Identity (ID) Verification Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 14.19 Billion |
| Market Size (2030) | USD 25.56 Billion |
| Growth Rate (2025 - 2030) | 11.38% CAGR |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Identity (ID) Verification Market Analysis by Mordor Intelligence
The identity verification market is valued at USD 14.19 billion in 2025 and is on track to reach USD 25.56 billion by 2030, advancing at an 11.38% CAGR. The expansion reflects a decisive shift from checkbox compliance toward strategic security investment as enterprises confront AI-generated fraud, deepfake attacks, and rising regulatory fines. Deepfakes alone jumped 3,000%, compelling vendors to embed passive liveness and behavioral analytics directly into onboarding workflows. Cloud-native deployment, now the default choice for most new rollouts, accelerates innovation because model updates can be pushed instantly across global tenants. Meanwhile, demand for portable, privacy-preserving credentials is spurring pilots that link government-issued mobile driver’s licenses, verifiable credentials, and Web3 wallets into a single user journey. Consolidation is intensifying as full-stack security firms buy niche specialists to acquire AI document-forensics talent, yet no provider controls more than 15% revenue, leaving ample headroom for focused entrants that solve edge-case risks or industry-specific regulations.
Key Report Takeaways
- By deployment model, cloud platforms held 65.8% of identity verification market share in 2024, and the same segment is projected to grow 12.9% CAGR through 2030.
- By solution type, biometric verification led with 36.2% revenue share in 2024; document-centric liveness detection is projected to grow at a 13.1% CAGR to 2030.
- By end-user industry, financial services retained 31.1% share of the identity verification market size in 2024, whereas gaming and gambling is advancing at an 11.3% CAGR.
- By organization size, large enterprises commanded 73.2% share of the identity verification market size in 2024, but SMEs record the fastest CAGR at 12.4%.
- By geography, North America accounted for 32.8% of identity verification market share in 2024, while Asia-Pacific posts the highest growth at 11.6% CAGR through 2030.
Global Identity (ID) Verification Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Increasing cyber-fraud and regulatory fines | +2.80% | Global, with concentration in North America and EU | Medium term (2-4 years) |
| Surge in remote onboarding and e-KYC mandates | +2.10% | Global, led by Asia-Pacific emerging markets | Short term (≤ 2 years) |
| AI-driven accuracy improvements in document forensics | +1.90% | North America and EU, expanding to Asia-Pacific | Medium term (2-4 years) |
| Cross-border digital ID interoperability pilots | +1.40% | EU-US corridor, expanding to Asia-Pacific | Long term (≥ 4 years) |
| Fintech inclusion programmes in emerging markets | +1.20% | Asia-Pacific core, spill-over to MEA | Medium term (2-4 years) |
| Rise of verifiable credentials and Web3 identity wallets | +0.90% | North America and EU early adopters | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Increasing Cyber-Fraud and Regulatory Fines
Fraudulent account openings spiked to 2.1% of financial transactions in 2024, a sharp rise from 1.27% two years earlier.[1]AuthenticID, “Fraud Trends Report 2024,” authenticid.comAn estimated 42.5% of detected fraud events now leverage generative AI, which forces banks to deploy multi-layer defences that spot synthetic IDs and deepfake voices in real time. Regulators are equally assertive: global institutions paid USD 6.6 billion in KYC-related penalties during 2023. The combined pressure of higher risk and higher fines is pushing buyers toward enterprise-grade orchestration platforms that integrate document forensics, biometric liveness, and continuous behavioural monitoring in a single API.
Surge in Remote Onboarding and e-KYC Mandates
Seventy-eight percent of APAC consumers deem digital identity checks essential before using new financial apps. Regulators are codifying that preference: the EU requires every member state to issue a Digital Identity Wallet within 24 months, effectively institutionalising electronic KYC. Organisations that automate verification cut service-desk handle times by up to 45 seconds, as a top-10 US bank confirmed after rolling out voice authentication. Network effects then arise when verified credentials become transferable across providers, halving repeat onboarding friction and reinforcing platform scale advantages.
AI-Driven Accuracy Improvements in Document Forensics
State-of-the-art algorithms now analyse 16,000-plus global ID templates and reach 99.9% match accuracy in under two seconds. Computer vision engines inspect texture, font, and hologram placement, while behavioural biometrics verify that the user’s micro-expressions align with document metadata. Providers that embed these functions report a 60% reduction in false positives without sacrificing fraud-catch rates.[2]Socure, “Synthetic Identity Defense Suite,” socure.com The result is real-time adjudication that scales from banking to tele-health without manual review queues.
Cross-Border Digital ID Interoperability Pilots
EU–US working groups are harmonising wallet formats so that citizens can reuse a single credential on both sides of the Atlantic.[3]Secure Identity Alliance, “OSIA Standard Documentation,” secureidentityalliance.org Early pilots connect European wallets to Brazilian and Ukrainian services, hinting at a future network of interoperable APIs that compress onboarding timelines for multinational enterprises. Vendors able to present compliance artefacts for multiple jurisdictions simultaneously enjoy lower sales-cycle friction and faster rollouts for global merchants.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Fragmented global regulatory standards | -1.70% | Global, particularly affecting cross-border operations | Medium term (2-4 years) |
| Deepfake and generative-AI spoofing threats | -1.30% | Global, concentrated in high-value transaction sectors | Short term (≤ 2 years) |
| High integration cost for legacy core systems | -1.10% | North America and EU enterprise markets | Medium term (2-4 years) |
| Data-sovereignty barriers limiting cloud roll-outs | -0.80% | EU, China, Russia regulatory jurisdictions | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Fragmented Global Regulatory Standards
KYC rules vary not only by country but sometimes by banking supervisor inside the same region, forcing platforms to run parallel verification flows and data-residency architectures. The United States stresses portability, whereas EU GDPR pushes localisation, complicating unified cloud deployments. In Asia, Japan insists on FSA licences while South Korea demands bank partnerships for cryptocurrency exchanges. As compliance teams juggle this patchwork, expansion timetables lengthen and operating costs rise.
Deepfake and Generative-AI Spoofing Threats
Commodity toolkits can produce near-perfect counterfeit passports for USD 30, keeping security teams in a permanent arms race. Nine of ten off-the-shelf verification engines still misclassify sophisticated deepfakes, according to red-team tests. To remain viable, vendors must layer face-mapping, voice-anti-spoof, and device-fingerprinting without degrading user experience, a delicate balance that inflates R&D budgets and lowers short-run margins.
Segment Analysis
By Deployment: Cloud Infrastructure Drives Scalability
Cloud deployment captured 65.8% identity verification market share in 2024 and is expanding at a 12.9% CAGR as firms prefer elastic consumption to capital-heavy servers. The identity verification market size associated with cloud deployments is projected to reach USD 17.9 billion by 2030, reflecting rapid API adoption among digital banks and gig-economy platforms. Continuous model updates, centralised threat-intel sharing, and zero-downtime patching position cloud as the reference architecture. On-premise remains mandatory only where statutes mandate local data processing, yet even those jurisdictions accept cloud when providers open certified regional centres.
Resilience is another driver. Mastercard analyses 143 billion annual transactions to update anomaly-scoring routines that instantly benefit every tenant. Cloud hubs also simplify integration with verifiable credentials and mobile driver’s licenses, cutting project timelines from months to weeks. As edge data centres proliferate, latency concerns fade, allowing cloud adoption even for biometric video streams that demand sub-second round-trip times.
By Solution Type: Biometric Authentication Becomes Standard
Biometric engines held 36.2% of identity verification market share in 2024 and post a 13.1% CAGR through 2030, outpacing document-only approaches. The identity verification market size tied to biometric modalities is forecast to surpass USD 9.2 billion by 2030, driven by passive liveness that operates invisibly in background video frames. Vendors blend facial, voice, and behavioural signals to deliver continuous authentication, narrowing the attack surface for account takeover.
Document checks will persist yet increasingly act as a secondary step. Aware offers real-time synthetic-media detection that flags GPU-rendered artefacts invisible to the naked eye. Financial institutions deploying multi-modal biometrics report 250% accuracy gains, which lowers manual review cost and boosts customer conversion. Knowledge-based questions and static database lookups now serve niche use cases such as low-risk age gating.
By End-User Industry: Gaming Sector Leads Growth
Financial services dominated revenue with a 31.1% cut in 2024, yet gaming and gambling record the strongest growth at 11.3% CAGR to 2030. Operators must validate age, prevent money laundering, and comply with safer-gambling statutes in multiple jurisdictions. The identity verification market size for gaming is forecast to nearly double by 2030 as new markets legalise online wagering.
Retail and e-commerce add momentum as merchants combat chargebacks, while tele-health incumbents adopt facial liveness to protect electronic prescriptions. Telecom carriers employ biometric SIM registration to curb device fraud, following mandates in markets such as India and Nigeria. The convergence of sector regulations creates multi-tenant demand for configurable verification orchestration.
Note: Segment shares of all individual segments available upon report purchase
By Organization Size: SMEs Drive Adoption Velocity
Large corporations represented 73.2% revenue in 2024 thanks to complex global compliance footprints. However, SMEs are growing fastest at 12.4% CAGR because API-first tools let them deploy bank-grade checks without in-house teams. Consumption pricing aligns cost with transaction volume, easing cash-flow constraints for start-ups.
