Identity Verification Market by Offering (Solutions and Services), Type (Biometric and Non-Biometric), Organization Size, Deployment Mode, Application, Vertical (BFSI, Retail & eCommerce, and Gaming & Gambling) and Region - Global Forecast to 2028

Identity Verification Market by Offering (Solutions and Services), Type (Biometric and Non-Biometric), Organization Size, Deployment Mode, Application, Vertical (BFSI, Retail & eCommerce, and Gaming & Gambling) and Region - Global Forecast to 2028

The global identity verification market size is projected to grow from USD 10.9 billion in 2023 to USD 21.8 billion by 2028 at a compound annual growth rate (CAGR) of 14.9% during the forecast period. The market demonstrates significant growth potential, driven by factors such as the rising incidence of identity theft and the expanding threat of fraudsters gaining unauthorized access to business networks, applications, or services. Additionally, stringent government regulations and mandates about privacy, coupled with increasing digitization initiatives, contribute to this growth trajectory. However, challenges, including a shortage of technical expertise, the necessity for enhanced security awareness and training, and escalating installation and maintenance costs, are anticipated to hinder market expansion.

""By organization size, the SMEs will grow at a higher CAGR during the forecast period.""

SMEs view identity verification software as an intuitive, cost-effective, hassle-free, and secure solution to meet their growing needs, particularly given their heightened vulnerability to cyber fraud. Consequently, SMEs are keen to implement identity verification solutions to safeguard their assets, time, money, and resources. Moreover, governments actively promote the adoption of identity verification solutions among SMEs in their respective countries. SMEs are prioritizing digital transformation projects, with initiatives like the European DIGITAL SME Alliance campaign encouraging the uptake of digital solutions. Such endeavors are expected to drive small businesses towards adopting identity verification technologies, leading to the SME segment exhibiting the highest Compound Annual Growth Rate (CAGR) during the forecast period.

""By deployment mode, the on-premises segment accounts for the largest market size during the forecast period. ""

On-premises identity verification solutions are gaining traction due to several factors, including internet penetration, accessibility, availability of online documentation, security requirements, and the option for in-house hosting. These solutions are essential for safeguarding private and sensitive information and managing information workflows within organizations.

Adopting on-premises solutions is expected to remain strong, mainly when user credentials play a critical role in business operations, as they offer greater control over systems. Additionally, compared to cloud deployment, on-premises solutions often provide cost-effective alternatives without monthly charges, further driving growth in this segment. Furthermore, with the increasing trend of remote work, organizations across various industries are prioritizing network security to combat identity fraud threats by enhancing the capabilities of their on-premises solutions.

The on-premises deployment model offers significant benefits such as flexibility, guaranteed resource availability, robust security measures, and compliance with regulatory requirements. These advantages make on-premises solutions particularly attractive for organizations managing their IT systems. As a result, the on-premises segment is expected to maintain the largest market share during the forecast period.

""By application, access control, and user monitoring to grow at the highest CAGR during the forecast period.""

The application offerings within the identity verification market encompass access control and user monitoring, KYC (Know Your Customer), KYB (Know Your Business) & onboarding, and identity fraud compliance and forensics. The demand for access control and user monitoring applications is expected to surge, driven by heightened safety concerns and increased security incidents. Presently, businesses and organizations across various sectors, including banking, healthcare, government, agriculture, travel, and hospitality, as well as countries such as the UK, Dubai, Australia, and Germany, are adopting contactless biometrics systems for access control purposes, enhancing security measures and facilitating efficient immigration processes.

Access control systems verify individuals by validating multiple login credentials such as usernames, passwords, PINs, biometric scans, and security tokens. Access control and user monitoring applications are rapidly evolving, enabling airports to authenticate identities using facial recognition technology and streamline security procedures for travelers. As a result, these applications are anticipated to exhibit the highest Compound Annual Growth Rate (CAGR) during the forecast period.

“By region, North America will have the largest market size during the forecast period.”

