Global Identity Verification Market Assessment, By Component [Solution, Services], By Deployment Mode [On-Premises, Cloud Based], By Verification Type [Biometrics, Non-Biometrics], By Company Size [Large Enterprises, Small and Medium Enterprises], By End-User Industry [Banking, Financial Services and Insurance, Retail and E-commerce, Government and Defense, IT and ITeS, Energy and Utilities, Education, Travel and Tourism, Others], By Region, Opportunities and Forecast, 2018-2032F

Global identity verification market is projected to witness a CAGR of 14.80% during the forecast period 2025-2032, growing from USD 12.60 billion in 2024 to USD 38.02 billion in 2032.

The identity verification market is growing rapidly owing to the increasing need for security in various sectors. Organizations focus on identity verification to safeguard sensitive information and prevent fraud as cyberattacks become more prevalent. The International Telecommunication Union (ITU) reported that 25.7% of all cyberattacks in 2023 targeted the manufacturing sector, with malware and ransomware being the most common tools attackers use. Similarly, the finance and insurance sectors were primarily threatened, as 18.2% of the attacks occurred in these areas.

Additionally, organizations are increasingly adopting advanced technologies, such as biometrics and artificial intelligence, to fortify security measures. These technologies improve accuracy in verifying identities, streamline the user experience, and allow customers to gain access to services securely. Regulatory compliance also fuels growth in the identity verification market, with strict regulations such as the General Data Protection Regulation (GDPR) and anti-money laundering (AML) laws requiring businesses to adhere to strict identity verification processes.

Furthermore, there is an emerging demand for secure identity verification methods, with digital transactions and online services becoming a norm. Maintaining customer trust through proper identity verification with businesses shifting towards digitalization is important. This has led to the fast expansion of the identity verification market as more organizations are concerned about the threats of cyberattacks, regulatory pressures, and the increased dependency on digital services.

For example, in June 2024, Equifax, Inc. launched the “Talent Report,” an education verification solution that enables employers and background screeners to instantly verify high school diploma data through an exclusive integration with the National Student Clearinghouse, streamlining the pre-hire verification process.

Growth in E-Commerce Industry Drives the Identity Verification Market

The rapid growth of e-commerce is significantly driving the expansion of the identity verification market. With the popularity of online shopping, businesses face increased risks of identity fraud and cyberattacks. Thus, this explosion in digital transactions requires rigorous identity verification processes to ensure safe and reliable consumer-to-retailer interaction. Most online marketplace companies employ advanced identity verification solutions against account and payment fraud to tackle this problem. These processes are becoming accurate, quick, and convenient for consumers to use by integrating biometrics and AI into their mechanism.

Regulatory compliance is also increasing with the security laws requiring businesses to implement effective measures for identity verification. Therefore, compliance will be crucial in gaining consumer trust and staying ahead of the competition. According to the International Trade Administration, the demand for secure identity verification solutions will also continue to increase, with the projected global B2B e-commerce market reaching USD 36 trillion by 2026. Companies are investing in innovative technologies that protect operations and customer data. This expansion is considered a critical factor driving the growth of identity verification with the increased adoption of e-commerce and rapid digitalization.

For example, in October 2024, AuthenticID, Inc. launched AuthenticID360, a holistic identity verification platform designed to meet the growing demands of the e-commerce industry. It enhances security for online transactions with a 360° view of identity data and fraud risk signals in two seconds.

Adoption of Biometric Technology Boosts the Identity Verification Market

The adoption of biometric technology significantly fuels growth in the identity verification market, particularly within the payment processing segment. Facial biometrics is emerging as a preferred solution with the increasing demand for secure and convenient payment methods. According to Oloid Inc., the number of face recognition payments is projected at 1.4 billion per annum by 2025. Biometric solutions enable advanced security through unique identifiers, making it difficult for scammers to impersonate account users. This heightened level of security is crucial, as many organizations are currently facing identity theft cases as well as cyber hacking attempts. Furthermore, biometric payment methods offer users with ease while transacting, hence embracing a higher volume of transactions. Businesses are forced to implement robust identity verification methods in compliance with the requirements as regulatory frameworks evolve.

For example, in December 2024, authID, Inc. partnered with Berify, a subsidiary of Touch Point Worldwide, Inc., to provide biometric identity assurance solutions that enhance user security and experience across its platforms in the Asia-Pacific market.

Government Initiatives Fuel Identity Verification Market Growth

Government initiatives like India’s Aadhaar Program, the United States’ REAL ID Act, and the European Union’s electronic IDentification, Authentication, and trust Services (eIDAS) regulation are significantly fostering revenue growth in the identity verification market. These programs establish robust frameworks for identity verification, which increases security and trust for digital transactions, further boosting the demand for advanced verification solutions. The Aadhaar Program streamlined access to government services through a vast biometric database, increasing efficiency and reducing fraud. This promoted private sector investments in identity verification technologies, which created a new revenue stream. Similarly, the REAL ID Act forces state to improve the mechanisms for issuing identification, where states are forced to raise the level of secure technology and infrastructure. This tends to increase revenue for technology firms. The eIDAS Regulation facilitates cross-border electronic transactions that necessitate reliable identification verification. This creates opportunities for businesses to innovate in the delivery of compliant services, with such advancements likely further to increase revenue levels in the identity verification business. These government initiatives catalyze advancement in identity verification and create a favorable environment for the market with investment and innovation potential.

For example, in August 2024, the National Institute of Standards and Technology released the second public draft of its Digital Identity Guidelines, which addresses various identity verification methods, enhancing security and accessibility for government services. This initiative reflects the evolving landscape of the identity verification market, accommodating both traditional and digital credentials.

