What Has Been the Growth of the Identity Verification Software Market So Far?
The identity verification software market has seen considerable growth due to a variety of factors.
• The market size for identity verification software has seen a significant boom in the past few years. Expected to rise from $12.70 billion in 2024 to $14.85 billion in 2025, an impressive compound annual growth rate (CAGR) of 16.9% is projected. The historical rise can be traced back to a higher number of identity theft incidents, stringent regulatory needs, an increase in digital transaction activity, the proliferation of online payment systems and a spike in cybercrime.
How Will the Identity Verification Software Market?
The identity verification software market is expected to maintain its strong growth trajectory in upcoming years.
• Anticipation is mounting for a significant expansion in the identity verification software market within the forthcoming years. The prediction is an increase to $27.34 billion by the year 2029, which represents a compound annual growth rate (CAGR) of 16.5%.
The projected growth within this period is associated with a surge in demand for remote identity verification solutions, an expanding e-commerce platform industry, a rising tendency toward adopting smart city initiatives, heightened focus on user privacy rights, as well as progressive developments in mobile banking and payment applications. The foreseeable trends within the forecast period involve developments in document verification technologies and remote identity verification technologies, merging identity verification with internet of things devices, implementing artificial intelligence-enabled fraud detection, and the amalgamation of artificial intelligence and machine learning.
Which Factors Are Boosting Growth In The Identity Verification Software Market?
The expansion of digital transactions, which are electronic operations involving the trade of funds or information without any physical currency or paper, is expected to act as a catalyst for the identity verification software market's growth. The surge in digital transactions can be ascribed to the proliferation of smartphones, the broadening of e-commerce, advancements in payment technologies, and the growing adoption of mobile and contactless payment solutions. Identity verification software bolsters the safety and reliability of digital transactions by validating user identities in real-time, diminishing the risk of fraud, ensuring they meet regulatory standards, and simplifying authentication processes. For instance, UK Finance Limited, a British trade association, reported that by July 2024, there had been an increase in adults registered for mobile payments to 42% in 2023, up from 30% in 2022. The report further stated that 34% of the population utilized mobile contactless payments on a monthly basis. Therefore, the surge in digital transactions is fuelling the identity verification software market's growth.
What Key Areas Define The Segmentation Of The Global Identity Verification Software Market?
The identity verification software market covered in this report is segmented –
1) By Component: Software, Services
2) By Deployment Mode: Cloud, On-Premise
3) By Organization Size: Small And Medium Enterprises, Large Enterprises
4) By Industry Vertical: Banking, Financial Services, And Insurance (BFSI), Healthcare And Life Science, Government And Defense, Retail And Ecommerce, Information Technology, Energies And Utilities, Other Industry Verticals
Subsegments:
1) By Software: Biometric Identity Verification Software, Document Verification Software, Identity Authentication Software, AI-Powered Identity Verification Software, Blockchain-Based Identity Verification Software
2) By Services: Consulting Services, Integration And Deployment Services, Managed Services, Support And Maintenance Services, Compliance And Risk Management Services
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What Trends Are Shaping The Identity Verification Software Market?
Major companies operating in the identity verification software market are focusing on developing innovative platforms such as next-generation cloud-based platform to enhance security, scalability, and real-time identity authentication. A next-generation cloud-based platform refers to an advanced digital infrastructure that leverages cloud computing, artificial intelligence, and automation to enhance scalability, security, and performance for businesses and applications. For instance, in April 2023, Daon Inc., a US-based Biometric company launched TrustX, a next-generation cloud-based platform for identity verification and authentication. This Software-as-a-Service (SaaS) solution streamlines the creation and deployment of user journeys throughout the digital identity lifecycle. Powered by artificial intelligence (AI) and machine learning (ML), TrustX enhances fraud prevention and minimizes friction in user experiences, enabling more efficient and accurate identity verification.
Who Are the Key Players In The Identity Verification Software Market?
Major companies operating in the identity verification software market are:
• International Business Machines Corporation (IBM)
• Oracle Corporation
• Mastercard Incorporated
• Thales Group
• Experian Limited
• Equifax Inc.
• TransUnion LLC
• IDEMIA Group
• Okta Inc.
• Clear Secure Inc.
• GB Group plc
• ID.me Inc.
• Jumio Corporation
• Mitek Systems Inc.
• Socure Inc.
• IDnow GmbH
• Trulioo Technology Inc.
• Veriff
• Shufti Pro Ltd.
• Evident ID Inc.
What Is The Most Dominant Region In The Identity Verification Software Market?
North America was the largest region in the identity verification software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the identity verification software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