North America leads the global identity verification market, driven by its advanced technological infrastructure and stringent regulatory environment. With robust internet connectivity and widespread digital adoption across sectors, businesses rely heavily on identity verification solutions to comply with regulations like the USA PATRIOT Act and HIPAA, ensuring the security of sensitive data and combating financial crimes. Moreover, the region's significant reliance on e-commerce, online banking, and digital services further fuels the demand for identity verification technologies as businesses prioritize establishing trust and preventing fraud in their digital interactions.

Breakdown of primaries:

In-depth interviews were conducted with Chief Executive Officers (CEOs), marketing directors, other innovation and technology directors, and executives from various key organizations operating in the identity verification market.

By company type: Tier 1: 40%, Tier 2: 35%, and Tier 3: 25%

By designation: C-level: 45%, Directors: 30%, and others: 25%

By region: North America: 35%, Europe: 30%, Asia Pacific: 20%, Rest of the World (RoW): 15%

Major vendors in the global identity verification market include Experian (Ireland), LexisNexis Risk Solutions (US), Equifax (US), Thales (France), GBG (UK), TransUnion (US), Mastercard (US), Onfido (UK), Trulioo (Canada), IDology (Georgia), Mitek Systems (US), IDEMIA (France), Jumio (US), HyperVerge (India), AU10TIX (Israel), Innovatrics (Slovakia), Intellicheck (US), Signicat (Norway), SecureKey Technologies (Canada), IDfy (India), IDMERIT (US), Veriff (Estonia), AuthenticID (US), TruNarrative (UK), Sumsub (UK), IDology (US), PassFort (UK), PXL Vision (Switzerland), Shufti Pro (UK), iDenfy (Lithuania), Berbix (US), Persona (US), Ekata (US), and HooYu (UK).

The study includes an in-depth competitive analysis of the key players in the identity verification market, their company profiles, recent developments, and key market strategies.

Research Coverage

The report comprehensively segments the identity verification market. It provides forecasts regarding its size across various dimensions, including component (solutions and services), type (biometric and non-biometric), application (access control and user monitoring, KYC, KYB, and onboarding, identity fraud compliance and forensics), organization size (large enterprises and SMEs), deployment mode (cloud and on-premises), vertical (BFSI, retail and eCommerce, government and defense, healthcare and life sciences, IT and ITeS, telecom, energy and utilities, education, gaming and gambling, and others), and region (North America, Europe, Middle East & Africa, Asia Pacific, and Latin America).

Additionally, the study encompasses a thorough competitive analysis of key players in the market, offering insights into their company profiles, product and business offerings, recent developments, and key market strategies.

Key benefits of buying report

The report offers market leaders and new entrants valuable insights by providing close approximations of revenue figures for the overall identity verification market and its subsegments. Stakeholders can leverage this report to understand the competitive landscape better, enabling them to position their businesses more effectively and develop tailored go-to-market strategies. Additionally, stakeholders can grasp the market dynamics and stay informed about key drivers, restraints, challenges, and opportunities shaping the industry landscape.

The report provides insights on the following pointers:

Analysis of key drivers (Rising occurrences of identity theft and increasing frauds; Stringent government regulations and mandates concerning privacy; Growing digitalization initiatives), restraints (Lack of technical expertise and requirement for security awareness and training; Higher implementation costs and maintenance), opportunities (Adopting biometric devices in identity verification systems; Proliferation of advanced technologies in identity verification), and challenges (Disparities in cost of several identity verification solutions; Privacy and data breach challenges)

Product Development/Innovation: Detailed insights on upcoming technologies, research development activities, new products, and service launches in the identity verification market.

Market Development: Comprehensive information about lucrative markets – the report analyses the identity verification market across varied regions.

Market Diversification: Exhaustive information about new products and services, untapped geographies, recent developments, and investments in the identity verification market.

Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players Experian (Ireland), LexisNexis Risk Solutions (US), Equifax (US), Thales (France), GBG (UK), TransUnion (US), Mastercard (US), among others, in the identity verification market strategies.