Identity Verification Market Eyes Revenue Worth US$29.7 Billion by 2030-end, Says Fairfield Market Research

The Biometrics Category Emerged as the Revenue Leader in 2022 While the BFSI Sector Recorded the Most Considerable Market Size the Same Year. The Report Expects Cloud Solutions to Win in Preference. North America will be the Dominance Force, Asia Pacific Follows.

London, Feb. 07, 2024 (GLOBE NEWSWIRE) -- In a significant development, the global identity verification market is set to experience a substantial surge, skyrocketing from US$9.8 Bn in 2022 to an estimated US$29.7 Bn by 2030, at a robust CAGR of 17.2%. This surge is primarily attributed to the escalating threat of identity theft and cyberattacks, compelling businesses and governmental organisations to prioritise identity protection services to thwart fraudulent activities.

The market is on an upward trajectory, driven by the imperative need for robust security measures in an increasingly digital and interconnected world. As businesses and individuals alike prioritise identity protection, the market is set to undergo significant transformations and innovations in the years to come, says a newly published research report by Fairfield Market Research.

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Report AttributesDetails
Base Year2022 
Forecast Year2023 – 2030
Market Size in 2022US$9.8 Bn
Estimated Market Size in 2030US$29.7 Bn
Growth Drivers
  • Increasing Penetration of Internet
  • Growing Digital Literacy
  • Exploding Digitalisation
  • Mounting Adoption of Biometrics
  • By Type (Biometrics, Non-biometrics)
  • By Vertical (BFSI, Government and Defence, Healthcare & Life Sciences, Retail and eCommerce, IT & ITeS, Energy and Utilities, Others (Education, Travel, and Gaming))
  • By Deployment (On-premises, Cloud)
  • By Component (Solution, Service)
  • By Organisation Size (SMEs, Large Enterprises)
Regional Coverage
  • North America (US, Canada)
  • Europe (Germany, UK, France, Italy, Turkey, Russia, Rest of Europe)
  • Asia Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, Rest of Latin America)
  • Middle East & Africa (GCC, South Africa, Rest of Middle East & Africa)
Key PlayersThales Group, GBG, Equifax, Experian, Mitek Systems, LexisNexis Risk Solutions, Trulioo, Onfido, Acuant, TransUnion, IDEMIA, Jumio, Applied Recognition, IDology, Innovatrics

A surge in demand for protecting personal data, especially financial information, has emerged alongside the worldwide increase in internet usage and the expanding user base of online banking services. This heightened awareness among individuals is a significant catalyst propelling the expansion of the identity verification market.

While biometrics takes the lead in revenue generation, it has establishing itself as the most widely utilised technique for confirming individuals' identities. This method relies on one or more biological traits to verify the subject's authenticity, thus contributing significantly to the market's overall growth,” states the company analyst.

On the other hand, the ongoing digitisation of banking procedures, including digital onboarding and payments, aimed at enhancing customer experiences, will be the major driving force behind the increasing need for identity verification across the BFSI sector.

Key Research Insights

  • The biometrics segment spearheads with a market share of over 57%
  • Demand for cloud solutions highest, accounting for more than 52% market value share
  • North America’s lead intact with approximately 42% share of global market revenue

Insights into Segmentation Analysis

Biometrics Trumps Non-Biometrics as the Dominant Force in Identity Verification

In a groundbreaking revelation, the biometrics category emerges as the powerhouse in the global identity verification market, asserting its dominance over non-biometric alternatives. The year 2022 witnessed a surge in the biometrics segment, driven by the widespread adoption of fingerprint identification, robust authentication security to counter emerging threats, heightened data security, and increased customer satisfaction.

The escalating use of contactless biometric solutions and a growing reliance on digital technologies further solidified the biometrics category's supremacy. Biometric verification methods, encompassing fingerprints, iris and retinal patterns, gained prominence due to their efficacy in verifying identities. Employing lock-and-capture techniques, these solutions not only authenticate individuals but also facilitate access to a myriad of services.

As traditional non-biometric methods prove less secure and more widely adopted, the biometrics category is poised for substantial growth, fueled by the expanding demand for compliance management, frictionless onboarding, and robust fraud prevention measures.

The cloud segment took the lead in driving market growth in 2022. Cloud-based identity verification solutions offer businesses cost-effective measures while simultaneously bolstering corporate awareness, making them a preferred choice for organisations across sectors.

