The global identity verification market was worth USD 8.79 billion in 2023. The global market is predicted to reach USD 10.16 billion in 2024 and USD 32.40 billion by 2032, 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.
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.
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.
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 METRIC |
DETAILS |
Market Size Available |
2023 to 2032 |
Base Year |
2023 |
Forecast Period |
2024 to 2032 |
CAGR |
15.6% |
Segments Covered |
By Component, Deployment Mode, Industry, and Region. |
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
LexisNexis, Experian PLC, Mitek Systems, Equifax Inc, Onfido, IDEMIA, Gemalto, Acuant, Trulioo, and Jumio and Others. |
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.
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.
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.
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 market include LexisNexis, Experian PLC, Mitek Systems, Equifax Inc, Onfido, IDEMIA, Gemalto, Acuant, Trulioo, and Jumio.
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.
By Component
By Deployment Mode
By Industry
By Region
Frequently Asked Questions
Rising internet penetration, government initiatives promoting digital identity verification, and increasing awareness about the importance of cybersecurity are driving the adoption of identity verification solutions in emerging economies.
AI and ML technologies are enabling identity verification solutions to become more accurate, efficient, and adaptive to evolving fraud patterns, thereby enhancing the overall security posture of organizations globally.
Banking and financial services, healthcare, e-commerce, and government sectors are among the largest adopters of identity verification solutions globally due to the high stakes involved in protecting sensitive data and preventing fraudulent activities.
Some emerging trends include the integration of blockchain technology for decentralized identity verification, the adoption of omnichannel verification solutions, and the rise of identity verification as a service (IDaaS) models catering to various industries globally.
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