CORONA Impact on Facial Recognition Market Projected to Grow $4.5 billion Growing at a CAGR 17.1%

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CORONA Impact on Facial Recognition Market Projected to Grow $4.5 billion Growing at a CAGR 17.1%

June 19
13:56 2020
CORONA Impact on Facial Recognition Market Projected to Grow $4.5 billion Growing at a CAGR 17.1%

The global facial recognition market is projected to grow from USD 3.8 billion in 2020 to USD 4.5 billion by 2021, at a Compound Annual Growth Rate (CAGR) of 17.1% during the forecast period.
COVID-19 Impact on Facial Recognition Market by Component (Software Tools and Services), Vertical (BFSI, Government & Defense, Retail & E-commerce, Healthcare, Education, Automotive, and Others), and Region – Global Forecast to 2021

MarketsandMarkets forecasts the global COVID-19 Impact on Facial Recognition Market size to grow from USD 3.8 billion in 2020 to USD 4.5 billion by 2021, at a Compound Annual Growth Rate (CAGR) of 17.1% during the forecast period. The major growth factors for the facial recognition market include the focus of the government and companies on facial recognition rather than touch-based biometrics. As a result, the demand for facial recognition in monitoring and tracking of people’s movement, identity verification, security measures, patient identification, is expected to increase, which, in turn, would result in the adoption of facial recognition technology by Q4 2021.

The gig economy way of conducting businesses through permanent and contract employees have become the new normal during this crisis period. Factors such as a rise in government spending on security and public safety, along with the increase in demand for contactless identity verification systems, are driving the demand for facial recognition solutions and services. The increasing need for security and maintaining privacy has impacted the facial recognition market.

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The government and defense vertical is projected to witness the maximum growth rate during the forecast period

Governments are relying on ubiquitous sensors and powerful analytics algorithms, instead of the physical presence of a human. In the war against COVID-19, several governments have implemented these new surveillance devices in healthcare, public safety, and surveillance applications. There are some major surveillance and authentication use cases of facial recognition to fight against COVID-19.

Governments of all the COVID-19-affected nations have allocated special budgets to fight the epidemic. Different countries are also using digital technology to tackle the pandemic by strict monitoring with Closed-Circuit Television (CCTV) cameras and using smart city services, such as smart transportation, smart parking, and smart citizen services for their citizens. People are advised to use delivery apps for essential items required. Maps are used to locate the real-time availability of essential items with confirmation from local people over the app. Digital banking transactions are also promoted to avoid touch and flow of contaminated cash.

By region, Asia Pacific is projected to grow at the highest CAGR during the forecast period

The widespread effect of COVID-19 has changed the dynamic of many countries and their working cultures. Countries such as South Korea and Singapore have done better than Spain and Italy. Asian countries have used technologies, which can resist the pandemic. However, questions have been raised about violations of citizen’s privacy in these countries. China has also implemented a facial recognition system with a temperature indicator in buses, which will help to identify COVID-19 affected individuals instantly and alert driver in such situations.

The use of these technologies is also seen in the banking sector. The digital channels provide banks with data quickly and securely from the customers. Hong Kong, Singapore, South Korea are among the countries that already have digital banking licenses. Several banks in Asia are implementing new technologies. For example, Seven Bank of Japan is using facial recognition technology in its ATMs so that the customers can open their accounts directly from the machines for which it is not required to visit banks. According to McKinsey, it is found that 55% to 80% of people preferred accessing their accounts digitally.

The major vendors profiled in the global facial recognition market include NEC (Japan), Aware (US), Gemalto (Netherlands), Ayonix (Japan), Idemia (France), Cognitec (Germany), Nvviso SA (Switzerland), Daon (US), Stereovision Imaging (US), Neurotechnology (Lithuania), Innovatrics (Slovakia), id3 Technologies (France), Herta Security (Spain), Megvii {Face++} (China), FaceFirst (US), Sightcorp (Netherlands), FacePhi (Spain), and SmilePass (UK), Aimbraine {Biocatch} (London), Fulcrum Biometrics (Texas).

These players have adopted various growth strategies, such as partnerships, agreements, and collaborations, and new product launches further to expand their presence in the global facial recognition market. Partnerships, new product launches, acquisitions, and product enhancements have also been the dominating strategies adopted by the major players from 2018 to 2020, which has helped them innovate their offerings and broaden their customer base.

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NEC partnered with software developers in New Zealand to develop NEC iQuarantine, a facial recognition mobile app, which people can be used for location tracking, identity verification through biometrics, symptom monitoring of COVID-19, triage, case escalation, and case intervention. It offers self-assessment to the citizens and guides them on daily monitoring, capturing, and update of the centralized system. In March 2020, Mark Ikeno, CEO, NEC Corporation of America, announced that the health of his firm’s customers, partners, employees, and their families is important. Hence, NEC would adopt guidance from the US Center for Disease Control. NEC reduced staff strength in the Bay Area, and only business-critical functions were allowed.

Moreover, the majority of the employees are suggested to work remotely. Similarly, in Europe, NEC implemented several precaution measures in accordance with guidance by the government and the World Health Organization (WHO) to protect employees, customers, partners, and businesses in the region. NEC, partnered with VeriTrans, to provide facial recognition technology for a cashless payment trial for 7-Eleven Japan. In Japan, NEC has also implemented facial recognition solutions for its employees, and employees can now even havemasks and sunglasses on while entering or exiting the premise.

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