According to Vision Research Reports, the global image recognition market size is projected to surpass around USD 110 billion by 2028.
The global image recognition market size was valued at USD 27.8 billion in 2020 and is anticipated to grow at a CAGR of 18.8% from 2021 to 2028.
Image processing and recognition have evolved with numerous powerful applications, such as security and surveillance, and medical imaging that have created a great value from a business perspective. Functions of figure identification, such as facial or object recognition, visual geolocation, barcode reading, and automated driver assistance, among other industrial automation-related functions, have demonstrated the versatility of this technology. When combined with AI, this technology has begun to create valuable growth opportunities in several verticals, such as gaming, social networking, and e-commerce. For instance, Twitter and Facebook, two major platforms in the world of social networking, have benefited from the technology in terms of audience engagement as they have created a more connected experience by encouraging users to share images and tag their friends.
The advent of digital cameras, particularly cameras built into smartphones, has led to an exponential growth in the volume of digital content in the form of images and videos. A vast amount of visual and digital data is being captured and shared through several applications, websites, social networks, and other digital channels. Several businesses have leveraged this online content to deliver better and smarter services to their customers, with the use of digital image processing. For instance, in October 2019, SnapPay Inc., a U.S. based payment platform provider, has launched facial recognition payment technology in the North America region. By using this thechnology in its payment solution, the company has aimed at allowing its customers a new level of convenience for payments at retail outlets.
However, data cleaning and hardware processing power remain as the two significant challenges involved in building areliable technology. Also, considering the time, complexity, and cost associated with software development for image identification, many companies may not have the resources who can produce acceptable and accurate results. Therefore, several companies are taking strategic initiatives to expand their business with the help of image processing and recognizing techniques. For instance, in July 2019, Star Alliance, a global airline, announced a partnership with NEC Corporation to develop a biometric data-based identification platform for the pass-through areas at the airports, such as boarding gates and check-in kiosks. This AI-based platform and biometric passport would help the passengers to get through passport control without the need to show documents to the border officials.
Based on the technique, the market has been segmented into object recognition, QR/ barcode recognition, pattern recognition, facial recognition, and optical character recognition. The object recognition segment held a significant market share in 2019. Object identification is a form of computer vision that has gained momentum in both the consumer-facing tech companies and enterprises. Also, facial recognition is expected to demonstrate a notable shift in its growth over the forecast period as it is being adopted in industries ranging from manufacturing to security and surveillance.
QR/barcode recognition is also one of the significant image identification techniques as barcode scanners are rapidly adopted by corporations to track their fixed assets. Several benefits of barcode recognition, such as smooth internal operations, time-saving, and accuracy, have encouraged businesses to adopt barcode scanners. Also, the use of barcode recognition in numerous applications, such as entertainment, advertisement, games, art and pop culture, and tracking products, has contributed to the significant market share of this technique. The adoption of this technique in retail and other businesses is expected to boost the growth of the QR/ barcode recognition segment in the coming years.
Based on applications, the market has been segmented into scanning and imaging, security and surveillance, augmented reality, marketing and advertising, and image search. The marketing and advertising segment dominated the market in 2019 as many businesses adopted the technology to improve their marketing activities with advanced advertising, customer interaction, and branding. The major social media platforms are using AI-enabled image recognition technologies to improve the user experience and allow advertisers to place contextually relevant advertisements. For instance, in November 2018, Slyce Acquisition Inc., a service provider in visual search for retailers, acquired the intellectual property assets of Ditto Labs, the developer of image recognition software for social media monitoring. This acquisition was made to provide great insights about product usage and sharing across the internet.
The augmented reality segment is anticipated to witness substantial growth and is projected to expand at a healthy CAGR over the forecast period. The image identification technology can detect 2D images and trigger augmented content to appear in the form of slideshows, videos, sound, 360° panoramas, 3D animations, and text. Image recognition in augmented reality is being used for multiple purposes, such as product display, entertainment, and augmentation of printed magazines.
For instance, Busch-Jaeger Elektro GmbH, a global provider of electrical installation technology and related products and services, uses augmented reality to create product presentations. Furthermore, abenteuer und reisen, a Germany-based travel magazine based on city trips, long-distance travel, and lifestyle, has a substantial amount of its app-users accessing augmented reality experiences within its printed editions.
