The global image recognition market size was valued at USD 16.0 billion in 2016 and is likely to expand at a CAGR of 19.2% from 2017 to 2025, fueled by growing adoption in different verticals. Furthermore, easy and rising Internet access and higher adoption of social media and web have led to a growth in demand for the technology.
Increasing preference for high bandwidth data services and advanced machine learning among different verticals, such as retail and BFSI, has further increased demand for the technology.Recent developments have allowed users to link offline content, such as brochures and magazines, with digital content such as promotional videos, augmented reality experiences, and product information with the help of images captured on a smartphone.
Growing need for using data analytics is expected to create a significant demand for this technology. Big data has further elevated demand for information management specialists in various companies such as Oracle Corporation and Software AG. This is further expected to positively influence market growth.
Management of databases and process of gaining new insights from available data have become difficult due to exponentially increasing volumes of unstructured multimedia content. Growing popularity of sharing videos and images on the Internet has considerably contributed to the growth of such content. The capability of image recognition technology to recognize and identify people and objects in images and understand the context have significantly contributed to market growth.
Based on technique, the object recognitionsegment dominated the market in 2016. This can be attributed to large adoption of image recognition devices in the retail sector as it helps detect an item without using barcodes. Object recognition also allows marketers to gain significant insights to help them understand and connect with their consumers by tracking objects from photos shared by consumers on social media.
The facial recognition segment is anticipated to witness a notable shift in its growth trajectory over the forecast period. The growth of the segment can be attributed to increased use of facial recognition access systems over card-based access systems for security applications in residences and industries.
Based on application, the market has been segmented into augmented reality, scanning and imaging, security and surveillance, marketing and advertising, and image search. The marketing and advertising segment dominated the market in 2016 as many businesses adopted the technology to improve their marketing activities with advanced advertising, customer interaction, and branding.
The augmented reality segment is anticipated to exhibit significant growth, recording a CAGR of above 23.0% over the forecast period. Image recognition technology and advancements in augmented and virtual reality have paved way for introduction of a large number of applications such as training engineers and enabling better consumer experience by providing 3D guidelines for using a particular product.
Based on component, the image recognition market has been segmented into hardware, software, and service. The software segment dominated the market in 2016. The service segment is anticipated to witness significant growth, registering a CAGR of more than 20.0%.
The trend of using image recognition in development of software with the help of API is expected to enhance demand for this technology over the forecast period. For instance, several API platforms, such as Amazon Rekognition, provide an option of adding an image or video analytics to an application and enhance object identification capability of the app.
Based on deployment mode, the market has been segmented intoon-premise and cloud. The cloud segment dominated the market in 2016 and is anticipated to dominate over the coming years, owing to its increased adoption in verticals such as banking, financial services, and insurance (BFSI), media and entertainment, and government.
Several organizations are implementing cloud-based image recognition solutions to secure confidential data and reinforce their marketing endeavors. These solutions assist users in adapting innovative techniques in their daily activities without hampering budgets.
Based on vertical, the market has been segmented into retail and e-commerce, media and entertainment, BFSI, automobile and transportation, telecom and IT, government, healthcare, and others. The media and entertainment segment dominated the market in 2016, which can be attributed to the capability of image recognition technology in extracting business insights from pictures shared on social media.
The technology is also being increasingly adopted in autonomous vehicles. Autonomous cars can detect obstacles and warn drivers about proximity to walkways and guardrails with the help of this technology. The technology is also capable of reading stop lights and road signs.
The retail and e-commerce segment is expected to dominate the market in 2025. With the help of image recognition, 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 this technology.
The North American region generated the highest revenue in 2016 and is anticipated to dominate the market from 2017 to 2025. The growth of the segment can be attributed to rising integration of image recognition and mobile computing platforms in the field of digital shopping and e-commerce.
The Asia Pacific region is expected to witness prominent growth with a CAGR of 23.0% over the forecast period. Increasing applications of facial recognition in security and surveillance systems in China is projected to drive market growth in the region.
The Europe market is expected to witness significant growth over the forecast period. Surging advancements in automobile obstacle detection technologies are expected to fuel adoption of image recognition in the region’s automobile sector.
Key industry participants in the market include Attrasoft, Inc. (U.S.); Catchoom (Spain); Google, Inc. (U.S.); Hitachi, Ltd. (Japan); Honeywell International, Inc. (U.S.); LTU Technologies (France); NEC Corporation (Japan);Qualcomm Incorporated (U.S.); Slyce, Inc. (U.S.); and Wikitude GmbH (Austria).
Growing number of collaborations between stakeholders is expected to enable them to share ideas and improve their skills and technologies, thus, maximizing environmental and economic benefits. For instance, in October 2017, DENSO Corporation, an automotive technology, components, and systems supplier, collaborated with FotoNation, an Xperi group company delivering image recognition technologies, to developapplications for cabin sensing. The collaboration is anticipated to help the former company in enhancing the performance of its Driver Status Monitor, a sensor used in vehicles to detect face angle, long-duration eye closure, drowsiness level, and head position using face image processing.
Base year for estimation
Actual estimates/Historical data
2014 - 2015
2017 - 2025
Revenue in USD Million and CAGR from 2017 to 2025
North America, Europe, Asia Pacific, South America, and Middle East & Africa
U.S., Canada, Mexico, Germany, U.K., China, Japan, India, and Brazil
Revenue forecast, company share, competitive landscape, growth factors, and trends
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This report provides forecasts for revenue growth at global, regional, and country levels and analyses of latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global image recognition market report based on technique, application, component, deployment mode, vertical, and region.
Technique Outlook (Revenue, USD Million, 2014 - 2025)
Optical Character Recognition
Application Outlook (Revenue, USD Million, 2014 - 2025)
Scanning & Imaging
Security & Surveillance
Marketing & Advertising
Component Outlook (Revenue, USD Million, 2014 - 2025)
Deployment Mode Outlook (Revenue, USD Million, 2014 - 2025)
Vertical Outlook (Revenue, USD Million, 2014 - 2025)
Retail & E-commerce
Media & Entertainment
Automobile & Transportation
Telecom & IT
Regional Outlook (Revenue, USD Million, 2014 - 2025)
Middle East & Africa (MEA)
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