The identity verification market is predicted to expand at a robust CAGR of 13.2%. The market is estimated to reach a value of nearly USD 38.5 billion by 2033, scaling up from USD 11.1 billion in 2023.
The digitization of services provided to general citizens in every part of the world has increased the demand for identity verification technologies. With the advancement in identity recognition hardware and digital software technologies, virtual ID verification is getting more accurate and easy day by day. Awareness about the security and benefits associated with self-assessment identity verification is predicted to drive the identity verification industry across the globe in the coming years.
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| Attributes | Details |
|---|---|
| Global Identity Verification Industry Value (2023) | USD 11.1 billion |
| Global Identity Verification Industry Value (2033) | USD 38.5 billion |
| Global Identity Verification Industry Growth Rate (2023 to 2033) | 13.2% |
In the historical period, the identity verification market witnessed a CAGR of 10.5%. Going forward, the market is projected to expand at a CAGR of 13.2% over the forecast period. In 2023, the market is anticipated to attain a revenue of USD 11.1 billion.
The market has been fueled by the increasing frequency of cybercrime and identity fraud. Moreover, the increased focus of governments and companies on digitalization, in addition to the use of emerging technologies, is further propelling market growth.
By 2033, the market is estimated to achieve a valuation of USD 38.5 billion.
| Attribute | Valuation |
|---|---|
| 2025 | USD 14.22 billion |
| 2028 | USD 20.63 billion |
| 2032 | USD 33.88 billion |
| Historical CAGR (2017 to 2022) | 10.5% |
|---|---|
| Forecast CAGR (2023 to 2033) | 13.2% |
Principal Consultant
The availability of hardware and digital infrastructure for the successful completion of personal ID verification is the most important requirement of the global identity verification market. But, the unavailability of sufficient infrastructure in some parts of the world has limited the growth of any type of virtual ID verification services.
Linguistic and trust barriers are anticipated to pose some challenges to the establishment of a market to verify someone’s identity through outsourcing models. As per the market analysis report, this can hamper the wider adaptability of identity verification industry trends in the long run.
Digital literacy in low-income countries is very less, that makes it difficult for top ID verification companies to penetrate the market. The lower level of financial literacy is also another major reason for the low presence of KYC verification companies in such regions.
Innovation and the wide use of electronic ID cards (eID) and attendance verification devices have created a huge demand for ID verification services in offline mode. The adoption of such new devices is anticipated to augment the global identity verification market over the forecast period.
E-governance is an emerging concept in the present world, getting adopted by developed and developing nations alike. For the dissemination of various public services, remote ID verification by government organizations for social security cards, licenses, and many more, has increased manifold in the past decade. As per the report, in the forecast years, these services are expected to increase the demand for identity verification through top identity verification companies.
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| Taxonomy | Component |
|---|---|
| Top Segment | Solutions |
| Forecast CAGR | 13% |
| Taxonomy | Organization Size |
|---|---|
| Top Segment | Large Enterprises |
| Forecast CAGR | 12.6% |
The virtual identity verification solution is a very dynamic process involving multiple user interfaces and record-keeping. The sales of identity verification solutions are projected to be high than the services segment. The demand for identity verification solutions increased in the past decade owing to concerns over data privacy issues in Europe and other parts of the world as well. The sales of the identity verification solutions segment are estimated to secure a CAGR of 13% over the forecast time frame.
| Historical CAGR (2017 to 2022) | 10.2% |
|---|---|
| Forecast CAGR (2023 to 2033) | 13% |
Over the years of innovation and use of Anti-money Laundering (AML) identity verification technologies, it has turned out to be an important part of many service sectors in the present market. The demand for identity verification solutions is observed to be high in banking, financial services, and insurance (BFSI) companies. Digitization of the banking processes for a better consumer experience has increased the sales of identity verification solutions to the BFSI business entities.
Financial institutions are also in search of better security solutions free from external vulnerabilities and hackers that are anticipated to provide a great opportunity for developing new self-assessment identity verification software, which further boosts the global market.
| Regions | CAGR (2023 to 2033) |
|---|---|
| The United States | 13% |
| Canada | 12.3% |
| China | 12.6% |
| Germany | 11.7% |
| Japan | 10.9% |
| Attributes | Details |
|---|---|
| Market Size (2033) | USD 12.4 billion |
| Market Absolute Dollar Growth (USD million/billion) | USD 8.8 billion |
The United States contributes a significant revenue share to the global identity verification market owing to the presence of key remote identity verification companies. The United States market is projected to attain USD 12.4 billion by 2033. The market is projected to expand at a robust CAGR of 13% over the forecast period. Owing to the smart infrastructure models and smart cities in the country, the adoption of identity verification solutions and services is rising.
High living standards and sufficient knowledge about digital platforms among the general population have made the United States a lucrative market for sales of identity verification solutions.
| Historical CAGR (2017 to 2022) | 10.1% |
|---|---|
| Forecast CAGR (2023 to 2033) | 13% |
| Attributes | Details |
|---|---|
| Market Size (2033) | USD 2.4 billion |
| Market Absolute Dollar Growth (USD million/billion) | USD 1.7 billion |
Canada's identity verification market is projected to attain USD 2.4 billion by 2033. The market is anticipated to expand at a CAGR of 12.3%. The surging initiatives by the government in Canada to boost the digital ID ecosystem are further expected to fuel market development in the country. For instance, in December 2022, the Canadian government awarded Zighra a new digital ID authentication contract for the Department of National Defense. The project is aimed at introducing a centrally-managed and standardized ID and credentialing process with the help of Zighra’s AI and decentralized identification solutions.
