Global Digital Identity Verification Market Forecast, Trend Analysis and Competition Tracking - Global Market insights 2015 to 2031

Global Digital Identity Verification Market Revenue Outlook:

The global digital identity verification market was valued at US$ 7.4 Bn in 2020 and is projected to register а САGR of 16.8% by 2031.

Request Covid - 19 Impact

From 2015 to 2020, sales of digital identity verification were significantly high, expanding at under 17% CAGR.

With the introduction of innovative technologies, digital identity verification is expected to become a staple form of identity verification and incorporate permanent personal details such as an individual's date of birth and fingerprints or semi-permanent data such as a given name or encrypted passwords.

Due to its credibility, digital identity verification is increasingly adopted by various banking & finance institutions, applications, and respective government-related sectors.

In the banking & finance sector, the process of digital identity verification is used to manage mobile banking facilities or even to apply online for a loan.

The COVID-19 pandemic has promised new growth in expanding the IT and telecom sector. The total IoT spending has increased and reached US$ 761 billion in 2020 and is further expected to grow more and reach US$ 1,386 billion in 2026. From 2021 to 2031, demand is likely to expand at a CAGR exceeding 11%.

Digital identity verification is a process that validates an individual's identity and determines whether the individual in question is the correct one. For various applications, this ID process is used for logging-in, and transacting, among other uses. In government sectors, it is used for purposes such as the renewal of electronic certificates or verifying or validating documents, etc., making digital identity verification a necessity.

There are three digital identity verification methods: document verification, biometric verification, and liveness detection. Document verification allows users have their respective credentials corroborated by digitally copying their government-issued identity documents, such as passports or national ID cards. Biometric verification is a fully automated identity verification process. Identity verification vendors offer different liveness solutions; liveness detection certifies whether an individual's identity is legitimate or not.

How is the Demand for Digital Identity Verification increasing?

Increasing digitalization levels across various government bodies or facets and other private sectors, such as the use of electronic ID cards (eID) or even smart border control facilities that utilize facial recognition for identity verification.

These factors are paired with the increasing number of initiatives to develop smart cities and smart airports. Security identity verification or ID verification is a crucial component of online security systems and is expected to increase digital identity verification solutions.

Moreover, the steady adoption of digital identity verification among various end-use industries, such as banking & finance, healthcare applications, and various government sectors, is expected to have a profound influence on the digital identity verification sector.

The restrictive factors of the Digital Identity Verification Market

Increasing levels of digitization have led to various businesses encountering unfamiliar discrepancies or new risks, such as data breaches and online identity fraud.

For instance, India experienced a rapid surge in the registration of cybercrimes; the country ranks fifth overall in Domain Name Server (DNS) hijacking.

According to Gemalto, a company offering international digital security software applications, India accounts for ~37% of the global data breaches.

Opportunities of Digital Identity Verification Market

A majority of businesses in almost every industry are now transitioning to the use of digital infrastructure. Whether it's shopping, travel, or even financial institutions, these businesses aim to connect with their respective clientele using digital platforms.

However, several organizations still rely on conventional identity verification methods. For instance, physical identification is still required to open a bank account or even apply for a mortgage.

This factor is also expected to create new opportunities for various other forms of digital identity verification among customers with limited ID forms.

Recent Developments

• In November 2019, GB Group Plc - a global technology specialist in fraud & compliance management, identity verification, and location data intelligence, formed a partnership with CredoLab to assess the creditworthiness of any given Indonesian, including those that are unbanked or underbanked under CredoLab, by using GBG's digital/AI-driven risk management framework.

Competitive Landscape

The Digital Identity Verification market landscape appears highly consolidated, with a major chunk of it being dominated by US players.

• Thales Group
• RELX Group plc
• Advent International
• Experian Plc
• Eqifax, Inc.
• TransUnion
• GBG Group
• OneSpan, Inc.
• Mitek Systems, Inc.
• Eftpos Payments Australia Ltd.
• Other Players

Report Scope

• Forecast Period: 2022-2031
• Actual Year: 2021
• Historical Data Available for: 2015-2020

Key Regions Covered

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Key Segments Covered

Digital Identity Verification Market, By Solutions

• Biometrics
• Non-biometrics

Digital Identity Verification Market, By Deployment Mode

• On-premises
• Cloud

Digital Identity Verification Market, By Application

• BFSI
• Healthcare
• IT and Telecom
• Government and Defense
• Other Applications