The Global Identity Verification Market was worth USD 7.6 billion in 2022, and it is determined to reach a valuation of USD 15.8 billion by the end of 2028 with an expansion rate (CAGR) of 15.6% between 2023 and 2028.
Market Overview
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 a high level of 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 processes and procedures, both online and offline. 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.
Recent Developments
Market Growth
The rise of identity fraud and data breaches will drive the growth of the global identity verification market.
Market Drivers
The rapid growth in the field of 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 difficult 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 as 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
REPORT METRIC |
DETAILS |
Market Size Available |
2022 – 2028 |
Base Year |
2022 |
Forecast Period |
2023 - 2028 |
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. |
Market Segmentation
the identity verification market has been segmented into
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 2022 - 2027.
the identity verification market is segregated into
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 market is segmented into
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 2022 - 2027.
The coronavirus pandemic has had a profound impact on the various organizations currently operating online, and digital solutions have become more important than ever. The pandemic has led people to find ways to stay indoors, work remotely, and virtually connect with industries. Many banks around the world are adopting rigorous privacy and security solutions, such as the addition of E-KYC, remote identity verification, and contactless payments to ensure contactless banking for their customers. This has caused an increase in the market demand for online identity verification. In addition, the pandemic has led to an increase in identity fraud. Therefore, the rise of digital fraud in the BFSI segment has had a positive impact on the global market demand for identity verification.
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.
Leading Companies
Key players in the market include LexisNexis, Experian PLC, Mitek Systems, Equifax Inc, Onfido, IDEMIA, Gemalto, Acuant, Trulioo, and Jumio.
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