Identity Verification Market Size

Global Identity Verification Market size was valued at USD 10.9 Billion in 2023 and is poised to grow from USD 12.52 Billion in 2024 to USD 273.69 Billion by 2032, growing at a CAGR of 14.9% during the forecast period (2025-2032).

Growing incidence of identity theft and fraud, imposition of stringent regulations, rise in number of digital transactions, advancements in biometric technologies, and boom in remote work are slated to boost identity verification demand.  

The rise in online banking, e-commerce, and digital payments has significantly driven the demand for robust identity verification systems. High emphasis of organizations to ensure that remote workers accessing confidential data are verified and trustworthy is also driving identity verification adoption. Advancements in biometric verification technologies, surge in identity theft, and imposition of strict verification regulations are also slated to promote global identity verification market growth in the long run.  

On the contrary, data privacy and misuse concerns, technical limitations, high costs of implementation, digital divide and limited internet access, and evolution of fraud tactics are forecasted to hamper the adoption of zzidentity verification across the study period and beyond. 

How can AI Make Identity Verification Process Easier and more Secure? 

AI is revolutionizing identity verification by automating document analysis, facial recognition, and behavioral biometrics. These systems enhance accuracy and reduce manual errors, enabling real-time verification while deterring fraud. AI can detect deepfakes, spoofing attempts, and synthetic identities more effectively than traditional methods. Financial institutions, e-commerce platforms, and government agencies are increasingly deploying AI-powered solutions to streamline onboarding and regulatory compliance. With machine learning models continuously improving, these systems adapt to emerging fraud techniques. In 2024 and 2025, AI is expected to become a foundational layer of digital identity ecosystems, driving both security enhancements and operational efficiency for global organizations. 

Are Startups Innovating the Identity Verification Space? 

Advancing identity verification as the threat landscape evolves is expected to keep startups crucial in the global identity verification industry going forward. Here are some key startups that are innovating in the world of verification.  

• OneID: Based in the United Kingdom, the fintech startup is focusing on providing bank-verified digital identification services. The 2018-founded company uses advanced counter-fraud measures to help protect users and companies from online identity fraud. In February 2025, OneID announced that it had raised €19.1 million in a funding round led by ACF Investors and other investors.  
• Equal: Founded in 2022, the new company focuses on identity verification to help businesses streamline KYC and help prevent frauds. Based in Hyderabad, India, the company provides integration with over 50 ID databases and 4,000 API providers to ensure 97% success rate in KYC processing for its 250+ clients. In November 2024, the company raised USD 10 million in a Series A funding round co-led by Prosus Ventures, Tomales Bay Capital, and Keshav Reddy, the co-founder of Equal.