ID Verification market set to reach $18.6 billion by 2026

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In its latest research report, Marketsandmarkets suggests that the global identity verification market size is set to grow from USD 8.6 billion in 2021 to USD 18.6 billion by 2026, at a CAGR of 16.6% during the forecast period.

Increasing digitalisation with initiatives, increase in fraudulent activities and identity theft, and increasing use cases of digital identities are major growth factors for the market. Initiatives by governments and enterprises with focus on digitalisation and increased adoption of cloud-based identity verification and the increasing need to improve customer expectations among verticals such as BFSI would provide lucrative opportunities for vendors in the identity verification market according to the research.

Non-biometrics segment to hold largest share 

Non-biometrics identity verification solutions are used to verify documents, such as government IDs, passport, driving license, and credit or debit cards. The non-biometrics solutions are majorly used for remote customer onboarding, fraudulent ID detection, KYC/AML compliance, and business process automation. The introduction and integration of AI and ML technologies into identity verification solutions help organisations be proactive and make highly effective detection and remediation of suspicious activities and unauthorised and invasive access requests on an enterprise network. With the rapidly growing identity-based attacks and frauds, identity verification solutions are becoming essential. The non-biometrics solution segment is an essential part of identity verification solutions and is expected to witness a huge growth in the coming years.

Cloud deployment to grows fastest

Cloud-based identity verification solutions are not only enabling organisations to manage their costs but also helping them in improving business agility. It is the fastest-growing deployment model in the identity verification market. SMEs prefer cloud-based deployment, as it is cost-effective and easy to deploy. With the cloud-based deployment of these solutions, small enterprises can assess vulnerabilities and reduce threat landscape at a much lower cost, thus improving their customer services. The cloud-based platform offers a centralized way to verify identities. For organisations having strict budgets on security investments, cloud-based identity verification solutions are a good fit.

North America accounts for largest share

North America, a technologically advanced region with a high number of early adopters and the presence of major market players, is expected to contribute the highest market share in terms of revenues during the forecast period. Researchers suggest that factors such as the development of government initiatives, such as smart infrastructure, smart cities, digital identity-based driver’s license, and the use of identity verification by the US police to track criminals suspected of major and minor crimes, as well as to find missing persons, are also driving the need for identity verification across North America.

Additionally, increasing demand for cloud-based identity verification services among enterprises, especially SMEs, due to advantages such as scalability and cost effectiveness are expected to fuel the growth of identity verification in the region.

Key players

Some of the major vendors in the global identity verification market, and included in the report are Experian, GBG, Equifax, Mitek, Thales, Lexisnexis, Onfido,Trulioo, Acuant, Idemia, Jumio, Transunion, AU10T1X, Idology, Innovatrics, Applied Recognition, Signicat, Securekey, Idfy, Authenteq, Veri5digital, PXL Vision, ID Merit, Shufti Pro, Idenfy, Web ID, ID now, Signzy, and Passbase.


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