Global Identity Verification Market

The global identity verification market size is predicted to increase from USD 8.6 billion in 2020 and reach USD 18.6 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 16.6% during the forecast period. The identity verification market’s major factors include Rising digitization initiatives, advanced fraudulent activities and identity theft during the last decade, Increased use cases of digital identities among verticals. Moreover, Initiatives by governments and enterprises with a focus on digitalization and implementation of new technologies, such as AI, ML and automation in identity verification solutions, would provide lucrative opportunities for identity verification vendors.

What is Identity Verification?

Identity verification is the essential method of confirming that a person is who they declare to be when opening a new bank account, applying for a loan, or different financial processes. Though identity verification is a necessary security action in combatting new account fraud, Identity verification also recreates a role in Know Your Customer (KYC) and anti-money laundering (AML) measures at financial institutions which evaluate and monitor client danger. Digital identity verification conveys the identity verification concept to today’s world. With data violations, account appropriation attacks, and identity theft on the rise and increased demand for remote operations due to the COVID-19 pandemic, businesses ought to catch identity fraud and decide if someone is who they declare to be online.

Growth Drivers

Growing digitalization with initiatives, such as eID, and smart infrastructure

The digitalization of the world has carried so multiple identity-related scams to light and encouraged businesses to take strict measures to assure them. With expanding digitalization across governments and private sectors worldwide, identity verification has evolved a critical component where verified identity is compulsory, such as border rules and digital services’ entrance. With initiatives across nations, such as electronic ID cards (eID), smart border management that operates facial recognition for identity Verification and smart cities and smart airports where video analytics and liveness detection is used for ID verification, safe identity verification has evolved a critical part of online safety of these areas.

Restraints

The price difference in Identity Verification solutions and services provided by merchants

The pricing of identity verification solutions and services is established on a few aspects, such as price per verification, linguistics, data depository, and technical help. Top companies supply pricing per verification on and month and yearly basis, in which a restricted number of ID verification statements are formed. Some vendors also supply flexible pricing per verification in some issues of an annual package—the challenge fibs in this different price demanded by the vendors of ID verification. For measure, ID verification pricing of identity begins from USD 1.18 per verification, whereas for Shufti Pro, the price starts from USD 1 per customer verification. Due to this price difference, the customers are unclear about selecting a particular solution or service. During our conversation with a primary, he also emphasized that this price difference in ID verification solution vendors is challenging for the customers.

Pre-covid-19 impact on global Identity Verification market

Regulatory management has become more stringent toward KYC (Know Your Customer) and AML (Anti-money Laundering) observation among reporting commodities with growing online services and smartphone penetration. Verifying identities is evolving essential for both businesses and governments. The regulatory authorities are increasingly evolving stringent toward KYC and AML observation among businesses to maintain financial crime. FATF (Financial Action Task Force) enriched the scope of reporting commodities and advised the member countries to oblige the lawful professionals. Art dealers and virtual asset vendors to serve AML screening on their customers Before the covid-19 pandemic.

Covid-19 impact on global Identity Verification market

After the explosion of COVID-19, verticals worldwide had to mandatorily acclimate to the latest digital world due to movements, such as Work From Home (WFH). With all the enterprises working more in the digital world, where cyber detractors are not rejecting any stone unturned to bring out attacks, such as identity stealings and identity spoofing has raised the requirement as well as the significance of stronger identity verification procedures for delivering more powerful and trustworthy authentication for the employees as well as clients and giving access to them.

Post Covid-19 impact on global Identity Verification market

Enterprises worldwide are increasing spending on digitization, including payment processes, after the covid-19 explosion and can witness the move toward digitization in all types of organizations. According to a current TechRepublic Premium survey, 47% of the respondents intend on paying more on digital transformation in 2021 than in 2020. In addition, in 2020, 58% of the respondents said digitizing paper, and 45% reported adopting online training modules; many financial services organizations have grown the said adoption. This sudden speed in identity verification adoption remembers the quickness to protect the vast numbers of consumers who have been driven to use digital services for the first time due to lockdown restrictions.

