MarketsandMarkets continues to forecast strong growth for the global Identity Verification Market. The firm’s latest report predicts that the Identity Verification Market will double in the next five years, climbing from $8.6 billion in 2021 to $18.6 billion in 2026.
Those numbers represent a CAGR of 16.6 percent, and are consistent with MarketsandMarkets’ prior Identity Verification report. In 2020, the firm predicted that the market would hit $15.8 billion by 2025, while growing at a slightly more modest CAGR of 15.6 percent.
MarketsandMarkets credited the expanding digital ecosystem for the anticipated growth. Organizations that offer digital services need a secure way to verify the identities of customers who sign up online, which in turn helps guard against identity theft and other forms of fraud. Some of those procedures will be government-mandated or otherwise incentivized through various digital transformation initiatives, while others will be prioritized in an effort to provide customers with a better user experience.
The non-biometric identity verification segment is expected to outstrip the biometric segment in the forecast period. The non-biometric segment covers document verification solutions, which help confirm the authenticity of passports, driver’s licenses, and payment cards. Such solutions are often used to enable automation and customer onboarding, and can be deployed alongside biometric solutions in many cases.
The cloud segment, meanwhile, will display the highest CAGR. MarketsandMarkets indicated that cloud solutions will be especially popular with small and medium-size enterprises because cloud solutions are both cheap and easy to use, and therefore make secure identity services more accessible to organizations with limited resources.
Finally, the North American identity verification market is expected to generate the lion’s share of the revenue. That can be attributed to the large number of vendors and early adopters in the region, and to the proliferation of digital driver’s licenses and other digital identity programs. US police departments also use identity verification technology in criminal investigations.
MarketsandMarkets listed Mitek, Thales, Trulioo, IDEMIA, Jumio, AU10TIX, Innovatrics, and iDenfy as some of the leading players in the digital identity space. Investment in digital identity has skyrocketed in the past few months, though analyst Maxine Most has warned that many providers will struggle to survive in an increasingly competitive identity verification landscape.
December 13, 2021 – by Eric Weiss