Global Identity Verification and Authentication Market – Industry Trends and Forecast to 2031

Global Identity Verification and Authentication Market, By Application (Credit Card Fraud, Bank Fraud, Phone or Utility Fraud, Employment or Tax-related Fraud, and Others), Component (Solutions and Services), Type (Non-Biometrics, and Biometrics), Deployment Type (On-Premise and Cloud), Organization Size (Small and Medium-Sized Enterprises and Large Enterprises), Vertical (BFSI, Government and Defense, Energy and Utilities, Retail and E-commerce, IT and Telecom, Healthcare and Life Sciences, Education, Gaming and Gambling, and Others) – Industry Trends and Forecast to 2031.

Identity Verification and Authentication Market Analysis and Size

The identity verification and authentication market focuses on diverse applications, including credit card fraud prevention, countering bank fraud, tackling phone or utility fraud, and addressing employment or tax-related fraud. These applications collectively contribute to enhancing security measures, safeguarding against fraudulent activities across different sectors and industries.

Data Bridge Market Research analyses that the global identity verification and authentication market, which was USD 11.18 billion in 2023, is expected to reach USD 34.93 billion by 2031, at a CAGR of 15.3% during the forecast period 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Identity Verification and Authentication Market Scope and Segmentation  

Market Definition

Identity verification and authentication are processes used to confirm the legitimacy of an individual's identity in digital transactions. Verification ensures the provided identity information is valid, while authentication involves validating the user's claimed identity using various methods, such as passwords, biometrics, or multi-factor authentication, enhancing security measures.

Global Identity Verification and Authentication Market Dynamics

Drivers

• Growing digitalization across the world

With increased digitalization, there is a growing need to secure online transactions and protect personal information. Identity verification and authentication solutions play a pivotal role in ensuring the integrity of digital identities, meeting the rising demand for robust security measures in an increasingly interconnected and digital world. The expanding global digital landscape acts as a key driver for the identity verification and authentication market

• Increasing demand for cybersecurity measures

The escalating frequency and sophistication of cyber threats, coupled with a surge in identity theft incidents, underscore the critical need for robust identity verification and authentication solutions. As cybercriminals employ increasingly sophisticated methods, organizations seek advanced technologies to fortify their defenses. This heightened demand is driven by the imperative to safeguard sensitive data, prevent unauthorized access, and ensure the integrity of digital identities, reflecting the indispensable role of effective identity verification in the broader landscape of cybersecurity.

Opportunities

• Technological advancements drive identity solutions

Continuous technological advancements, particularly in biometrics and artificial intelligence (AI), present significant opportunities for players in the identity verification and authentication market. Innovations in biometric modalities and AI algorithms enhance the accuracy and security of identity verification processes, addressing evolving challenges. Market players can capitalize on these advancements to strengthen their solutions, cater to diverse use cases, and maintain a competitive edge in an environment where cutting-edge technology is crucial for effective identity authentication.

• Growing need for secure and regulatory-compliant

Growing regulatory demands necessitate solutions that streamline compliance processes. Companies offering robust identity verification services can address the evolving regulatory landscape, providing organizations with tools to meet requirements effectively. This alignment with compliance needs positions these solutions as essential, creating a market opportunity for providers to cater to the escalating demand for secure and regulatory-compliant identity verification and authentication.

Restraints/Challenges

• Cost barriers

Implementing robust identity verification measures may involve significant costs, particularly affecting smaller enterprises. The financial burden can impede market growth as businesses, especially those with limited resources, may hesitate or face challenges in adopting comprehensive identity verification solutions, slowing down the expansion of the identity verification and authentication market.

• Lack of technical expertise

The market faces challenges due to shortage technical expertise in developed and developing economies. A scarcity of skilled professionals, coupled with limited awareness among management, impedes the market's smooth growth. The dearth of experienced individuals compounds the issue, hindering the overall growth rate as the industry struggles to navigate and implement advanced technologies effectively.

This global identity verification and authentication market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the global identity verification and authentication market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

• In June 2023, U.S.-based tech firm Socure acquired identity verification service Berbix for $70 million, marking its inaugural acquisition. This strategic move integrates Berbix's real-time ID verification and fraud detection capabilities with Socure's comprehensive approach, enhancing security and compliance measures across diverse industries through a synergy of expertise and resources
• In November 2021, Experian launched its Work Report digital verification service, enabling users to consent to digital payroll data sharing. The service establishes a connection to an employer's payroll data, swiftly validating a customer's gross and net income, along with employment status and tenure, streamlining and enhancing verification processes for various purposes
• In December 2020, Trulioo collaborated with Credit Sesame, an online banking services company. This partnership empowered Credit Sesame to enhance client privacy using Trulioo's Global Gateway biometric identification platform. The integration of advanced biometric technology contributes to elevated security measures and improved user identification processes for Credit Sesame's online banking services
• In June 2020, GBG collaborated with CredoLab to leverage GBG's digital and AI-driven risk management. This partnership aimed to rapidly and reliably assess the creditworthiness of individuals in Indonesia, encompassing both the unbanked and underbanked populations. The integration of advanced technologies enhances the efficiency and inclusivity of credit evaluations in the region

Global Identity Verification and Authentication Market Scope

The global identity verification and authentication market is segmented on the basis of application, component, type, deployment type, organization size, and vertical. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Application

• Credit Card Fraud
• Bank Fraud
• Phone or Utility Fraud
• Employment or Tax-Related Fraud
• Others
• KYC/KYB
• On boarding
• Access Control and User Monitoring

Component

• Solutions
• Services

Type

• Non-Biometrics
• Biometrics

Deployment Type

• On-Premise
• Cloud

Organization Size

• Small and Medium-Sized Enterprises
• Large Enterprises

Vertical

• BFSI
• Government and Defense
• Energy and Utilities
• Retail and Ecommerce
• IT and Telecom
• Healthcare and Life Sciences
• Education
• Gaming and Gambling
• Others

Global Identity Verification and Authentication Market Regional Analysis/Insights

The global identity verification and authentication market is analysed and market size insights and trends are provided by application, component, type, deployment type, organization size, and vertical as referenced above.

The countries covered in the global identity verification and authentication market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

North America is expected to dominate the market due to its concentration of leading research institutions and tech companies specializing in photonics and integrated circuits. This robust R&D ecosystem fuels innovation, propelling advancements in identity verification and authentication circuits within the region's dynamic technological landscape.

Asia-Pacific emerges as the fastest-growing market fuelled by its sizable and growing population, escalating internet adoption, and increased data consumption. The surge in demand for rapid and efficient communication networks aligns with the advantages offered by Identity Verification and Authentication circuits. PICs, with integrated optical components, prove ideal for high-speed data transmission and communication applications in the region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Global Identity Verification and Authentication Market Share Analysis

The global identity verification and authentication market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to global identity verification and authentication market.

Some of the major players operating in the global identity verification and authentication market are:

• Experian Information Solutions, Inc. (U.S.)
• G.B. Group plc (‘GBG’) (U.K.)
• Equifax, Inc. (U.S.)
• Mitek Systems, Inc. (U.S.)
• Thales (France)
• LexisNexis Risk Solutions (U.S.)
• Onfido (U.K.)
• Trulioo. (Canada)
• Acuant, Inc. (U.S.)
• IDEMIA (France)
• Jumio (U.S.)
• TransUnion LLC. (U.S.)
• Au10tix (Israel)
• IDology. (U.S.)
• Innovatrics (Slovakia)
• Applied Recognition Corp. (Canada)
• Signicat (Norway)
• IDfy (India)