As per the latest research reports of FMI, the global facial recognition market is expected to be valued at US$ 5.7 billion in 2023. The market is expected to grow at a sturdy rate of 16.1% during the forecast period. By 2033, the valuation is expected to be at US$ 25.4 billion.
Key factors which might surge the market growth
Increasing applications in physical security and intelligent signage are expected to drive the demand. The rise in demand can also be attributed to efforts to enhance safety and security. In addition, technological advancements such as cloud-based services and 3D-based recognition systems positively impact the growth of the market.
Increasing applications in mobile security and drones are expected to offer remunerative opportunities for the expansion of the facial recognition market size during the forecast period. Governments across the world have been investing a significant amount of their resources in the adoption of facial recognition technologies. The United States and China can be considered the leading adopters.
Facial recognition technologies have been deployed for homeland security by federal and regional law enforcement departments, and other security agencies. This has helped solve multiple criminal investigations, thereby facilitating various departments, which has helped in the rapid identification of offenders.
Facial recognition is indeed an area of biometrics where several technologies meet. Apart from airports and border checks, facial recognition applications are also used in retail facilities. Another market that’s growing is that of facial recognition software tools and solutions. However, the growth may vary in developed and emerging nations.
Given the ongoing threat of both physical and digital security breaches, the healthcare industry is investing in facial recognition technology to improve security and fraud prevention. Biometric technology is already being utilized in the health industry for anything from avoiding health insurance fraud to identifying illnesses.
Asia Pacific is expected to be the prominent region in the facial recognition market. This can be attributed to factors like technological development, rising infrastructure growth, and increasing application in multiple areas. Massive industrialization and the growing consumer electronics industry in the region highlight exciting opportunities for the players in the market.
With an increasing urban population and purchasing power, Asia Pacific is one of the dominant markets for consumer biometrics as well. Increasing mobile transactions for banking in countries such as India and China, coupled with their governments’ initiatives, are expected to be the major drivers for the facial recognition market in the region.
| Attributes | Value |
|---|---|
| Market Value (2022) | US$ 5.2 billion |
| Market Expected Value (2023) | US$ 5.7 billion |
| Market Forecast Value (2033) | US$ 25.4 billion |
| Market Expected CAGR (2023 to 2033) | 16.1% |
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With governments and private players investing in security, the demand for facial recognition systems is expected to surge during the forecast period. This coupled with the introduction of Artificial Intelligence and Machine Learning is expected to increase the efficiency of facial recognition systems. The defense ministries are investing in facial recognition systems, as these are utilized in unmanned vehicles to select the right target. With an increasing number of sectors adopting the facial recognition system, their sales are slated to rise in the future. This can be well explained by comparing the historical and anticipated CAGR. While the historical CAGR for the market was 10.9%, the anticipated CAGR has surged to 16.1%.
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.
For example, Boston's Logan Airport ran two separate facial recognition tests at its security checkpoints, using volunteers posing as terrorists over three months. Unfortunately, the results were disappointing. 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.
The arrest of innocent individuals could further lead to legal action against the concerned authorities. Hence, this also remains a major restraint in the implementation of facial recognition technology. Moreover, the lack of accuracy and high implementation cost of facial recognition technology hampers market growth.
Principal Consultant
| Region | North America |
|---|---|
| Country | United States |
| CAGR (2023 to 2033) | 15.9% |
| Region | Asia Pacific |
|---|---|
| Country | Russia |
| CAGR (2023 to 2033) | 15.1% |
| Region | Asia Pacific |
|---|---|
| Country | China |
| CAGR (2023 to 2033) | 15.5% |
| Region | Asia Pacific |
|---|---|
| Country | Japan |
| CAGR (2023 to 2033) | 14.5% |
| Region | Asia Pacific |
|---|---|
| Country | India |
| CAGR (2023 to 2033) | 13.7% |
The United States is one of the technologically advanced countries. Apart from various niche areas, the facial recognition system is being used for citizen services as well. For several services, from security to convenience, the facial recognition system is used to determine the characteristics of the individual. The availability of the required infrastructure may assist the functioning of citizen services.
| Attributes | Details |
|---|---|
| United States Market Expected Size (2033) | US$ 6.3 billion |
| United States Market Absolute Dollar Growth (US$ million/billion) | US$ 4.8 billion |
| CAGR % 2017 to 2022 | 10.5% |
The adoption of a facial recognition system for the financial system is expected to revolutionize the payments landscape. This service is expected to be available in all the major ATMs across the United States.
