Digital Identity Verification Market Size, Share, Trends, Growth 2032

Digital Identity Verification Industry Prospective:

The global digital identity verification market size was evaluated at $11.4 billion in 2023 and is slated to hit $38.8 billion by the end of 2032 with a CAGR of nearly 13.5% between 2024 and 2032.

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Digital Identity Verification Market: Overview

Digital identity verification is a key process that ensures identity of an individual in the digital ecosphere. Moreover, there are various methods that are used for online identity verification including biometric authentication, knowledge-based authentication, one-time password verification, multi-factor authentication, ID-document verification, and possession-based authentication.

Key Insights

• As per the analysis shared by our research analyst, the global digital identity verification market is projected to expand annually at the annual growth rate of around 13.5% over the forecast timespan (2024-2032)
• In terms of revenue, the global digital identity verification market size was evaluated at nearly $11.4 billion in 2023 and is expected to reach $38.8 billion by 2032.
• The global digital identity verification market is anticipated to grow rapidly over the forecast timespan owing to a surge in the cyber-security threats along with a rise in the digitization.
• In terms of technology, the biometric authentication segment is slated to register the highest CAGR over the forecast period.
• Based on application, the financial services segment is predicted to contribute majorly towards segmental space in the upcoming years.
• Based on deployment mode, the cloud-based segment is predicted to dominate the segmental growth in the ensuing years.
• Region-wise, the European digital identity verification industry is projected to register the fastest CAGR during the projected timespan.

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Digital Identity Verification Market: Growth Factors

An increment in cyber-attacks has led to an enhancement in the global market demand in recent years

A surge in cyber-security threats along with a rise in digitization is expected to embellish the expansion of the global digital identity verification market. Strict government laws pertaining to the need to comply with anti-money laundering and know-your-customer policies have enhanced the demand for online identity verification activities in various countries. Furthermore, the flourishing e-commerce sector along with an increment in the acceptance of cloud-based solutions will expand the scope of the market surge in the coming years. Awareness about security protocols along with the necessity of secured digital transactions is likely to uplift the global market in the coming years.

Digital Identity Verification Market: Restraints

An increase in the cases of data violations worldwide can retard the global industry surge over forecast period

Rising cases of data breaches, interoperability issues, and scalability problems have restricted the expansion of the global digital identity verification industry. An increment in identity theft incidences and online frauds can prove to be a big deterrence in the growth of the industry. Huge costs of deploying digital identity verification tools can halt the global industry surge in the coming years.

Digital Identity Verification Market: Opportunities

An increase in bitcoin transactions across the globe can open new growth facets for the global market

Escalating demand for secured online solutions, the growing use of blockchain technology, and the use of AI tools for fraud detection are expected to open new growth avenues for the global digital identity verification market. Furthermore, complying with new laws, including CCPA and GDPR, can open new growth avenues for the global market.

Digital Identity Verification Market: Challenges

Non-uniformity in the laws governing & controlling digital identity verification operations can impact the industry growth  

Lack of standardization of protocols regulating digital identity verification tools along with the complicated and cumbersome process of digital identity verification can challenge the expansion of the global digital identity verification industry. Moreover, technological limitations of biometric systems can pose a huge threat to the global industry expansion.   

Digital Identity Verification Market: Segmentation

The global digital identity verification market is divided into technology, application, deployment mode, and region.                                             

In terms of technology, the digital identity verification market across the globe is segmented into knowledge-based authentication, multi-factor authentication, possession-based authentication, and biometric authentication segments. Apparently, the biometric authentication segment, which amassed nearly 65% of the global market revenue in 2023, is projected to register the highest gains in the upcoming years, subject to an escalating acceptance of biometric systems such as iris scanning, fingerprint recognition, and facial recognition. 

Based on the application, the global digital identity verification industry is segmented into e-commerce, healthcare, government services, financial services, and social media segments. Apparently, the financial services segment, which led the global industry in 2023, is expected to contribute significantly towards the segmental growth in the forthcoming years. This can be ascribed to the huge demand for secured digital banking transactions and online payments.

On the basis of deployment mode, the global digital identity verification market is sectored into cloud-based and on-premises segments. Moreover, the cloud-based segment, which led the deployment mode segment in 2023, is predicted to lead the segmental sphere in the forecast timeline. Moreover, the segmental progression can be due to lower costs, scalability, and flexibility of cloud-based deployment mode of digital identity verification systems.

Digital Identity Verification Market: Report Scope

Digital Identity Verification Market: Regional Insights

North America is likely to maintain leading status in the global market over the projected time-interval

North America, which accounted for nearly 40% of the global digital identity verification market size in 2023, is likely to establish a number one position in the global market in the ensuing years. In addition to this, the regional market elevation in the next couple of years can be credited to the large-scale use of digital identity verification tools in a slew of end-use sectors in the U.S. Additionally, the presence of key manufacturers and vendors in the country will further drive the regional market expansion in the ensuing years. Surging focus on the use of AI verification services and biometric systems in firms has proliferated the demand for digital identity verification technologies in the region.

The European digital identity verification industry is expected to account for the highest gains annually in the upcoming years. The progression of the industry in Europe can be owing to strict data protection laws enforced in the EU countries. An increase in cross-border interoperations and supportive government schemes in European countries will contribute notably towards the market revenue of the continent.

Digital Identity Verification Market: Competitive Space

The global digital identity verification market profiles key players such as:

• Intellicheck Inc.
• Onfido Limited
• Microsoft Corporation
• SAP SE
• Idology Inc.
• Jumio Corporation
• Experian Plc
• Oracle Corporation
• Trulioo
• Mastercard Inc.
• Thales SA
• Mitek Systems Inc.
• IDEMIA
• IBM Corporation.

The global digital identity verification market is segmented as follows:

By Technology

• Knowledge-Based Authentication
• Multi-Factor Authentication
• Possession-Based Authentication
• Biometric Authentication

By Application

• E-Commerce
• Healthcare
• Government Services
• Financial Services
• Social Media

By Deployment Mode

• Cloud-Based
•  On-Premises

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa