Image Recognition Market Size, Share & Industry Analysis, By Component (Hardware, Software, and Services), By Technology (Code Recognition, Facial Recognition, Object Recognition, Pattern Recognition, and Optical Character Recognition), By Application (Scanning and Imaging, Security and Surveillance, Image Search, Augmented Reality, and Marketing and Advertising), By Deployment (On-Premise and Cloud), By End-user (BFSI, Media and Entertainment, Retail and E-commerce, IT and Telecom, Government, Healthcare, Transportation and Logistics, and Others), and Regional Forecast, 2024-2032

The global image recognition market size was valued at USD 43.60 billion in 2023. The market is projected to be worth USD 50.36 billion in 2024 and reach USD 178.13 billion by 2032, exhibiting a CAGR of 17.1% during the forecast period.

Image recognition uses different technologies to identify objects, logos, people, and other variables in a digital format. Image recognition mainly depends on Artificial Intelligence (AI) and Machine Learning (ML) technologies. Advancements in these technologies have developed computerized, precise, accessible, and cost-effective medical diagnostics, which are expected to propel the market growth.

Increasing personal preference for high-bandwidth data services and advanced machine learning are driving the demand for this technology. Facilities in various industries, such as retail, media & entertainment, IT & telecommunications, and Banking, Financial Services and Insurance (BFSI) are seeing an increase in the use of advanced technologies within their organizations, which is driving the market. Furthermore, advancements in image recognition technology have made it possible to use images taken with smartphones to link offline content, such as brochures and magaziness with digital content, such as promotional videos, augmented reality experiences, and product information.

The COVID-19 pandemic has accelerated the trend of digitalization and changed the world. All sectors of the economy use advanced technology to transform traditional business models. The pandemic has prompted many organizations to adopt advanced recognition technologies such as facial recognition and pattern recognition during the time of the pandemic. Various banking and financial institutions are developing face recognition-based mobile payment services. 

Image Recognition Market Trends

Emergence of Neural Network and Deep Learning Algorithms to Augment the Demand for Image and Video Recognition

The emergence of Convolutional Neural Networks (CNN) and deep learning algorithms is expected to spur the demand for image detection and recognition processes. These algorithms are utilizing various AI-based features to detect, analyze, classify, and recognize image pixels more precisely. The quick and upgraded response of image detection and recognition with CNN has escalated its demand across the healthcare, automotive, e-commerce, and gaming industries. Thus, various technology providers are deploying deep learning and neural network capabilities to enhance their image detection and recognition applications.

The Amazon Rekognition APIs are also utilizing deep learning algorithms to enable quick and sophisticated image classification and visual searches.

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Image Recognition Market Growth Factors

Growing Popularity of AI-driven Technologies to Boost the Market Growth

The development of artificial intelligence and machine learning is driving industry and business model transformations. AI is driving numerous applications, including computer vision, pattern recognition, machine vision, and others. Static image detection, recognition, classification, and tagging are projected to be some of the top revenue-generating applications of AI across industries. In addition, AI-driven autonomous machine vision vehicles are propelling the demand for image detection technology.

Apart from this, the increasing popularity of AI-based visual search engines for object recognition is anticipated to fuel the product demand in the coming years. Several AI-based healthcare applications, such as modern radiology interpretation and chronic diagnosis, are enhancing the value of this market. Thus, the development of AI-based applications is escalating the market growth.

RESTRAINING FACTORS

Law Enforcement at Customs and Border Protection to Limit Product Adoption

In spite of image recognition gaining traction across the public and private sectors, with the growing acceptance of AI and computer vision technology, government and local authority regulations are hampering the market growth. In November 2022, Italy banned the use of facial recognition technology and smart glasses by municipalities and visually impaired people as they can identify the user’s identity and help in bringing out information about the user. Face recognition technology has become a common tool in the past several years for ensuring public safety and surveillance. However, the technology has been banned in several regions across the U.S., Europe, and Asia Pacific, owing to residential privacy concerns. Such government policies are hampering the demand for image identification solutions.

