is estimated to exhibit a CAGR of 20.5% over the forecast period. Facial analytics involves analyzing facial features, expressions, and patterns to gain insights into individuals' emotions, demographics, and behavior. The improved accuracy and performance of facial recognition algorithms have fueled the adoption of facial analytics in various industries, including security, retail, healthcare, and marketing.
End-use Insights
Retail e-commerce dominated the market with the highest revenue share of 21.4% in 2022. The retail and e-commerce sectors have rapidly adopted face recognition technology to enhance operational efficiency and improve the in-store experience. Previously, customers made payment amounts through various payment methods, such as cash, card, or QR code. These payment methods involve diverse POS terminal systems and high staff involvement.
At the same time, adopting facial recognition technology for payment methods eliminates the need for various pieces of hardware. Shoppers can quickly pay the bill by scanning their faces on smart devices or at kiosks, which results in a more secure, fast, and user-friendly payment. It also offers a unique authentication service that identifies and recognizes faces from user databases and, with advancements in computer vision-based machine learning algorithms, can find the shopper's face easily from the entire database.
For instance, in June 2019, Alibaba Group Holding Ltd., a Chinese multinational technology company specializing in e-commerce and retail, and Bestore Co Ltd., a snack manufacturer entered into a partnership to integrate facial recognition technology with Alibaba Group account data. Bestore allows its customers the option of payment via Alibaba's face-scanning tablets and is also using other services offered by Alibaba Group for efficient marketing. Shop assistance will be able to provide better customer service to users whose facial data is stored in the Bestore system, from the moment they enter the store. This partnership is expected to provide an increased sales rate and focused customer experience to the Bestore company.
The healthcare segment is expected to witness significant growth at a CAGR of 17.5% during the forecast period. Healthcare organizations handle sensitive patient information and valuable medical resources, prioritizing security. Facial recognition technology provides an additional layer of security by ensuring that only authorized individuals have access to restricted areas or confidential data. By integrating facial recognition with existing security systems, healthcare facilities can strengthen their overall security infrastructure, deter potential threats, and mitigate the risk of unauthorized access or data breaches.
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Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
