The Latest Identity Verification Industry Statistics Explained
The global identity verification market size was valued at USD 6.1 billion in 2020.
The statistic indicates that the global identity verification market had a total market value of USD 6.1 billion in the year 2020. This figure encompasses the total revenue generated by businesses and service providers offering identity verification solutions, such as document verification, biometric authentication, and digital identity verification services on a global scale. This market size value reflects the growing importance of verifying individuals’ identities across various industries due to increasing concerns around security, fraud prevention, and compliance with regulations. The robust size of the market suggests a high demand for identity verification solutions and services, with continued growth and innovation expected in the industry in the coming years.
It is projected that the identity verification market will reach USD 18.6 billion by 2026.
The statistic “It is projected that the identity verification market will reach USD 18.6 billion by 2026” indicates a forecasted trend in the industry related to identity verification services. This projection suggests that the market for identity verification is expected to experience significant growth and expansion over the next few years, reaching a total value of USD 18.6 billion by 2026. Factors driving this growth may include increasing concerns about security and identity theft, regulatory requirements for identity verification, and the growing adoption of online and digital services that require robust identification processes. This statistic serves as a valuable insight into the expected trends and opportunities within the identity verification market for businesses, investors, and policymakers to consider.
The Compound Annual Growth Rate (CAGR) for the identity verification industry is expected to be 16.6% from 2021 to 2026.
The Compound Annual Growth Rate (CAGR) of 16.6% for the identity verification industry from 2021 to 2026 implies that the industry is projected to grow steadily at an average annual rate of 16.6% over the 5-year period. This statistic takes into account the compounding effect, meaning that the growth rate is applied to the cumulative value of the industry over each year, leading to a more accurate representation of the actual growth trajectory. This strong CAGR suggests a promising outlook for the identity verification industry in terms of market expansion and increased demand for identity verification services during the specified period.
Fraud prevention is the primary goal of identity verification, and 38% of businesses list reducing fraud as one of their top goals in identity verification.
The statistic states that 38% of businesses consider reducing fraud as one of their top goals in identity verification, emphasizing that fraud prevention is the primary objective of identity verification processes. This indicates that businesses recognize the crucial role of identity verification in mitigating fraudulent activities such as identity theft and unauthorized transactions. By prioritizing fraud prevention through identity verification, businesses aim to safeguard their operations, protect customer data, and maintain trust with their clientele. This statistic reflects the growing awareness among organizations about the importance of robust identity verification measures in today’s digital landscape to combat fraud effectively.
64% of e-commerce businesses are employing identity verification measures to protect against account takeover threats.
The statistic ‘64% of e-commerce businesses are employing identity verification measures to protect against account takeover threats’ suggests that a majority of e-commerce businesses are taking proactive steps to enhance security measures on their platforms. By implementing identity verification methods, such as two-factor authentication or biometric authentication, these businesses aim to reduce the risk of fraudulent activities like account takeovers where unauthorized individuals gain access to customer accounts. This statistic highlights a growing awareness within the e-commerce industry about the importance of safeguarding customer identities and preventing fraudulent transactions, ultimately working towards building trust and loyalty among consumers.
In 2020, the Asia-Pacific region experienced the highest growth rate in the identity verification market.
The statistic stating that the Asia-Pacific region experienced the highest growth rate in the identity verification market in 2020 indicates that the adoption and implementation of identity verification technologies and solutions in this region saw significant expansion and development compared to other regions globally. This growth may be attributed to various factors such as increasing awareness of the importance of secure identity verification, rising instances of identity theft and fraud, regulatory requirements, and the growing digital transformation and e-commerce activities in the region. The statistic highlights the region’s progress and focus on strengthening security measures and enhancing user authentication processes to ensure trust and security in online transactions and interactions.
The non-biometric solutions segment held a market share of more than 40% in 2019 due to its cost-effectiveness and ease of implementation.
The statistic indicates that in 2019, the non-biometric solutions segment accounted for over 40% of the market share, largely driven by its cost-effectiveness and ease of implementation. This suggests that businesses and organizations preferred non-biometric solutions over biometric ones due to factors such as lower initial investment costs and simplified integration processes. The dominance of non-biometric solutions signals a growing demand for security and authentication technologies that are both affordable and straightforward to implement, reflecting a trend towards practicality and efficiency in the market.
North American region dominates the identity verification market and is expected to reach USD 7.3 billion by 2026.
The statistic indicates that the North American region leads the identity verification market and is projected to continue its dominance, with an estimated market value of USD 7.3 billion by the year 2026. This suggests that North America holds a significant share of the identity verification market, likely due to factors such as advanced technology adoption, stringent regulatory requirements, and a large customer base. The expected growth in market value also implies that businesses and consumers in North America are increasingly recognizing the importance of identity verification solutions, which play a crucial role in enhancing security, preventing fraud, and enabling trust in digital transactions.
Identity verification solutions in BFSI accounted for a 30.5% market share in the year 2019.
The statistic indicates that in the year 2019, identity verification solutions within the Banking, Financial Services, and Insurance (BFSI) sector accounted for 30.5% of the total market share. This suggests that a significant portion of the market for identity verification solutions was captured by the BFSI industry in that particular year. This could be interpreted as an indication of the importance placed by BFSI companies on verifying the identities of their customers and complying with regulations. Additionally, it may highlight the growing concern for security and fraud prevention within the BFSI sector, leading to a higher adoption rate of identity verification solutions compared to other industries.
It is estimated that by 2026, the identity verification industry will employ over 50,000 professionals globally.
