During the forecast period, the worldwide identity verification market is expected to grow at a CAGR of 14.8%. By 2032, the verification industry is expected to be worth US$ 40 billion, up from US$ 10 billion in 2022.
The identity verification industry is being driven by increased digitalization ambitions, a rise in fraudulent activities and identity theft over the preceding decade, and growing use cases of digital identities across verticals. Furthermore, government and industry initiatives concentrating on digitalization and the application of new technologies in identity verification systems, such as AI, machine learning, and automation, would provide lucrative opportunities for identity verification suppliers.
The worldwide identity verification market is being pushed by growing digitization initiatives, identity theft, an increase in fraudulent activities over the previous decade, and an increase in the acceptance of digital IDs among verticals. Furthermore, governments and businesses have taken several steps to focus on digitalization and the adoption of new technologies in identity verification solutions, such as machine learning, artificial intelligence, and automation, which are expected to provide lucrative opportunities for identity verification vendors and lead the market adoption trends.
Financial limitations during the implementation of identity verification systems, according to a market analysis by Future Industry Insights, are the biggest impediment to the growth of the identity verification market.
The identity verification market is extremely fragmented, with multiple companies and competing technologies, resulting in severe competition among the participants. In the future, large corporations are expected to make acquisitions and partner with startups that are focused on innovation.
Some of the main companies in the worldwide identity verification market include Acuant, Applied Recognition, Au10Tix, Authenteq, Equifax, Experian, GB Group plc (GBG), Idemia, and Idfy.