Identity Verification Market

Global Identity Verification Market Size (2024 to 2029)

The global identity verification market is predicted to reach USD 10.16 billion in 2024 and USD 20.98 billion by 2029, growing at a CAGR of 15.6% during the forecast period.

Identity verification solutions and services are used by various companies to ensure that the information provided by users or customers is related to the identity of a real person. Identity verification solutions ensure high security with detailed customer attributes, including personal credentials, nationality and immigration status, identity verification, employment, and business registration. Identity Verification is a comprehensive solution that ensures a secure customer registration process by providing a seamless, real-time onboarding experience and minimizing the risk of identity fraud. The identity verification process is an essential requirement for most online and offline processes and procedures. Identity verification is an essential requirement where a verified identity is essential, such as border control or access to digital services. Identity verification facilities are used to demonstrate that information provided by customers or users is related to the identity of a real entity. Identity verification services verify using detailed consumer attributes that include components such as credentials, company or employment record, and nationality. It is a comprehensive process to authenticate the consumer's secure record and minimize the likelihood of identity fraud.

MARKET DRIVERS

The rapid growth in identity verification in recent years is largely due to the increase in cyberattacks.

Digital transformation around the world has uncovered a host of identity fraud, and businesses have been forced to take quick and complex steps to protect it. Key drivers of the identity verification market are the rise in digitization initiatives, the rise in fraud and identity theft over the past decade, and the surge in digital identity use cases across industries. An increasing number of government initiatives in various countries, including electronic ID cards, border controls that use facial recognition for identification and verification processes, smart airports, and cities that use lice detection for identification and verification, can ensure online security through strong identities. As digitization progresses, identifying people and public facilities has become a necessity that requires verified identification. In the future, the rapid modernization of security solutions is estimated to increase the ability to rapidly analyze large amounts of data with the help of disruptive technologies such as artificial intelligence. The ability of artificial intelligence to provide rapid mathematical calculations to bolster the core capabilities of human intelligence is likely to create the greatest growth opportunities for the global identity verification market in the near future.

With the increasing use of AIDC (Automatic Identification and Data Capture) technology in the retail industry and e-commerce, the market for identity verification software is expected to expand.

The identity verification software market is supposed to be revitalized by the adoption of identity verification software by governments in developed and developing countries to identify customer information on ID cards, driving licenses, or government-issued passports. With an unprecedented increase in the number of cybersecurity incidents, the demand for robust security solutions has increased across the enterprise. The growing popularity of digitization and automation in industries ranging from BFSI to healthcare is foreseen to drive the identity verification market during the conjecture period. All these benefits and features that identity verification provides provide long-term benefits for businesses. These various advantages are estimated to drive the growth of the global identity verification market. As the sophistication of the security information platform and IT security tools and solutions become increasingly sophisticated, it is estimated to have a significant impact on the overall management of the enterprise security ecosystem. The market demand for identity verification solutions has gained considerable traction in recent years due to the various features of these systems, such as data verification, fraud detection, identity verification, and more.

MARKET RESTRAINTS

The main obstacles to market growth are resource constraints and a lack of understanding and awareness of the potential benefits of digital development. The high costs associated with identity verification solutions are supposed to restrict this business growth.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Identity Verification Market Analysis By Component

The global identity verification market by component type was driven by the solutions segment. Identity verification solutions are an opportunity for market growth by allowing various devices, such as smartphones and wearable devices, to act as credentials to provide access to the security arena. Solution occupied the second largest market in 2020 and is estimated to maintain its position during the forecast period.

Global Identity Verification Market Analysis Deployment Mode

The global market was dominated by the cloud industry. Cloud-based solution providers use virtual technology to host their customers' applications in off-site locations. Due to the cost benefits of cloud implementation, it is mainly adopted by a variety of small and medium-sized businesses around the world.

Global Identity Verification Market Analysis By Industry

The BFSI segment occupied the largest market in 2020 and is supposed to lose its position to the government in identity management market share during the forecast period.

REGIONAL ANALYSIS

North America is expected to project the highest market share in terms of revenue during the conjecture period. Factors such as the development of government initiatives such as smart cities, smart infrastructure, driver's licenses based on digital identity and a growing integration of various technologies. As Asia Pacific is technically equipped with early adoption of new technologies, it is estimated to contribute to the fastest growing regions with the highest CAGR during the forecast period. Governments are taking initiatives as factors in addressing identity fraud, especially strengthening eKYC for identity verification, such as nationally initiated compliance regulations, the growing demand for cloud-based identity verification, and growing attacks. cyber-related identity.

KEY PLAYERS IN THE GLOBAL IDENTITY VERIFICATION MARKET

Key players in the market include LexisNexis, Experian PLC, Mitek Systems, Equifax Inc, Onfido, IDEMIA, Gemalto, Acuant, Trulioo, and Jumio.

RECENT HAPPENINGS IN THE MARKET

• In April 2020, IBM announced it would resell Okta Identity Cloud through a recent strategic partnership with an identity management solutions provider.

• In June 2020, GBG partnered with CredoLab, which used GBG's AI-based / digital risk management to assess the creditworthiness of Indonesian individuals, including CredoLab banks and banking, easily and reliably.

DETAILED SEGMENTATION OF THE GLOBAL IDENTITY VERIFICATION MARKET INCLUDED IN THIS REPORT

This research report on the global identity verification market has been segmented and sub-segmented based on the component, deployment mode, industry, and region. 

By Component

• Managed Services
• Consulting Services
• Training and Education
• Support and Maintenance
• Professional Services

By Deployment Mode

• On-Premises
• Cloud-Based.

By Industry

• Manufacturing
• Retail
• BFSI
• Healthcare
• Education
• Government and Public Sectors
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa