New research from Juniper Research has found that spending on digital identity verification checks will reach US$20.8 billion globally in 2027, an increase from US$11.6 billion in 2022.
The study revealed that this growth will be driven by both the prevalence of digital services requiring digital onboarding journeys, and the increasing requirement for more advanced identity verification systems as security risks and fraud continue to grow.
Digital identity verification includes verifying information through procedures such as selfie scans, address checks, and knowledge-based authentication.
The research assessed leading digital identity verification vendors like Microsoft, Thales, and LexisNexis Risk Solutions. It evaluated each company on criteria such as depth and breadth of offerings, service innovation, and future market prospects.
The research found that these vendors are taking advantage of the requirements for digital onboarding, while also providing advanced anti-fraud capabilities.
For example, Microsoft has taken a leading role in verification, particularly with its Azure AD solution in a remote work context; leveraging its business environment presence.
The study also found that Thales has added a different approach by creating a broad portfolio of solutions in identity verification that it then coordinates for each verification use case.
Lastly, LexisNexis Risk Solutions is leveraging its broad data coverage using machine learning to verify identity.
According to research co-author Damla Sat, “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.”