Image Recognition Market Segmentation Analysis

By Component Analysis

Software Segment to Dominate Considering the Rising Product Adoption

Based on component, the market is segregated into hardware, software, and services. Amongst these, the software segment will hold the largest market share over the projected period. The Industry 4.0 revolution and automation are driving the adoption of image detection and recognition algorithms for software product designs and developments. With the increasing potential of computer vision technology, organizations are investing in image detection technologies to analyze and interpret data from visual sources. Numerous trending applications such as biometric or face detection for security, identifying objects in autonomous cars, or medical image analysis are stimulating the demand for image detection and recognition algorithms. The massive deployment of this technology in the gaming, healthcare, automotive, and e-commerce industries is further raising the global market value.

On the basis of services, the market is further classified into implementation services, consulting and training, and support and maintenance services. Among these, the implementation services segment is likely to hold a large revenue share owing to the growing demand for integration of the technology into suitable application platforms or technologies. 

By Technology Analysis

Code Recognition Segment to Dominate due to the Adoption of AI in the Retail Industry

Based on technology, the market is segmented into code recognition, facial recognition, object recognition, pattern recognition, and optical character recognition. Among these, the code recognition segment is holding a large image recognition market share owing to wide adoption across all industries for data entry and inventory control applications.

Facial recognition segment is expected to demonstrate significant growth over the forecast period. Significant developments in artificial intelligence and machine vision are jointly boosting the adoption of technology in numerous applications. For instance, Brazil has implemented Artificial Intelligence (AI) in facial recognition systems on a substantial scale. Globally, increasing investments in autonomous vehicles are expected to surge the demand for facial and pattern recognition technologies. 

By Application Analysis

Security and Surveillance to Emerge as the Leading Segment Impelled by Rising Public Safety Concerns

In terms of application, the market has been fragmented into scanning and imaging, security and surveillance, image search, augmented reality, and marketing & advertising. Amongst these, the security and surveillance segment is expected to dominate the market. Growing security and public safety concerns are surging the demand for image identification technologies. Various organizations are massively deploying biometric or facial recognition systems for employee identification for attendance and security purposes. Thus, the security and surveillance application is dominating the market in terms of revenue generation.

The other most-favorable segment is augmented reality, which is set to record appreciable growth on account of extensive deployment of image recognition. Popularity of virtual try-on applications is primarily responsible for this segment’s growth.

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By Deployment Analysis

Adoption of Cloud-based Image Recognition to Fuel Segmental Expansion

Based on deployment, the market is segregated into on-premise and cloud-based. Owing to the massive adoption of cloud applications, the cloud-based segment is likely to exhibit a significant growth rate over the study period. Enhanced flexibility, fast deployment, scalability, cost-effectiveness, and improved performance-encouraging organizations are expected to drive the demand for cloud deployment over on-premise.

However, security concerns surrounding cloud-based integration are favouring the adoption of on-premise deployment of image detection technology.

By End-user Analysis

Media and Entertainment Segment to Exhibit Significant CAGR Driven by Rising Adoption of Cutting-Edge Technologies

In terms of end-user, the market is divided into BFSI, media and entertainment, retail and e-commerce, IT and telecom, government, healthcare, transportation and logistics, and others. Amongst these, the media and entertainment segment is likely to exhibit significant growth over the study period. The rise is due to the rising development of the sector with the adoption of cutting-edge technologies. Technologies such as machine vision, virtual reality, and augmented reality are substantially contributing to the demand for the technology. Similarly, the emergence of deep learning and artificial intelligence in the medical sector has fueled the demand for image detection and recognition technology.

REGIONAL INSIGHTS

The global market has been studied across five regions, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

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Presently, North America is dominating the market share owing to the presence of a large number of prominent market players. In addition, early adoption of computer vision technologies is strengthening the region’s leading position in the global market. Adoption of software-driven business process automation using cognitive technologies such as text recognition, natural language processing, and image detection & recognition is also supporting the regional market growth. Additionally, the deployment of autonomous vehicles is driving the adoption of the technology across the region.

