Identity (ID) Verification Market by Component, Type and Geography - Forecast and Analysis 2023-2027

Identity Verification (ID) Market Forecast 2023-2027

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. The growth of the market depends on several factors, including an increase in digitalization with electronic ID cards (eID) and smart infrastructure initiatives, an increase in data thefts across the world, and the need to comply with regulatory requirements for data protection. Identity verification verifies that the process is run by a real person and verifies that the person is who they say they are. This stops someone from running a process on someone else's behalf without permission, creating a fake identity, or committing fraud.

What will be the size of the Identity Verification Market During the Forecast Period?

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The market is witnessing rapid growth due to escalating security risks in online transactions and the proliferation of digital identities. Businesses across various sectors, including finance, healthcare, and emerging markets, are increasingly adopting biometric technologies and AI-driven verification techniques to combat identity-related theft incidents. With the rise of smart cities and intelligent border control systems, there's a growing demand for video analytics and liveness detection technologies to ensure robust security measures at airports, corporations, and government facilities. As the threat landscape evolves, the identity verification industry continues to innovate, leveraging emerging technologies like blockchain and machine learning to enhance fraud detection and regulatory compliance in sectors such as BFSI, e-commerce, and government services. With a focus on real-time verification and diverse data sources, identity confirmation solutions are playing a crucial role in safeguarding against cybersecurity needs and threats and ensuring customer confidence in digital transactions.

Market Dynamic 

The market growth is fueled by factors such as the rising adoption of digital services, increasing concerns over security risks, and the implementation of stringent regulations like Anti-Money Laundering (AML) and Know Your Customer (KYC). With advancements in artificial intelligence (AI) and machine learning (ML) technologies, biometric solutions are becoming more efficient, offering multi-factor authentication and data-driven verification methods. Cloud-based deployment options are gaining traction, especially in the banking, financial services, and insurance (BFSI) sector, addressing challenges such as data breach and cyberattack while ensuring compliance with industry-specific regulations.

Market Driver

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.

Market  Trends

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.

Market  Restrain

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.

Market Segmentation

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.

In the dynamic landscape of the financial sector, blockchain-based identity verification solutions are gaining prominence, offering enhanced security and transparency. With the rise of BYOD (Bring Your Own Device) policies, KYC norms, and Financial Action Task Force (FATA) regulations, BFSI (Banking, Financial Services, and Insurance) institutions are increasingly adopting biometric checks and digital payment methods to meet AML requirements while ensuring compliance and safeguarding against security risks associated with online transactions. As internet penetration expands, especially in lower-income countries, the need for robust cybersecurity measures, including on-premise solutions, becomes imperative to address data privacy concerns and mitigate potential security risks.

By Component 

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.

By Type 

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.

Regional Overview

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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. 

Market Customer Landscape

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

Who are the Major Identity Verification Market Companies?

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.

• Equifax Inc.: The company offers identity verification services that feature document verification, age verification, ID verification, and more.
• Experian Plc: The company offers identity verification services that feature passwords, PIN codes, security questions, document verification, physical biometrics, and CAPTCHA.
• GB Group plc: The company offers identity verification services that feature age verification, address and location verification, step-up authentication, patient screening, and more.
  

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Applied Recognition Corp.
• Authenteq Tarbena GmbH
• 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
• WebID Solutions GmbH

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.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2017 to 2027. 

• Component Outlook
  • Solutions
  • Services

• Type Outlook
  • Large enterprises
  • Small and medium-sized enterprises (SMEs)

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India.
  • South America
    • Chile 
    • Brazil 
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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 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.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, APAC, Europe, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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