Identity Verification Market to Grow at a CAGR of 14.9% from 2025 to 2032 | SkyQuest Technology Consulting

The identity verification market is anticipated to expand at a rapid pace due to the rising incidence of cybercrime and identity theft, stringent regulatory compliance requirements (such as KYC and GDPR), and the growing need for secure and seamless digital onboarding across sectors like finance, healthcare, and e-commerce.

WESTFORD, Mass., Aug. 21, 2025 /PRNewswire/ -- SkyQuest Technology Consulting published a report, titled, "Identity Verification Market - Global Opportunity Analysis and Industry Forecast, 2025-2032", valued at USD 12.52 Billion in 2024. With a projected CAGR of 14.9% from 2025 to 2032, the market is expected to reach USD 40.69 Billion by the end of 2032. The rapid expansion of e‑commerce, digital banking, online payments, and crypto markets has dramatically increased demand for secure remote identity vetting.

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Identity Verification Market Dynamics:

The identity verification market is experiencing significant growth, driven by the rising threat of cybercrime, identity theft, and digital fraud. As digital transactions continue to increase, especially in sectors such as banking, e-commerce, and telemedicine, organizations are under immense pressure to ensure secure onboarding and authentication processes. Regulatory mandates like Know Your Customer (KYC), Anti-Money Laundering (AML), GDPR, and the U.S. Real ID Act are further propelling demand for robust identity verification solutions across industries. The shift towards remote work and online services has also fueled the adoption of cloud-based, real-time identity verification platforms.

One of the key market trends includes the integration of artificial intelligence and machine learning to detect fraudulent behavior and enhance the accuracy of document and facial verification. Biometric authentication, particularly facial recognition and fingerprint scanning is gaining popularity for its speed and security.

Recent Developments in Identity Verification Market

• In April 2024, Entrust announced the acquisition of UK-based identity verification leader Onfido in a $650 million all-cash deal. This move strengthens Entrust's position in the digital identity market by integrating Onfido's advanced AI-based biometric and document verification technologies. The merger aims to deliver comprehensive identity assurance solutions across financial services, travel, and government sectors.
• In April 2024, Amadeus, a global travel technology company, completed its acquisition of Vision-Box, a specialist in biometric and contactless travel identity management. The deal enhances Amadeus' capabilities in providing seamless, biometric-powered passenger journeys from check-in to boarding, reinforcing its focus on digital transformation in the aviation sector.
• In November 2024, Jumio entered a strategic partnership with LatticeFlow AI to enhance the transparency and reliability of its AI-based identity verification systems. The collaboration focuses on improving model robustness, detecting AI bias, and countering deepfake threats, aligning Jumio's offerings with evolving global AI governance standards.

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Major Challenges in Identity Verification Industry

The identity verification market faces several critical challenges. One major hurdle is ensuring user privacy while collecting sensitive personal information, which often raises concerns about data misuse and regulatory compliance. Additionally, balancing robust security with a seamless user experience remains a persistent issue, as overly complex verification processes can lead to user frustration and high abandonment rates.

The market also contends with evolving tactics used by fraudsters, including deepfakes, synthetic identities, and spoofing attacks, which make it increasingly difficult for traditional verification systems to keep up. Interoperability across different platforms and regulatory environments adds another layer of complexity, especially for multinational companies operating under various data protection laws.

Competitive Landscape:

The identity verification market is highly competitive, with key players such as Onfido, Jumio, IDEMIA, Trulioo, Experian, and Thales Group driving innovation through AI-powered biometric and document verification technologies. These companies are focusing on expanding their product portfolios, enhancing accuracy through machine learning, and forming strategic partnerships to strengthen global reach.

For example, in 2024, Jumio launched its 'KYX Platform 2.0', which integrates advanced liveness detection and document verification capabilities to combat synthetic identity fraud—responding directly to the growing demand for faster and more secure onboarding in sectors like fintech and e-commerce. Similarly, Onfido partnered with Entrust to provide end-to-end digital identity assurance solutions, combining identity verification with digital credential issuance.

The major players in the identity verification industry include,

• Jumio
• Onfido
• Entrust
• Trulioo
• IDEMIA
• Thales Group
• LexisNexis Risk Solutions
• Experian
• Mitek Systems
• GBG (GB Group)
• Authenteq
• Shufti Pro

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Identity Verification Market Segmentation:

Global identity verification market is segmented into offering, type, organization size, deployment mode, application, vertical and region. Based on offering, the market is segmented into solutions and services. Based on type, the market is segmented into biometrics and non-biometrics. Based on organization size, the market is segmented into large enterprises and small & medium-sized enterprises (SMEs). Based on deployment mode, the market is segmented into cloud and on-premises. Based on application, the market is segmented into control & user monitoring, KYC, KYB, and onboarding and identity fraud compliance & forensics. Based on vertical, the market is segmented into banking, financial services, and insurance (BFSI), retail & ecommerce, government & defense, healthcare & life sciences, information technology & information technology-enabled services (IT & ITEs), telecommunications, energy & utilities, education, gaming & gambling and other verticals. 

• By offering, solutions dominate due to rising demand for automated identity verification tools that ensure secure and real-time authentication across digital platforms.
• By type, biometrics dominate due to their superior accuracy and growing use of facial, fingerprint, and iris recognition in fraud prevention.
• By organization size, large enterprises dominate as they face stricter regulatory requirements and invest more heavily in robust verification infrastructure.
• By deployment mode, cloud-based solutions dominate due to their scalability, ease of integration, and growing need for remote identity verification.
• By application, KYC (Know Your Customer) dominates due to regulatory mandates across banking, finance, and digital services requiring secure user identification.
• By vertical, banking, financial services, and insurance (BFSI) dominates due to stringent compliance needs and high exposure to identity-related fraud.

Regional Insights

North America dominates the market due to early adoption of advanced verification technologies, strict regulatory frameworks (like KYC and AML), and the presence of major players. The region continues to lead in innovation, especially with AI-based biometrics and identity-as-a-service platforms.

Asia-Pacific is a rapidly growing region driven by rapid digital changes, bounces fintech and e-commerce sectors, and grows the government's e-ID initiative in countries such as India and China. Smartphone penetration and regulator push for digital identification promote expansion of exponential market expansion.

Europe has an important market share due to strict data for data such as GDPR and to use eIDAS compliance identity solutions broadly. The region observes stable development with a strong government for digital identity and over border digital services.

LAMEA is an emerging market reflects gradually development, mainly driven to increase digitalization in banking and mobile-based identity systems. Challenges such as infrastructure laps and incompatible regulation prevent rapid adoption, although opportunities are increasing in urban and economic sectors.

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About SkyQuest Technology Consulting

SkyQuest Technology Consulting is a leading Strategy Consulting and Market Research firm, provides syndicated as well as customized research reports and growth consulting services, trusted by CXOs from Fortune 500 Companies, Start-ups, and MSMEs. The company comprises a team of expert research analysts and consultants, adding more than 1200 market research reports in our database each year. These reports offer in-depth analysis on 40+ industries & sub industries across 25 major countries worldwide, serving global clients across diverse industries. The company specializes in delivering customized intelligence, data-driven insights, and strategic advisory services that enable businesses to stay competitive and make informed decisions in rapidly evolving industries.

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