The global Identity verification and Authentication Market is Segmented By Type(Biometric, Non-Biometric), By Mode of Deployment(Protection of data, Detection of breaches, Correcting the damages), By Application(BFSI, IT & Telecom, Healthcare, Others), By End-User(Large Enterprises, Subject Matter Experts), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029
Identity verification and Authentication Market Share, Size, Demand Insights
The Global "Identity verification and authentication market" is estimated to reach at a high CAGR during the forecast period 2022-2029.
Identity verification and Authentication Market Scope and Summary
Metrics |
Details |
Market CAGR |
High |
Segments Covered |
By Type, By Mode of Deployment, By Application, By End-User, and By Region |
Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
Fastest Growing Region |
Asia Pacific |
Largest Market Share |
North America |
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Identity verification and authentication involve identifying a set of unique traits associated with an individual to ensure people online are who they claim to be. Identity verification and authentication are necessary to prevent false identities from accessing sensitive information and utilizing them to commit fraud. The primary characteristic of the identity verification and authentication process is its safety and reliability.
Though there are several methods currently available for identity verification and authentication, the level of security offered by each varies drastically. Some of the most common identity verification and authentication methods are streaming-video identity verification, eKYC process, electronic signature, and face authentication, among others.
Identity verification and Authentication Market Dynamics and Trends
The rising cases of identity theft and cyber attacks drive the global identity verification and authentication market
The rapid rise in identity theft cases and cyber attacks
Identity theft involves obtaining the personal or financial information of another individual through illicit methods to gain personal or financial benefits. According to Aite-Novarica, a financial service, and insurance company, the U.S. economy witnessed a cumulative loss of US$ 502 million in 2019 due to identity theft cases and this has increased to US$ 712.4 million in 2020. Further, around 47% of American citizens experienced identity theft in 2020, where 37% of the overall cases were application fraud and 38% were associated with account takeovers.
Based on the data, it could be easily concluded that identity theft is a prominent issue in modernity, and security measures to prevent it are the need of the day. From that prospect, the future scope of the identity verification and authentication market is enormous and the experienced increment in identity theft cases and cyber-attacks drives the demands and sales of the identity verification and authentication market
False positivities and inaccuracies in identification and authentication tools
Although the technological advancements in the field of identity verification and authentication are fast-paced, inaccuracies and false positivities still exist even in the case of secure verification and authentication methods such as biometrics. Since the lion's share of modern identity verification and authentication tools rely on partial identification data clusters, the ability to exploit these systems or tools is a possibility.
For instance, as per research conducted by New York University research team, the success rate of fraudulent fingerprint authentication utilizing artificial intelligence was around 20%. Since false positivity and inaccuracies in identity verification and authentification tools are humongous, many consumers lose interest in such services. Therefore, such false positivities and inaccuracies in identification and authentification tools are serious market restraints that could diminish the market prospects of the identity verification and authentication market.
COVID-19 Impact on Identity verification and Authentication Market Growth
The impact of the COVID-19 pandemic on the global identity verification and authentication market could be considered efficacious and constructive. Even though there are several reasons for the above analysis, the most prominent one is the paradigm shift the pandemic has brought to the work culture worldwide. Since the befall of the pandemic on humanity, most of the major corporates and businesses have adopted a work from a home culture that utilizes cyberspace extensively.
As per the Identity Theft Resource Center, around 878 events of smishing and phishing that affected 170 million individuals were reported in 2020. Since an enormous amount of sensitive information worth millions flows through such cyber channels, an incident of identity theft or cyberattack could be devastating and exorbitant in terms of losses inflicted on the organization, the demand for identity verification and authentication products has grown rapidly after the COVID-19 pandemic.
Identity verification and Authentication Market Segment and Shares Analysis
Based on type, the identity verification and authentication market is broadly segmented into biometric and non-biometric
The enhanced safety offered by biometric identity verification and authentication boosts the respective segment in the market
Biometric authentication refers to the verification and authentication of a tangible, real-life trait exhibited by an individual, such as a fingerprint, or iris scan, among others. Since protective measures such as a pin or a password could be easily cracked by fraudsters utilizing algorithms, the security offered by such verification and authentification methods is questionable.
Since biometric authentication requires data clusters unique to a particular individual that is part of his physical existence, the probability of accessing or recreating such data is minimal. As a result of this almost impenetrable nature of biometric verification and authentication, the respective segment in the global identity verification and authentication market is expected to expand more in demand and revenue generation in the forecast period
Identity verification and Authentication Market Geographical Analysis
The presence of security tech giants and earlier product adopters in the North American region boosts the identity verification and authentication market of the region
The North American region dominates the global identity verification and authentication market due to the tendency of individuals in the region, particularly the U.S., to adopt all vogues into their lifestyles. Additionally, the purchasing power of consumers in the region is extremely higher than in other regions, despite identity verification and authentication products being exorbitant.
Further, the market is highly consolidated, consisting of several tech giants such as Jumio. Such multinational conglomerates provide people of the region the first-hand access to state-of-the-art identity verification and authentication technologies. Therefore, the dominance of the identity verification and authentication market is colossal in the North American part in comparison to other regions.
Identity verification and Authentication Companies and the Competitive Landscape
The identity verification and authentication market are highly consolidated and competitive with the exponential growth in technological advent. Major market players include Experian Information Solutions, Inc., GBG, Equifax, Mitek Systems, Thales Group, LexisNexis Risk Solutions, Onfido, Trulioo, Acuant, and IDEMIA.
The market leaders are adopting numerous new strategies to dominate the market, such as new product launches, acquisitions, and collaborations, contributing to the global growth of the identity verification and authentication market.
Experian Information Solutions, Inc.
Overview: Experian Information Solutions, Inc. focuses on collecting and analyzing data to offer services such as decision analytics and marketing assistance. The company also sells products that are utilized to protect individuals from fraud and identity theft. Experian Information Solutions, Inc. is headquartered in Dublin, Ireland, and employs around 17,800 people. The company has a market presence in 44 countries spanning the world over.
Service Portfolio: Layered Identity verification and risk segment solutions
- Experian Information Solutions, Inc. offers irreplaceable identity verification and authentication services that constantly monitor and segment threats. The service products are updated continuously to stay on pace with the mutating fraud and other similar threats. Further, Experian Information Solutions, Inc. offers a smooth and frictionless experience to customers.
Key Development: In September 2020, Experian Information Solutions, Inc. announced that they had joined with Better Identity Coalition, which works hand-in-hand with policymakers to enhance privacy and Digital data security. The company intends to showcase its social responsibility and improve its goodwill with this partnership.
Frequently Asked Questions
What is the Projected CAGR value of the Identity verification and Authentication Market?
The Identity verification and Authentication Market is expected to grow at a high CAGR during 2022-2029.
Which region controlled the global market during 2022-2029?
North America region Controls the Identity verification and Authentication Market during 2022-2029
Which is the fastest-growing region in the Identity verification and Authentication Market?
Among all regions, Asia Pacific is the fastest-growing market share during the forecast period.
