Digital Identity Verification Spending to Exceed $20 Billion by 2027
Spending on digital identity verification checks will reach $20.8 billion globally in 2027; up from $11.6 billion in 2022, according to Juniper Research. The study predicts that this growth will be driven by both the increasing prevalence of digital services requiring digital onboarding journeys and the growing requirement for more advanced and robust identity verification systems in the face of rising fraud.
The research assessed leading digital identity verification vendors; evaluating each company on criteria such as depth and breadth of offerings, service innovation, and future market prospects. It ranked Microsoft as the top vendor, ahead of Thales, and LexisNexis Risk Solutions. Each of these vendors is taking advantage of the requirements for digital onboarding, as well as providing advanced anti-fraud capabilities.
Microsoft has taken a leading role in verification, particularly with its Azure AD solution in a remote working context; leveraging its business environment presence. Thales has implemented a different approach; creating a broad portfolio of solutions in identity verification, that it then coordinates for each verification use case. LexisNexis Risk Solutions is leveraging its broad data coverage using machine learning to verify identity, bolstered by frequent acquisitions.
“There are multiple pathways to identity verification success. There are many different segments and verification types, with no single vendor covering all the solutions. As such, there is still a lot of room for innovation; vendors must focus on building out innovation partnerships and acquisitions that allow them to intelligently orchestrate the most effective verification types for each use case to drive growth forward,” explained research co-author Damla Sat.