With more customers remotely onboarded, their identities must be verifiable securely and frictionlessly. This transition to digital is compelling businesses to seek new verification technologies, such as biometrics, AI-driven verifications, and mobile-based ID verification, making onboarding simpler without sacrificing security.

Advanced verification tools 

The solutions segment is expected to lead the identity verification market in terms of revenue during the forecast period. This growth is fueled by the increasing adoption of advanced verification tools, such as biometrics, document authentication, and AI-powered analytics, that enable real-time, secure identity checks. As companies drive digital onboarding and encounter increasing identity fraud threats, they are investing in scalable, hands-free technology that authenticates users cost-effectively. Beyond supporting anti-fraud and compliance, such technology allows for more seamless customer experiences and thus is a key component of digital trust today.

On-premises deployment in regulated industries

By deployment mode, the on-premises segment is estimated to lead the identity verification market throughout the forecast period. Organisations need more control, data privacy, and security, particularly in industries with stringent regulations, such as banking, government, and healthcare. Strict compliance-oriented organisations utilise on-premises solutions because they have tightly controlled sensitive identity data. Third-party exposure and data sovereignty issues also necessitate on-premises identity authentication solutions, especially in countries that have very strict data protection legislation.

Asia Pacific to see the highest growth

By region, the Asia Pacific market is projected to register the highest CAGR during the forecast period. The rapid growth in this region is driven by an expanding internet population, increasing mobile penetration, and a developing digital economy supported by rising investments in infrastructure and technology. The analysts suggest that as digital transactions increase, there is a greater need for secure and user-friendly identity verification to prevent fraud and ensure regulatory compliance. Government programmes backing digital ID platforms, as well as the fast-paced digital onboarding of customers by banks, fintech players, and e-commerce portals, also drive the adoption of identity verification solutions in the region.

Key players

Experian plc, Lexisnexis Risk Solutions, Equifax, Thales, GB Group, Transunion, Mastercard, Onfido, Trulioo, Idology, Mitek Systems, Idemia Jumio, Hyperverge, Au10tix, Innovatrics, Intellicheck, Signicat, Securekey Technologies, Idfy, Idmerit, Veriff, Authentic ID, Trunarrative, Sumsub, Passfort, PXL Vision Shufti Pro, Idenfy, Berbix, Persona, Ekata, and Hooyu are cited by the researchers as examples of some of the players in the identity verification market.