Identity Verification Software Market Report 2025

This Identity Verification Software Market report delivers an in-depth analysis of the market’s key characteristics, including size, growth potential, and segmentation. It provides a detailed breakdown of the market across major regions and leading countries, highlighting historical data and future growth projections. The report also examines the competitive landscape, market share insights, emerging trends, and strategic developments shaping the market.

The identity verification software market size has grown rapidly in recent years. It will grow from $12.7 billion in 2024 to $14.85 billion in 2025 at a compound annual growth rate (CAGR) of 16.9%. The growth during the historic period can be attributed to the increasing incidents of identity theft, rising regulatory requirements, the expansion of digital transactions, the growth of online payment systems, and the rise in cybercrime.

The identity verification software market size is expected to see rapid growth in the next few years. It will grow to $27.34 billion in 2029 at a compound annual growth rate (CAGR) of 16.5%. The growth during the forecast period can be attributed to the rising demand for remote identity verification solutions, the increasing growth of e-commerce platforms, the adoption of smart city initiatives, a growing emphasis on user privacy rights, and the expansion of mobile banking and payment applications. Key trends expected during this period include advancements in document verification technologies, improvements in remote identity verification solutions, integration of identity verification with IoT devices, the use of AI-powered fraud detection, and the further integration of artificial intelligence and machine learning.

The rise in digital transactions is expected to drive the growth of the identity verification software market. Digital transactions involve the exchange of money or data electronically, without the need for physical currency or paper. This increase is largely attributed to the growing use of smartphones, the expansion of e-commerce, advancements in payment technologies, and the increasing adoption of contactless and mobile payment options. Identity verification software plays a critical role in enhancing the security and trust of digital transactions by validating user identities in real time, reducing fraud risks, ensuring compliance with regulations, and simplifying authentication processes. For example, in July 2024, UK Finance Limited, a UK-based trade association, reported that in 2023, 42% of adults were registered for mobile payments, up from 30% in 2022. Furthermore, 34% of the population used mobile contactless payments on a monthly basis. As a result, the growing volume of digital transactions is contributing to the expansion of the identity verification software market.

Companies in the identity verification software market are focusing on the development of next-generation cloud-based platforms to improve security, scalability, and real-time identity authentication. A next-generation cloud-based platform refers to a digital system that leverages cloud computing, artificial intelligence, and automation to enhance the performance, scalability, and security of business applications. For instance, in April 2023, Daon Inc., a US-based biometric company, launched TrustX, a cloud-based platform for identity verification and authentication. This Software-as-a-Service (SaaS) solution streamlines the creation and deployment of user journeys throughout the digital identity lifecycle. TrustX, powered by AI and machine learning, enhances fraud prevention and reduces friction in the user experience, making identity verification more efficient and accurate.

In April 2024, Entrust Corporation, a US-based company specializing in identity and security solutions, acquired Onfido Holdings Ltd. for an undisclosed amount. This acquisition strengthens Entrust's identity security solutions by incorporating Onfido's AI-driven identity verification technology, which helps combat fraud and enhance authentication processes. Onfido Holdings Ltd. is a UK-based company that specializes in providing identity verification and authentication solutions.

Major players in the identity verification software market are International Business Machines Corporation (IBM), Oracle Corporation, Mastercard Incorporated, Thales Group, Experian Limited, Equifax Inc., TransUnion LLC, IDEMIA Group, Okta Inc., Clear Secure Inc., GB Group plc, ID.me Inc., Jumio Corporation, Mitek Systems Inc., Socure Inc., IDnow GmbH, Trulioo Technology Inc., Veriff, Shufti Pro Ltd., Evident ID Inc.

North America was the largest region in the identity verification software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in identity verification software report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the identity verification software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Identity verification software is a digital tool designed to confirm an individual's identity by analyzing personal information, official documents, and biometric data. It utilizes technologies such as artificial intelligence (AI), machine learning (ML), and optical character recognition (OCR) to authenticate users in real-time. This software enhances security, prevents fraud, and ensures compliance with regulatory standards across various industries.

The main components of identity verification software are the software itself and associated services. The software authenticates individuals and provides secure access through biometrics, passwords, or document verification. It is deployed in both cloud and on-premise environments and is used by organizations of all sizes, from small and medium enterprises (SMEs) to large enterprises. The software serves various industries such as banking, financial services, and insurance (BFSI), healthcare and life sciences, government and defense, retail and e-commerce, information technology, energy and utilities, and more.

The identity verification software market research report is one of a series of new reports that provides identity verification software market statistics, including the identity verification software industry global market size, regional shares, competitors with the identity verification software market share, detailed identity verification software market segments, market trends, and opportunities, and any further data you may need to thrive in the identity verification software industry. This identity verification software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The identity verification software market consists of revenues earned by entities by providing services such as biometric authentication, document verification, and fraud prevention. The market value includes the value of related goods sold by the service provider or included within the service offering. The identity verification software market also includes sales of facial recognition systems, ID scanning devices, and mobile identity verification apps. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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