Facial Recognition Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Facial Recognition Market was valued at USD 3.72 billion in 2020, and is projected to be valued at USD 11.62 billion by 2026, registering a CAGR of approximately 21.71% over the forecast period (2021 - 2026). Since the outbreak of Covid-19, vendors across the world have already upgraded their algorithms to accommodate new set of changes and norms. For instance, according to a study by National Institute of Standards and Technology (NIST) found that, several algorithms, reconfigured since the pandemic began, make far fewer mistakes when analysing masked faces. In some cases, error rates were ten times better than before.

Moreover, during the COVID-19 outbreak in China, authorities have used facial recognition, combined with infrared cameras, to recognize infected people. Also, Chinese intelligent interaction company, Hanwang Technology, developed a facial recognition technology that can identify people wearing masks, as the use of masks hindered the operation of the technology in the country.

• China is one of the major consumers and exporters of the facial recognition technology, as the law and enforcement, along with various government bodies in the country, adopted surveillance technologies. Currently, the country has the most extensive public surveillance system. According to Comparitech, in China, the number of CCTV cameras ranges from 200 million to 626 million by 2020.
• Furthermore, in March 2020, India approved the deployment of its Automated Facial Recognition System (AFRS) across the nation by early 2021, allowing facial biometrics to be extracted from video and CCTV which will be matched with the image of individuals' photos whose identity information are housed in a database by the National Crime Records Bureau under the purview of the Minister of State for Home Affairs.
• Also, the Indian government's Aadhaar project is one of the largest biometric databases globally, and it is currently held by over 95% of the country's population, which is over 1.3 billion. The UIDAI contains a citizen's fingerprint, facial recognition, and iris. Currently, citizens in the country are actively using the technology for authentication, primarily to avail of various government benefits, processes, and facilities.
• Government initiatives are expected to contribute to the significant growth of such technologies. For instance, the US government is planning to reshape airport security through facial recognition, to register and identify the visitors. Additionally, several North American Free Trade Agreement (NAFTA) member banks mandated the use of facial and voice recognition technologies for online identity verification. Companies have been collaborating with federal governments to implement the technology for their surveillance and identity management. The Chinese e-commerce giant, Alibaba, invested USD 600 million in SenseTime, a Hong Kong-based company that provides facial recognition software to businesses and governments across China.
• The increasing use of technology in the different end-user industries is expected to expand the market over the coming years. The applications are increasing in healthcare, automotive, smart home, access control, and many more.

Scope of the Report

Facial recognition is a biometric software capable of uniquely identifying, recognizing, and authenticating a person by comparing and analyzing patterns based on the facial contours of the subject. The report into consideration deals with facial recognition software in line with technologies like 3D, 2D facial recognition, and facial analytics. The study under consideration provides applications, market trends, influencing factors, and growth data of the software by end-users, such as security and law enforcement, healthcare, retail, and other end users.

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Key Market Trends

Retail and E-commerce is Expected to Hold Significant Share

• While Facial recognition technology did not absorb a huge demand from the retail industry initially, it provided the adequate potential for the technology over the past few years.
• The advancement in three technical fields, like Neural Network, Big Data, and Graphical Processing Unit (GPU) has played a significant role in the widespread use of Facial Recognition Technology in the sector. For instance, apparel retailers are leveraging the technology to deliver customized products to the customers visiting their stores.
• Vero Modaand Jack & Jones, the brands owned by Danish fashion retailer, opened smart stores powered with facial recognition technology, in Shenzhen and Guangzhou, China. The technology, provided by Tencent's YouTuLab, enables making payment without using any cash or card and allows to pass on personalized recommendations to the customers.
• FaceX, a company based out of India, is a provider of facial recognition technology that is helping the retail sector with features, like a facial landmark, facial detection, face recognition, face tracking, and spoof detection. In addition to these, in a bid to pass on personalized touch to the customers, the technology also greets the customers upon entering the retail store.
• Likewise, Ruti, a brand focused on women apparel (35 years and older), deployed facial recognition technology in its stores to offer personalized recommendations based on its preferences, like sizes, likes, and dislikes. Upon entering the store, the customers' faces are scanned. The photos (including the items related to purchase if one made) from the installed cameras are stored in the retailer's CRM system, on customers' approval. Thereby, it can identify customers’ profiles and repeat customers, traces their shopping history within seconds.

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