Identity Verification Market Size, Share, Industry, Forecast and outlook (2024-2031)

Identity Verification Market is segmented By Components (Services for the ICT industry, Solutions), By Deployment Mode (Cloud-based, On-premise based), By Organization Size (Small Enterprises, Medium-sized Enterprises, Large Enterprises, Others), By End-users (Government and Defense, Healthcare, BFSI, Retail, IT and Telecom, Energy and Utilities, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Identity Verification Market Overview

Identity Verification Market is estimated to grow at a CAGR of 11% during the forecast period 2024-2031

Identity Verification Market Summary

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Identity Verification Market Trends

Identity verification is the process of ensuring an individual's information with the help of physical identity documents. The verification documents include a passport, driver’s license, nationally issued identity document, passport, and many other documents verified by the government. Identity verification service is present in both online and offline in-person forms to verify identities.

These services are most commonly used in the e-commerce platforms, digital businesses, travel & leisure financial service industry, social networking sites, internet forums, retail, telecom, banking, and the healthcare industry. The service has substantially been used to avoid illegal activities like identity fraud, harassment,  and money laundering by ensuring the information's privacy.

Based on geography the global market is divided into major regions such as North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Among all regions, the North American region is dominating the global market share and it is continuing its control over the forecast period. In North America, major countries such as the United States, and Canada are producing significant market share in this region. The Asia Pacific is projected to be the fastest growing region in the global identity verification market during the forecast period 2024-2031.

Countries in the Asia Pacific region contains, China, India, Japan, South Korea, Australia, Singapore, and the rest of the Asian countries. Among all countries in the region, China, Japan, India, and South Korea are playing prominent roles in the growth of the Asia Pacific region. The rest of the regions such as Latin America, and the Middle East are producing their constant market share in the global market during the forecast period 2024-2031.

Identity Verification Market Growth and Opportunities

The market is driven by the rising demand for know your customer (KYC), anti-money laundering procedures, fraud protection, compliance with labor licensing laws, and many others due to the surge in digitalization of businesses, the banking sector, and government institutes. According to the World Bank Organization, in 2019, India had processed around 27 billion Identity verification authentication requests along with approximately 1.2 billion Aadhaar numbers as the unique identification number and processed around 100 million queries per day. This has created a huge demand for the identity verification market for securing information using electronic devices.

There is a rise in digital advanced technology like blockchain identity solutions adoption from banking, finance, Government and Defense, Healthcare, BFSI, Retail, IT & Telecom, Energy, and Utilities. For instance, in March 2019, Visa Company collaborated with IBM to launch a Blockchain-Based Digital Identity System for simplifying cross-border payments. Furthermore, on 29th May 2019, Microsoft Launches a Blockchain-Based Decentralized Identity System. This helped secure the privacy of any organization’s data of individuals by controlling identifiers and PKI entries through a decentralized identity ecosystem.

Identity Verification Market Segmentation Analysis

The global identity verification market is segmented based on components, deployment mode, organization size, end-user, and region.

In terms of components, the global identity verification market is bifurcated into services and solutions. The solutions segment has the highest market share in 2019 due to the increasing launching of advanced technology AI and IoT-based solutions by the leading players for decentralized identity. For instance, on 26th Nov 2019, Nucleus Vision Company launched the Global Identity and Consent (GIDC) Blockchain Network solution to ensure privacy and security. This technological solution has been built with the Internet of Things and Artificial Intelligence technologies to learn consumer shopping behavior and preferences in real-time for retailers.

Similarly, service segments are also growing faster due to rising government funding and support for the services, including unemployment insurance, (UI) integrity center identity verification, and Identity Proofing. For instance, in September 2019, the Centralized Identity Verification Service had been received funding from the US Department of Labor (USDOL) for providing a centralized identity verification (IDV) service to address and leverage the Center’s Integrity Data Hub (IDH) infrastructure and processes in the United States.

Depending on the deployment model, the global identity verification market is divided into cloud-based and on-premise-based.  Among these, the cloud-based segment had the highest share in 2019. This is primarily due to the rising digital technology adoption with a surge in cloud-based service providers worldwide to secure consumers' data.

Similarly, premise-based segments are also growing faster due to rising international travel & tourism, which requires identity documents for verification worldwide. According to the International Air Transport Association (IATA), in 2019, the global passenger numbers increased by 4% to around 4.54 billion. This propels the segmental growth of the Identity Verification market.

Depending on the organization's size, the global identity verification market is divided into small enterprises, medium-sized enterprises, and large enterprises.  Among these, the large enterprise segment had the highest share in 2019. This is primarily due to the rising digital technology adoption in the corporate sector to avoid fraudulent cases. In 2019, the number of identity fraudulent cases was reduced by 5.6% in the retail consumer sector with the proper utilization of advanced technology for identity verification in large corporations.

Similarly, small enterprises and medium-sized enterprises are also growing faster due to increased infrastructure development and rising digitalization.

Similarly, premise-based segments are also growing faster due to the rising number of international passengers around the globe. According to the International Air Transport Association (IATA), in 2019, the global passenger numbers increased by 4% to around 4.54 billion. This propels the segmental growth of the Identity Verification market.

Depending on the end-user, the global identity verification market is divided into Government and Defense, Healthcare, BFSI, Retail, IT and Telecom, Energy and Utilities, and others.  Among these, Government and Defense segment had the highest share in 2019. This is primarily due to rising government support and initiative to curb fraud identity cases with digital technology with a surge in the requirement to secure consumers' data. For instance, on 18th May 2018, the Defense Department in the United States planned to grow and modernize the Defense Department’s ID cards. This defense department provided funding to the private company DISA for common access cards, called CAC cards for Troops and civilian Pentagon employees.

Similarly, Healthcare, BFSI, Retail, IT and Telecom, Energy, and utility segments are also growing faster due to the adoption of digital technologies worldwide. This propels the segmental growth of the Identity Verification market.

Global Identity Verification Market Geographical Share

By region, the global identity verification market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, North America is the dominant region for the global identity verification market. It is expected to grow at the highest CAGR during the forecasted period due to raising the Europe region's identity fraudulent cases. According to the Federated Authentication Services report in 2012, the number of identity fraud and theft victims was around 12.6 million Americans reported, which has loose around nearly USD 21 billion in costs for Americans. As per the Insurance Information Institute organization, in 2019, around 3.2 million identity theft and fraud cases were reported in the United States.

The Asia Pacific is also growing faster in the identity verification market, owing to government programs for avoiding identity theft and a surge in the adoption of digital technology with a growing population of people in this region. For instance, in India, government agencies, such as the Reserve Bank of India (RBI), were approached by private companies to secure and protect consumer information and ensure that digital transactions are protected.

Identity Verification Companies and Competitive Analysis

The global Identity Verification market is highly competitive with the presence of several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. BAE Systems, IDEMIA, Gemalto, Authenteq Ltd, Experian, Acuant, Onfido, Mitek Systems, Inc., Acuant, Thales Group, LexisNexis, Equifax, and Trulioo are the leading market players with significant market share.

Companies are entering into collaborations, acquisitions, mergers, and licensing for increasing their market penetration. For instance, on 4th Feb 2019, Thales Group had been acquired Gemalto for Euro 4.8 Billion.