News

Facial recognition market expected to reach $9.6B by 2022

June 30, 2016

The global facial recognition market is expected to generate revenue of $9.6 billion by 2022, growing at a CAGR of 21.3 percent from 2016 to 2022, according to a report published by Allied Market Research, "World Facial Recognition Market - Opportunities and Forecasts, 2015 - 2022."

Facial recognition is a biometric technology that selects facial features of an individual and compares them with an available database to provide identification and authorization. North America is expected to dominate the market throughout the forecast period, owing to the high expenditure on security systems by government agencies in the region, said a press release from Allied Market Research.

Facial recognition technologies include 2D, 3D and facial analytics. The 3D facial recognition technology segment holds a significant share in the world facial recognition market due to its high accuracy in terms of recognizing facial features as compared to the 2D facial recognition technology. This segment is expected to witness the fastest growth rate during the forecast period, the release said.

Among the component segments, hardware accounted for the maximum revenue share in 2015 as a result of the high cost of 2D and 3D cameras. The facial recognition software market is estimated to grow at a CAGR of 23.9 percent during the forecast period. According to the release, development of effective and efficient facial recognition software applications is expected to drive this market.

Facial recognition is primarily used for security purposes, the major ones being homeland security, criminal investigation, I.D. management and physical security. However, this technology is also increasingly being used for targeted advertising and marketing purposes, particularly in the retail sector. This is accomplished through the use of intelligent signage, a digital signage solution with facial recognition capabilities, which enables retailers to offer tailored messages to buyers. Intelligent signage is likely to be the most prominent application of facial recognition, with a CAGR of 25.1 percent during the forecast period, according to the release.

North America has a large demand of facial recognition technology for homeland security and criminal investigation. However, the Asia-Pacific region is expected to be the fastest growing region due to the wide use of facial recognition technology in China, Japan and Australia across various sectors such as defense, law enforcement, physical security and retail.

Key findings:

• 3D facial recognition technology is expected to lead the market throughout the forecast period;
• hardware held a larger share in component segment in 2015, and is expected to dominate the market during the forecast period;
• the Asia-Pacific region constituted nearly 23 percent of the total market revenue in 2015 and is anticipated to be the fastest growing region over the forecast period; and
• homeland security contributed the highest revenue in 2015, accounting for approximately 21 percent of the overall market revenue. This segment is expected to maintain its dominance throughout the forecast period.