Editorial

Digital identity verification spend to exceed $20 billion globally by 2027

Growth will be driven by digital services requiring digital onboarding journeys, and the growing requirement for identity verification systems to combat fraud

Posted 31 August 2022 by Christine Horton


Spend on digital identity verification checks will reach $20.8 billion globally in 2027, according to new research

The figure is up from $11.6 billion in 2022, according to Juniper Research.

The study predicts growth will be driven by both the increasing prevalence of digital services requiring digital onboarding journeys, and the growing requirement for more advanced and robust identity verification systems in the face of rising fraud.

Top vendors revealed

The research also assessed leading digital identity verification vendors. Each company was evaluated on criteria such as depth and breadth of offerings, service innovation and future market prospects. Juniper ranked the top three vendors as Microsoft, Thales and LexisNexis Risk Solutions.

The research found that each of these vendors is taking advantage of the requirements for digital onboarding, plus providing advanced anti-fraud capabilities.

“Microsoft has taken a leading role in verification, particularly with its Azure AD solution in a remote working context; leveraging its business environment presence. Thales has implemented a different approach; creating a broad portfolio of solutions in identity verification, that it then coordinates for each verification use case. LexisNexis Risk Solutions is leveraging its broad data coverage using machine learning to verify identity, bolstered by frequent acquisitions,” notes the report.

“There are multiple pathways to identity verification success,” said research co-author Damla Sat.  

“There are many different segments and verification types, with no single vendor covering all the solutions. As such, there is still a lot of room for innovation; vendors must focus on building out innovation partnerships and acquisitions that allow them to intelligently orchestrate the most effective verification types for each use case to drive growth forward.”