The statistic indicates that by the year 2026, the identity verification industry is expected to see significant growth, reaching a point where it will employ over 50,000 professionals worldwide. This projection suggests that the demand for identity verification services is increasing, likely driven by factors such as the rise in digital transactions, concerns over data security, and regulatory requirements. The industry’s expansion indicates a growing need for skilled professionals who can effectively verify and authenticate individuals’ identities, emphasizing the importance of expertise and technologies in combating fraud and ensuring secure transactions in an increasingly digital world.
Nearly 65% of consumers abandon a web page if they have to wait more than 10 minutes for identity verification.
The statistic that nearly 65% of consumers abandon a web page if they have to wait more than 10 minutes for identity verification highlights the significant impact that slow verification processes can have on user experience and conversion rates. This statistic suggests that a prolonged identity verification process leads to frustration and impatience among a substantial majority of consumers, ultimately causing them to leave the website without completing their intended actions. It underscores the importance of optimizing and streamlining identity verification procedures to minimize wait times and enhance user satisfaction, thereby increasing the likelihood of conversion and improving overall website performance.
Globally, almost 13,000 breaches recorded by the end of 2019 led to an increase in adoption of identity verification services.
The statistic states that by the end of 2019, nearly 13,000 breaches were recorded globally, resulting in a significant rise in the utilization of identity verification services. This implies that the increasing frequency and severity of data breaches across various organizations and industries have compelled businesses and individuals to prioritize safeguarding sensitive information and ensuring secure access to systems and services. As a response to these breaches, the implementation of identity verification services has become more prevalent as a means to enhance security measures and protect against unauthorized access and fraudulent activities. This statistic highlights the growing recognition of the importance of identity verification in mitigating the risks associated with data breaches and emphasizes the ongoing efforts to strengthen cybersecurity measures in an increasingly digitized world.
By 2022, the use of biometric technology in identity verification is expected to increase by up to 34%.
The statistic indicates that by the year 2022, there is an anticipated growth of up to 34% in the adoption and utilization of biometric technology for identity verification purposes. This suggests a significant surge in the use of biometric systems such as fingerprint scanning, facial recognition, and iris scanning as a means of verifying and authenticating individuals’ identities. The potential increase in biometric technology usage signifies a trend towards more secure, efficient, and accurate methods of identity verification, as organizations and industries seek to enhance their security protocols and combat identity fraud and unauthorized access.
More than 90% of businesses prefer cloud-based identity verification solutions for security purposes.
The statistic ‘More than 90% of businesses prefer cloud-based identity verification solutions for security purposes’ indicates a strong trend among businesses towards utilizing cloud-based technology to enhance their security measures. With the increasing threat of identity theft and cyber attacks, organizations are recognizing the benefits of cloud-based identity verification solutions in providing secure and scalable authentication processes. By leveraging cloud services, businesses can enjoy the advantages of centralized monitoring, real-time updates, and enhanced data encryption to protect sensitive information and mitigate security risks. This statistic suggests that the majority of businesses are prioritizing secure, cloud-based identity verification solutions as a crucial component of their security strategy in today’s digital age.
The global investment in AI and machine learning for identity verification was USD 480 million in the year 2020.
The statistic indicates that in the year 2020, there was a significant global investment of USD 480 million in the field of artificial intelligence (AI) and machine learning specifically for the purpose of identity verification. This substantial investment suggests a growing recognition of the importance and potential of AI and machine learning technologies in enhancing security measures and streamlining identity verification processes. The substantial financial commitment in this area reflects a strong industry focus on improving authentication and verification methods through the use of advanced technological solutions, which could lead to more secure and efficient identification processes in various sectors such as finance, healthcare, and e-commerce.
The average cost of identity verification per user is approximately $3.15.
The statistic “The average cost of identity verification per user is approximately $3.15” indicates that, on average, it costs $3.15 to verify the identity of one user. This metric likely represents the average expenditure incurred by a company or organization for verifying the identity of its users, which can include expenses such as technology and software costs, employee wages, verification services fees, and other associated costs. By calculating this average cost, the business can assess the financial implications of its identity verification processes and make informed decisions regarding resource allocation, cost effectiveness, and overall operational efficiency in managing user identity verification.
84% of customers consider identity verification important to protect their data on e-commerce platforms.
The statistic, stating that 84% of customers consider identity verification important to protect their data on e-commerce platforms, highlights the significant value customers place on having their identities verified for security purposes when engaging in online transactions. This finding underscores the growing concern among consumers regarding the security of personal information in the digital age, emphasizing the need for robust identity verification measures to safeguard sensitive data on e-commerce platforms. By acknowledging the importance of identity verification, businesses can enhance customer trust and loyalty, ultimately strengthening their reputation and reducing risks associated with fraud and data breaches in the online retail environment.
More than 33% of users abandon online transactions due to complex identity verification processes.
The statistic “more than 33% of users abandon online transactions due to complex identity verification processes” indicates that a significant portion of users encounter difficulties with the verification steps required during online transactions, leading them to abandon their intended purchases. This finding underscores the importance of streamlining the identity verification process to improve the user experience and increase conversion rates. Implementing simpler and more user-friendly verification methods can help reduce friction in the online transaction process and ultimately prevent potential revenue loss due to transaction abandonment.
Sales of identity verification software increased by 20% in 2021 due to an increase in remote work and online transactions amid the COVID-19 pandemic.
The statistic indicates that sales of identity verification software experienced a 20% increase in 2021, which can be attributed to the rise in remote work and online transactions brought about by the COVID-19 pandemic. With more businesses shifting towards remote operations and an increased reliance on digital platforms for transactions, the need for robust identity verification solutions has surged to combat potential security threats and fraudulent activities in the online space. This notable increase in sales demonstrates the growing awareness and prioritization of implementing secure identity verification measures to safeguard sensitive information and ensure the authenticity of online interactions in response to the changing socio-economic landscape influenced by the pandemic.
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