Russia currently ranks third in the world when it comes to defense capabilities. In 2023, Russia announced a defense budget of US$ 84 billion. At a time when Russia is confronting Ukraine and is expected to have similar confrontations with a lot of other Western countries, the amount is expected to surge. Owing to this, the Russia government is spending a huge amount on war drones. Not only local drones, but the Russia government is also buying drones from some countries, like Iran. The facial recognition system is an important aspect of these drones, as these assist in attacking the right target. These factors are expected to exponentially surge the sales of facial recognition systems.
| Attributes | Details |
|---|---|
| Russia Market Expected Size (2033) | US$ 767.8 million |
| Russia Market Absolute Dollar Growth (US$ million/billion) | US$ 580 million |
| CAGR % 2017 to 2022 | 9.5% |
The sales of autonomous vehicles are gradually gaining pace in China. By 2030, the autonomous vehicles market in China is expected to cross a valuation of US$ 100 billion. Surging technological advancements in the automobile sector and efforts to reduce carbon emissions are the driving factors. Autonomous vehicles make use of the facial recognition system to provide safety in case of car accidents.
| Attributes | Details |
|---|---|
| China Market Expected Size (2033) | US$ 3.2 billion |
| China Market Absolute Dollar Growth (US$ million/billion) | US$ 2.4 billion |
| CAGR % 2017 to 2022 | 10.1% |
The Chinese hospitality sector is also making use of facial recognition technology to recognize guests and look up their reservations. These also assist in providing complimentary services to special guests.
Japan's healthcare sector is considered one of the most advanced and technologically upgraded. For example, the Japanese healthcare system uses facial recognition to facilitate security. It makes use of an automated way of scanning if somebody enters the room. Apart from that, it has also been assisting patients with fast check-in and check-out. As soon as the patient enters the hospital, the recognition system scans it against the available records. These are also used to clock the employee sign-in and sign-out timings.
| Attributes | Details |
|---|---|
| Japan Market Expected Size (2033) | US$ 2.6 billion |
| Japan Market Absolute Dollar Growth (US$ million/billion) | US$ 1.9 billion |
| CAGR % 2017 to 2022 | 9% |
Being one of the dominant economies in the world, the Indian banking sector has shown growth by leaps and bounds. With massive technological advancements, it is expected that the KYC norms can be filled merely through a facial recognition system. This is going to revolutionize the way banks work. Apart from that, the rapid penetration of mobile banking presents huge scope in front of the market.
| Attributes | Details |
|---|---|
| India Market Expected Size (2033) | US$ 1.5 billion |
| India Market Absolute Dollar Growth (US$ million/billion) | US$ 1.1 billion |
| CAGR % 2017 to 2022 | 7.7% |
The country is also surrounded by adversaries. Thus, the facial recognition system is being used at border checkpoints, and through biometrics, the personnel can make out if the concerned person is a local or a trespasser.
| Segment | Component |
|---|---|
| Attributes | Software Tools |
| CAGR % 2017 to 2022 | 10.6% |
| CAGR % 2023 to 2033 | 15.8% |
| Segment | Vertical |
|---|---|
| Attributes | Government and Defense |
| CAGR % 2017 to 2022 | 10.4% |
| CAGR % 2023 to 2033 | 15.6% |
Software tools are expected to have the dominant market share. The software tools act as the interface between the hardware and the user, and provide a platform for analyzing the 2D/3D images. This solves the very purpose of understanding the image, and also makes use of various algorithms to derive a logical conclusion. Apart from that, by making use of various Machine Learning techniques in the software, the precision of these software tools increases. These occupy a high market share owing to high application in defense and healthcare.
The government and defense segment is expected to hold the dominant share during the forecast period. This can be attributed to the high amounts being spent to upgrade military capabilities. Countries like China, the United States, etc. have been spending at least 10% of their GDP on upgrading their defense capabilities. Apart from that, facial recognition systems are also being used in government offices for surveillance and identity purposes. Moreover, a lot of government offices are making use of biometrics to keep a database of all the crucial information of their employees.
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The start-ups operating in the market have been developing platforms that offer computer vision technologies, which enable the applications to read and understand the world. This allows users to add deep learning-based image analysis recognition technologies with powerful Software Development Kits.
SenseTime: The start-up has been developing face recognition technology, which can be used for payment and picture analysis. These are used mainly for bank card verification and security systems. SenseTime is committed to advancing AI research, developing scalable AI software platforms, and nurturing top talents. SenseTime has raised a total of US$ 2.6 billion in funding over 10 rounds. Their latest funding was in December 2021 from a Post-IPO Equity round.
