Identity Verification Market Size, Share & Trends Analysis Report By Component (Solution, Service), By Type (Biometric, Non-biometric), By Deployment, By Organization Size, By Vertical, By Region, And Segment Forecasts, 2023 - 2030

Identity Verification Market Size, Share & Trends Analysis Report By Component (Solution, Service), By Type (Biometric, Non-biometric), By Deployment, By Organization Size, By Vertical, By Region, And Segment Forecasts, 2023 - 2030

Identity Verification Market Growth & Trends

The global identity verification market size is expected to reach USD 33.93 billion by 2030, according to a new report by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 16.7% from 2023 to 2030. Advancements in biometrics, such as facial recognition and fingerprint scanning, enhance the ease of identity verification, boosting its attractiveness to both businesses and consumers.

Identity verification is a security solution that allows businesses to safeguard, protect, and confirm the accuracy of user and customer information. Technologies involved in the identity verification process include artificial intelligence, machine learning, and face-based biometrics. These services and solutions are used by industries such as healthcare & life science, e-commerce and retail, government & defense, BFSI, energy and utilities, etc. to ensure that the information provided by online consumers and users is linked with the identity of the real person.

Technology innovations offer a secure way to access devices, applications, and services, further driving their adoption. For instance, Apple Inc., the American multinational technology company, has set a new standard for user-friendly and efficient identity verification through its innovative facial recognition technology, known as Face ID. This technology has enhanced the security of Apple's devices but has also had a significant impact on the broader adoption of facial recognition.

The major factors propelling the market growth are cyber-attacking and identity theft. Businesses are becoming more dependent on digital data and computer networks to run their daily operations. With the rise in cybercrime, criminals may now breach highly advanced and sophisticated bank accounts and use stolen credentials to open online merchant accounts, interest payment accounts, and fake mobile phone accounts.

In October 2020, The Thales Group launched a new identity verification kit, including a secure biometric solution for customer onboarding. It reduces the danger of ID fraud by allowing service providers to authenticate consumers' identities digitally. Similarly, in July 2023, Checkout.com, a U.K.-based financial technology company, launched its inaugural product, Identity Verification, aimed at enhancing customer onboarding and identity verification processes. It utilizes proprietary AI technology and is trained on an extensive dataset of billions of identity and facial recognition documents.

With the rise of internet services and smartphone adoption, digital identity verification is becoming increasingly important for both businesses and governments. Regulatory authorities are progressively enforcing KYC and AML compliance among enterprises to fight financial crime. For instance, in October 2021, the Financial Action Task Force (FATA) expanded the scope of reporting entities and encouraged member countries to constrain virtual asset dealers, art dealers, and legal professionals to conduct anti-money laundering screening on their customers.

Identity Verification Market Report Highlights

• The demand for identity verification technologies is expected to grow owing to increasing dependency on digital platforms and the rising number of cyber-attacks and identity theft
• The market size of service components is expected to grow at the highest CAGR of 18.2% over the forecasted period
• Based on deployment, the cloud segment is expected to grow at a significant CAGR of 17.7% over the forecasted period
• In the Asia-Pacific region, the surge in digitalization across finance, e-commerce, and telemedicine has fueled a growing demand for secure identity verification solutions

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