Facial Recognition Market Trends

Growth Drivers

• Increased Demand for Smart Phones with Increasing Internet Penetration – Facial tracking solutions in smartphones enable an improved user experience with the help of a digital identity verification system. The ease of facial recognition as well as other benefits is anticipated to integrate facial recognition systems in smartphones. Thus, the high demand for smartphones by the population is expected to bring lucrative growth opportunities for the market in the forecast period. Recently, it was calculated that in 2021, there were almost 15 billion mobile devices operating worldwide, up from 14 million in the previous year. This number is further expected to surpass 18 billion by 2025.

• Rising Concerns of Cybersecurity with Less Security in the AI – Recent trends show that there has been a considerable growth in the adoption rate of electronic medical record (EMR) solutions in the healthcare sector. Hospitals, medical schools, and biopharmaceutical companies are preferring facial recognition technology to enable a paperless environment and protection from cyber-attacks. Thus, the high expenditure in healthcare is expected to drive the facial recognition market. From the time period from 2020 to 2025, the healthcare industry is expected to spend almost USD 130 billion on cybersecurity across the world.

• Increased Market Capitalization of the Banking Sector – The banking sector is utilizing the power of facial recognition technology to smoothen customer communication via devices, ease the process of virtual transactions, and carry out online banking. Furthermore, biometric payments are becoming popular among the banking sector to authorize the deduction of money from a bank account. Thus, the rise in market capitalization is anticipated to ensure growth opportunities in the global facial recognition market. By the second quarter of 2021, the market capitalization of the global banking sector was calculated to be around USD 9 trillion.

• Rapid Digitization with Growing Urbanization Owing to Rising Economic Standards - It is estimated that 60% of the global GDP is to be digitized by 2022.

Challenges

• Low Adoption Rate in Developing Countries - People hesitate to adopt facial recognition systems since they can be easily broken down by showing an exact replica of a person, hence, this is one of the major factors that is estimated to hinder the market’s growth during the forecast period.

• Changing Regulatory Policies
• Poor Policy Management