The key players operating in the market are maintaining partnerships with key federal agencies worldwide to secure their crucial information. They are also providing biometrics solutions to a lot of federal agencies to maintain a secured database, and assist in employee recognition. In January 2023, Aware was the trusted security enabler to 12 out of 15 executive departments within the executive branch.
Key developments in the market:
Dominant players in the market
| Company | Description |
|---|---|
| Aware | Aware has been the leading provider of biometrics software products, solutions, and services to empower users to own and control their identities. The identity verification and management solution supports financial solutions, enterprise security, law enforcement, and surveillance. Aware has always capitalized on its biometric domain expertise to ensure that the company delights users through a customer experience that leverages the cloud and emphasizes the ease of doing business. |
| Cognitec | Cognitec was founded in 2002 by a team of experts who recognized the growing demand for biometric software. The development of the products and growth of the company is built on the extensive knowledge of the scientists and software engineers. Cognitec has been into providing consulting services and excellent technical support as well. Cognitec employs a talented and dedicated team of experts in the areas of mathematics, software development, image processing, and pattern recognition technologies. |
| Fujitsu | Fujitsu has been making use of technology to make happier lives. The company is a global leader in technology and business solutions that transform organizations and the world. By bringing together integration capabilities and cutting-edge technologies, the company has been successful in advancing toward creating a sustainable world. By focusing on computing, network, Artificial Intelligence, Data and Security, and converging technologies, the company ensures consistency across the portfolio. |
Other companies profiled: Ayonix Corporation and FacePhi
The market is estimated to achieve US$ 25.4 billion by 2033.
The market is forecast to register a CAGR of 16.1% through 2033.
From 2018 to 2022, the global market exhibited 10.9% HCAGR.
The market to reach US$ 5.7 billion by end of 2023.
The United States market to exhibit a CAGR of 15.9%.
China market is scheduled to expand at a CAGR of 15.5%.
With a 15.8% CAGR through 2033, software tools segment may outshine the market.
1. Executive Summary | Facial Recognition Market
1.1. Global Market Outlook
1.2. Demand-side Trends
1.3. Supply-side Trends
1.4. Technology Roadmap Analysis
1.5. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Market Background
3.1. Market Dynamics
3.1.1. Drivers
3.1.2. Restraints
3.1.3. Opportunity
3.1.4. Trends
3.2. Scenario Forecast
3.2.1. Demand in Optimistic Scenario
3.2.2. Demand in Likely Scenario
3.2.3. Demand in Conservative Scenario
3.3. Opportunity Map Analysis
3.4. Investment Feasibility Matrix
3.5. PESTLE and Porter’s Analysis
3.6. Regulatory Landscape
3.6.1. By Key Regions
3.6.2. By Key Countries
3.7. Regional Parent Market Outlook
4. Global Market Analysis 2017 to 2022 and Forecast, 2023 to 2033
4.1. Historical Market Size Value (US$ Million) Analysis, 2017 to 2022
4.2. Current and Future Market Size Value (US$ Million) Projections, 2023 to 2033
4.2.1. Y-o-Y Growth Trend Analysis
4.2.2. Absolute $ Opportunity Analysis
5. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Component
5.1. Introduction / Key Findings
5.2. Historical Market Size Value (US$ Million) Analysis By Component, 2017 to 2022
5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Component, 2023 to 2033
5.3.1. Software Tools
5.3.1.1. 2D Facial Recognition
5.3.1.2. 3D Facial Recognition
5.3.1.3. Facial Analytics
5.3.2. Services
5.3.2.1. Training and Consulting Services
5.3.2.2. Cloud Based Facial Recognition
5.4. Y-o-Y Growth Trend Analysis By Component, 2017 to 2022
5.5. Absolute $ Opportunity Analysis By Component, 2023 to 2033
6. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Vertical
6.1. Introduction / Key Findings
6.2. Historical Market Size Value (US$ Million) Analysis By Vertical, 2017 to 2022
