Global Identity verification and Authentication Market - 2021-2028
Identity verification and authentication market was sized around US$ XX million in 2020 and is estimated to reach US$ XX million by 2028, growing at a CAGR of XX % during the forecast period (2021-2028).
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.
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 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 data, it could be easily concluded that identity theft is a prominent issue in modernity and security measures to prevent it is 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 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 the 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 tend to 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 identity verification and authentication market.
COVID-19 Impact Analysis
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 shit the pandemic has brought on the work culture worldwide. Since the befall of the pandemic on humanity, most of the major corporates and businesses have adopted a work from 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.
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, 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.
The presence of security tech giants and earlier product adopters in the North American region boost 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 lifestyle. 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 extremely 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 region in comparison to other regions.
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 the 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 the 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 to improve its goodwill with this partnership.
Why Purchase the Report?
Visualize the segmentation of the identity verification and authentication by type, mode of deployment, application and end-user the key commercial assets and players.
Identify commercial opportunities in identity verification and authentication market by analyzing trends and co-development deals.
Excel data sheet with thousands of data points of Identity Verification and Authentication market-level 4/5 segmentation.
PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
Component mapping in excel for the key product of all major market players
The global Identity Verification and Authentication market report would provide access to an approx: 70 market data tables, 66 figures and 180 pages.
Identity verification and authentication service providers/ Buyers
Commercial and Technological Firms
Industry Investors/Investment Bankers
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook