Identity Verification Market to Grow by USD 16.92 Billion from 2024-2028, Increase in Digitalization with E-ID Cards and Smart Infrastructure Boost the Market, AI’s Impact – Technavio

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Technavio 

Feb 05, 2025, 06:05 ET

NEW YORK, Feb. 5, 2025 /PRNewswire/ — Report on how AI is driving market transformation – The global identity verification market size is estimated to grow by USD 16.92 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  20.3%  during the forecast period. Increase in digitalization with electronic id (EID) cards and smart infrastructure initiatives is driving market growth, with a trend towards growing adoption of bring your own device (byod) among enterprises. However, privacy and security concerns of data transferred through iot  poses a challenge. Key market players include Equifax, Inc., Jumio, Thales Group, TransUnion, Experian, Trulioo, Onfido, Shufti Pro, Mitek Systems, Inc., DocuSign, Inc., Applied Recognition Corp., Authenteq Tarbena GmbH, GB Group plc, Gen Digital Inc., ID Merit, Intellicheck Inc., Khosla Labs Pvt. Ltd., Mastercard Inc., PXL Vision AG, Lexisnexis Risk Solutions Inc.

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Market Driver

The Identity Verification Market is witnessing significant growth due to increasing security risks associated with online transactions and the digitalization of various industries. Businesses in finance, healthcare, emerging markets, and border controls are adopting advanced verification techniques such as artificial intelligence (AI) and biometric technologies to secure digital identities. AI and machine learning (ML) are being used for data analysis and fraud detection, while biometric checks include facial recognition, fingerprint recognition, and liveness detection. Identity-related theft incidents continue to rise, making security measures a top priority. Self-service identity verification, multi-factor authentication, and data-driven verification methods are becoming increasingly popular. The BFSI industry, e-commerce, gaming, and cryptocurrency exchanges are major sectors investing in identity verification systems to meet Anti-Money Laundering (AML) requirements and ensure customer confidence. Traditional non-biometric solutions are being replaced with more efficient and secure biometric devices, including cameras, microphones, GPS functionalities, and mobile devices. Regulations, such as cloud-based deployment and data privacy concerns, are driving the need for secure IT infrastructure and technical expertise. Security personnel and system integrators are in high demand to address cyber threats and ensure regulatory compliance. Emerging technologies like intelligent border control, real-time verification, and diverse data sources are shaping the future of identity verification. The industry is expected to continue growing as businesses and governments prioritize data security and fraud mitigation tools. 

In today’s business landscape, the Bring Your Own Device (BYOD) trend is gaining popularity among enterprises. This shift towards a mobile-first, web next scenario allows employees to access their privileged accounts through mobile devices, enhancing productivity and morale. Privileged users, also known as admin users, hold significant authority in managing backend functions of a system. They can set up, modify, and delete accounts, alter user roles, change system settings, and access sensitive data. As enterprises adopt this mobile-first approach, the demand for identity verification solutions to secure these privileged accounts is escalating. 

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Market Challenges

• The Identity Verification Market is facing several challenges in today’s digital world. With the increase in online transactions and the growing use of digital identities, security risks are on the rise. Verification techniques such as artificial intelligence (AI) and biometric technologies are being adopted to mitigate these risks, but they come with their own set of challenges. Finance and healthcare industries, in particular, are under pressure to ensure security measures are in place to prevent identity-related theft incidents. Emerging markets and businesses are embracing digitalization and automation, leading to an increase in internet usage and eCommerce. However, the lack of awareness and technical expertise among businesses and security personnel pose significant risks. Breaches and cyber threats are becoming more frequent, leading to potential losses and damage to customer confidence. Government agencies and corporations are investing in intelligent border control and self-service identity verification to enhance security. Biometric devices such as facial recognition, video analytics, and liveness detection are being used for real-time verification. However, the use of these technologies raises data privacy concerns and regulatory compliance requirements. The financial sector, in particular, is under pressure to comply with Anti-Money Laundering (AML) regulations and prevent fraudulent activities through data-driven verification methods and multi-factor authentication. The emergence of blockchain-based identity verification and biometric checks is expected to address some of these challenges. However, the Identity Verification Industry also faces challenges in implementing security measures in diverse data sources, such as facial verification, phone verification, and cryptocurrency exchanges. Fraud mitigation tools and machine learning models are being used to detect and prevent identity-related fraud and cybercrime. Industry-specific requirements and data analysis are crucial for effective fraud detection and regulatory compliance. In conclusion, the Identity Verification Market is undergoing significant changes due to digitization initiatives and emerging technologies. Security measures, data privacy concerns, and regulatory compliance are key challenges that need to be addressed to ensure the safety and efficiency of identity verification systems. Businesses and organizations must invest in security training, consulting, and system integrators to stay ahead of cyber threats and maintain customer trust.
• In today’s security-challenged world, ensuring complete data security is an elusive goal. The proliferation of Internet of Things (IoT) systems poses significant risks, as these systems connect machines and people, increasing potential entry points for hackers. Customized software modules used in IoT devices create additional interfaces, making entire systems more vulnerable. Sensitive data transferred through these devices is critical and must be protected. The rise in connected devices necessitates identity verification solutions to mitigate risks and safeguard data. Organizations must invest in advanced identity verification technologies to secure their IoT systems and protect their valuable information.

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Segment Overview 

This identity verification market report extensively covers market segmentation by  

• Component
  • Solutions
  • Services
• Type
  • Large Enterprises
  • SMEs
  • Biometric
  • Non-biometric
• Geography
  • North America
  • APAC
  • Europe
  • South America
  • Middle East And Africa
• Application
  • KYC, KYB, And Onboarding
  • Access Control And User Monitoring
  • Identity Fraud Compliance And Forensics
• Deployment Mode
  • Cloud
  • On-premises

1.1 Solutions-  Identity verification solutions are essential for businesses to authenticate the identity of users or customers. These solutions ensure that the person completing a process is the true owner of the provided information, preventing unauthorized access, false identities, and fraud. Offline methods include face-to-face verification, where individuals present themselves in person at a company location or institution. Online methods include multi-factor authentication, biometric verification, and document verification. The global market for identity verification solutions is projected to expand due to the increasing need for secure and reliable identity verification processes.

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Research Analysis

The Identity Verification Market is witnessing significant growth due to the increasing number of online transactions and the need to secure digital identities. With the rise of emerging technologies like artificial intelligence (AI) and biometric technologies, verification techniques are becoming more sophisticated and efficient. The finance and healthcare sectors are major contributors to this industry, with strict regulations and AML requirements driving the demand for identity verification solutions. However, the increasing risk of data breaches and cyberattacks poses a significant challenge, making data privacy concerns and cybersecurity needs top priorities. In emerging markets, where internet penetration is growing rapidly, identity verification is essential for businesses to mitigate risks and comply with regulations. On-premise solutions are also gaining popularity, especially in lower-income countries, to provide secure and accessible identity verification services. Blockchain-based identity verification is another emerging trend, offering enhanced security and decentralization. Overall, the Identity Verification Industry is a critical component of the digital economy, ensuring secure and authentic transactions while addressing the evolving security risks and regulatory requirements.

Market Research Overview

The Identity Verification Market is a rapidly growing industry that addresses the security risks associated with online transactions and the management of digital identities. With the increasing use of digital services in finance, healthcare, emerging markets, and businesses, there is a growing need for advanced verification techniques to ensure security and prevent identity-related theft incidents. Artificial intelligence (AI) and biometric technologies, including facial recognition, video analytics, and liveness detection, are becoming increasingly popular for identity verification. These technologies offer efficiency, security, and accuracy, making them essential for industries such as finance, healthcare, border controls, and smart cities. However, the lack of awareness and potential losses from breaches and cyber threats necessitate  security measures, including security personnel, training, consulting, and system integrators. The industry also faces challenges from regulatory compliance, cybercrime, and digitization initiatives. Emerging technologies like machine learning (ML) and blockchain-based identity verification are expected to play a significant role in the future of identity verification. The market is diverse, encompassing various sectors, including BFSI, government & defense, healthcare & life sciences, retail & e-commerce, energy & utilities, IT & ITES, and more. Identity verification is crucial for industries dealing with confidential data, client financial details, login credentials, and personal identifiers. The market is expected to grow significantly due to the increasing need for real-time verification, diverse data sources, and fraud detection expertise.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Component
  • Solutions
  • Services
• Type
  • Large Enterprises
  • SMEs
  • Biometric
  • Non-biometric
• Geography
  • North America
  • APAC
  • Europe
  • South America
  • Middle East And Africa
• Application
  • KYC, KYB, And Onboarding
  • Access Control And User Monitoring
  • Identity Fraud Compliance And Forensics
• Deployment Mode
  • Cloud
  • On-premises

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio