Identity verification refers to a process that validates traits to verify that the data presented to a business or entity pertains to a real person. It allows a person with digital credentials to gain access to online accounts, activities, and services. When an individual claims his/her own identity with the concerned party for the first time, the identity of the person is verified to ensure its authenticity. This process is known as account onboarding.
Globally, the identity verification software market was valued at USD 5.31 in 2019 and is expected to reach USD 14.34 billion by 2027, with a CAGR 15.7% during the forecast period, 2020–2025.
The ubiquity of smartphones, coupled with widespread internet accessibility, has led to tremendous growth across industry verticals. The development of cloud infrastructure has digitalized businesses, not only increasing the profitability of services but also enhancing customer experience. As per GSMA, globally, smartphone adoption is expected to reach 2.9 billion by 2020.
The adoption of smartphones, coupled with affordable online and internet services, is expected to have a significant impact on financial services. P2P payments, check cashing services, international transfers, and loan origination, among others, have become seamless, which is expected to positively influence the identity verification software market during the forecast period.
On the flip side, the lack of security solutions and rising incidents of suspicious activities through the online channel have increased security concerns in the vertical. The below tables list data breach cases through the online channel as per the 2019 Data Breach Investigation Report published by Verizon.
The above tables depict that data breaches mostly compromised personal credentials through online channels; thus, in order to prevent such data breaching cases, the demand for verification solutions has been increasing.
According to McKinsey Global Report, economies such as the U.S., the U.K., and China have significant ID coverage. However, emerging economies such as India, Brazil, Nigeria, and Ethiopia lack coverage to a significant share of the population. Additionally, a major share of these populations lacks access to digital ID, which eventually drives the identity verification market.
The report also suggests that digital ID is expected to add multi-billion economic value to economies. The following figure indicates the potential growth of Digital ID by 2030.
In light of these factors, the market is expected to gain significant traction in the emerging economies of the world. As per our analysis, geographically, North America dominates the identity verification software market at present, and the region is expected to remain the key value shareholder throughout the forecast period. The U.S. accounts for the largest market share in North America, which can be attributed to the country’s cloud infrastructure and the presence of noteworthy solution and service providers such as Oracle Corporation, IBM Corporation, and Microsoft Corporation.
Asia-Pacific is the fastest-growing region in the global identity verification software market. Countries in the region lack digital ID accessibility and advancement in fintech solutions will pave the way for the timely digital verification process, notably in BFSI sectors.
Government initiatives for national ID cards in Asia, notably India, Malaysia, Pakistan, and Indonesia, are also expected to drive the identity verification software market during the forecast period.
The identity verification software market has been segmented on the basis of component, deployment mode, organization size, and industry vertical for the purpose of study and estimation.
By component, the market has been differentiated into solutions and services.
By solution, the market has been segmented into ID verification, ID authentication, and digital identity verification.
By services, the market has been segmented into professional services and managed services.
By deployment mode, the market has been segmented into cloud and on-premise
Based on organization size, the market has been segmented into large enterprises and small and medium enterprises (SMEs).
Based on industry vertical, the identity verification software market has been categorized into BFSI, government and public sector, military and defense, retail and e-commerce, healthcare, energy and utility, high-tech, IT and telecom, media and entertainment, and others.
Some of the other companies that hold significant value shares in the identity verification software market include Evident, EveryoneAPI, OneSpan, Oaro Identity, Melissa Digital Identity Verification, Mati, IDVision, IDresponse, IDology, Inc., and IdentityMind's 2.0 platform, among others.
|Market Size||USD in Billion By 2030|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
|Segments Covered||by Component (Solution, Services), Industry Vertical (BFSI, Healthcare), Deployment Mode (Cloud,On-Premise)|
|Geographies Covered||North America, Europe, Asia-Pacific, LAME and Rest of the World|
|Key Companies Profiled/Vendors||Trulioo (Canada) , Acuant (The U.S.) , Jumio (The U.S.) , IDMERIT (The U.S.) , Equifax (The U.S.) , Experian (Ireland) , Gemalto (The Netherlands) , IDEMIA (France) , Authenteq (Iceland) , LexisNexis (The U.S.) , Shufti Pro (The U.K.) , Onfido (England) , TransUnion (The U.S.) , Mitek Systems (The U.S.) , iDenfy (Lithuania)|
|Key Market Opportunities||Rapid Growth In Technology Industry Enhances Identity Verification Software Market|