Banking, Financial Services, and Insurance Industry Dominates in Identity Verification Market

The banking, financial services, and insurance (BFSI) industry leads the identity verification market owing to rising demands for enhanced security and compliance with the growing digital transactions. This compels financial institutions to implement sophisticated identity verification solutions to avoid fraud and stay compliant. These solutions range from biometric authentication to real-time monitoring and can help organizations efficiently verify customer identities while reducing risks. The BFSI industry focuses on Know Your Customer (KYC) and Anti-Money Laundering (AML) rules, increasing demand for more effective identity verification. Furthermore, cloud-based technologies make solutions scalable and economical, positively affecting operational efficiency. An industry's focus on protecting sensitive customer data encourages customers to adopt digital services. This proactive approach of BFSI towards identity verification protects its assets and sets a benchmark for others as cyber threats evolve, driving innovation and growth in the identity verification market.

North America Leads Identity Verification Market Share

North America leads the identity verification market owing to the technological advancements and requirements set by the regulatory bodies. A robust financial services sector requires high-security measures against fraud and regulatory compliance. Companies increasingly adopt advanced identity verification solutions through biometric authentication and artificial intelligence to enhance security and streamline the onboarding process for customers. The increasing need for Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations fuel the demand for efficient identity verification systems. Furthermore, North America's robust infrastructure and investments in technology help organizations introduce innovative solutions to meet ever-changing security needs. Large technology companies and startups create a competitive environment encouraging constant improvement and innovation in identity verification services. Secure identity verification will secure the future of digital businesses as it increases customer trust, making all transactions smooth and easy. The position of leadership in this identity verification market will add a benefit to operational efficiency while making it the best security and compliance benchmark globally.

For instance, in July 2024, Equifax, Inc. launched “All Employers Within 90 Days”, a new mortgage verification solution that utilizes “The Work Number”, an automated employment verification service, enabling lenders to efficiently verify a borrower's income and employment within the past 90 days, enhancing loan processes.

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Future Market Scenario (2025-2032F)

• Facial recognition and fingerprint scanning in biometric technologies will become standard in identity verification while enhancing security and improving user convenience across various industries.
• The identity verification market is likely to witness a rise in investment in compliance solutions as governments implement stricter regulations on data privacy and identity verification, driving demand for reliable identity verification services.
• Cloud-based identity verification solutions will gain popularity among small and medium-sized enterprises. These solutions will offer cost-effective and scalable options, improving security while reducing fraud.
• The use of blockchain technology in identity verification will create secure, decentralized systems for managing identities, enhancing trust and security, and further fuelling market growth.

Report Scope

“Identity Verification Market Assessment, Opportunities and Forecast, 2018-2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global identity verification market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Base Year of the Analysis	2024
Historical Period	2018-2023
Forecast Period	2025-2032
Projected Growth Rate	CAGR of 14.80% between 2025 and 2032
Revenue Forecast in 2032	USD 38.02 billion
Segments Covered	Component, Deployment Mode, Verification Type, Company Size, End-User Industry
Regions Covered	North America, Europe, South America, Asia-Pacific, Middle East and Africa
Key Companies Profile	Equifax Inc., Experian plc, GB Group PLC, IDEMIA Group, LexisNexis Risk Solutions Group (Tracesmart Limited), Mastercard International Incorporated, Mitek Systems, Inc., Onfido Limited, Thales S.A., TransUnion LLC
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, global identity verification market has been segmented into the following categories: 

• By Component
  • Solution
  • Services
• By Deployment Mode
  • On-Premises
  • Cloud Based
• By Verification Type
  • Biometrics
  • Non-Biometrics
    • Database Methods
    • Knowledge-based Verification
    • Two-Factor Authentication
    • Others
  • By Company Size
    • Large Enterprises (>1000 Employees)
    • Small and Medium Enterprises (SMEs) (<1000 Employees)
  • By End-User Industry
    • Banking, Financial Services and Insurance (BFSI)
    • Retail and E-commerce
    • Government and Defense
    • IT and ITeS
    • Energy and Utilities
    • Education
    • Travel and Tourism
    • Others
  • By Region
    • North America
    • Europe
    • Asia-Pacific
    • South America
    • Middle East and Africa

Key Players Landscape and Outlook

The biometric identity verification market is evolving, with a range of technology providers focused on developing advanced solutions tailored to various sectors like travel, finance, and healthcare. The rising demand for secure and efficient identity verification methods drives significant investment in biometric technologies.  The partnership among industry stakeholders will be crucial to addressing privacy, data protection challenges, and the ethical use of these systems as the market matures. The prospects for biometric verification are strong, with increased regulatory requirements and a growing focus on security. They are poised to enrich users' experience while providing sound security solutions as these technologies integrate into everyday life. Hence, the evolution of biometric systems will eventually modify current identity verification processes to lead toward a more secure and interconnected global network.  

In August 2024, Workday, Inc. and Equifax, Inc. established a strategic partnership to enhance the employment and income verification process, improving efficiency for Workday customers and enriching employee experiences during critical life events.

In December 2024, IDEMIA Group and CertiPath, Inc. strategically collaborated to integrate IDEMIA’s digital identity solutions with CertiPath’s TrustVisitor, enhancing identity verification and fraud prevention for federal agencies and high-assurance environments amid rising cyber threats.

Key Players Operating in Global Identity Verification Market are:

• Equifax Inc.
• Experian plc
• GB Group PLC
• IDEMIA Group
• LexisNexis Risk Solutions Group (Tracesmart Limited)
• Mastercard International Incorporated
• Mitek Systems, Inc.
• Onfido Limited
• Thales S.A.
• TransUnion LLC

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• How are the markets divided into different product/service segments and the market size and growth of each segment?
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• How are the markets predicted to develop in the future and what factors will drive or inhibit growth?
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