6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Vertical, 2023 to 2033
6.3.1. Banking
6.3.2. Retail & E-Commerce
6.3.3. Automotive
6.3.4. Healthcare
6.3.5. Government & Defence
6.3.6. Others
6.4. Y-o-Y Growth Trend Analysis By Vertical, 2017 to 2022
6.5. Absolute $ Opportunity Analysis By Vertical, 2023 to 2033
7. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Application
7.1. Introduction / Key Findings
7.2. Historical Market Size Value (US$ Million) Analysis By Application , 2017 to 2022
7.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Application , 2023 to 2033
7.3.1. Law Enforcement
7.3.2. Access Control
7.3.3. Emotion Recognition
7.3.4. Attendance Tracking and Monitoring
7.3.5. Other Applications
7.4. Y-o-Y Growth Trend Analysis By Application , 2017 to 2022
7.5. Absolute $ Opportunity Analysis By Application , 2023 to 2033
8. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Region
8.1. Introduction
8.2. Historical Market Size Value (US$ Million) Analysis By Region, 2017 to 2022
8.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2023 to 2033
8.3.1. North America
8.3.2. Latin America
8.3.3. Europe
8.3.4. Asia Pacific
8.3.5. Middle East and Africa
8.4. Market Attractiveness Analysis By Region
9. North America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country
9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2017 to 2022
9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
9.2.1. By Country
9.2.1.1.USA
9.2.1.2. Canada
9.2.2. By Component
9.2.3. By Vertical
9.2.4. By Application
9.3. Market Attractiveness Analysis
9.3.1. By Country
9.3.2. By Component
9.3.3. By Vertical
9.3.4. By Application
9.4. Key Takeaways
10. Latin America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country
10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2017 to 2022
10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
10.2.1. By Country
10.2.1.1. Brazil
10.2.1.2. Mexico
10.2.1.3. Rest of Latin America
10.2.2. By Component
10.2.3. By Vertical
10.2.4. By Application
10.3. Market Attractiveness Analysis
10.3.1. By Country
10.3.2. By Component
10.3.3. By Vertical
10.3.4. By Application
10.4. Key Takeaways
11. Europe Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country
11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2017 to 2022
11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
11.2.1. By Country
11.2.1.1. United kingdom
11.2.1.2. Spain
11.2.1.3. Germany
11.2.1.4. Russia
11.2.1.5. France
11.2.1.6. Rest of Europe
11.2.2. By Component
11.2.3. By Vertical
11.2.4. By Application
11.3. Market Attractiveness Analysis
11.3.1. By Country
11.3.2. By Component
11.3.3. By Vertical
11.3.4. By Application
11.4. Key Takeaways
12. Asia Pacific Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country
12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2017 to 2022
12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
12.2.1. By Country
12.2.1.1. India
12.2.1.2. China
12.2.1.3. Japan
12.2.1.4. Australia
12.2.1.5. Rest of Asia Pacific
12.2.2. By Component
12.2.3. By Vertical
12.2.4. By Application
12.3. Market Attractiveness Analysis
12.3.1. By Country
12.3.2. By Component
12.3.3. By Vertical
12.3.4. By Application
12.4. Key Takeaways
13. Middle East and Africa Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country
13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2017 to 2022
13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
13.2.1. By Country
13.2.1.1. South Africa
13.2.1.2. GCC Countries
13.2.1.3. Rest of Middle East and Africa
13.2.2. By Component
13.2.3. By Vertical
13.2.4. By Application
13.3. Market Attractiveness Analysis
13.3.1. By Country
13.3.2. By Component
13.3.3. By Vertical
13.3.4. By Application
13.4. Key Takeaways
14. Key Countries Market Analysis
14.1.USA
14.1.1. Pricing Analysis
14.1.2. Market Share Analysis, 2022
14.1.2.1. By Component
14.1.2.2. By Vertical
14.1.2.3. By Application
14.2. Canada
14.2.1. Pricing Analysis
14.2.2. Market Share Analysis, 2022
14.2.2.1. By Component
14.2.2.2. By Vertical
14.2.2.3. By Application
14.3. Brazil
14.3.1. Pricing Analysis
14.3.2. Market Share Analysis, 2022
14.3.2.1. By Component
