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Face recognition vendors must upend the marketplace.

Rapidly expanding opportunities for face recognition continue to attract new market entrants as existing technology and solution players clamor to establish a market foothold. Dozens of vendors now operate in the digital on-boarding and remote authentication categories which are driving the highest-growth, most desirable, and most crowded biometric market sectors.

The majority of companies operating in the face recognition space are “me too“ players trying to position their technology as a UVP (Unique Value Proposition). This is not an effective strategy as, even when it can be proven (which it often cannot), technology performance and capabilities do not constitute sustainable differentiation.

There is, however, an alternative scenario where market disruption occurs and transforms existing market dynamics. This type of disruption would allow one or more face recognition players to distinguish themselves by creating sustainable differentiation via their offerings. Or, in Strategic Marketing lingo, by “building a sustainable moat.”

One of the most successful approaches to market disruption or “moat building” is via innovating a market-breaking business model that reconfigures the market dynamics. While the window of opportunity to make this kind of bold move, potentially upending the market, is short-lived,

Acuity believes there are a number of face recognition players well positioned to do so. And current market dynamics are creating a clear opportunity over the next 12 to 18 months for these players to engage in moat building strategies that have the potential to upend the face recognition marketplace and establish one or more players as clear market leaders.

Read Acuity's latest whitepaper Strategic Market Assessment: FACE RECOGNITION for the rest of the analysis. Use code WP2020 at checkout to download for free.

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