Global Identity Verification Market Overview

The global identity verification market was valued at USD 9.87 billion in 2022 and is forecasted to grow to USD 33.93 billion by 2030, registering a CAGR of 16.7% between 2023 and 2030. This rapid expansion is driven by the rising incidence of identity-related fraud and cybercrime, which is accelerating digital transformation initiatives across various industries.

Growing demand for data security in multiple sectors fuels the advancement of the identity verification industry. Additionally, government and corporate efforts to digitize processes, along with the adoption of cutting-edge technologies such as artificial intelligence (AI), machine learning (ML), and automation, are creating significant opportunities for providers in this market. Regulatory compliance, especially in the financial sector, also acts as a strong market driver. The growing trend of Bring Your Own Device (BYOD) policies and enterprise mobility further support market growth. For example, in November 2020, LexisNexis Risk Solutions Group launched LexisNexis Fraud Intelligence, a tool designed to reduce account opening fraud by aggregating consumer application activity and identity events to generate a comprehensive fraud risk score.

The COVID-19 pandemic accelerated the adoption of identity verification solutions as organizations aimed to protect customers from fraud in the rapidly expanding digital environment. Increased use of digital channels and technology has heightened cybersecurity risks, boosting the demand for robust identity verification systems. Innovations such as blockchain-based verification, KYC (Know Your Customer), Anti-Money Laundering (AML) compliance, and identity verification in healthcare are actively addressing rising cyber vulnerabilities. In 2021, the Financial Action Task Force (FATA) broadened its AML regulations to include virtual asset dealers, art dealers, and legal professionals, requiring them to conduct identity screenings on their customers.

Leading companies continue to invest heavily in R&D and launch innovative products to counteract cyber threats. For instance, in November 2021, Experian introduced Work Report, an automated verification solution that digitally connects to employers’ payroll systems to instantly confirm consumers’ income and employment status. More recently, in July 2023, Israeli firm AU10TIX released the AU10TIX App, which leverages AI and ML to complete identity verification globally within 4-8 seconds, integrating adaptable biometric checks to meet specific business and regulatory requirements.

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Key Market Trends & Insights

• North America led the market in 2022 with a 38.4% revenue share, supported by advanced technology adoption and strong government initiatives such as smart cities, digital IDs, and smart infrastructure projects. The integration of blockchain, AI, and ML technologies to secure digital identities, along with the widespread adoption of digital services, underscores identity verification as essential for secure digital interactions and data protection.
• The Asia Pacific region is projected to grow at the fastest CAGR during the forecast period, driven by government efforts to combat identity fraud and bolster e-KYC protocols for identity verification.
• By component, the solution segment dominated with over 71.0% revenue share in 2022. This segment includes identity authentication, digital identity verification, and ID verification solutions. Meanwhile, the services segment is expected to see significant growth from 2023 to 2030, owing to technological advances and the increasing need for compliance with KYC and AML regulations.
• By type, the biometric segment held a dominant revenue share of over 68.0% in 2022. Biometric verification methods—such as fingerprints, retina and iris scans—are the most widely used, verifying individuals based on unique biological traits and providing controlled access to services.
• By deployment, the on-premises segment accounted for more than 59.0% revenue share in 2022. This model allows enterprises to authenticate users and store data on their own servers without third-party access, ensuring enhanced security and control over customer onboarding processes.
• By organization size, large enterprises led the market with over 65.0% revenue share in 2022. The increasing occurrence of fraud, money laundering, high-risk transactions, identity theft, and regulatory compliance drives large corporations to adopt identity verification systems to improve security and operational efficiency.

Market Size & Forecast

• 2022 Market Size: USD 9.87 Billion
• 2030 Projected Market Size: USD 33.93 Billion
• CAGR (2023-2030): 16.7%
• North America: Largest market in 2022
• Asia Pacific: Fastest growing region

Key Companies & Market Dynamics

The identity verification market is highly competitive, dominated by several major global players who focus on innovation and strategic alliances to enhance profitability and customer engagement. For example, in December 2020, Trulioo partnered with Credit Sesame to enhance privacy through Trulioo’s Global Gateway biometric ID platform. In June 2023, U.S.-based Socure acquired Berbix, an identity verification service, for $70 million to integrate Berbix’s real-time ID verification and fraud detection with Socure’s broader verification platform, strengthening security and regulatory compliance across industries.

Leading Identity Verification Companies:

• Acuant, Inc.
• Equifax, Inc.
• Experian Plc
• GB Group PLC
• IDEMIA
• Intellicheck Inc.
• Mitek Systems, Inc.
• Nuance Communications Inc.
• Thales Group S.A.
• TransUnion LLC

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Conclusion

The global identity verification market is experiencing substantial growth, projected to surge from USD 9.87 billion in 2022 to USD 33.93 billion by 2030, with a robust CAGR of 16.7%. This expansion is driven by rising identity fraud, increasing digitization across industries, and stringent regulatory requirements, especially in financial services. Technological advancements in AI, ML, biometrics, and blockchain, coupled with heightened cybersecurity concerns, are pushing organizations worldwide to adopt advanced identity verification solutions. With North America leading the market and Asia Pacific emerging as the fastest-growing region, the industry is poised for sustained growth, supported by innovation, strategic collaborations, and strong government initiatives aimed at securing digital identities.