US Identity Verification Market Outlook to 2028

US Identity Verification Market Outlook to 2028

Market Overview:

The recent years have been very kind to the US Identity Verification Market owing to the advancements in technologies and adoption towards digital technologies, resulting in a rapid growth of the market, with a dominance in the side of North America, as the technological advancements exceeds the rest of the continents with 4-factor authentications, biometric sensors etc. along with government issued IDs, that are scanned by complex algorithms of Artificial Intelligence and Machine Language.

The United States is currently holding a major fraction on the identity verification market amongst which, North America is dominating the market index, under this particular category, with advancements like biometric sensors, face recognition and stricter regulatory processes ensuring proper safety towards the transactions of people’s personal to business transaction, making people engage more resulting in an overall growth in it. With leading players like Trulioo, LexisNexis Risk Solutions, Equifax, making a strong protocol using Artificial Intelligence as a supporting pillar, negating any errors that might follow on an online platform, and with the inclusion of high-end Machine Learning, over 1000 watchlists of multiple business owners, other individuals and over 12,000 on boarding screening has made the place safer than what it was earlier.

US Identity Verification Market is pillared by some of the major companies that run the global verification as well as the state wise verification. Players such as Trulioo, MasterCard, Equifax, LexisNexis Risk Solution, Experian, IDology, Jumio, Onfido, Mitek Systems, Acuant, Socure etc. are going on through different advancements to make their dominant process to ensure total safety and security.

US Identity Verification Market Analysis

With the increase in digitization globally, online transaction and purchase has increased, which increased the company growth to secure the transactions, resulting in a surge of rise for security. This made a rise in the identity verification market to rise up their operations.

Rising cyber threats like hacking and online fraud, has risen with the global digitization, resulting in the need of increased security which led to increased adoption of high end technology like Artificial Intelligence and Machine Learning.

With Stringent regulatory methodologies like Know Your Customer (KYC) and Know Your Business (KYB), along with Anti-Money Laundering, makes the market a strong pillar supporting the security protocol.

The rise was seen due to the rise in Covid-19, which made people to fully shift from the traditional manners to digital methodologies. This resulted in multiple fraud cases, resulting in loss of people’s credentials. This led for those application to incorporate these methods in order to ensure safety and to prevent such fraudulent cases to cease completely, gradually decreasing such cases by 10%, in the first year of the pandemic.

The rise was seen due to the rise in Covid-19, which made people to fully shift from the traditional manners to digital methodologies. This resulted in multiple fraud cases, resulting in loss of people’s credentials. This led for those application to incorporate these methods in order to ensure safety and to prevent such fraudulent cases to cease completely, gradually decreasing such cases by 10%, in the first year of the pandemic.

Key Trends by Market Segment:

By Type of Deployment: On premises type is dominant than On Demand type of deployment as because the On-Premises is constituted within the company premises having stricter protocol and advanced methodologies, giving the proper security and ensuring a stronghold for their data, storage and identity verification methods being their own, results in a core follow up under the same roof, which makes that company having their own standalone security.

By End-User Industry: Financial Services sectors have significant growth on customer basis with maximum percentage inclined towards this sector, needing for KYC and KYB in order for transactional purposes. Gaming and gambling shows yet another significant need for the verification services relating to the need for multipurpose verification starting from entry verification to awarding verification at the end. Retail and e-commerce is another section that is driving alongside with the financial sectors leading to a hand-to-hand need for e-verification.

By Regional Split: Parts of America are dominating in the verification market with North America dominating in this sector, followed up by Latin America, Nebraska, and Europe being significantly rising in the propulsion towards the total verification via Biometrics, Biosensors and Facial Recognition. With Trulioo and MasterCard being in the top of verification analyst and having significant growth in customer engagement and trust building making newer customer more readily available.

Competitive Landscape:

With Selected companies rising to the challenges of identity verification services, Trulioo, MasterCard, LexisNexis Risk Solutions tops other companies with significant customer satisfaction and engagement with trusty worthy protocols and secure servers maintaining KYC and AML procedures to keep secured watchlists and screening procedures, scanning over 12,000 profiles and having more than 6000 watchlists, saving the data to use for future purposes in case for some fraudulent cases that might occur in the future, nullifying future threats. Identity verification market is also undergoing with many emergent startups and innovative technologies to assure the newer threats to be countering with proper methodologies. Fintech (financial technologies) and Regtech (regulatory technologies) have made their mark on this sector with heavy results showing comparative decrease in threats and hacking, solving many companies’ problems, rendering their process to be in a safe hand.

Recent Developments:

Increased emphasis over Biometric verification like fingerprint scanning and facial recognizers, continue to attract and gain more customer engagement resulting a rise of the market growth fueling the companies to incorporate a high level of security dominancy and working on a calm work profile.

The Covid-19 impacted global need for secured severs for every piece of transactions, leading to a rise of remote identity verification method in transactional and entertainment applications such as PayPal.

With the integrated Artificial intelligence maintain a real-time integration of security and scanning, maintaining secure protocol and high level of protection from probable threats and enabling data encryption from every scan.

Companies in identity verification market enhance their reach by collaborating and extending partnership with other companies to make sure that their protocols are maintaining 100% secure and cyber secured lines.

Future Outlook:

US Identity Verification market is expected to show increasing and is expected to grow at a CAGR of ~13% from 2022 to 2028 with Government initiatives for stricter and high-end algorithm development are expected to enhance the connectivity within the US.

The rise in demand for identity verification solutions was projected to continuously grow as global digitalization and online transactions became more prevalent across all sorts of industries. The need to establish secure and trustworthy digital identities is anticipated to remain a top priority for all major business and companies.

Companies are focusing on providing seamless and user-friendly identity verification experiences to minimize customer friction and proper handling of threats and cybercrime. Balancing security with a smooth onboarding process is expected to be a key area of innovation.

Advancements in biometrics, artificial intelligence, machine learning, and blockchain are expected to play a crucial role in shaping the identity verification market. Integration of these technologies are anticipated to enhance accuracy, speed, and fraud detection capabilities to its maximum.

Compliance with KYC, AML, and data privacy regulations are expected to remain a significant grow driver in the market. Companies are projected to invest in solutions that will help them meet the ever-changing regulatory requirements.

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