14.3.2.2. By Vertical
14.3.2.3. By Application
14.4. Mexico
14.4.1. Pricing Analysis
14.4.2. Market Share Analysis, 2022
14.4.2.1. By Component
14.4.2.2. By Vertical
14.4.2.3. By Application
14.5. United kingdom
14.5.1. Pricing Analysis
14.5.2. Market Share Analysis, 2022
14.5.2.1. By Component
14.5.2.2. By Vertical
14.5.2.3. By Application
14.6. Spain
14.6.1. Pricing Analysis
14.6.2. Market Share Analysis, 2022
14.6.2.1. By Component
14.6.2.2. By Vertical
14.6.2.3. By Application
14.7. Germany
14.7.1. Pricing Analysis
14.7.2. Market Share Analysis, 2022
14.7.2.1. By Component
14.7.2.2. By Vertical
14.7.2.3. By Application
14.8. Russia
14.8.1. Pricing Analysis
14.8.2. Market Share Analysis, 2022
14.8.2.1. By Component
14.8.2.2. By Vertical
14.8.2.3. By Application
14.9. France
14.9.1. Pricing Analysis
14.9.2. Market Share Analysis, 2022
14.9.2.1. By Component
14.9.2.2. By Vertical
14.9.2.3. By Application
14.10. India
14.10.1. Pricing Analysis
14.10.2. Market Share Analysis, 2022
14.10.2.1. By Component
14.10.2.2. By Vertical
14.10.2.3. By Application
14.11. China
14.11.1. Pricing Analysis
14.11.2. Market Share Analysis, 2022
14.11.2.1. By Component
14.11.2.2. By Vertical
14.11.2.3. By Application
14.12. Japan
14.12.1. Pricing Analysis
14.12.2. Market Share Analysis, 2022
14.12.2.1. By Component
14.12.2.2. By Vertical
14.12.2.3. By Application
14.13. Australia & New Zealand
14.13.1. Pricing Analysis
14.13.2. Market Share Analysis, 2022
14.13.2.1. By Component
14.13.2.2. By Vertical
14.13.2.3. By Application
14.14. South Africa
14.14.1. Pricing Analysis
14.14.2. Market Share Analysis, 2022
14.14.2.1. By Component
14.14.2.2. By Vertical
14.14.2.3. By Application
14.15. GCC Countries
14.15.1. Pricing Analysis
14.15.2. Market Share Analysis, 2022
14.15.2.1. By Component
14.15.2.2. By Vertical
14.15.2.3. By Application
15. Market Structure Analysis
15.1. Competition Dashboard
15.2. Competition Benchmarking
15.3. Market Share Analysis of Top Players
15.3.1. By Regional
15.3.2. By Component
15.3.3. By Vertical
15.3.4. By Application
16. Competition Analysis
16.1. Competition Deep Dive
16.1.1. Aware Inc.
16.1.1.1. Overview
16.1.1.2. Product Portfolio
16.1.1.3. Profitability by Market Segments
16.1.1.4. Sales Footprint
16.1.1.5. Strategy Overview
16.1.1.5.1. Marketing Strategy
16.1.2. Ayonix Corporation
16.1.2.1. Overview
16.1.2.2. Product Portfolio
16.1.2.3. Profitability by Market Segments
16.1.2.4. Sales Footprint
16.1.2.5. Strategy Overview
16.1.2.5.1. Marketing Strategy
16.1.3. Cognitec Systems GmbH
16.1.3.1. Overview
16.1.3.2. Product Portfolio
16.1.3.3. Profitability by Market Segments
16.1.3.4. Sales Footprint
16.1.3.5. Strategy Overview
16.1.3.5.1. Marketing Strategy
16.1.4. FacePhi
16.1.4.1. Overview
16.1.4.2. Product Portfolio
16.1.4.3. Profitability by Market Segments
16.1.4.4. Sales Footprint
16.1.4.5. Strategy Overview
16.1.4.5.1. Marketing Strategy
16.1.5. Fujitsu
16.1.5.1. Overview
16.1.5.2. Product Portfolio
16.1.5.3. Profitability by Market Segments
16.1.5.4. Sales Footprint
16.1.5.5. Strategy Overview
16.1.5.5.1. Marketing Strategy
16.1.6. Gemalto NV
16.1.6.1. Overview
16.1.6.2. Product Portfolio
16.1.6.3. Profitability by Market Segments
16.1.6.4. Sales Footprint
16.1.6.5. Strategy Overview
16.1.6.5.1. Marketing Strategy
16.1.7. IDEMIA
16.1.7.1. Overview
16.1.7.2. Product Portfolio
16.1.7.3. Profitability by Market Segments
16.1.7.4. Sales Footprint
16.1.7.5. Strategy Overview
16.1.7.5.1. Marketing Strategy
16.1.8. NEC Corporation
16.1.8.1. Overview
16.1.8.2. Product Portfolio
16.1.8.3. Profitability by Market Segments
16.1.8.4. Sales Footprint
16.1.8.5. Strategy Overview
16.1.8.5.1. Marketing Strategy
16.1.9. Onfido
16.1.9.1. Overview
16.1.9.2. Product Portfolio
16.1.9.3. Profitability by Market Segments
16.1.9.4. Sales Footprint
16.1.9.5. Strategy Overview
16.1.9.5.1. Marketing Strategy
16.1.10. TECH5 SA
16.1.10.1. Overview
16.1.10.2. Product Portfolio
16.1.10.3. Profitability by Market Segments
16.1.10.4. Sales Footprint
16.1.10.5. Strategy Overview
16.1.10.5.1. Marketing Strategy
17. Assumptions & Acronyms Used
18. Research Methodology
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Facial Recognition Market
