Identity Verification Market to be Worth $30.6 Billion by 2031

Identity Verification Market Size, Share, Forecast, & Trends Analysis by Offering (Solutions, Services), Deployment Mode, Organization Size, Application (KYC, KYB), Sector (BFSI, Retail & E-commerce, Healthcare, Government, Education), and Geography - Global Forecast to 2031

Meticulous Research^®—leading global market research company, published a research report titled, ‘Identity Verification Market by Offering (Solutions, Services), Deployment Mode, Organization Size, Application (KYC, KYB), Sector (BFSI), Retail & E-commerce, Healthcare, Government, Education), and Geography - Global Forecast to 2031.’

According to this latest publication from Meticulous Research^®, the global identity verification market is projected to reach $30.6 billion by 2031, at a CAGR of 14.7% from 2024–2031. The growth of the identity verification market is driven by the rising incidence of identity fraud and cybercrime and the increasing adoption of identity verification solutions in the BFSI sector. However, concerns regarding privacy & data breaches restrain the market’s growth.

The integration of advanced technologies such as AI and ML in identity verification methods, coupled with the growing need to secure business processes and ensure regulatory compliance, is expected to create growth opportunities for market players. However, the high costs of implementing and maintaining identification verification solutions are challenges impeding the market’s growth. Additionally, the rising adoption of e-KYC is a prominent trend in this market.

The global identity verification market is segmented by offering (solutions [ID document verification, biometric verification, liveness detection, knowledge-based authentication (KBA), one-time passcode verification, trusted identity network, database methods, and other identity verification solutions] and services), deployment mode (on-premise deployments and cloud-based deployments), organization size (large enterprises and small & medium-sized enterprises), application (Know Your Customer (KYC), Know Your Business (KYB), access control & user monitoring, fraud management & regulatory compliance, and other applications), sector (BFSI, retail & E-commerce, healthcare, government, education, IT & telecom, aerospace & defense, energy & utilities, and other sectors), and geography. The study also evaluates industry competitors and analyses the market at the country and regional levels.

Based on offering, the global identity verification market is segmented into solutions and services. In 2024, the solutions segment is expected to account for the larger share of 82.0% of the global identity verification market. The segment's large market share is attributed to the growing adoption of identity verification solutions across organizations to minimize fraudulent activities, enhance customer experience by streamlining and securing the onboarding process, and reduce the need for manual verification and the integration of advanced technologies such as AI and ML in biometric verification methods. Additionally, the integration of identity verification with reputable external data sources, including government databases, financial institutions, and credit bureaus, further enhances its effectiveness and reliability.

Moreover, the solutions segment is projected to register a higher CAGR during the forecast period.

Based on deployment mode, the global identity verification market is segmented into on-premise deployments and cloud-based deployments. In 2024, the cloud-based deployments segment is expected to account for the larger share of the global identity verification market. The segment's large market share is attributed to the increasing adoption of cloud-based identity verification across businesses for high-volume identity checks, the growing preference for subscription or usage-based pricing models to mitigate upfront infrastructure costs, the rising utilization of cloud-based identity verification to authenticate identities across multiple locations, the increasing reliance on APIs for seamless integration with other business systems and platforms, and the rising deployment of cloud-based identity verification solutions across businesses to ensure compliance and mitigate potential risks.

Moreover, the cloud-based deployments segment is projected to register a higher CAGR of 19.0% during the forecast period.

Based on organization size, the global identity verification market is segmented into large enterprises and small & medium-sized enterprises. In 2024, the large enterprises segment is expected to account for the larger share of 67.0% of the global identity verification market. This segment’s large market share can be attributed to factors such as the rising adoption of identity verification solutions among large enterprises to mitigate risks associated with unauthorized access, insider threats, and data breaches, the increasing integration of identity verification with access control systems to facilitate seamless and secure access to diverse resources, and the growing utilization of identity verification to enable the tracking of employee attendance, monitoring of remote work, and management of timekeeping systems within large enterprises.

