The global identity verification market size is forecast to grow from USD 8.6 billion in 2021 to USD 18.6 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 16.6% during 2021-2026.
The major growth drivers for the market include increasing digitization initiatives, increasing fraudulent activities and identity theft during the last decade, and Increasing use cases of digital identities among verticals. However, price disparity in identity verification solutions and services may restrain market growth.
By type, biometrics to grow at the highest rate during the forecast period
Biometric solutions follow lock and capture mechanisms to verify the individuals and further help in enabling access to a specific set of services. The biometric solutions are more secure and gain traction than conventional non-biometrics solutions. The biometric solutions segment is growing at a significant rate due to the increasing inherent demand from customers' end for seamless onboarding, compliance management, and fraud prevention.
Large enterprises segment to hold a larger market size during the forecast period
Amplifying internet penetration and increasing eCommerce activities are expected to increase the adoption of identity verification technology across large enterprises. Large organizations have adopted the identity verification solutions due to increased money laundering, fraudulent activity, identity theft, processing of high-risk transactions, compliant to different regulations, and cost-cutting on manual processes. Additionally, as large enterprises do not have budget constraints, it enables them to adopt the on-premises-based identity verification solution.
Asia Pacific (APAC) to grow at the highest CAGR during the forecast period
The government takes initiatives toward tackling identity-related frauds, especially for strengthening eKYC to verify identities, such as compliance regulations initiated by countries, is mainly driving the need for robust and stronger identity verification practices in APAC.
Other factors driving the adoption of identity verification solutions are the increasing BYOD trend across enterprises of all sizes and the increased use of smartphones for online transactions and online shopping. This, in turn, has led to an expansion of customer base and internet users, eventually leading to the urgent need to deploy identity verification solutions.
Drivers and Opportunities
Restraints and Challenges
Cumulative Growth Analysis
Payment Services Directive 2
Electronic Identification, Authentication, and Trust Services
Know Your Customer
General Data Protection Regulation
Federal Information Processing Standards
Payment Card Industry-Data Security Standard (PCI-DSS)
Health Insurance Portability and Accountability Act (HIPAA)
GB Group plc (GBG)
LexisNexis Risk Solutions
IDology (GBG plc)
SecureKey Technologies Inc.
PXL Vision AG
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View source version on businesswire.com: https://www.businesswire.com/news/home/20220125005718/en/
Laura Wood, Senior Press Manager
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