Identity Verification Market
Digitalization gained traction during the pandemic period across all industry verticals. People shifted toward e-commerce over the brick-and-mortar model. The majority of the transactions and exchange of critical information take place via digital platforms, opening gates for fraudsters to carry out identity fraud. The growing sophistication of security information platforms and IT security-based tools and solutions is anticipated to have a profound impact on the overall management of the security ecosystem of an enterprise. The unprecedented growth in the number of cyberattacks has further led to an increased need for robust security solutions across enterprises. According to Regula, ~95% of enterprises and approximately 90% of small businesses experienced identity fraud in 2022. On average, a company experienced ~30 cases in 2022. Such frauds result in business disruption, legal expenditures, and loss of existing and potential clients. Hence, companies are increasingly adopting several security solutions to help businesses confirm the identity of individuals to access sensitive transactions and interactions successfully.
The prominent benefits of identity verification include real-time ID verification, extracting data directly from IDs without any friction, effective document authentication and verification, and mitigation of the risk of spoofing. The features provided by identity verification solutions, such as identity verification, data identification, and fraud detection, help market players prevent identity fraud. All these benefits and capabilities offered by identity verification provide long-term benefits to enterprises and help them to enhance their security. These benefits drive the identity verification market growth.
Increase in Adoption of Bring Your Own Device (BYOD) Concept to Drive Identity Verification Market
Over the years, and especially after the pandemic, the BYOD trend has gained traction to offer employees and corporations greater flexibility and mobility. Bring Your Own Device (BYOD) concept allows employees to use their personal phones and tablets to access office email and data. It becomes flexible for the employees to use the company data from anywhere, anytime. Thus, such benefits of BYOD lead to its widespread adoption in businesses. For example, according to Jamf, in July 2023, ~75% of people were using their personal devices for office work, which has resulted in a 34% increase in productivity, and ~US$ 250 per employee can be saved with a BYOD plus stipend policy. However, BYOD does pose some security risks, such as business ID theft. Using public or unsecured Wi-Fi, downloading apps from unauthorized sources, leaving phones unattended, and visiting unverified websites are a few prominent factors acting as a potential threat to data breach or cyberattack incidents. Thus, corporates are increasingly adopting identity verification solutions. Moreover, market players are launching innovative solutions. For example, in May 2023, OpenVPN launched Device Identity Verification & Enforcement (DIVE) for CloudConnexa, its cloud-based solution. The solution is made for BYOD and corporate-owned devices due to the rapid growth of remote and hybrid workforces. In September 2019, ImageWare Systems Inc—a provider of mobile and cloud-based identity authentication solutions—announced the launch of GoVerifyID, an end-to-end biometric authentication solution for macOS. The launch of this biometric solution helps businesses to utilize identity as a security measure. Therefore, the rise in BYOD adoption acts as a catalyst for the identity verification market growth.
Identity Verification Market: Segmental Overview
Based on component, the identity verification market is segmented into solution and services. The solution segment held a larger share of the identity verification market in 2022, with the highest CAGR in the identity verification market during the forecast period 2023-2030.Based on deployment, the identity verification market is segmented into cloud and on-premise. The cloud segment held a larger identity verification market share in 2022 with the highest CAGR in the identity verification market during the forecast period 2023-2030.
Based on enterprise size, the identity verification market is segmented into large enterprises and SMEs
The large enterprise segment held a largest identity verification market share in 2022, with the highest CAGR in the identity verification market during the forecast period 2023-2030. Based on type, the identity verification market is segmented into biometric verification, online verification, knowledge-based authentication, and others. The biometric verification segment held the largest identity verification market share in 2022, and the online verification segment is expected to register the highest CAGR in the identity verification market during the forecast period 2023-2030.
Based on industry vertical, the identity verification market is segmented into BFSI, government & defense, healthcare, IT & telecom, retail, and others. The BFSI segment held the largest identity verification market share in 2022, and the same segment is expected to register the highest CAGR in the identity verification market for the forecast period 2023-2030.
Identity Verification Market Analysis: Competitive Landscape and Key Developments
Trulioo; Onfido; Mitek Systems, Inc; IDology; Authenteq; Experian Plc; Thales SA; IDEMIA; Jumio Corporation; and LexisNexis Risk Solutions Group are a few of the key companies operating in the global identity verification market. The market leaders in the global identity verification market focus on new product launches, expansion and diversification, and acquisition strategies, which allow them to access prevailing business opportunities.
- In October 2023, IDology—a GBG company and a leading identity verification provider in the Americas for over 20 years—announced an expanded portfolio of gaming solutions designed to optimize player acquisition, loyalty, and revenue while fortifying operators against fraud and money laundering through strategy and automation, ensuring compliance with both state and federal regulations.
- In July 2023, Onfido, a global identity verification and authentication provider, partnered with OjirehPrime, a digital bank based in Nigeria, to improve the secure online identity checks process for African citizens.
- In August 2023, Canada-based Trulioo added new capabilities to its Workflow Studio platform for faster identity verification.
