Identity Verification Market Research Report Information By Component (Solutions and Services), By Type (Biometrics and Non-Biometrics), By Deployment Mode (On-Premises and Cloud), By Organization Size (SMEs and Large enterprises), By Verticals (BFSI, Government & Defense, Healthcare & Life Sciences, Retail and eCommerce, IT & ITeS, Energy & Utilities and Others (Education, Travel, and Gaming)), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2030.

Identity Verification Market Overview

Identity Verification Market Size was valued at USD 12.1 billion in 2021. The identity verification market industry is projected to grow from USD 13.83 billion in 2022 to USD 35.25 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 14.30% during the forecast period (2024 - 2030). Growing digitization initiatives and increasing uses of digital identities among verticals are the key market drivers enhancing market growth.Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Identity Verification Market TrendsIncreasing Internet and Digital Literacy to boost the market growth

The expansion of smart services businesses provide to their customers is expected to increase the need for new trends in virtual identity verification. Business identity verification in international marketplaces has increased due to an increase in online activities, including bank transactions and online onboarding. The worldwide formation and growth of third-party verification businesses result from the demand for internet services. These businesses have online ID verification capabilities. People are becoming more technologically savvy worldwide, enabling them to use online services.

Businesses increasingly rely on digital data and computer networks for daily business operations and commercial activity. Cybercriminals exploit credentials that have been stolen to open phony accounts for online merchants, internet payments, and mobile phones. According to ITRC, 577 cyber events compromised 15.3 million records in 2019. As crooks improve, identity theft is rising. More losses due to account fraud are occurring due to cybercriminals targeting retirement accounts and reward and loyalty programs. The market will expand as identity theft and data breaches rise.

The banking industry's expanding partnerships also accelerate the market's growth rate. For instance, in February of this year, Shufti Pro, an AI-powered verification service provider, was integrated into the client manager and client portal of FYNXT, a worldwide FinTech company that offers digital solutions. Without leaving the platform, brokers using FYNXT can access Shufti Pro IDV services. A financial technology platform called FYNXT provides straightforward, affordable, and transparent payment options for remittance, wealth management, and multi-asset management, enhancing the identity verification market CAGR across the globe in recent years.

In addition, the use of fake identities in fraud is rising. In the majority of any area worldwide, 61% of merchants reported greater rates of this type of fraud in APAC. In APAC, 84% of businesses reported revenue losses owing to payment fraud; in Singapore, this percentage is significantly higher, with 90% reporting losses. In 2020, 57% of retailers in APAC predicted significant costs associated with victims of payment theft, another factor driving the growth of the identity verification market revenue.

Identity Verification Market Segment Insights

Identity Verification Component Insights

The identity verification market segmentation, based on components, includes solutions and services. The solution segment held the majority share in 2021 of the identity verification market revenue. Digital identity verification, ID verification, and identity authentication are the three subcategories of the solution. Following the adoption of additional digital platforms by the private and public sectors, including border controls and digital service access, digital verification has become a crucial component.

Identity Verification Type Insights

The identity verification market segmentation, based on type, includes biometrics and non-biometrics. The biometrics segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period 2022-2030. The most popular form of identity verification is biometrics, which confirms a person's authenticity based on one or more biological characteristics. Using fingerprints, iris and retinal patterns, and other biometric verification techniques is widespread, positively impacting the market growth.

Identity Verification Deployment Mode Insights

The identity verification market data has been bifurcated by deployment mode into on-premises and cloud. The on-premises segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period 2022-2030. An on-premises service allows the business to authenticate its clientele and keep its data on its servers. After a one-time installation, no outside party can access the customer data. Therefore, there is no need for a second vendor or service provider.

Figure 2: Identity Verification Market by Deployment Mode, 2021 & 2030 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Identity Verification Organization Size Insights

Based on Organization Size, the identity verification industry has been segmented into SMEs and large enterprises. Large enterprises held the largest segment share in 2021. Large organizations have chosen identity verification systems because of rising fraud, money laundering, processing of high-risk transactions, identity theft, cost-cutting on manual operations, and compliance with various laws. Identity verification services are being used by many businesses to increase the consistency of their security tools and platforms.

Identity Verification Verticals Insights

Based on Verticals, the industry has been segmented into BFSI, government & defense, healthcare & life sciences, retail & e-commerce, IT & ITeS, energy & utilities, and others (education, travel, and gaming). The BFSI segment held the largest share in 2021. The necessity for identity verification is growing ly due to the rising digitization of banking processes, such as digital onboarding and digital payments, to enhance the client experience.

Identity Verification Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America identity verification market accounted for USD 5.31 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. It is a technologically advanced region with many early adopters and important market participants. The expansion of government projects like smart cities, smart infrastructure, and digital identification-based driver's licenses is anticipated to fuel the demand for identity verification.

Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: IDENTITY VERIFICATION MARKET SHARE BY REGION 2021 (%)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe identity verification market accounts for the second-largest market share. The nation has established itself as one of the most promising markets in the world for creating AI-based identity verification solutions because of numerous innovations and research institutes for artificial intelligence. Further, the Germany identity verification market held the largest market share, and the UK identity verification market was the fastest-growing market in the European region.

The Asia-Pacific Identity Verification Market is expected to grow at the fastest CAGR from 2022 to 2030. Government attempts to prevent identity-related fraud and strengthen eKYC to authenticate identities are some of the causes driving the growth. Moreover, China identity verification market held the largest market share, and the India identity verification market was the fastest-growing market in the Asia-Pacific region.

Identity Verification Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the identity verification market grow even more. Market participants are also taking various strategic initiatives to grow their footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the identity verification industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the identity verification industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, the identity verification industry has provided some of the most significant benefits. The identity verification market major player such as IDEMIA (France), Jumio (US), Experian (Ireland), GBG (UK), and others are working on expanding the market demand by investing in research and development activities.

GBG is a company that verifies identities, gathers location data, and guards against fraud. GBG provides enterprises with tools and data to validate and verify the location and identity of their clients. The data used to create GBG products comes from more than 200 international partners. In August 2020, GBG collaborated with Contemi Solutions to fully automate its Know Your Client (KYC) and Anti Money Laundering (AML) checks for Contemi clients and financial sector organizations.

Also, the aerospace, defense, transportation, and security industries use the electrical systems, gadgets, and equipment that the French multinational Thales Group designs, develops, and produces. In October 2020, a secure biometric solution for customer onboarding, the new identity verification suite, was unveiled by Thales Group. Confirming the legitimacy of the documents reduces the danger of ID fraud and enables service providers to digitally confirm the identities of new clients.

Key Companies in the identity verification market include

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  IDEMIA (France)

  
  


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  Jumio (US)

  
  


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  Experian (Ireland)

  
  


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  GBG (UK)

  
  


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  Equifax (US)

  
  


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  Mitek Systems (US)

  
  


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  Thales Group (France)

  
  


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  LexisNexis Risk Solutions (US)

  
  


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  Onfido (UK)

  
  


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  Trulioo (Canada)

  
  


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  Acuant (US)

  
  


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  TransUnion (US)

  
  


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  AU10TIX (Israel)

  
  


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  IDology (US)

  
  


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  Innovatrics (Slovakia)

  
  


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  Idenfy (Lithuania)

  
  


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  WebID (Germany)

  
  


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  IDnow (Germany)

  
  


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  Applied Recognition (Canada)

  
  


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  Signicat (Norway)

  
  


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  SecureKey (Canada)

  
  


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  IDfy (India)

  
  


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  Authenteq (Iceland)

  
  


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  Veri5Digital (India)

  
  


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  PXL Vision (Switzerland)

  
  


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  IDMERIT(US)

  
  


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  Shufti Pro (UK)

  
  


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  Signzy (India)

  
  


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  Passbase (Germany), among others

  
  

Identity Verification Industry Developments

July 2020: Experian teamed up with Data Consortium to improve its consumer identity verification services. Through this agreement, Experian clients can better meet Know Your Customer (KYC) and Anti Money Laundering (AML) regulatory requirements, enroll customers more quickly and increase anti-fraud safeguards.

June 2022: Onfido joined TISA to support the organization's Digital ID program, which encourages reusable identification. Following its swift development of the Digital ID program, which now includes Barclays, Signicat, OneSpan, and Daon, Onfido is the newest member to join TISA.

Identity Verification Market Segmentation

Identity Verification Component Outlook

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  Solutions

  
  


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  Services

  
  

Identity Verification Type Outlook

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  Biometrics

  
  


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  Non- biometrics

  
  

Identity Verification Deployment Mode Outlook

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  On-premises

  
  


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  Cloud

  
  

Identity Verification Organization Size Outlook

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  SMEs

  
  


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  Large enterprises

  
  

Identity Verification Verticals Outlook

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  BFSI

  
  


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  Government and Defense

  
  


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  Healthcare & Life sciences

  
  


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  Retail and E-Commerce

  
  


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  IT & ITeS

  
  


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  Energy and Utilities

  
  

Identity Verification Regional Outlook

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  North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  

• Europe

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    Germany

    
    
  
  
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    France

    
    
  
  
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    UK

    
    
  
  
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    Italy

    
    
  
  
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    Spain

    
    
  
  
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    Rest of Europe

    
    
  
  
  
  


• Asia-Pacific

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  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

• Rest of the World

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  • Middle East
  
  
  • Africa
  
  
  • Latin America