Solutions Category Leads with a Comprehensive Market Share

The solutions category secured the largest revenue share in 2022, divided into three sub-categories: digital identity verification, identity authentication, and ID verification. Large enterprises dominated the market during this period, opting for identity verification systems to streamline manual processes, combat rising fraud, and ensure compliance with various regulations.

BFSI Takes Center Stage in Adoption

The BFSI category emerged as the undisputed leader in the global identity verification market in 2022 and is projected to witness significant growth in the forecast period. The BFSI sector's dominance can be attributed to the increasing global demand for identity verification, spurred by the digitisation of banking processes such as digital onboarding and digital payments.

However, the BFSI sector's high level of technology adoption also makes it susceptible to various security weaknesses. Hackers capitalise on vulnerabilities to steal sensitive data, including credit card numbers, bank account information, and personal details. As the BFSI category continues to grapple with these challenges, identity verification becomes paramount in safeguarding against cyber threats and securing sensitive financial information.

In tandem with BFSI, the retail and E-commerce category is anticipated to witness significant expansion. With the e-commerce sector becoming a prime target for fraudsters using stolen or fake identities for online transactions, the need for robust identity verification measures is more critical than ever. Threats such as credit card fraud, account takeovers, and phishing attacks underscore the urgency for comprehensive identity verification solutions within these sectors.

Cloud Ascends as the Most Sought-after Solution in the Digital Sky

In the dynamic realm of identity verification, the cloud category took center stage in 2022, offering businesses a cost-effective approach to enhance customer service while identifying vulnerabilities and reducing threat landscapes. Small enterprises especially find cloud-based solutions economically advantageous. The ease with which identity verification solutions delivered via the cloud control costs and boost productivity makes them a preferred choice for organisations across sectors.

However, the on-premises category is poised to witness substantial growth in the forecast period. By authenticating clientele and safeguarding their data on internal servers, on-premises solutions provide a secure customer onboarding process. With a one-time installation, businesses can ensure data protection without relying on external vendors, thereby reinforcing their commitment to security.

Key Report Highlights

  • The proliferation of IT-based tools and security platforms in response to increasing cyber threats emphasizes the necessity for comprehensive security solutions across businesses.
  • The increased use of advanced technologies such as big data, cloud computing, AI, and ML is poised to positively impact market expansion. Identity verification services, including blockchain-based solutions, actively address challenges in various sectors, from financial services to healthcare.
  • Electronic IDs are becoming a pivotal trend, transforming communication between individuals and institutions. The increasing use of digital identity is expected to spread further through the commercial sector, reshaping identity management and online verification procedures.

Insights into Regional Analysis

North America Continue to Top with Technological Prowess, the US Remains the Epicentre

The identity verification market is set to be dominated by North America, backed by its sophisticated technology infrastructure, a large population of early adopters, and the presence of key industry players. The region's leadership is bolstered by government initiatives like smart cities, smart infrastructure projects, and digital identity-based driver's licenses.

The integration of cutting-edge technologies such as ML, AI, and blockchain further propels the demand for identity verification, coupled with government initiatives such as smart infrastructure projects, smart cities, and digital identification-based driver's licenses.

The US holds sway in the identity verification business, boasting a highly developed technical landscape that embraces innovative solutions and invests significantly in novel technologies. The nation's forward-thinking approach positions it at the forefront of global identity verification advancements.

Partnerships Drive Growth in Asia Pacific

Meanwhile, the Asia Pacific region is anticipated to experience significant growth during the forecast period, owing to technological readiness and government efforts to curb identity-related fraud through strengthened electronic Know Your Customer (eKYC) processes.

The region is emerging as the fastest-growing region in the identity verification market, presenting a lucrative opportunity for industry players. The region witnesses a surge in government initiatives combating identity-related fraud, a growing demand for cloud-based identity verification, and an increase in identity-related cyberattacks due to the widespread adoption of new technologies.

In a notable partnership, GBG and NAGA joined forces in December 2020 to enhance online trading and investment platforms. GBG's IDscan and ID3global solutions enabled NAGA to remotely verify candidates' identities within minutes, reducing the need for lengthy manual processes.

The government's intensified efforts against identity-related fraud further catalyse industry expansion in the Asia Pacific region. As the global identity verification landscape evolves, these key segments and regional dynamics signal a transformative era in securing digital identities worldwide.

Browse Global Identity Verification Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030 - (By Type Coverage, By Vertical Coverage, By Deployment Coverage, By Component Coverage, By Organisation Size Coverage, By Geographic Coverage and By Company):

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