Identity Verification Market - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030

Key Market Trends

• Rising Identity Theft and Cyberattacks: The market's growth is fueled by the escalating incidence of identity theft and cyberattacks. Increased awareness among businesses and governmental organizations regarding the necessity of identity theft protection services to thwart fraudulent activities is also contributing to market expansion.
• Growing Demand for Data Protection: As internet usage and online banking services proliferate worldwide, there is an increasing demand among individuals to safeguard their personal data, including financial information. This surge in internet usage is propelling market growth.
• Dominance of Biometrics: In 2022, the biometrics category held the lion's share of market revenue. Biometrics is the most commonly used technique for identity confirmation, relying on one or more biological traits to establish an individual's identity.
• BFSI Sector's Significance: The BFSI vertical category is poised to lead the market, driven by the digitization of banking processes, including digital onboarding and digital payments, which enhances the customer experience and necessitates identity verification worldwide.
• Cloud-Based Solutions: The cloud segment took the lead in 2022 in driving market growth. Cloud-based identity verification solutions enable businesses to reduce costs while enhancing corporate security.
• Solution Category Leadership: In 2022, the market was led by the solution category, which encompasses digital identity verification, identity authentication, and ID verification. Solutions are a vital component of the market, along with services.
• Large Enterprises Driving Demand: Large enterprises fueled market growth in 2022 due to their adoption of identity verification systems for cost reduction, combating rising fraud and identity theft, handling high-risk transactions, and compliance with various regulations.
• North America's Dominance: North America is expected to capture the largest share of the global identity verification market. The expansion of government initiatives such as smart infrastructure, smart cities, and digital identification-based driver's licenses is expected to boost demand for identity verification.
• Asia-Pacific's Rapid Growth: The Asia-Pacific region is forecasted to exhibit the highest growth rate in the identity verification market during the forecast period. Increased technology adoption, government efforts to combat identity-related fraud, and strengthened eKYC for identity authentication are driving this growth.

Key Growth Determinants

• Increasing Internet Access and Digital Literacy: The rising trend of smart services offered by various businesses is expected to drive the demand for virtual identity verification. The global need for corporate identity verification is growing due to the rise in online transactions, including online onboarding and financial activities.
• Rising Digitalization: The digitalization of the world has necessitated enhanced identity verification methods to protect intellectual property and secure access to digital services. Initiatives like electronic cards (eID), smart border controls, smart cities, and smart airports contribute to the need for identity verification.
• Adoption of Biometric Devices: Advanced mobile devices with powerful capabilities are enabling self-service identity verification. Biometrics, as a form of digital identity, offers attribution to individuals and is less susceptible to impersonation when appropriately regulated. This drives the market's growth.

Major Challenges

• Prohibitive Costs: The high deployment and maintenance costs of identity verification technologies may impede growth, as they pose budgetary constraints for research organizations and smaller entities.
• Lack of Technological Expertise: The scarcity of technical expertise, particularly in developed and developing economies, along with a shortage of skilled professionals, may hinder market growth.

Regional Highlights

• North America's Market Dominance: North America, with its advanced technology infrastructure, large population of early technology adopters, and presence of key industry players, is expected to lead the market.
• Asia-Pacific's Promising Prospects: Asia Pacific is anticipated to experience the fastest growth in the identity verification market due to government initiatives against identity-related fraud and increased adoption of new technologies.

Competitive Landscape

Leading Companies in Global Identity Verification

• Experian (Ireland)
• GBG (UK)
• Equifax (US)
• Mitek Systems (US)
• Thales Group (France)
• LexisNexis Risk Solutions (US)
• Onfido (UK)
• Trulioo (Canada)
• Acuant (US)
• IDEMIA (France)
• Jumio (US)
• TransUnion (US)
• IDology (US)
• Innovatrics (Slovakia)
• Applied Recognition (Canada)

Global Identity Verification Market is Segmented as Below:

By Type

• Biometrics
• Non-biometrics

By Vertical

• BFSI
• Government and Defence
• Healthcare & Life Sciences
• Retail and eCommerce
• IT & ITeS
• Energy and Utilities
• Others (Education, Travel, and Gaming)

By Deployment

• On-premises
• Cloud

By Component

• Solution
• Service

By Organisation Size

• SMEs
• Large Enterprises

By Geographic Coverage:

• North America
• U.S.
• Canada
• Europe
• Germany
• U.K.
• France
• Italy
• Turkey
• Russia
• Rest of Europe
• Asia Pacific
• China
• Japan
• South Korea
• India
• Southeast Asia
• Rest of Asia Pacific
• Latin America
• Brazil
• Mexico
• Argentina
• Rest of Latin America
• Middle East & Africa
• GCC
• South Africa
• Egypt
• Nigeria
• Rest of Middle East & Africa