The global facial recognition market is anticipated to grow at the CAGR of around 14.2% during 2019-2025. The growing use of web-based services is generating demand for multi-factor authentication, owing to increased cyber-attacks, terror attacks, and identity theft. The growing data security initiatives by the government for robust fraud detection and prevention systems are one of the major factors that drive the growth of the global facial recognition market. The increasing application of facial recognition in intelligent signage and physical security, along with the technological advancements that include 3D-based recognition systems and cloud-based services are some other factors to drive the growth of the global facial recognition market. 

The growing demand for artificial intelligence (AI) and big data analytics for identification purposes is further anticipated to drive the market growth. However, certain factors are restraining the growth of the market. The lack of accuracy and high cost of implementation are the major restraints to the growth of the market. Besides, the technology advancements in cloud-based services and 3D-based face recognition systems are creating major opportunities for the growth of the global facial recognition market in near future. 

Segmental Outlook

The global facial recognition market is segmented on the basis of type and end-user. Based on the type, the market is bifurcated into 2D facial recognition and 3D facial recognition. Though 2D technology is cost-effective, it is inaccurate in a number of conditions such as varying environmental conditions, angles, and expressions. Further, the development in the 3D cameras market is expected to bring advancement and new applications for 3D facial recognition technology, especially in the healthcare IT solutions, payments, and commerce sector. Further, on the basis of end-user, the market is segmented into BFSI, government and defense, retail, healthcare, and others.

Global Facial Recognition Market Share, 2018 (%)

End-User Insights: BFSI to Hold a Remarkable Share in the Market

Based on the end-users the BFSI segment is projected to hold a significant share in the global facial recognition market. Facial recognition is one of the numerous ways with which the banks can increase efficiency and accessibility. Many tech giants such as Apple and Microsoft are offering their services to the banking and financial industry. For instance, US-based banks such as Chase, HSBC, and the United Services Automobile Association (USAA) are using FaceID offered by Apple that allows customers to securely log into their mobile banking apps. In addition, UK-based Lloyds Bank is testing similar features using the biometric authentication technology of Microsoft. The growing data breaches in the financial sector are anticipated to increase the use of facial recognition solutions in the financial sector.

Regional Outlook 

The global facial recognition market is further segmented on the basis of geography into North America, Europe, Asia-Pacific and the Rest of the World. North America is estimated to have a major share in the global facial recognition market owing to the presence of major players such as Aware Inc., Microsoft Corp., Nuance Communication Inc., and others. Additionally, this region is a major hub for several technology start-ups. 

Moreover, favorable business condition along with supporting government policies has encouraged enterprises to utilize facial recognition technology. The US Custom and Border Protection (CBP) have been working with the airlines for the implementation of biometric face scanners in the domestic airports to improve streamline security of airports. Besides, the high penetration of smartphones in the region is further contributing to the growth of the facial recognition market. North America is followed by Europe while the Asia-Pacific is expected to be the fastest-growing market during the forecasted period.

Asia-Pacific to Augment with the Significant Growth Rate in the Facial Recognition Market 

Asia-Pacific is projected to show lucrative growth in the facial recognition market. Asia-Pacific is an emerging region in implementing facial analytics in healthcare, retail, healthcare, education, and other sectors. In Asia-Pacific, increasing digitalization, higher penetration of smartphones, and the rising trend of online shopping, coupled with growing banking sectors contribute significantly to the growth of the facial recognition market. Moreover, the growing healthcare sector in the region is further anticipated to fuel the market growth, as this sector utilizes facial recognition for maintaining valuable information regarding patients’ identity.

Market Players Outlook 

Some of the major players operating in the global facial recognition industry include NEC Corp., Aware Inc., Inc., Fujitsu ltd., Nuance Communication, Inc., ImageWare Systems, Inc., Smilepass Ltd., BioID GmbH, Accenture PLC, and others. The market players are actively adopting inorganic and organic growth strategies such as strategic merger and acquisitions, new product developments, and partnerships and collaboration for increasing their market presence globally. For instance, in October 2018, Daon entered into a partnership with Avtex, a consulting and technology company to improve contact center experiences for the customers of Avtex clients using Daon’s IdentityX platform. 

The Report Covers

• Market value data analysis of 2018 and forecast to 2025.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global facial recognition market. Based on the availability of data, information related to products and services, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.