Global facial recognition market to grow 24.5% through 2016
According to Research and Markets (www.researchandmarkets.com) the global facial recognition market will grow at a CAGR [compound annual growth rate] of 24.5% through 2016.
One of the key factors contributing to this market growth is the increasing high security requirement in government departments. The global facial recognition market has also been witnessing an increased number of mergers and acquisitions, says Research and Markets. However, facial recognition systems are not always accurate and this could pose a challenge to the growth of this market, according to the research group.
Commenting on the report, an analyst from the team said: "The Global Facial Recognition market is witnessing an increasing number of mergers and acquisitions, and this trend is expected to continue during the forecast period. The existing vendors and new entrants are taking the acquisitive route to either enter the market or broaden their portfolio of offerings.
"For instance, the French defense company Safran Group completed the acquisition of biometric solution provider L-1 Identity Solutions in July 2011 for US$1.09 billion. The acquisition helped Safran become a leading player in the global facial recognition market. Similarly, 3M completed the acquisition of Cogent Inc. in December 2010 for $943 million. In addition, Google acquired Ukrainian augmented and facial recognition start-up Viewdle for approximately $30 million in 2012."
According to the report, one of the drivers in this market is the growing need for high-level security in the government sector. Government departments such as intelligence, defense, finance, and military are the major adopters and users of facial recognition technology. In recent years, the government sector has been the major revenue contributor to the market.