Identity Verification Market Size & Share 2023 to 2032
Market Size by Component (Solution, Services), by Type (Biometric, Non-Biometric), by Deployment (On-premise, Cloud), Organization Size, Application, End Use & Global Forecast.
Report ID: GMI5522
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Published Date: March 2023
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
Identity Verification Market Size
Identity Verification Market size surpassed USD 5 billion in 2022 and is estimated to grow at over 20% CAGR from 2023 to 2032. The remarkable surge in incidences of cyberattacks and identity theft worldwide is set to favor the market growth.
Identity Verification Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Rapid digital transformation and the consistent growth in the usage of online services have caused a noticeable uptick in cases of identity-related fraud, prompting companies to implement stringent security measures. Digital identity verification is becoming paramount in domains where verified identity is required, such as digital services access and border controls. With government as well as private organizations globally pivoting toward digitizing their operations and workload, the demand for identity verification solutions and services will grow substantially in the foreseeable future.
Businesses with strict identity verification system requirements are susceptible to multiple breaches as they lack staff with adequate knowledge to understand the complexities of identity verification systems. Therefore, a lack of skilled professionals and technical expertise may limit the deployment of identity verification systems, which, in consequence, may hamper the identity verification market value. In contrast, initiatives undertaken by administrative authorities and corporations to accelerate digitalization and promote the adoption of cutting-edge technologies, such as AI, machine learning, and automation in identity verification systems, may create significant growth prospects for the market.
Identity Verification Market Analysis
Regarding the type, the identity verification market share from the non-biometric segment size is likely to expand at 20% CAGR through 2032, given the increasing acceptance of non-biometric identity verification systems for fraudulent ID detection, KYC/AML compliance, remote customer onboarding, and for business process automation. The integration of AI and ML technologies with identity verification solutions facilitates organizations to be more proactive and detect and remediate suspicious activity, intrusive requests for access, and unauthorized users very effectively.
Based on the application, the identity verification market value from the access management segment is predicted to reach USD 10 billion by 2032. Access management solutions help organizations verify user identities before providing them with the right level of access to business systems and information. This apart, the ability of access management services to enable businesses to protect their data from various security threats and cyber risks will further accentuate the market demand.
With respect to end-use, the BFSI segment will exhibit more than 15% CAGR during 2023 to 2032. The BFSI industry deals with sensitive and private data, including usernames, passwords, financial information, and other identifying credentials about customers. This has encouraged the BFSI sector to implement robust security measures such as identity verification to safeguard its data and resources against fraud and theft. The growing digitization of banking procedures, including digital onboarding and digital payments, intended to enhance the customer experience will boost the market revenue.
The North America identity verification market is slated to surpass USD 15 billion by 2032, owing to the early adoption of advanced technologies such as blockchain Al and ML for securing digital identities and the increasing public awareness about security measures in the region. For instance, in October 2022, Socure, the provider of fraud solutions and digital identity verification, announced its expansion in Canada. The move will help the company offer its eKYC, device ID, Case Management, Predictive DocV document verification, and behavioral biometrics in the region.
Identity Verification Market Share
Major players involved in the identity verification market are:
These companies are consistently focusing on new product launches to gain a competitive edge over others.
For instance, in December 2022, Thales launched a biometric solution, the Thales multimodal biometric pod. It is a reliable enrolment and identification solution which aids in the efficient management of border and immigration procedures for travelers. It offers a multimodal biometric capture and authentication solution, by enrolling and verifying travelers’ IDs at borders, by integrating iris and face recognition.
Impact of COVID-19 Pandemic
The COVID-19 pandemic posed new challenges for businesses as they acclimated to an operating model that defined working remotely as the new normal. Stringent restrictions imposed by several governments in response to the crisis encouraged employees to work from home, learn from home and even stay at home. As a result, technology took the front seat in both professional and personal lives. With businesses pivoting toward virtual applications and ditching traditional satire for professional meetings and discussions, the need to employ efficient data security solutions became increasingly critical. This encouraged companies to expand their digital footprints, and boost cybersecurity to deal with operational, reputational, legal, and compliance implications, thus favoring the growth of identity verification industry.
This identity verification market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments:
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Market, By Component:
Market, By Deployment:
Market, By Organization Size:
Market, By Type:
Market, By Application:
Market, By End-Use:
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →