Global Identity Verification Market Thrives at a CAGR of 16.35%

Introduction

The document verification process has become automated with new technologies such as machine learning, artificial intelligence, and computer vision. These digital document verification solutions not only help to minimize operational expenses but also help to meet regulatory standards such as AML, KYC, and KYB. The market for identity verification is likely to expand during the forecast period due to several important factors, including adopting solutions through strict regulations and the necessity for compliance. Identity theft significantly contributes to the financial scams impeding digital payment acceptance and growth. As a result, businesses worldwide are expanding their investments in identity verification technologies.

Market Dynamics

Stringent Regulations and Need for Compliance Spur the Global Identity Verification Market

The stringent laws and the necessity for compliance are the primary drivers of the identity verification market. Consumers rely heavily on the government to secure their personal information. In response, the government has implemented a series of legislation aimed at minimizing fraudulent operations, which have been implemented by government organizations worldwide. One of the core concepts of such severe laws is identity verification. The Indian Central Board of Indirect Taxes and Customs (CBIC) implemented the Verification of Identity and Compliance legislation in April 2021, which is applied to all importers, exporters, and customs brokers engaged in import or export. PAN, GSTIN, bank statement, income tax return, and other documents are required for verification.

The Corporate Transparency Act, which improves anti-money laundering (AML) requirements, was enacted by the US Senate in 2020. The Act requires corporations to report their beneficial owners to authorities and requires more comprehensive information exchange among regulators, necessitating identity verification to ensure database ownership. A framework like this creates a requirement for identity verification, which drives the demand for identity verification solutions in the region.

Rising Digital Transformation in Logistics Provide Lucrative Opportunities for the Global Identity Verification Market

The logistics business embraces digital transformation approaches to improve process and delivery times. For example, identity verification can sign logistics paperwork to speed up contracting activity that would otherwise take time. As a result, several market vendors are projected to use the logistics industry's e-signature and verification business, creating attractive opportunities for the global identity verification market.

Regional Insights

The North American identity verification market is estimated to grow at a CAGR of 12.3% during the forecast period. Digital transactions, combined with online banking, are growing at an astounding rate, raising the likelihood of identity fraud across businesses in North America. Identity verification systems aid in the prevention of online breaches of sensitive personal information and transactions. Increasing fraud instances across enterprises will drive the regional market during the forecast period. With more banks embracing digital banking channels, the identification verification market is projected to experience more significant deployment in the banking sector.

Europe is the second-largest region and is estimated to reach USD 7.5 billion, growing at a CAGR of 13.3% during the forecast period. The European digital landscape is undergoing upheaval as technological breakthroughs and innovations continue to push the digitalization and adoption of digital payment solutions throughout the continent. Due to the convenience and ease of transactions, the region has seen a spike in the adoption of digital payment systems like bank transfers, credit/debit cards, pay direct, direct debits, and e-wallets in recent years. Such developments are projected to boost the demand for identity verification solutions across industries in Europe.

Asia-Pacific is the fastest-growing region. India and China are some of the most densely inhabited countries in Asia-Pacific. With increased internet coverage, the region is one of the fastest technology users. Furthermore, as these countries adopt digitalization, the potential for breaches of consumer data and data channels has risen, increasing the demand for identity theft prevention solutions in the region. Furthermore, Asia-Pacific is one of the fastest-growing regions in terms of GDP, causing current corporations to expand and new startups to emerge. It produced a desire for rapid, safe, and paperless digital transactions among these expanding corporations, raising the demand for secure identity verification solutions to prevent data breaches.

Key Highlights

• The global identity verification market was valued at USD 8.43 billion in 2021. It is expected to reach USD 16.35 billion by 2030, growing at a CAGR of 16.35% during the forecast period (2022–2030).
• By deployment type, the global identity verification market is segmented into On-Premise and On-Demand. The On-Demand segment accounts for the largest market share and is expected to grow at the highest CAGR of 14.1% during the forecast period. 

• By end-user, the global identity verification market is segmented into Financial Services, Retail & E-Commerce, Gaming/Gambling, Government, and Others. Financial Services account for the largest market share and are expected to grow at the highest CAGR of 14.3% during the forecast period. 
• By region, the global identity verification market is segmented into North America, Europe, Asia Pacific, and LAMEA. North America dominates the rest of the world. 

Competitive Players

1. Equifax, Inc.
2. Thales Group S.A.
3. Experian Plc
4. Acuant, Inc.
5. Mitek Systems, Inc.
6. TransUnion LLC.
7. GB Group PLC
8. IDEMIA
9. Intellicheck Inc.
10. Nuance Communications Inc.

Recent Developments

Recent Developments

• July 2024 - Regula, a multinational manufacturer of identity verification tools and forensic devices, enhanced the onboarding procedure for Maza, a fintech startup committed to giving recently arrived immigrants in the United States quick access to necessary financial services. Through the integration of Face SDK and Regula Document Reader SDK, Maza created a safe and efficient identity verification procedure that improves customer satisfaction and lowers onboarding expenses by 50%.
• July 2024 - Prove launched a digital identification platform that enables companies to give verified customers a safe experience in an effort to reduce fraud and increase pass rates. Prove introduced Prove Standard APIs and the Prove Link developer self-service platform. These solutions are intended to make it easier for businesses to incorporate Prove's phone-based digital identity verification technology.

Segmentation

1. By Component
   1. Solution
   2. Service
2. By Type
   1. Biometrics
   2. Non-biometrics
3. By Deployment Mode
   1. On-premises
   2. Cloud
4. By Organization Size
   1. SMEs
   2. Large Enterprises
5. By Verticals
   1. BFSI
   2. Government and Defence
   3. Healthcare & Life Sciences
   4. Retail and E-Commerce
   5. IT & ITES
   6. Energy and Utilities
   7. Others (Education, Travel, and Gaming)