By organization size segmental analysis

SMEs (small-medium enterprise) segment to grow at a more increased CAGR during the forecast period SMEs are majorly embracing identity verification solutions and services to observation obligations and risks associated with the fraud. The manual and conventional methods of verifying are time-consuming. SMEs discover identity verification software as a simple, intuitive, low-cost, hassle-free, and secure solution to satisfy their growing requirements. SMEs are better inclined to cyber fraud due to restricted resources, availability of IT personnel, and budget constraints; and are looking onward to embracing identity verification software to save their money, time, resources, and assets. The cloud deployment model delivers a possible solution for the adoption of technology. In the future, it is desired that the lower cost of identity verification solutions will help SMEs worldwide deploy the solution.

By verticals segmental analysis

BFSI vertical to maintain the biggest market size during the forecast period The advanced digitization of banking procedures, such as digital onboarding and digital payments desired toward enhancing customer knowledge, are also pushing the demand for identity verification around the globe with increased technology adoption; the vertical is disclosed to many exposures, which cyberpunks may use to manipulate sensitive information, such as personal information, bank accounts, and credit card details and financial institutes are continuously exploring security solutions to mitigate such exposures, which would drive the identity verification market in the future. Also, stringent regulations, such as the Bank Secrecy Act, GDPR, and PSD2, are growing the demand for identity verification across the globe.

By Region segmental Anlaysis

North America is anticipated to contribute the highest market share in earnings during the forecast period. It is a technologically developed region with numerous premature adopters and major market players. Aspects such as developing government initiatives, such as smart infrastructure, smart cities, digital identity-based driver’s license and growing integration of different technologies, such as AI, ML, and blockchain, for hooking digital identities are anticipated to drive the demand for identity verification market. Asia Pacific is foreseen to contribute to the fastest-growing region with the highest CAGR during the forecast period. It is bringing technology provided with the earlier adoption of the latest technologies. The government brings initiatives towards tackling identity-related frauds, specifically for supporting eKYC to verify identities, such as compliance regulations created by countries, increasing demand for cloud-based identity verification, increasing identity-related cyber-attacks are forcing the earnings growth in this region.

Competitors Analysis

Experian, GBG, Equifax, Mitek Systems, Thales Group, LexisNexis Risk Solutions, Onfido, Trulioo, Acuant, Jumio, Innovatrics, Applied Recognition, Signzy and Passbase are the prominent players in the Identity verification market. Key Stakeholders

• Regulatory bodies
• Market research and consulting firms
• Local governments
• Technology providers
• Suppliers
• Retailers

Recent Development

• In November 2021, Experian undertakes a verification service – Work Report, a digital verification service that will permit consumers to consent to transfer their payroll details with another organization digitally. It delivers connectivity to an employer’s payroll data to deliver direct validation of a consumer’s gross and net revenue, as well as their employment grade and tenure, in a case of seconds.
• In June 2020, GBG partnered with CredoLab to smoothly and confidently evaluate the creditworthiness of any Indonesian person, including the unbanked and underbanked for CredoLab, by using GBG’s digital/AI-driven risk management.
• In December 2019, GBG and What3words joined into a partnership to improve location data for retailers and logistic companies for reaching niche markets efficiently.

Scope of the Report

Report Attribute	Details
Market Size Value in 2020	USD 8.6 Billion
The revenue forecast in 2027	USD 18.6 Billion
Growth Rate	CAGR of 16,6 % from 2021 to 2027.
Historical data	2017-2019
Forecast period	2021 – 2027
Region covered	North America, Europe, Asia-Pacific, South America, and Middle East & Africa
Key companies Profiled	Experian, GBG, Equifax, Mitek Systems, Thales Group, LexisNexis Risk Solutions, Onfido, Trulioo, Acuant, Jumio, Innovatrics, Applied Recognition, Signzy and Passbase.

Market Modelling

By component

• Solutions
• Services

By type

• Biometrics
• Non-biometrics

By Deployment Mode

• On-premise
• Cloud

By Organization size

• SMEs(small-medium enterprises)
• Large enterprise

By verticals

• BFSI
• Government and defense
• Healthcare & life science
• Retail and e-commerce
• IT & ITeS
• Energy and utilities

By Region

• North America
• Europe
• Asia pacific
• The Middle East & Africa
• South America

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