Market Trends of Facial Recognition Industry
Retail and E-commerce is Expected to Hold Significant Share
- While facial recognition technology did not initially absorb a massive demand from the retail industry, it provided adequate potential for the technology over the past few years. The advancement in three technical fields, neural networks, big data, and graphical processing units (GPU), has played a significant role in the widespread use of facial recognition technology in the sector. For instance, apparel retailers leverage technology to deliver customized products to customers visiting their stores.
- Facial recognition technology is expected to help retailers analyze mood and facial expressions at different SKUs and further enhance their shopping experience, preventing theft and shoplifting, as the technology helps increase security at the store level.
- The demand for cameras equipped with facial recognition technology among the stores is expected to surge over the forecast period. In addition to security and surveillance, the demand for technology in the industry is fueled by the growing application of enhancing consumer insights to offer a better customer experience.
- Facial recognition also allows retailers to personalize the shopping experience for customers. For instance, the technology could be used to identify a customer as they enter the store and then display personalized recommendations or offers on digital displays throughout the store.
- Moreover, receiving updates about the actual demographics of customers visiting the store at any given point can be a major challenge for any retail store management. Implementing facial recognition technology can help store authorities access the demographics of the footfall entering the store hourly and create business decisions based on that.
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Asia-Pacific is Expected to Register Fastest Growth
- Asia-Pacific is one of the most prominent regions for adopting facial recognition, owing to technological development, rising infrastructure growth, and increasing application in numerous areas. Massive industrialization and the growing consumer electronics industry in the region showcase exciting opportunities for the players in the market and the scope for significant growth.
- Currently, India is one of the largest global destinations in the retail space. In recent years, the retail industry in India has been becoming increasingly more dynamic and fast-paced, owing to the entry of many new players. The industry accounts for over 10% of the country's gross domestic product (GDP) and about 8% of the employment (as per IBEF). Thus, the expanding retail sector in the region offers considerable growth opportunities for the market.
- Further, in August 2022, Hyderabad International Airport announced using facial recognition to enable seamless and hassle-free travel. In line with the DigiYatra program, the Hyderabad International Airport rolled out the digital processing of passengers as a proof of concept through the DigiYatra platform.
- China has used facial recognition technology for a long time. Moreover, the country has deployed facial recognition glasses for the country's police force to spot citizens and tourists and use real-time ID authentication to primarily fight crimes during celebrations.
- The country is also embracing facial authenticated payments. Alipay, China's biggest payment app, started a trial for the smile-to-pay feature at a branch of KFC in Southern China, which uses facial recognition to identify customers and automatically charges them through the app.
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