However, the small & medium-sized enterprises segment is expected to register a higher CAGR during the forecast period. The growth of this segment is driven by the increasing adoption of identity verification solutions among SMEs to enhance security by verifying the identities of customers, employees, and partners, the increasing deployment of cloud-based identity verification solutions to establish robust security measures without substantial capital investments, and the rising utilization of identity verification to mitigate the risk of data breaches and avoid costly repercussions.

Based on application, the global identity verification market is segmented into Know Your Customer (KYC), Know Your Business (KYB), access control & user monitoring, fraud management & regulatory compliance, and other applications. In 2024, the Know Your Customer (KYC) segment is expected to account for the largest share of the global identity verification market. This segment’s large market share can be attributed to the growing need to ensure compliance with KYC guidelines to protect financial institutions against fraud, corruption, money laundering, and terrorist financing and the increasing use of identity verification to streamline customer onboarding and enhance customer experience while reducing manual processes, human errors, and administrative costs.

However, the fraud management & regulatory compliance segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by the increasing adoption of identity verification solutions in the BFSI sector to ensure trust, security, and regulatory compliance, the rising utilization of identity fraud management solutions to ensure compliance with KYC and AML guidelines, and the increasing government regulations directed towards organizations for consumer privacy and data protection.

Based on sector, the global identity verification market is segmented into BFSI, retail & E-commerce, healthcare, government, education, IT & telecom, aerospace & defense, energy & utilities, and other sectors. In 2024, the BFSI segment is expected to account for the largest share of 29.0% of the global identity verification market. This segment's large market share is attributed to the growing adoption of identity verification solutions in the BFSI sector to enable real-time customer identification and simplify KYC processes and the increasing need to enhance customer satisfaction rates by reducing wait times at branches and improving efficiency by automating AML processes, customer verification, and fraud detection.

However, the retail & E-commerce segment is expected to register the highest CAGR during the forecast period. The growth of this segment is driven by the rising adoption of identity verification solutions in the retail & E-commerce sector to reduce shipping errors, ensure safer hiring practices, improve digital identity management, and prevent theft.

Based on geography, the global identity verification market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of 36.0% of the global identity verification market. Asia-Pacific’s significant market share can be attributed to the increasing digitalization in businesses driving the adoption of identity verification solutions for KYC processes, stringent regulatory frameworks in the BFSI sector to prevent fraudulent activity, and the rising adoption of identity verification in the public sector to authenticate documents such as driver's licenses, passports, or nationally issued identity documents.

Moreover, the market in Asia-Pacific is projected to register the highest CAGR of 16.0% during the forecast period.

Key Players

The key players operating in the identity verification market GB Group plc (U.K.), Equifax Inc. (U.S.), LexisNexis Risk Solutions Inc. (A Subsidiary of RELX Group plc) (U.S.), Experian plc (Ireland), Trans Union LLC (A Subsidiary of TransUnion) (U.S.), Intellicheck, Inc. (U.S.), IDEMIA France SAS (France), Mitek Systems, Inc. (U.S.), HyperVerge Technologies Private Limited (India), AuthenticID Inc. (U.S.), Nuance Communications, Inc. (A Subsidiary of Microsoft Corporation) (U.S.), iDenfy (Lithuania), Securekey Group (Mauritius), Onfido (U.K.), and PXL Vision AG (Switzerland).

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Key Questions Answered in the Report:

Which are the high-growth market segments in terms of offering, deployment mode, organization size, application, and sector?
What is the historical market size for the global identity verification market?
What are the market forecasts and estimates for 2024–2031?
What are the major drivers, restraints, opportunities, challenges, and trends in the global identity verification market?
Who are the major players in the global identity verification market, and what are their market shares?
What is the competitive landscape like?
What are the recent developments in the global identity verification market?
What are the different strategies adopted by major market players?
What are the trends and high-growth countries?
Who are the local emerging players in the global identity verification market, and how do they compete with other players?

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