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The identity verification (ID) market size is forecast to increase by USD 10.81 billion. is estimated to grow at a CAGR of 16.18% between 2022 and 2027. Market growth hinges on various factors, notably the surge in digitalization with electronic ID cards (eID) and smart infrastructure projects. Heightened global data theft incidents underscore the urgency for robust identity verification measures. Compliance with stringent data protection regulations further propels market expansion. Identity verification plays a pivotal role in ensuring processes are conducted by legitimate individuals, thwarting unauthorized access, identity fraud, and impersonation attempts. Confirming the authenticity of individuals, safeguards against misuse of personal information and fraudulent activities. As businesses prioritize security and regulatory compliance, the demand for advanced identity verification solutions continues to escalate, positioning the market for sustained growth in the evolving digital landscape.
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The market is a critical domain encompassing various sectors like finance, healthcare, and emerging markets. With increasing security risks in online transactions, the demand for robust verification techniques rises. Leveraging artificial intelligence (AI) and biometric technologies, the industry ensures secure digital identities. Sectors like financial services drive adoption, with innovations like Blockchain-based identity verification and compliance with KYC norms and AML requirements mandated by organizations like the Financial Action Task Force (FATA). The BFSI (Banking, Financial Services, and Insurance) sector particularly emphasizes biometric checks and digital payment methods, addressing concerns such as data breach and cyberattacks. In emerging markets and lower-income countries, internet penetration drives the need for secure Identity verification. The market also witnesses a shift towards on-premise solutions to address data privacy concerns and cybersecurity needs effectively.
An increase in digitalization with electronic ID cards (eID) and smart infrastructure initiatives is the key factor driving the growth of the market. A digital identity or eID that can be explicitly authenticated through a digital channel opens access to banking, government welfare, education, and many other services. Digital IDs can be authenticated remotely via digital channels. The digitalization of the world has exposed countless identity frauds, forcing organizations to implement tough security measures.
Furthermore, secure identity verification has become an essential part of online security through initiatives such as eID, and smart border control that uses facial recognition for identity verification and authentication. For example, Germany announced that its citizens can store a digital version of their national identity card on their phone and use it as a digital ID (along with a PIN for authentication). Hence, such initiatives by governments across the globe are expected to drive the growth of the market during the forecast period.
Increasing adoption of bring your-own device (BYOD) among enterprises is the primary trend in the market. Along with BYOD, businesses should move to mobile and web-focused scenarios. In a mobile and web-centric scenario, a company's employees must access their privileged accounts through a mobile device. This helps them to increase their productivity and morale. Privileged users have control over the backend functions of the business operations management system.
In addition, privileged users are often referred to as admin users. They have the right to create, modify, and delete accounts. Identity verification solutions should be deployed on systems or mobile devices to protect privileged accounts from intruders. Hence, this will drive the growth of the market during the forecast period.
Low adoption in developing regions is a challenge that affects the growth of the market. While compliance requirements play an important role in the adoption of solutions, limited regulatory requirements in developing countries like South Africa and Vietnam are slowing the adoption of these solutions. Compliance requirements in these regions are relatively less stringent than those in the US and EU.
In addition, regulations such as HIPAA and standards for businesses operating in the financial services industry are relatively less stringent than in the APAC region. These factors lead to low adoption of solutions. Companies operating in regions with weak or lax regulatory requirements are satisfied with in-house identity verification solutions. Hence, this may impede the growth of the market during the forecast period.
This market report extensively covers market segmentation by component (solutions and services), type (large enterprises, small, and medium-sized enterprises (SMEs)), and geography (North America, APAC, Europe, South America, and Middle East and Africa). Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth by the solutions segment will be significant during the forecast period. They are used by businesses to ensure that a user or customer provides information regarding the identity of a real person. Identity verification ensures that there is a real person behind the process and proves that they are true to what they say. There are several methods and systems for performing online and offline identity verification services.
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The solutions segment showed a gradual increase in the market share of USD 4.53 billion in 2017 and continued to grow by 2021. It can be done in different ways depending on the channel and the method used. For the traditional face-to-face process, a person must go in person to the company's headquarters (store, branch, commercial office, etc.), organization (tax office, employment service), or organization. Hence, the global identity (ID) verification market in the solutions segment is expected to witness positive growth during the forecast period.
The adoption of solutions by large enterprises is expected to increase due to their benefits, such as performance, affordability, security, enterprise-grade scalability, and easy management of shared information. Furthermore, large enterprises with increasingly complex IT environments need providers to manage access requests for on-premises and cloud-based applications. As a result, Market players provide identity verification solutions to these large companies. This will, therefore, lead to an increase in demand for identity verification solutions among large enterprises and thus drive the growth market during the forecast period.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Availability of adequate IT and business infrastructure, IT security compliance and governance regulations, and widespread adoption of cloud-based IT security solutions and services are some of the major drivers of identity verification adoption in North America.
Furthermore, regional verticals favor identity verification solutions and services, especially the service and industrial sectors, to improve the quality of the delivery system. Besides, advancements in authentication solutions, such as phone-based authentication and security tokens as well as tokens embedded in biometric authentication, have accelerated the growth of the market in the region. Hence, such factors are expected to drive market growth in this region during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
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The market plays a pivotal role in safeguarding against identity-related theft incidents across sectors like BFSI, government, and healthcare. With the rise of digital services and eCommerce, the demand for robust verification methods escalates, necessitating solutions like biometric technologies and machine learning. In this era of cyber threats, sectors like BFSI prioritize compliance with KYC and AML regulations while leveraging cloud-based deployment for enhanced security and regulatory compliance. From video analytics for intelligent border control to multi-factor authentication for digital identification, the market thrives on innovations catering to diverse needs. As industries embrace digital identity verification to bolster customer confidence and mitigate fraudulent activities, the market witnesses rapid growth driven by emerging technologies and stringent identity authentication requirements.
Further, with border controls tightening worldwide, the need for robust liveness detection and biometric technologies is evident, especially in smart cities and airports. Corporations increasingly rely on automation and machine learning to combat identity-related fraud and cybercrime, enhancing efficiency and reducing potential losses. As internet usage surges, the market witnesses a shift towards cloud services like Software as a Service (SaaS) and Infrastructure as a Service (IaaS), enabling real-time verification and data-driven analysis. From gaming platforms to government services, industries leverage identity verification systems to safeguard confidential data and comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. AI and ML technologies power fraud detection and behavioral insights, ensuring robust identity verification processes across large enterprises and small & medium enterprises alike.
Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.18% |
Market growth 2023-2027 |
USD 10.81 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
15.0 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, Canada, Australia, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Applied Recognition Corp., Authenteq Tarbena GmbH, Equifax Inc., Experian Plc, GB Group plc, ID Merit, Intellicheck Inc., Jumio Corp., Khosla Labs Pvt. Ltd., Mastercard Inc., Mitek Systems Inc., NortonLifeLock Inc., Onfido, PXL Vision AG, RELX Plc, Shufti Pro Ltd., Thales Group, TransUnion, UAB Identifikaciniai Projektai, and WebID Solutions GmbH |
Market dynamics |
Parent market growth analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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