Earlier, in May 2021, SecureKey Technologies Inc., which is a leading provider of authentication and digital identity solutions, revealed the adoption of Verified.Me by Employment and Social Development Canada (ESDC). This service supports people in Canada to verify their identity while registering for My Service Canada (MSCA).
| Historical CAGR (2017 to 2022) | 9.1% |
|---|---|
| Forecast CAGR (2023 to 2033) | 12.3% |
| Attributes | Details |
|---|---|
| Market Size (2033) | USD 3.1 billion |
| Market Absolute Dollar Growth (USD million/billion) | USD 2.2 billion |
China is projected to emerge as a significant market for identity verification within the Asia Pacific region. China's identity verification market is expected to attain USD 3.1 billion by 2033, expanding at a CAGR of 12.6% from 2023 to 2033. The market growth can be credited to the increasing government initiatives to contest identity-related frauds and strengthen the eKYC process to verify identities. Additionally, the sales of identity verification solutions are growing impressively owing to the presence of large software companies for outsourcing purposes.
China has a strongly growing GDP, as a result, the country is witnessing the formation of new startups and the expansion of businesses. Due to this, the need for robust identity verification methods to prevent data breaches by developing safe, rapid, and paperless digital transactions among thriving corporations is projected to push the market growth.
| Historical CAGR (2017 to 2022) | 9.7% |
|---|---|
| Forecast CAGR (2023 to 2033) | 12.6% |
| Attributes | Details |
|---|---|
| Market Size (2033) | USD 2.7 billion |
| Market Absolute Dollar Growth (USD million/billion) | USD 1.8 billion |
Germany identity verification market is projected to attain USD 2.7 billion by 2033. Germany's market is assessed to expand at a CAGR of 11.7% over the forecast period, more than the CAGR of 8.6% witnessed in the historical period. The market growth can be attributed to the rising integration of multiple technologies like blockchain, Artificial Intelligence, and Machine Learning to secure digital identities. Increasing digitalization in the country is also spurring the market growth.
In November 2022, Yes, a Germany-based identification service, and Verimi, an identification service, announced merging. The companies intend to develop an ecosystem for digital identities in the country with this merger. The merger is estimated to develop a new business model that combines the interest of businesses and banks for their customer’s benefit.
| Historical CAGR (2017 to 2022) | 8.6% |
|---|---|
| Forecast CAGR (2023 to 2033) | 11.7% |
Several regional and global market players have severely fragmented the global identity verification market at present. Moreover, the extension of software companies towards the business of online identity check and verification activities has rendered the global market more significant than before.
Acquisition of contracts for large institutions, requiring ID verification solutions in huge amounts, is the leading strategy adopted by software companies to make a profitable business out of sales of identity verification solutions.
What are the Recent Developments in the Field of Identity Verification Market?
| Attribute | Details |
|---|---|
| Market Size Value in 2023 | USD 11.1 billion |
| Market Forecast Value in 2033 | USD 38.5 billion |
| Global Growth Rate | 13.2% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2017 to 2022 |
| Market Analysis | USD million/billion for Value |
| Key Regions Covered | North America; Latin America; Europe; Asia Pacific; The Middle East and Africa |
| Key Countries Covered | The United States, Brazil, Mexico, Canada, the United Kingdom, Germany, France, Spain, Italy, Russia, Argentina, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam, Australia, Poland, China, New Zealand, Japan, GCC countries, South Africa, others |
| Key Market Segments Covered | Component, Deployment Mode, Type, Organization Size, Vertical, Region |
| Key Companies Profiled | Experian; GBG; Equifax; Mitek Systems; Thales Group; LexisNexis Risk Solutions; Onfido; Trulioo; Acuant; IDEMIA |
| Pricing | Available upon Request |
The identity verification market is worth USD 11.1 billion in 2023.
The identity verification market is anticipated to develop at a 13.2% CAGR from 2023 to 2033.
The solutions segment is predicted to thrive at a 13% CAGR from 2023 to 2033.
The identity verification market in Germany is quickly rising at an 11.7% CAGR through 2033.
The United States identity verification market is projected to account for USD 8.8 billion in absolute dollar growth by 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Component 5.1. Solutions 5.2. Services 6. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Deployment Mode 6.1. On-premises 6.2. Cloud 7. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Type 7.1. Biometrics 7.2. Non-Biometrics 8. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Organization Size 8.1. SMEs 8.2. Large Enterprises 9. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Vertical 9.1. BFSI 9.2. Government and Defense 9.3. Healthcare & Life Sciences 9.4. Retail and eCommerce 9.5. IT & ITeS 9.6. Energy and Utilities 9.7. Education 9.8. Travel 9.9. Gaming 9.10. Others 10. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Region 10.1. North America 10.2. Latin America 10.3. Europe 10.4. Asia Pacific 10.5. Middle East and Africa 11. North America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 12. Latin America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 13. Europe Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 14. Asia Pacific Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 15. Middle East and Africa Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Experian 18.2. GBG 18.3. Equifax 18.4. Mitek Systems 18.5. Thales Group 18.6. LexisNexis Risk Solutions 18.7. Onfido 18.8. Trulioo 18.9. Acuant 18.10. IDEMIA 19. Assumptions & Acronyms Used 20. Research Methodology
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Identity Verification Market
