SecurityWorldMarket

02/06/2021

Demand for contactless technology drives facial recognition market

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Revenue for the global facial recognition market is expected to reach USD 12.11 billion, and expanding at a CAGR of 15.4% to 2028. The rising demand for contactless biometric solutions is a critical factor contributing the market growth according to the latest findings from Grand View Research. Contactless solutions enable easy deployment in consumer devices, and also offer effortless and convenient use, further contributing to rising adoption. Apart from individual identities, the technology can gather demographic data on crowds; thus, increasing its usability and contributing further to its growth.

Security and law enforcement applications are cited as one of the currently highest use of this technology, as it thus far it has been led mainly by the need to combat terrorism and crime. For instance, in the U.S., 26 states permit law enforcement agencies to access facial recognition systems to perform searches against the databases of ID photos and driver’s licenses, to find drug dealers, bank robbers, amongst others who have left behind their images on social media platforms. Also, facial recognition CCTV systems are being used to improve performance in conducting public security cases, such as find missing children or adults, identifying and tracking criminals, and accelerating investigations. Furthermore, the trend of KYC (Know-Your-Customer) has undoubtedly boosted the growth of facial recognition in retail and marketing.

Facial recognition technology is also being combined with the latest marketing advancements to improve customer experience. For instance, in April 2021, Sberbank, a Russian banking company, is expanding its footprints in food delivery, taxi services, cloud computing, and cyber security. For this, the company launched facial recognition payments known as face pay to make payments using at a glance pay option during checkout. Thus, offering a quick payment service compared to paying with cash or a payment card.

Vast potential in vertical markets

The research company suggests that these growing new applications show that the market shows vast potential for growth in different verticals, including security and surveillance, healthcare, retail, and transportation. 

The researchers found that end-use industries have started integrating facial recognition into their business processes to streamline their operations. Facial recognition technology is gaining momentum as it assists end-user organisations to become more efficient and results-oriented. The growing adoption of facial recognition is encouraging new entrants to venture into the marketplace by offering niche application-specific products and solutions

However, analysts suggest that it is the banking and financial services industry that is one of the major verticals for the deployment of facial recognition technology as consumers are increasingly transitioning towards mobile banking. Financial institutions use facial-recognition software to provide an additional layer of security to mobile banking applications to authenticate users.

3D recognition captures highest share

3D recognition is a newly emerging trend in the market for facial recognition that aims to provide more accuracy and better authentication. 3D facial recognition uses the unique characteristics of an individual’s face, such as the face curves, the shape of the nose, the chin, to identify the individual. With the introduction of 3D facial recognition, identification has taken a step toward recognising an individual’s face even, says the report, if it is dark and it can also identify the person at different angles (up to 90 degrees). Although 2D face recognition has made significant progress over the years, its accuracy and authenticity are highly dependent on the conditions of light and individual poses. 

In terms of technology, the 3D segment captured the largest revenue share in 2020. The technology is gaining popularity due to its attributes such as border protection and surveillance, which makes them 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 instance, in September 2019, NEC Corporation, Japan-based biometry 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 the development of ATMs include Artificial Intelligence (AI), the Internet of Things (IoT), and QR codes. IoT and AI would help in detecting warning of component failures and predicting cash demand more accurately, which would further help in streamlining ATM operations.

Key players listed by Grand View Research and cited as being major players in this sector include, Aware, Inc, Ayonix Corporation, Cognitec Systems GmbH, Facephi, Fujitsu, Gemalto, Idemia, NEC Corporation, Onfido and Tech5.


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