Self-service dashboards and no-code workflow builders mean an online retailer can integrate facial liveness in less than a day. Instacart’s shopper onboarding illustrates the trend: thousands of gig workers are vetted each week with automated doc and selfie checks that scale elastically. As marketplaces prioritise trust, SME demand ensures a long tail of incremental volume for providers.
Geography Analysis
North America retained 32.8% identity verification market share in 2024, buoyed by aggressive fraud enforcement and early biometric rollouts. The United States plans nationwide mobile driver’s license acceptance at TSA checkpoints from May 2025, signalling federal confidence in digital credentials. Canada’s open-banking roadmap further accelerates cross-platform identity portability.
Asia-Pacific stands out with 11.6% CAGR, propelled by Singapore’s fintech sandbox, India’s Aadhaar-linked payment rails, and Japan’s FSA crypto rules. Trulioo reached a 90% business-verification rate after opening its Singapore hub, illustrating demand for regional KYC APIs. Rising smartphone penetration and real-time payment schemes make APAC the largest incremental revenue pool over the forecast horizon.
Competitive Landscape
The identity verification market is fragmented: the five largest vendors collectively control well under 40% revenue. Mastercard combines a 143 billion-transaction network with its Identity Attribute Verification API to position as a cross-industry trust layer. Pure-play specialists such as Onfido, Jumio, and Veriff differentiate through proprietary computer-vision engines that verify thousands of global documents. Partnerships remain decisive; Mastercard teamed with Trulioo to accelerate SME onboarding for payment facilitators, while Sumsub joined the Mastercard Engage program to extend fraud protection to embedded-finance providers.
Acquisition activity underscores the premium on AI document forensics. Entrust finalised a USD 400 million purchase of Onfido in April 2025, integrating passive liveness with its identity-centric access suite. LexisNexis Risk Solutions bought IDVerse in February 2025 to gain 16,000-document template coverage and deepfake detection. Socure’s USD 136 million acquisition of Effectiv in December 2024 combined real-time transaction monitoring with digital ID proofing, creating a unified fraud decision engine.
Identity (ID) Verification Industry Leaders
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Mastercard
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Onfido
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GBG (Idology)
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Intellicheck
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Jumio
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: Persona blocked 75 million deepfakes in hiring and onboarding flows, underscoring AI-driven fraud scale.
- April 2025: Entrust closed the USD 400 million Onfido acquisition to fuse AI document checks with enterprise access control.
- March 2025: Mastercard announced plans to eliminate card numbers and move to biometric-only payments as part of its Scam Protect roadmap.
- February 2025: LexisNexis Risk Solutions finalised its IDVerse takeover, adding 16,000-document authentication coverage.
Global Identity (ID) Verification Market Report Scope
Identity verification is a process that compares a person's identity with their previous existing data to ensure they are who they claim to be.
The study on identity verification is structured to track identity verification, authentication, and validation solutions for banks, credit card issuers, payment enablers, retail, law enforcement, telecommunications, and other sectors.
The identity verification market is segmented by deployment (on-premise and on-demand), end-user industry (financial services, retail and e-commerce, gaming/gambling, government, and other end-user industries), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| On-premise |
| Cloud |
| Document / ID Verification |
| Biometric Verification |
| Authentication and Liveness |
| Others |
| Financial Services (BFSI) |
| Retail and E-commerce |
| Government and Public Sector |
| Healthcare |
| Telecom and IT |
| Others |
| Large Enterprises |
| Small and Medium Enterprises (SMEs) |
| North America | United States | |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| Southeast Asia | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Egypt | ||
| Rest of Africa | ||
| By Deployment | On-premise | ||
| Cloud | |||
| By Solution Type | Document / ID Verification | ||
| Biometric Verification | |||
| Authentication and Liveness | |||
| Others | |||
| By End-user Industry | Financial Services (BFSI) | ||
| Retail and E-commerce | |||
| Government and Public Sector | |||
| Healthcare | |||
| Telecom and IT | |||
| Others | |||
| By Organization Size | Large Enterprises | ||
| Small and Medium Enterprises (SMEs) | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Spain | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| Southeast Asia | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Egypt | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is the current size of the identity verification market?
The market is valued at USD 14.19 billion in 2025 and is projected to reach USD 25.56 billion by 2030.
Which deployment model is growing fastest?
Cloud platforms dominate with 65.8% share in 2024 and are expanding at a 12.9% CAGR through 2030.
Why is Asia-Pacific considered the growth engine?
Regulatory harmonisation, mobile-first banking, and large-scale fintech adoption push APAC to an 11.6% CAGR, the highest regional growth rate.
What drives consolidation in this market?
Vendors seek AI-powered document authentication talent and global document coverage, prompting acquisitions such as Entrust-Onfido and LexisNexis-IDVerse.
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