Based on components, the image recognition market has been segmented into hardware, software, and service. The service segment is anticipated to witness a noticeable growth rate over the forecast period. The software segment held a significant market share in 2019 owing to the growing adoption of image processing software for various applications, such as medical imaging, computer graphics, and photo editing.
The trend of using digital image processing in the development of computer vision-related software with the help of API is expected to enhance the demand for the market over the forecast period. For instance, several API platforms, such as Amazon Rekognition, provide an option of adding video or image analytics to an application and enhance the object identification capability of the application. Also, Microsoft Computer Vision API, a cloud-based API tool offered by Microsoft, provides developers with access to image processing and content visualization. Several businesses and corporations leverage the mage recognition software for boosting content discoverability and accelerating text extraction.
Deployment Mode Insights
Based on the deployment-mode, the market has been segmented into on-premise and cloud. The cloud segment dominated the market in 2019 and is anticipated to retain its position over the forecast period. This growth in the cloud-based market is attributed to its increased adoption in verticals where centralized monitoring is required, such as Banking, Financial Services, and Insurance (BFSI), media and entertainment, and government. Also, cloud-based deployment provides access to the API (Application Programming Interface) available in different servers or sources.
Several organizations are implementing cloud-based image processing solutions to secure confidential data and reinforce their marketing endeavors. These solutions assist users in adopting innovative techniques in their daily activities without hampering their budgets. For instance, Amazon Rekognition powered by deep learning technology gives highly accurate facial search capabilities and facial analysis that can be used for detection, analyzing, and comparing faces for a wide variety of user verification and public safety use cases. Also, Google Vision, the part of Google Cloud Platform, enables developers to implement machine learning models to understand the content of the image.
Based on vertical, the market has been segmented into media and entertainment, BFSI, automobile and transportation, retail and e-commerce, telecom and IT, government, healthcare, and others. The media and entertainment segment represented a significant share in 2019 owing to the capability of the image recognition technology to extract business insights from pictures shared on social media. The evolution of virtual reality environments has transformed the media and entertainment industry, including interactive media, games, advertising, and TV and film production experience, by implementing computer vision and machine learning. For instance, Watson Media, offered by IBM Corporation, allows sports enthusiasts to capture highlights of a match automatically and share them on social media.
Besides, the retail and e-commerce segment dominated the market in 2019 and is expected to remain the dominant vertical segment throughout the forecast period. With the help of image identification, online shoppers can search for clothing or accessories by taking a picture of a garment, texture, print, or color of their choice. The photo captured by the smartphone is uploaded to an app that searches an inventory of products to find similar products using AI technology. Also, image recognition technology is being increasingly adopted in autonomous vehicles, which is anticipated to contribute to the noticeable growth in the automobile and transportation segment. Autonomous cars can detect obstacles and warn the driver about the proximity to walkways and guardrails with the help of this technology. The technology is also capable of reading stoplights and road signs.
North America accounted for the largest market share in 2019, majorly due to rapid growth of cloud-based streaming services in the U.S. The growth of the segment is attributed to increasing integration of artificial intelligence and mobile computing platforms in the field of digital shopping and e-commerce. The European regional market is expected to witness significant growth over the forecast period owing to growing advancements in automobile obstacle detection technologies in the region.
On the other hand, Asia Pacific is projected to demonstrate growth at the highest CAGR over the forecast period. This growth is attributed to increasing use of mobiles and tablets, rapid technological advancements, and the popularity of online streaming in emerging economies, such as China and India. The growing applications of face remembrance in security and surveillance systems in China are projected to drive market growth in the Asia Pacific region. For instance, the Chinese government has enforced real-name registration policies in the country, under which citizens are required to link their online account with the official government ID. These policies have made the use of image recognition more ubiquitous across the nation.
The key industry participants in the market include Attrasoft, Inc.; Google; Catchroom; Hitachi, Ltd.; Honeywell International Inc; LTUTech; NEC Corporation; Qualcomm Technologies, Inc.; Slyce Acquisition Inc.; and Wikitude GmbH.
Deployment Mode Outlook
Middle East and Africa (MEA)
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