MarketsandMarkets believes that the identity verification market will double in the next five years. The firm’s latest report specifically predicts that the demand for identity products will jump from $7.6 billion to $15.8 billion between 2020 and 2025, all while displaying a CAGR of 15.6 percent.
The numbers are in keeping with the firm’s previous report on the identity verification market. MarketsandMarkets valued the market at $6 billion in 2019, and predicted that it would reach $12.8 billion by 2024. In that case, the CAGR was nearly identical at 16 percent.
In both reports, MarketsandMarkets attributed the expected growth to the need for better fraud prevention and data protection. The 2020 report also highlighted digital transformation initiatives and the increasing prevalence of digital IDs. With that in mind, MarketsandMarkets advises technology providers to search for opportunities with governments and businesses that are looking for cloud-based identity verification solutions, and with customer-facing organizations that are hoping to use digital identity to streamline the consumer experience.
While those trends would seem to bode well for face-based mobile onboarding systems (and other biometric identity verification options), MarketsandMarkets expects the non-biometric segment to make up the largest portion of the market in the forecast period. The non-biometric segment includes AI and machine learning technology that can be used to verify the authenticity of passports, driver’s licenses, credit cards, and other documents. Cloud deployments, meanwhile, will exhibit the highest CAGR. The technology is appealing because it is affordable for smaller businesses while scaling easily for larger enterprises.
North America will have the largest identity verification market by region. MarketsandMarkets named Experian, Thales, Onfido, IDEMIA, Jumio, and Signicat as some of the key players in the identity verification space.
In a separate report, MarketsandMarkets predicted that the identity and access management market would reach $15.3 billion in the same timeframe. The firm has also indicated that the biometrics-as-a-service market will hit $3.6 billion.
October 20, 2020 – by Eric Weiss