The global identity verification market size is projected to grow from USD 9.5 billion in 2022 to USD 18.6 billion by 2027, at a compound annual growth rate (CAGR) of 14.4% during the forecast period.
The market has promising growth potential due to several factors, including growing identity thefts and expanding dangers of fraudster access to business networks, apps, or services, strict government regulations and mandates regarding privacy, and increased digitization initiatives. However, a lack of technical expertise along with the need for security awareness and training, and increased installation and maintenance costs, are projected to impede market expansion.
• By organization size, the SMEs to grow at a higher CAGR during the forecast period
The identity verification industry is segmented into two segments based on organization size: large enterprises and SMEs.SMEs consider identity verification software as a straightforward, intuitive, cost-effective, hassle-free, and secure option to suit their expanding demands and since they are much more prone to cyber fraud they seem to be eager to implement identity verification solutions in order to protect their assets, time, money, and resources.
Apart from this, governments are also taking initiatives to promote the adoption of identity verification solutions in SMEs in their respective countries.Digital transformation projects are being prioritized by SMEs.
For instance, the European DIGITAL SME Alliance campaign encourages the adoption of digital solutions by SMEs. Such initiatives could encourage small businesses to adopt identity verification technologies Thus the SME segment has the highest CAGR in the forecasted period.
By deployment mode, the on-premises segment accounts for the largest market size during the forecast period.
The identity verification market can be segmented into on-premises and cloud on the basis of deployment mode.On-premises identity verification is gaining popularity because of certain factors including internet penetration, accessibility, online documentation, the need for security requirements, and in-house hosting options.
On-premises identity verification software is essential to safeguard private and sensitive information and manage information workflow inside the firm.
The adoption of on-premises solutions is projected to remain high where user credentials are critical for business operations as they can control systems.Also, the on-premises deployment strategy as compared to the cloud offers beneficial solutions without monthly charges.
These factors are driving the growth of this segment.Apart from this, as employees are working from home, organizations of all types are focusing on protecting their networks from identity fraud threats by extending the capabilities of their on-premises.
Flexibility, guaranteed resource availability, strong security, and regulatory compliance are major benefits for organizations that are operating their IT systems through the on-premises deployment model. Thus, the on-premises segment has the largest market share during the forecasted period.
By application, access control and user monitoring to grow at the highest CAGR during the forecast period
The application offering of the identity verification market includes access control and user monitoring, KYC, KYB & onboarding, and identity fraud compliance and forensics.The demand for access control and user monitoring apps is anticipated to increase due to the growing concern for safety and the frequency of security events.
At present, contactless biometrics systems are currently being used for access control applications by businesses and organizations from a variety of sectors, including banking and finance, healthcare, government, agriculture, travel and immigration, and hospitality and by different nations, including the UK, Dubai, Australia, and Germany, to enhance access control and offer a practical immigration solution. By confirming multiple login credentials, such as usernames and passwords, PINS, biometric scans, and security tokens, access control can identify people.
Currently, Access control and user monitoring applications are advancing quickly, allowing airports to authenticate identities using facial recognition and expedite security checks for travellers. Thus, these applications have the highest CAGR during the forecasted period.
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%, APAC: 30%, Europe: 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), Acuant (US), 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.
The report segments the identity verification market and forecasts its size by By 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).
The study also includes an in-depth competitive analysis of the market’s key players, their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key benefits of buying report
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall identity verification market and the subsegments.This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies.
The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.