KYC Market Size
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 6.73 Billion |
| Market Size (2030) | USD 14.39 Billion |
| CAGR (2025 - 2030) | 16.42% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
KYC Market Analysis
The KYC Market size is estimated at USD 6.73 billion in 2025, and is expected to reach USD 14.39 billion by 2030, at a CAGR of 16.42% during the forecast period (2025-2030).
- The Know Your Customer (KYC) market is rapidly expanding, fueled by heightened regulatory demands, a surge in identity-related fraud, and technological advancements. The push for compliance with anti-money laundering (AML) regulations and the prevention of financial crimes is amplifying the demand for KYC solutions, especially in the banking and financial services sectors.
- In the EU, the AI Act has achieved a significant milestone in its development. This legislation, designed to address the risks associated with technology use, is currently in its vision stage. The EU Council and the European Parliament have reached a consensus as the year concludes. As anticipated, the Parliament is set to vote on the Act's principles in 2025, granting businesses and AI solution providers ample time to align with this transformative regulation.
- Companies are increasingly shifting their verification processes online, aiming to streamline customer interactions. Governments worldwide are updating KYC regulations, bolstering this trend. For example, the Indian Department of Telecommunications has eliminated the need for physical KYC verification—previously mandatory for telecom customer onboarding. Now, individuals purchasing a new SIM card can complete the process digitally by simply submitting an ID photo for verification.
- A notable portion of organizations acknowledge the necessity to boost their identity verification budgets by up to 20%. A key focus is on implementing KYC solutions capable of verifying customers with non-domestic IDs.
- However, challenges persist. Integrating new KYC solutions into existing systems poses complexities, especially for organizations with legacy infrastructures that may not accommodate modern technologies. Furthermore, the upfront costs of advanced KYC solutions can be daunting for smaller organizations, hindering their technological adoption.
- The COVID-19 pandemic has reshaped the KYC landscape, hastening the shift towards digital identity verification across sectors. As businesses navigate new operational challenges, the demand for smooth remote client onboarding has intensified. In the post-COVID environment, the move towards E-KYC solutions is streamlining this transition, allowing for secure online document verification.
KYC Market Trends
BFSI to Hold Major Market Shares
- Financial institutions are required to verify the identities of individuals owning 25% or more of a legal entity, as well as those controlling the entity. Additionally, these institutions must continuously monitor customer transactions and report any suspicious activities to the relevant authorities.
- According to the RBI, the banking sector has witnessed a surge in fraud cases, indicating a rising demand for KYC solutions. A robust KYC process encompasses customer identification, Customer Due Diligence (CDD), and ongoing monitoring. These measures uphold the highest integrity levels in financial services and shield the financial system from illicit activities. Furthermore, blockchain technology introduces a decentralized approach to KYC, facilitating secure and transparent information sharing between entities, which can minimize duplicated efforts and boost efficiency.
- In response to stringent government regulations, vendors are rolling out new solutions that align with these guidelines. The imperative for companies to adhere to region-specific KYC laws and thwart account takeovers has catalyzed the introduction of these new solutions, propelling the studied market.
- For example, in April 2023, Iuvo, a European firm developing a P2P marketplace, teamed up with Shufti Pro to align with global KYC and AML regulatory standards, aiming to mitigate financial fraud risks in the Fintech sector. Shufti Pro, a global IDV platform, offers AI-driven KYC and AML solutions to businesses worldwide. Thanks to this partnership, Iuvo is confident in sidestepping concerns related to money laundering and terrorism financing.
- In another instance, in May 2023, iDenfy, an AI-driven identity verification startup, forged a partnership with Fincapital Partners. This collaboration will enable Fincapital to utilize iDenfy’s sophisticated KYC and AML solutions, ensuring a smooth customer onboarding experience.
- In summary, the financial services sector is poised to dominate the market share, driven by the escalating need for identity verification, KYC compliance, and adapting to evolving financial regulations.
North America is Expected to Hold a Major Share of the Market
- In North America, the demand for Know Your Customer (KYC) solutions is surging, primarily due to stringent regulatory mandates and escalating concerns over identity fraud. As online transactions proliferate, there's a heightened need for robust KYC solutions, ensuring both secure customer interactions and adherence to regulatory standards.
- A significant catalyst for this demand is the uptick in cyber threats and identity theft incidents. With online activities on the rise, individuals face increased risks of personal information breaches. For example, in December 2023, Norton Healthcare experienced a data breach that affected approximately 2.5 million individuals. Consequently, businesses and organizations are increasingly adopting stringent identity verification protocols to shield against unauthorized access and fraudulent endeavors.
- Furthermore, data from ID theft statistics reveals that 33% of the US populace has fallen victim to identity theft at some stage, a figure that's thrice that of Germany and France and double the global average. Being more active on social media than their global counterparts, US users inadvertently expose themselves to cyber threats. Highlighting this vulnerability, a report from the Federal Trade Commission (FTC) noted that in the first half of 2023 alone, Americans logged nearly 560,000 identity theft cases, projecting to surpass 1 million by year's end — a figure significantly higher than any pre-pandemic record. This underscores the burgeoning demand for KYC software solutions.
