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Facial Recognition

Facial recognition delivers incredible convenience to consumers, as well as serious risks.

Overview

Biometrics-based technology expands from security into the commercial sector

Facial recognition technologies are software-based applications that use biometrics of the human face (such as the distance between the eyes, nose width, the shape of the cheekbones) to determine a person’s identity. Typically, facial recognition software gathers these metrics from photographs or recorded or live video and compares them against a database of images of faces to find a match, meaning a face with identical biometrics. In this comparison and matching process, facial features picked out by algorithms are converted into a mathematical formula.

Facial recognition technology has been a surveillance tool since the 1990s, used by the US in criminal law enforcement and border control. Now, it is actively being expanded into the commercial sector for use in banks, retail stores, airlines, and restaurants, among other areas.

What's driving this industry?
Market Sizing

US facial recognition obtained market value could reach USD 1.0-1.9 billion by 2025

Conservative case

USD 1.0 Bn

20% penetration
Base case

USD 1.3 Bn

27% penetration
Expansion case

USD 1.9 Bn

40% penetration
USD millions05001001,5002,000202020212022202320242025
View details

COVID-19 IMPACT

  • Facial recognition has potential to help enforce quarantine and social distancing rules

  • Demand for contactless biometric verification has spiked 

  • The commercial adoption by retail, hospitality, and airline industries may slow down, given that these sectors have been hit badly by Covid-19 

  • Facial recognition vendors have faced an added challenge to meet demand for verification on masked faces

Market Mapping

Incumbents in the field develop in-house technology for their own use to enhance their product offering, for example, Facebook and Google using facial recognition technology for automatic photo tagging in their tech platforms. Among the incumbents, Amazon and IBM also provide services to external customers.

Amazon and several disruptors have partnered with government agencies to provide facial recognition technology. The majority of the disruptors either 1) offer a ready-to-use facial recognition software/product, targeting the business-to-consumer (B2C) market or 2) offer the software targeting both B2C and business-to-business (B2B) markets through application programming interfaces (APIs) and software development kits (SDKs) that can be used by other developers to build facial recognition products.

Incumbents
Growth
Early
Seed
Pre-Seed
Law Enforcement
?
Video Surveillance
?
Access Control and Verification
?
Customer Analytics
?
Payment Gateway
?
Photo Tagging
?
Riddletag.com
Riddletag.com
Riddletag.com
Riddletag.com
Riddletag.com
Riddletag.com
Amazon
Clearview AI
Idemia
Digital Barriers
Cognitec
Corsight AI
StereoVision Imaging
Camvi Technologies
Animetrics
Rank One Computing
Suspect Technologies
IBM
Evolv Technology
Invixium
Acuant
Paravision
Idemia
Digital Barriers
Cognitec
Faceter
FaceFirst
Corsight AI
Trueface
Kogniz
Cyberextruder
StereoVision Imaging
Reconess
Camvi Technologies
Animetrics
Rank One Computing
Innovatrics
Kipod
Okaya
Raven
Facesoft
Apple
AnyVision
Onfido
iLobby
Clarifai
Paravision
AuthID
Idemia
FaceTec, Inc.
Digital Barriers
Sensible Vision Inc.
Chooch AI
FacePhi
FaceFirst
Alcatraz
PopID
Kairos AR
Waldo Photos
alwaysAI
VisionLabs B.V.
Corsight AI
Trueface
Fortress Identity
Amaryllo Inc.
Finding Rover
Reminis
Zenus, Inc.
PiP Pet Recognition
Inferdo
Reconess
NameFace
Camvi Technologies
Timesly
Luxand
Animetrics
Rank One Computing
Daon
Incode Technologies
Oloid
Redlyst
SmartBeings
Genio
Saffe
GetID
Raven
Visitly
PixLab
Riddletag.com
Facesoft
Clarifai
AiCure
Cognitec
Cynny
Kairos AR
VisionLabs B.V.
Trueface
Sightcorp
Reconess
Rank One Computing
Active Link
Incode Technologies
Redlyst
Facenote
Facepinpoint
Riddletag.com
Finiite
Clarifai
Sensible Vision Inc.
PopID
Trueface
Incode Technologies
Facenote
Saffe
Riddletag.com
Google
Facebook
Polarr

The Disruptors

Disruptors offer a variety of products targeting multiple industries

Disruptors in the facial recognition market focus mainly on offering products for access control, video surveillance, customer analytics, and payment gateways. Major industries using the technology apart from law enforcement and border control are retail, hospitality, gambling (casinos), and banking. Most software on offer can be used with existing camera and access control infrastructure.

Law Enforcement

?

Disruptors

?
Funding in USD Millions
Clearview AI
39
Idemia
13
Corsight AI
5
Digital Barriers
Unknown
Camvi Technologies
Unknown
Animetrics
Unknown
Rank One Computing
Unknown
Cognitec
Unknown
Watchlist
?
Suspect Technologies
StereoVision Imaging

Video Surveillance

?

Disruptors

?
Funding in USD Millions
Paravision
52
Faceter
29
FaceFirst
20
Idemia
13
Corsight AI
5
Trueface
5
Digital Barriers
Unknown
Camvi Technologies
Unknown
Animetrics
Unknown
Rank One Computing
Unknown
Cognitec
Unknown
Okaya
Unknown
Raven
Unknown
Innovatrics
Unknown
Kipod
Unknown
Watchlist
?
Kogniz
Cyberextruder
StereoVision Imaging
Facesoft
Reconess

Access Control and Verification

?

