Facial Recognition - China

The facial recognition market in the AI market in China is experiencing subdued growth due to factors such as regulatory uncertainties, privacy concerns, and limited use cases. Despite this, the market is expected to grow driven by increasing investments and advancements in technology.

Customer preferences: As the use of facial recognition technology becomes more prevalent in China, concerns about privacy and security have emerged. This has led to a growing demand for more transparent and ethical use of the technology, with consumers seeking assurance that their personal data will not be misused. Additionally, there has been a shift towards more personalized and convenient services, such as using facial recognition for payment and access control, reflecting the increasing importance of efficiency and convenience in Chinese consumer culture.

Trends in the market: In China, there is a growing trend of using facial recognition technology for various purposes, such as identity verification, security surveillance, and marketing. This trend is driven by the government's push for a national facial recognition database and the increasing use of smartphones with facial recognition capabilities. In the coming years, we can expect to see further integration of facial recognition technology in daily life, such as in retail stores and public transportation, posing both opportunities and challenges for industry stakeholders.

Local special circumstances: In China, the Facial Recognition Market of the Computer Vision Market within the Artificial Intelligence Market is propelled by the government's efforts to promote smart city initiatives. The country has a large population and dense urban areas, making facial recognition technology a convenient and efficient solution for security and surveillance. Additionally, China's cultural acceptance of technology and high-tech advancements have contributed to the rapid adoption of facial recognition systems in various industries, such as retail and transportation. However, there are also concerns about privacy and data protection, leading to stricter regulations for the use of facial recognition technology in public spaces.

Underlying macroeconomic factors: The Facial Recognition Market of the Computer Vision Market within the Artificial Intelligence Market in China is influenced by macroeconomic factors such as government support for technological advancements and investments in infrastructure. Moreover, the country's strong economic growth and increasing adoption of digital solutions in various industries are driving the demand for facial recognition technology. Additionally, China's large population and growing urbanization are creating a need for efficient security and surveillance systems, further contributing to the market growth. However, regulatory challenges and concerns over data privacy may hinder market growth in the country.

Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

Modeling approach / Market size:Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.