Global spending on digital identity verification will exceed $20 billion by 2027, study reveals

A new Juniper Research study finds that spending on digital identity verification checks will reach US$20.8 billion globally by 2027, up from US$11.6 billion in 2022.

According to the study, this growth will be driven by both the prevalence of digital services requiring digital onboarding journeys and the increasing requirement for more sophisticated identity verification systems as security risks and fraud continue to increase. became clear.

Digital identity verification includes verifying information through procedures such as selfie scans, address checks, and knowledge-based authentication.

The study evaluated leading digital identity verification vendors including Microsoft, Thales, and LexisNexis Risk Solutions. We evaluated each company on criteria such as service depth and breadth, service innovation, and future market prospects.

Our research found that these vendors are leveraging digital onboarding requirements while also offering advanced fraud prevention capabilities.

For example, Microsoft has taken a leading role in validation, especially with its Azure AD solution in remote work contexts. Leverage your presence in a business environment.

The research also found that Thales added another approach by creating an extensive solution portfolio for identity verification and tailoring it to each verification use case.

Finally, LexisNexis Risk Solutions leverages extensive data coverage that uses machine learning to confirm identities.

According to study co-author Damla Sat, “There are multiple pathways to successful identity verification. There are many different segments and verification types, and no single vendor covers all solutions. There is still plenty of room for innovation, and vendors should focus on building innovation partnerships and acquisitions that enable them to intelligently tailor the most effective validation types for each use case to drive growth.”