The global identity verification market accounted for US$ 5.52 Bn in 2018 and is expected to grow at a CAGR of 14.3% over the forecast period 2019-2027, to account for US$ 18.12 Bn by 2027. Growth in recent years in the identity verification market is primarily driven by the growing number of cyber-attacks. North America region is observed to garner the highest market share in the identity verification market.
Over the years, the financial regulators have intensified their focus on monitoring of fraud activities, which also includes a thrust for the financial institutes to adopt suitable security solutions. Furthermore, in the coming years, the regulators are expecting that the firms to be able to show, not only that they are capable of functioning the system appropriately, but also prove that their systems are efficient enough. This demand for sophisticated transaction monitoring system would be predominantly driven by the legislation like NYSDFS (New York States’ Department of Financial Services) part 504. In the coming years, the emergence of secure transaction platforms enabling the financial institutions to configure a range of monitoring scenarios, performing efficient data analysis and filter out the genuine suspicious activities from the other false positives, are expected to gain significant traction in the market. This, in response, is expected to bolster the demand for identity verification solutions. Therefore, increasing demand for secure transaction in the BFSI sector is driving the growth of identity verification market.
Presently, most of the customers of identity verification providers are large enterprises, mainly due to large scale operations and faster adoption of digital and technological advancements on these businesses. Large companies worldwide are in the front of digital transformation to improve existing processes; however, small and medium-sized enterprises are still in the process of adapting to the latest technology trends. Some of the primary reasons behind this include resource constraints and lack of knowledge & awareness about the potential benefits of digital transformation. Hence, the small and medium-sized enterprises, as well as organizations that are still following do-it-yourself methods for identity verification, present huge strategic value and growth opportunity for players operating in the identity verification market.
The overall identity verification market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the identity verification market. It also provides the overview and forecast for the global identity verification market based on all the segmentation provided concerning five primary reasons such as North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. Also, primary interviews were conducted with industry participants and commentators to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the identity verification industry. Some of the players present in the identity verification market are Acuant, Inc., Authenteq, Gemalto N.V. (Thales group), IDEMIA, Mitek Systems, Inc., Experian Information Solutions, Inc., Jumio Lexisnexis, Onfido, and Trulioo among others.