MarketsandMarkets continues to forecast strong growth in the facial recognition market. The firm’s latest report predicts that the market will more than double in the next five years, growing from $3.8 billion in 2020 to $8.5 billion by 2025.
The numbers are in line with MarketsandMarkets’ previous report on the facial recognition market, in which the firm predicted that the market would hit $7 billion in 2024, based on a 2019 valuation of $3.2 billion and a CAGR of 16.6 percent. The 2020 figures represent a CAGR of 17.2 percent, which means that the outlook for facial recognition has slightly improved in the past 12 months.
In that regard, the report indicated that much of the new demand will come from the government and defense sectors, which currently account for roughly 60 percent of all facial recognition revenue. Applications include homeland security, criminal investigations, and surveillance. Law enforcement agencies are expected to display the most enthusiasm for the technology, and continue to invest in research and development despite the recent pushback from privacy advocates. The Defense Advanced Research Products Agency (DARPA) is also expected to cultivate that interest with a $2 billion investment in AI technologies.
3D facial recognition software will be the fastest-growing facial recognition product. MarketsandMarkets noted that COVID-19 has created more demand for biometric technologies that can support applications like attendance tracking and access control, though facial recognition algorithms have had to evolve to account for people wearing masks.
North America will be the largest market during the forecast period. However, the APAC region is expected to display a high adoption rate, and Europe will show a strong interest in surveillance technologies. NEC, Daon, Innovatrics, Thales, IDEMIA, Nuance, and FacePhi were identified as some of the key players in the facial recognition space.
MarketsandMarkets’ prediction is comparable to that of Reports and Data, which foresees an $11.3 billion facial recognition market in 2026. Adroit’s projections are more aggressive, and point to a $12 billion market in 2025.
December 2, 2020 – by Eric Weiss