Gesture Recognition and Touchless Sensing Market 2023 - Demand, Future Growth, Business Opportunity, Challenges 2026
Posted by Tom C on March 13th, 2023
The gesture recognition and touchless sensing market is projected to reach USD 37.6 billion by 2026 from USD 13.6 billion in 2021; it is expected to grow at a CAGR of 22.6% from 2021 to 2026.
North America has the largest market share for gesture recognition and touchless sensing. Whereas, APAC has the highest growth rate and is expected to grow at the highest CAGR during the forecast period owing to the rapidly changing face of technology and customer needs in high-potential markets such as China, Japan, South Korea, and India. Due to advancements in technology and the emergence of new business models as well as new infrastructural developments in the developing cities of the region, the gesture recognition and touchless sensing market is exhibiting an upbeat outlook. The growing awareness of hygiene and advancement of security standards would further fuel the adoption of gesture recognition and touchless sensings in APAC.
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Driver: Growing digitalization and rising technological advancements across industry verticals
The application of gesture recognition technology in healthcare, gaming, consumer electronics, and automotive is increasing. In recent years, the use of wearable sensor-based gesture recognition has increased in the healthcare industry. Gesture recognition enables the remote control of medical devices, helps in contactless navigation of X-ray display and magnetic resonance imaging (MRI), and enhances the daily living capabilities of patients. Likewise, a gesture is used as a command in the gaming industry instead of pressing buttons on a keyboard or moving a mouse. The system supports unintentional movements and continuous gestures in these interfaces to provide the user with a natural interface.
Restraint: Trade restrictions between US and China
One of the key factors weakening the global economy is the high tariff imposed on the US-China bilateral trade since 2019, which has led to a decline in the global demand for goods, trade, and investments. The production decline in China has impacted businesses worldwide, as the country plays a key role in the global supply chain of intermediate goods, particularly computers, electronics, pharmaceuticals, transport equipment, and gesture recognition equipment. Although China signed a trade deal in January 2020 to halt the trade war, it is expected to act as a temporary truce. If this trade war persists post the COVID-19 crisis, it may further dampen the global economy. As China accounts for around 40–50% of the global electronics supply, the trade war is expected to impact global gesture recognition equipment growth severely. The trade restrictions on gesture recognition equipment manufacturers of China are expected to impact the revenue streams of smartphones, wearables, and TV manufacturers, thereby restraining the market’s growth.