Disruptors

?
Funding in USD Millions
AuthID
Public - Market cap USD 168.9 mn
AnyVision
352
Incode Technologies
257
Onfido
189
iLobby
100
Clarifai
100
Paravision
52
FaceFirst
20
Alcatraz
20
PopID
15
Idemia
13
Kairos AR
11
Waldo Photos
9
Corsight AI
5
Trueface
5
FaceTec, Inc.
4
Fortress Identity
3
Amaryllo Inc.
3
Digital Barriers
Unknown
Camvi Technologies
Unknown
Animetrics
Unknown
Rank One Computing
Unknown
Raven
Unknown
Zenus, Inc.
Unknown
Sensible Vision Inc.
Unknown
Watchlist
?
Chooch AI
FacePhi
Oloid
alwaysAI
VisionLabs B.V.
Redlyst
Finding Rover
SmartBeings
Genio
Saffe
Riddletag.com
Facesoft
Reconess
Reminis
PiP Pet Recognition
GetID
Inferdo
NameFace
Timesly
Luxand
Visitly
PixLab
Daon

Customer Analytics

?

Disruptors

?
Funding in USD Millions
Incode Technologies
257
Clarifai
100
AiCure
53
Cynny
14
Kairos AR
11
Trueface
5
Rank One Computing
Unknown
Cognitec
Unknown
Watchlist
?
VisionLabs B.V.
Redlyst
Facenote
Riddletag.com
Reconess
Sightcorp
Facepinpoint
Finiite
Active Link

Payment Gateway

?

Disruptors

?
Funding in USD Millions
Incode Technologies
257
Clarifai
100
PopID
15
Trueface
5
Sensible Vision Inc.
Unknown
Watchlist
?
Facenote
Saffe
Riddletag.com

Photo Tagging

?
Watchlist
?
Polarr

Clearview AI

Clearview AI is a provider of facial-recognition research tools for law enforcement to identify both perpetrators and victims. As of August 2020, the company had entered into contracts with more than 2,400 police agencies in the US. In February 2021, a patent filed by the company in August 2019 became public, which describes how the technology can be used by the private sector in addition to law enforcement agencies. The patent describes the private use of the software for individuals to obtain more information on people they meet through business, dating, and other relationships by using facial recognition. In December 2021, the company received a notice of allowance for the patent. However, in an interview, the company’s CEO Hoan Ton-That has iterated that the software is only used for law enforcement at present and that the company has no plans to launch a version targeting private customers. However, despite the company’s claims that it only works with law enforcement agencies, a customer list leaked in February 2020 revealed the names of private companies such as Walmart and Macy’s.

The company claims to have a database of more than ten billion images said to be scraped from social media sites such as Facebook, Twitter, YouTube, and LinkedIn. Over January and February 2020, these companies demanded that Clearview AI stop scraping data from their websites. Clearview AI CEO Hoan Ton-That stated it only collects publicly available images and is protected by the US Constitution’s First Amendment. The consequences of these claims are yet to be determined. In their last fundraising round in July 2021, the company raised USD 30 million—including a previously disclosed USD 8.6 million from September 2020—from undisclosed investors. This round brings the company’s total funding to USD 38 million, valuing Clearview AI at USD 130 million.

Given the claims mentioned above concerning working with private companies and using scraped data, the company has stopped operations in several regions within the US, Canada, Australia, and the UK over violations of privacy laws in relation to collecting photos of citizens without their knowledge or permission. In December 2021, three Canadian provincial privacy protection authorities ordered Clearview AI to stop collecting citizens’ personal information and to delete already collected information, while the French data protection agency Commission Nationale Informatique & Libertes (CNIL) notified Clearview AI to stop processing French citizens’ personal data and to delete existing data within two months. That said, the company, which has operations in more than 25 countries, continues to expand. For example, the company signed a USD 500,000 contract with Immigration and Customs Enforcement, a federal law enforcement agency under the US Department of Homeland Security and a USD 18,000 contract with the Federal Bureau of Investigations (FBI) in 2021. Further, with the aim of strengthening its product, in October 2020 the company announced its plans to introduce new compliance features to prevent abuse and enforce usage rules for law enforcement officers. The company also introduced several features in October 2021, to deblur photos and to depict the full faces of people wearing masks. In November 2021 the company announced that it has achieved number one status in the US in one-to-one facial verification, one-to-many facial verification, and wild photos categories in the facial recognition vendor test (FRVT), conducted by National Institute of Standards and Technology (NIST). The company has reportedly received a notice of allowance for a patent

Segment:
Law Enforcement
Total funding:
USD 38.6 million
Competitors:
Amazon, Facefirst, Trueface
Disruptor Funding History

Law Enforcement:

Clearview AI
Idemia
Corsight AI
Suspect Technologies
StereoVision Imaging

Video Surveillance:

Paravision
Faceter
FaceFirst
Idemia
Corsight AI
Trueface
Kogniz
Cyberextruder
StereoVision Imaging

Access Control and Verification:

The Incumbents

Incumbents enhance product offerings through in-house developments

Most incumbents use technology developed in-house for use in their own products. For example, Facebook and Google use facial recognition technology for automatic photo tagging. They have also acquired startups with complementary technology to strengthen their offering. Other incumbents, such as Amazon, Evolv Technologies, and Acuant, compete with startups in the market. For example, Amazon competes with startups via Amazon Rekognition, which has been used by US law enforcement until recently. Acuant also competes with many startups providing identity verification solutions.

Law Enforcement
Video Surveillance
Access Control and Verification
Customer Analytics
Payment Gateway
Photo Tagging
In House Development
M&A
Partnership
Investment

Notable Investors

No investor data is available

Funding data are powered by Crunchbase
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