Identity Verification Market is anticipated to expand during 2023–2032, propelled by stringent rules imposed by the regulatory authorities toward the compliance of AML (anti-money laundering) and KYC (know your customer) among reporting organizations. These regulations strictly adhere to verifying the identity of their customers to prevent money laundering and terrorist financing.


Overall, the identity verification industry is segmented in terms of component, deployment, organization size, type, application, end-use, and region.


Based on the component, the solution segment will depict over 20% CAGR through 2032. The rising demand for complying with AML and KYC standards and increasing initiatives, such as smart border control that utilizes face recognition for identity verification and smart airports and smart cities that employ video analytics and liveness detection for identity verification, will assist the segment expansion during the estimated timeframe.


By deployment, the on-premises segment will surpass USD 30 billion by 2032. On-premises deployment allows enterprises to authenticate their client base and store information on its servers. After the one-time installation, no outside party can access the client data.


Considering the organization size, the large enterprise segment will grow considerably as several enterprises continue implementing identity verification systems due to rising cases of fraud, money laundering, identity theft, processing of high-risk transactions, and cost-cutting on manual processes.


In terms of type, the biometric segment will gain momentum during the estimated timeframe. Biometrics offers assurance of a person’s identity by using one or more distinguishing biological traits. Biometric traits differ for each-individual, offering a quick and efficient way to identify and verify them.


By application, the fraud prevention segment will register a positive trajectory through 2032. Identity verification helps prevent fraud by validating the identity of the person opening an account or making a transaction. It also authenticates a user’s individuality in case of any suspicious login attempt or strange online behavior.


Based on end-use, the healthcare segment will expedite during the next ten years as identity verification assists the staff in managing and accessing patients instantly. It also supports pre-registration and check-in demographic data validation and correction by providing instant access to the person’s correct name, address, date of birth, and phone number. Besides, it enables healthcare providers to identify patients and access their data immediately remotely.


Regionally, the Asia Pacific identity verification industry will register notable gains through 2032. Increasing initiatives taken by the government to combat identity-related fraud and reinforcing eKYC to verify identities will favor the regional market share. Additionally, the mandate of linking PAN cards with Aadhaar cards to track individuals has also resulted in reducing the possibility of fraudulent activities in the Indian subcontinent.