- The US Financial Crimes Enforcement Network (FinCEN) mandates that both customers and financial institutions adhere to KYC standards, primarily to thwart illegal activities like money laundering. Anti-Money Laundering (AML) encompasses a suite of measures and processes aimed at ensuring regulatory compliance.
- Onfido, a subsidiary of Entrust, provides an end-to-end platform that aids numerous businesses in aligning with US KYC regulations. With Onfido, organizations can achieve the esteemed Identity Assurance Level set by the National Institute of Standards (NIST IAL2), ensuring users' identities are accurately verified.
- In summary, the burgeoning demand for KYC solutions in North America is fueled by a blend of factors: rising cyber threats, regulatory imperatives, the digital evolution across industries, and a collective pursuit of secure online interactions. As technological advancements persist, the progression of KYC solutions will be pivotal in protecting personal data and upholding the trust of both consumers and regulatory entities.
KYC Industry Overview
The KYC market is semi-consolidated, driven by the presence of major players. Keyy players employ strategies such as mergers, acquisitions, and product innovations to maintain a competitive edge and broaden their global footprint. Key player include EQUINITI KYC Solutions B.V., Truth Technologies, Inc., ACTICO GmbH and others.
The demand for KYC solutions is poised for significant growth as organizations increasingly recognize the importance of effective identity verification processes in mitigating risks associated with fraud and regulatory non-compliance. With substantial revenue projections driven by regulatory demands, technological advancements, and the shift towards digital services, stakeholders must navigate challenges such as integration complexity while capitalizing on emerging opportunities within this dynamic market landscape. The future looks promising for KYC solutions as they continue to evolve to meet the demands of modern businesses across various sectors globally.
KYC Market Leaders
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EQUINITI KYC Solutions B.V.
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Truth Technologies, Inc.
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ACTICO GmbH
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Pegasystems Inc.
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Acuant, Inc.
- *Disclaimer: Major Players sorted in no particular order
KYC Market News
- April 2024: Cloudburst Technologies, the leading provider in crypto KYC and off-chain cyber intelligence, is rapidly accelerating its growth, with expanded data offerings, an increased team size, and new partnerships in both commercial and public sectors. Cloudburst has harnessed AI technology for real-time, large-scale data classification and parsing, enhancing its ability to detect potential fraud and market pricing signals.
- December 2023: NIBC, a commercial bank based in the Netherlands, has tapped Irish fintech Fenergo for its onboarding and know your customer (KYC) solution. Fenergo’s Software-as-a-Service (SaaS) offering, which is integrated with Salesforce at the front-end, is set to replace the bank’s legacy systems currently in use for KYC in a push to “achieve operational efficiencies”.
KYC Industry Segmentation
Know Your Customer (KYC) standards are designed to protect financial institutions against fraud, corruption, money laundering and terrorist financing. KYC involves several steps to establish customer identity; understand the nature of customers' activities and qualify that the source of funds is legitimate.
The KYC market is segmented by component type (solution, services), by deployment mode (cloud, on-premises), by enterprises (SMEs, large enterprises), end-user verticals (BFSI, IT and telecom, government, other end-user verticals), geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (usd) for all the above segments.
| By Component Type | Solution |
| Services | |
| By Deployment Mode | Cloud |
| On-Premises | |
| By Enterprises | SMEs |
| Large Enterprises | |
| By End-user Vertical | BFSI |
| IT and Telecom | |
| Government | |
| Other End-user Verticals | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
| Solution |
| Services |
| Cloud |
| On-Premises |
| SMEs |
| Large Enterprises |
| BFSI |
| IT and Telecom |
| Government |
| Other End-user Verticals |
| North America |
| Europe |
| Asia |
| Australia and New Zealand |
| Latin America |
| Middle East and Africa |
KYC Market Research FAQs
How big is the KYC Market?
The KYC Market size is expected to reach USD 6.73 billion in 2025 and grow at a CAGR of 16.42% to reach USD 14.39 billion by 2030.
What is the current KYC Market size?
In 2025, the KYC Market size is expected to reach USD 6.73 billion.
Who are the key players in KYC Market?
EQUINITI KYC Solutions B.V., Truth Technologies, Inc., ACTICO GmbH, Pegasystems Inc. and Acuant, Inc. are the major companies operating in the KYC Market.
Which is the fastest growing region in KYC Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in KYC Market?
In 2025, the North America accounts for the largest market share in KYC Market.
What years does this KYC Market cover, and what was the market size in 2024?
In 2024, the KYC Market size was estimated at USD 5.62 billion. The report covers the KYC Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the KYC Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
KYC Industry Report
Statistics for the 2025 KYC market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. KYC analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
