Facial Recognition Market by Offering (Hardware, Software Solutions, Services), Application, Organization Size, Deployment Mode (Cloud, On-premises), Vertical (BFSI, Government, Retail & E-commerce) and Region - Global Forecast to 2028

Facial Recognition Market by Offering (Hardware, Software Solutions, Services), Application, Organization Size, Deployment Mode (Cloud, On-premises), Vertical (BFSI, Government, Retail & E-commerce) and Region - Global Forecast to 2028

The global facial recognition market is estimated to be worth USD 6.3 billion in 2023 and is projected to reach USD 13.4 billion by 2028, at a CAGR of 16.3% during the forecast period. Increasing vulnerability to hacking and rising deep fakes drive the demand for facial recognition.

Presently, deepfakes are being used to circumvent facial recognition systems. This includes manipulating or fabricating video sequences making camera injection feasible. Camera injection attacks are on the rise by cybercriminals to insert modified video footage into facial recognition systems, taking advantage of flaws in these systems. Camera injection attacks have emerged amid increasing reliance on facial recognition security, posing a new threat to facial recognition security. Hence, organizations are increasingly implementing a comprehensive identity verification and fraud prevention approach to defend against camera injection attacks, driving the facial recognition market.

""By offering, the hardware segment accounts for a larger market share.""

The forecast indicates that the hardware segment is anticipated to account for a larger market share in the facial recognition market during this period. The hardware enabling facial recognition deployments across the globe has evolved rapidly over the past decade. The facial recognition capability is integrated into cheap commercial devices like surveillance cameras, smartphones, and smart doorbells with specialized image sensor chips, on-device machine learning acceleration, and improved cameras—manufacturing of the hardware, economies of scale, and growing consumer acceptance fuel its broader adoption.

""By solution, the face verification segment to register the highest growth rate during the forecast period.""

The forecast indicates that, by solution, the face verification segment is poised to register the highest growth rate in the facial recognition market during the forecast period. These key factors driving adoption include standardized APIs that allow easy integration with existing infrastructure, government regulation expanding its mandatory use for ID checks, companies embedding it in consumer devices like phones and laptops, and increasing end-user familiarity and trust in the technology. Facial verification transformation use cases are still emerging across sectors.

""Asia Pacific to register the highest growth rate during the forecast period.""

The Asia Pacific region is expected to register the highest growth rate in the facial recognition market during the forecast period. Facial recognition technology has experienced widespread adoption and rapid growth throughout Asia, driven by technological advancements, governmental initiatives, and a cultural receptiveness to cutting-edge solutions. Nations such as China, Japan, and India have actively embraced facial recognition for various purposes. It is extensively employed in China for public security and daily activities like mobile payments. Japan explores applications in robotics and customer service, while India, with its ambitious digital initiatives, incorporates facial recognition in sectors such as e-governance, healthcare, and financial services. Despite the technology's positive impact on industries such as security and convenience, concerns related to privacy, data protection, and ethical use have emerged, emphasizing the importance of responsible regulation and oversight in the deployment of facial recognition across the diverse landscape of the Asia Pacific.

Breakdown of primaries

The study contains insights from various industry experts, from solution vendors to Tier 1 companies. The breakdown of the primaries is as follows:

By Company Type: Tier 1 – 35%, Tier 2 – 45%, and Tier 3 – 20%

By Designation: C-level – 40%, Managers and Others – 60%

By Region: Asia Pacific – 45%, Europe – 35%, North America – 20%.

The major players in the facial recognition market are NEC (Japan), Microsoft (US), Thales (France), AWS (US), IDEMIA (France), Aware (US), Daon (Ireland), Megvii (China), Facephi (Spain), Herta Security (Spain), OneSpan (US), Q3 Technologies (US), Neurotechnology (Lithuania), Cognitec Systems (Germany), Ayonix (Japan), NVISO.ai (Switzerland), FaceFirst (US), Clarifai (US), Iproov (UK), Oosto (Israel), Pangiam (US), Clearview AI (US), Corsight AI (Israel), Facia (UK) Veridium (US), and Visage Technology (Sweden). The study includes an in-depth competitive analysis of these key players in the facial recognition market, with their company profiles, recent developments, and key market strategies.

Research Coverage

The market study covers the facial recognition market size across segments. It aims to estimate this market's size and growth potential across different segments by offering organization size, deployment mode, applications, verticals, and regions. The study also includes an in-depth competitive analysis of the key market players, their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.

Reasons to buy this report

The report will help the market leaders/new entrants with information on the closest approximations of the revenue numbers for the overall facial recognition market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.

The report provides insights on the following pointers:

The widespread adoption of facial recognition is driven by its effectiveness in enhancing security and authentication, with applications in law enforcement, access control, and consumer electronics. However, a significant challenge lies in the growing concerns about privacy and ethical implications. Facial recognition raises questions about surveillance, data protection, and potential misuse. Addressing privacy issues is crucial for the responsible development and deployment of facial recognition systems.

Product Development/Innovation: Detailed insights on coming technologies, R&D activities, and product & solution launches in the facial recognition market

Market Development: Comprehensive information about lucrative markets – the report analyses the facial recognition market across varied regions.

Market Diversification: Exhaustive information about new products & solutions being developed, untapped geographies, recent developments, and investments in the facial recognition market

Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like NEC (Japan), Microsoft (US), Thales (France), AWS (US), IDEMIA (France), Aware (US), Daon (Ireland), Megvii (China), Facephi (Spain), Herta Security (Spain), OneSpan (US), Q3 Technologies (US), Neurotechnology (Lithuania), Cognitec Systems (Germany), Ayonix (Japan), NVISO.ai (Switzerland), FaceFirst (US), Clarifai (US), Iproov (UK), Oosto (Israel), Pangiam (US), Clearview AI (US), Corsight AI (Israel), Facia (UK) Veridium (US), and Visage Technology (Sweden).