International. Revenue for the global facial recognition market is expected to reach US$12.11 billion and expand at a CAGR of 15.4% through 2028. The growing demand for contactless biometric solutions is a critical factor contributing to the growth of the market according to the latest findings of Grand View Research.
Contactless solutions enable easy deployment on consumer devices and also offer convenient and effortless use, further contributing to greater adoption. Aside from individual identities, technology can collect demographic data about crowds; thus increasing its usability and contributing even more to its growth.
Security and law enforcement applications are cited as one of the highest uses of this technology today, as it has so far been led primarily by the need to combat terrorism and crime. For example, in the U.S., 26 states allow law enforcement agencies to access facial recognition systems to search databases of identification photos and driver's licenses, to find drug dealers, bank robbers, among others, who have left their images on social media platforms.
In addition, facial recognition CCTV systems are being used to improve performance in conducting public safety cases, such as finding missing children or adults, identifying and tracking criminals, and speeding up investigations. In addition, the KYC (Know-Your-Customer) trend has undoubtedly driven the growth of facial recognition in retail and marketing.
Facial recognition technology is also being combined with the latest marketing advancements to improve the customer experience. For example, in April 2021, Sberbank, a Russian banking company, is expanding its presence in food delivery, taxi services, cloud computing, and cybersecurity. For this, the company launched facial recognition payments. In this way, offer a fast payment service versus paying in cash or by payment card.
Great potential in vertical markets
The research company suggests that these growing new applications show that the market shows great growth potential across different verticals, including security and surveillance, healthcare, retail, and transportation.
The researchers found that end-use industries have begun to integrate facial recognition into their business processes to optimize their operations. Facial recognition technology is gaining momentum as it helps end-user organizations become more efficient and results-oriented. The growing adoption of facial recognition is encouraging new entrants to venture into the market by offering specific products and solutions for niche applications.
However, analysts suggest that it is the banking and financial services industry that is one of the main verticals for the deployment of facial recognition technology, as consumers are increasingly transitioning to mobile banking. Financial institutions use facial recognition software to provide an extra layer of security to mobile banking apps to authenticate users.
3D recognition captures the largest proportion
3D recognition is an emerging trend in the facial recognition market that aims to provide more accuracy and better authentication. 3D facial recognition uses the unique features of an individual's face, such as the curves of the face, the shape of the nose, the chin, to identify the individual. With the introduction of 3D facial recognition, identification has taken a step toward recognizing an individual's face, including, the report says, if it is dark and can also identify the person at different angles (up to 90 degrees). Although 2D facial recognition has made significant progress over the years, its accuracy and authenticity depend heavily on individual light conditions and poses.
In terms of technology, the 3D segment captured the largest share of revenue in 2020. The technology is gaining popularity due to its attributes such as border protection and surveillance, making it particularly suitable for high-security areas such as airports.
Asian banking leads the way
The Asia Pacific (APAC) region, according to Grand View researchers, is estimated to project the highest growth rate in the market. This is due to the increased adoption of facial recognition technology in different verticals. For example, in September 2019, NEC Corporation, a Japan-based biometrics solutions provider, announced a partnership with Seven Bank, Ltd., a Japanese bank, to develop ATMs that incorporate facial recognition technology. In addition to facial recognition technology, other technologies used for ATM development include artificial intelligence (AI), the Internet of Things (IoT), and QR codes. IoT and AI would help detect warnings of component failures and predict cash demand more accurately, further helping to streamline ATM operations.
Source: Grand View Research.
