The identity verification market is set to more than double in size over the next five years, according to new research.
MarketsandMarkets’ new report on the Identity Verification Market forecasts it will grow from $7.6 billion in 2020 to $15.8 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 15.6 percent during that period.
The growth is being driven by more digitalisation initiatives, an increase in fraudulent activities and identity theft and a surge in use cases.
The report notes some lucrative opportunities for digital identity vendors. These include government and enterprise digital transformation projects and the adoption of cloud-based identity verification. It also points to the pressing need to improve customer expectations among verticals such as banking, financial services and insurance.
In the type segment, non-biometrics segment to hold the largest market size during the forecast period Non-biometrics identity verification solutions are used to verify documents, such as government IDs, passport, driving licences, and credit or debit cards. They are primarily used for remote customer onboarding, fraudulent ID detection, KYC/AML compliance, and business process automation.
MarketsandMarkets says the introduction and integration of AI and ML technologies into identity verification solutions will help organisations be more proactive and make detection and remediation of suspicious activities more effective.
If you liked this content…
“With the rapidly growing identity-based attacks and frauds, identity verification solutions are becoming essential,” the firms notes in the report summary. “The non-biometrics solution segment is an essential part of identity verification solutions and is expected to witness a huge growth in the coming years.”
Cloud-based identity verification
In deployment mode, cloud deployment to grow at a higher CAGR during the forecast period. This is down to cloud-based identity verification solutions that not only enable organisations to manage their costs but help them improve business agility. It is the fastest-growing deployment model in the Identity Verification Market.
SMBs also prefer cloud-based deployment, as it is cost-effective and easy to deploy.
“With the cloud-based deployment of these solutions, small enterprises can assess vulnerabilities and reduce threat landscape at a much lower cost, thus improving their customer services. The cloud-based platform offers a centralised way to verify identities. For organisations having strict budgets on security investments, cloud-based identity verification solutions are a good fit,” says the research.
North America is set to hold the largest market size during the forecast period. This is due to a high number of early adopters and the presence of major market players. In addition, government initiatives such as smart infrastructure, smart cities, digital identity-based driver’s licence, and the use of identity verification by the US police to track criminals and find missing persons, are also driving the need for identity verification across the region.
