Wiesbaden, October 20, 2022 – KuppingerCole Analysts predicts the CAGR (Compound Annual Growth Rate) of the Verified Identity Market to be approximately 49,1%, reaching an expected revenue 6,7 bn US dollars in 2025. Verifying that an individual – be it consumer or workforce-related – is who they claim to be is a requirement in some industries, and is a growing market for many others with capacity to support remote onboarding, modern authentication, and access control. This expected exponential growth is in line with the overall growth of this segment, marked by increasing maturity of technologies, increasing adoption across a wider range of industries, and an increased use of eIDs and digital wallets. Increasingly, Identity Verification is used to enable a secure user enrolment process, mitigates fraud risk, and provides real-time monitoring and tracking to support functions like step-up authentication. Identity Verification is a global market, with EMEA and North America being the most relevant regions for this market share.
This market is expected to grow significantly. Businesses are more frequently using Identity Verification in online and offline onboarding, with particular attention to remote onboarding use cases. Among the many advantages, businesses can protect against fraudulent new accounts or account takeover, and individuals are protected from becoming the victims of fraud while experiencing faster and more convenient onboarding processes.
The term "Verified Identity" stands for digital identities that have been verified to describe a real-world identity in digital form, and that the verification is used for onboarding, enrolment, and authentication. Therefore, Providers of Verified Identity are the vendors that can issue such a verified identity or enable an external verified identity to be onboarded by an enterprise. Identity verification has previously been viewed as a product category of its own but is increasingly being integrated into full-service solutions, enabling identity verification to be conducted remotely, automatically, passively, federated from verified accounts, in a decentralized manner and/or in parallel to other steps of the identity lifecycle.
The Verified Identity segment includes vendors that provide remote automated identity verification for enrolment and authentication. It excludes vendors that provide video identification, in-person identification, and hardware support for identity verification. KuppingerCole Analysts also covers the Reusable Verified Identity segment which includes solutions that store a verified identity credential in a way that it can be reused, and the Identity Verification segment which covers all vendors that conduct digital identity verification flows.