Increasing utilization of image and pattern recognition technologies for identification purposes is driving market growth across Europe. The development of 3D vision autonomous vehicles in the region is providing strong support to this market. Apart from this, the use of facial recognition technology for public security and surveillance has boosted product adoption in several European countries. However, the adoption of facial recognition technology is likely to decline as the European Commission has banned the use of technology for public surveillance for the next five years.

Asia Pacific is anticipated to demonstrate the highest CAGR during the forecast period. This is owing to the increasing use of cognitive applications across the rapidly developing IT industry in the region. Moreover, AI in healthcare with image detection and recognition technology is streamlining chronic disease diagnosis, which is fueling the regional market. Increasing investments in artificial intelligence and integration of computer vision and facial recognition technologies is strengthening the market position across the Asia Pacific.

The market in the Middle East & Africa is in the developing phase due to the rising integration of Artificial Intelligence (AI) and Machine Learning (ML) technology. The governments of different countries are trying to impose facial recognition technologies to deliver support and maintenance services to secure people's lifestyles. In 2021, the UAE Cabinet of Ministers approved the implementation of facial recognition technology to provide quality services in the private and public sectors.

The image recognition market is witnessing steady growth in Latin countries due to benefits, such as extracting business insights from images shared on social networks and automatically organizing photo collections without tags. It also provides safety features for self-driving cars. Thus, increasing competition among image recognition solution providers has led vendors to focus on developing innovative products to compete in the Latin American market.

List of Key Companies in Image Recognition Market

Key Players Develop Image Recognition Platform to Strengthen their Positions

The key market players are investing their efforts in the development of innovative image identification technologies. SAP SE, Siemens AG, ANSYS, Inc., Hitachi Ltd., Microsoft Corporation, Amazon Web Services (AWS) Inc., NEC Corporation, NVIDIA Corporation, Slyce Acquisition Inc., Google LLC, Blippar Ltd., and others are the prominent players in the market. Advancements to the product portfolio are helping key players to maintain their competitive edge. These companies are engaging in strategic partnerships, acquisitions, and collaborations for expanding their business and distribution network, propelling image recognition market growth.

List of Key Companies Profiled:

• Amazon Web Services (AWS) Inc. (U.S.)


• V7Labs (U.K.)


• NEC Corporation (Japan)


• NVIDIA Corporation (U.S.)


• Slyce Acquisition Inc. (U.S.)


• Clarifai, Inc. (U.S.)


• Google LLC (U.S.)


• Blippar Ltd. (U.K.)


• Toshiba Corporation (Japan)


• Huawei Cloud (China)

KEY INDUSTRY DEVELOPMENTS:

• August 2023 – Paravision announced the availability of its 6th generation facial recognition product suite. This is the most accurate facial recognition technology by NIST FRVT 1: N and NIST FRVT 1: 1. Paravision Gen 6 is powered by comprehensive support from the cloud, setting a new standard for reliable facial recognition technology.


• May 2023 - Manipur CM developed a facial recognition system (FRS) and launched two camera-mounted mobile FRS vehicles to detect crimes and secure Manipur from illegal migrants.


• January 2023 – Panasonic Holdings Corporation developed the highest sensitivity in hyperspectral imaging technology that utilizes compressed sensing technology. This is used in medical care, space exploration, and to detect subtle color differences that are difficult to see with the naked eye and improve image analysis.


• November 2022 – NEC Corporation innovates accurate image recognition technology that helps identify the real-time activities performed by various people by capturing camera images. It also helps to capture the position of humans, their visual features, and objects present in different environments.


• April 2022 – Hyundai Motor Company entered a partnership with IonQ, Inc., a quantum computer provider, to improve the computational functionality of electric vehicles by using quantum computing which helps for image and object detection.

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The image recognition market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in the recent years.

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