The identity verification sector is projected to expand significantly, with its market size anticipated to increase from US$ 9.16 billion in 2022 to US$ 31.95 billion by 2030, reflecting a compound annual growth rate (CAGR) of 16.9% during this period.
During the forecast period, North America and Europe are expected to dominate the identity verification market. This growth is largely driven by stringent regulations such as Anti-Money Laundering (AML), Know Your Customer (KYC), and measures aimed at preventing digital fraud, which are particularly influential in these regions. Meanwhile, the Asia Pacific region is projected to experience a robust CAGR in the identity verification market, fueled by the ongoing digital transformation across various industries and the rising adoption of advanced technologies like artificial intelligence (AI) and fraud analytics.
As security threats are anticipated to escalate in the coming years, there will be an increased demand for solutions capable of swiftly analyzing vast amounts of data, leveraging technologies such as Artificial Intelligence. AI's capacity to perform rapid mathematical computations enhances human intelligence, presenting significant growth opportunities for the identity verification market in the near future.
AI has demonstrated considerable effectiveness in threat detection, as it can identify anomalies, patterns, and outliers with greater ease, even with a less experienced workforce. Numerous players in the identity verification market have begun to incorporate AI techniques into their existing solutions to enhance their analytical capabilities and incident response. For instance, in July 2023, DocuSign introduced its upgraded identity verification solution, Liveness Detection for ID Verification, which utilizes AI-driven biometric checks to authenticate signers. Additionally, Checkout.com launched its Identity Verification product in July 2023, aimed at streamlining customer onboarding and identity verification processes, utilizing proprietary AI trained on billions of identity and facial recognition documents.
In the future, as end users' expectations regarding user behavior and threat detection capabilities rise, the integration of advanced analytical technologies with current identity verification solutions is likely to propel market growth.
Governments across various nations are investing in enhancing cybersecurity measures. For example, the US Department of Labor is focused on safeguarding data related to American workers, which includes approximately 94.8 million records of sensitive, personally identifiable information. Furthermore, the Indian Budget for 2023 allocated around US$ 75.47 million (INR 62.5 million) to the Ministry of Electronics and Information Technology (MeitY) to bolster the nation?s cybersecurity framework.
As global transaction volumes continue to rise, so too do regulatory requirements. Consequently, the increasing government regulations and investments in cybersecurity are motivating market participants to adopt identity verification solutions, thereby creating growth opportunities within the identity verification market.
Key players in the identity verification market include Trulioo, Onfido, Mitek Systems, Inc., IDology, Authenteq, Experian Plc, Thales SA, IDEMIA, Jumio Corporation, and LexisNexis Risk Solutions Group. A comprehensive analysis of several other significant players in the identity verification market has also been conducted to provide a well-rounded perspective of the market and its ecosystem.
The overall size of the identity verification market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the identity verification market. This approach also aimed to provide an overview and forecast of market growth across all segments. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the findings and gain deeper analytical insights. Participants included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the identity verification sector.