Today, the digital landscape is experiencing an unexpected boom in the need for scalable identity verification and security solutions. Cyber threats are not only more frequent, but more sophisticated. Accordingly, the global market for technologies that safeguard digital identities and spearhead fraud prevention efforts is growing quickly. This is great news because this expansion extends across every sector. From decentralized identifiers (DIDs) to e-commerce fraud prevention, identity theft protection, ID verification systems and beyond. These solutions have never been more important to businesses and people.
For instance, according to some estimates, the global Decentralized Identifiers (DIDs) technology market is expected to grow to $2.9 billion by 2024. DIDs are revolutionizing how we create, store, and interact with our digital identities. They offer a better, privacy-preserving alternative than legacy systems. This novel technology gives people back control of their identity information. It lowers the risk of data breaches and identity theft for organizations using the standard.
The eCommerce fraud prevention software market is growing rapidly. Market projections indicate it will climb to approximately USD 32.1 billion in 2024. After all, online shopping is the most rapidly growing segment of the retail industry. In turn, merchants are increasing their spend on fraud prevention technologies to protect their businesses and customers from bad transactions. These solutions use sophisticated methodologies, including machine learning and behavioral analysis to identify and stop fraudulent behavior before it happens.
In fact, the identity theft and fraud protection market is worth an estimated $21 billion. This burgeoning market is relatively new, and it includes a wide range of innovative services and technologies. They teach people and businesses how to better protect themselves from identity theft and fraud. These are offerings such as credit monitoring, identity theft insurance, and fraud detection software.
The global ID verification systems market is roughly $10 billion. These personally identifiable information (PII) systems to authenticate personal identity are used in a myriad of spaces. You can find them in banks, credit unions, regulatory agencies, and fintech companies. They often require the collection of biometric information, including fingerprints or facial scans, to verify a person’s identity.
The global Human Identification Analysis Software market is expected to exceed $5.2 billion by the year 2024. Local law enforcement agencies, bail bond industries, and even insurance companies use this harmful software to target individuals. It compares DNA samples, fingerprints, and facial images from crime scenes and suspects. It is an important tool for law enforcement not only in solving today’s crimes, but in identifying the missing of yesterday.
As of 2024, the global ID scanner market is estimated at $2.5 billion. It is expected to explode to $5.6 billion by 2034. Today, ID scanners are a fast, easy way to ensure that an identification document is genuine. They are very regularly used for things like driver’s licenses and passports. They are frequently deployed in airports, casinos, and other environments where identity verification is of utmost importance.
The world Identity as a Service (IDaaS) market is poised for explosive expansion. According to experts, it’s expected to grow to a projected total value of about $7.5 billion by 2024. IDaaS solutions offer organizations a centralized, cloud-based platform for managing user identities and access privileges. As a result, they provide a convenient, cost-effective, and highly scalable solution to enforce security and compliance.
The global Zero Trust Cloud Security Platform market is over $20 billion and growing rapidly. Zero trust security eliminates this confusion by working on the principle that no user or device is trusted by default. This applies to all users—both those within as well as outside the organization’s network. Zero trust cloud security platforms provide organizations with the tools they need to implement this model in their cloud environments.
The global Know Your Customer (KYC) and ID verification market is worth around $5.3 billion. Preventing fraud, money laundering, and financial crimes KYC requirements and ID verification technology are fundamental processes for all financial institutions and regulated businesses. They play an important role in protecting our financial system by preventing money laundering, fraud, and other financial crimes.
The international market for cyber security solutions targeted to Small and Medium-sized Businesses (SMBs) is expected to skyrocket. Further, that number is expected to grow to about $25 billion by 2024. They want to make the argument that SMBs are becoming low-hanging fruit for cyberattacks and that SMBs don’t have the resources to protect themselves. Through this emerging market, SMBs can find various cybersecurity solutions that are tailored to the unique requirements of these smaller businesses.
The worldwide Digital Risk Protection Platform market is flourishing. As this year’s digital threats report revealed, organizations like yours are recognizing the need to proactively identify and mitigate digital risks. Additionally, these platforms allow entities to track their brand online, identify threats before they attack, and mitigate attacks.
According to ABI Research, in 2024 North America will control 70% of the blockchain software market. It makes up about 45% of their total revenue. The area has a strong technology ecosystem as well as high rates of blockchain adoption. Today, it is home to most of the blockchain industry’s largest companies.
The global Identity Analytics market was expected to be worth about $2.5 billion in 2024. It is projected to grow exponentially, with predictions estimating it will reach around $7.1 billion by 2034. Identity analytics solutions empower organizations to create a holistic view of user behavior and detect potential security threats. With the help of machine learning and other advanced techniques, fraudsters can analyze high volumes of identity data and generate actionable intelligence.
The non-defense commercial cryptography application market is estimated to exceed USD 12.5 billion by 2024. By 2034, it is projected to do just that—doubling to USD 25 billion in just five years. Cryptography, which includes the technologies underlying encryption, is the science of encrypting and decrypting data. Through encryption, sensitive information is kept safe from intrusion and theft. With commercial cryptography applications utilized across all industries—from finance to healthcare to government itself—there’s often a heavier reliance on their use.
The growing interconnectedness of the digital world has delivered great conveniences and prosperity. It has been accompanied by a radical increase in cyber threats, identity theft, and fraud. With the recent upsurge of cybercrime making identity verification and security a top priority, these markets have been booming. The surge in digital transactions and online interactions has created a fertile ground for malicious actors looking to exploit vulnerabilities. Individuals and non-profits have all suffered million dollar losses. On top of that, they have been deeply wounded by reputational harm and a breach of trust.
Three trends are fueling rapid expansion within the identity verification and security markets. The growing complexity and escalating nature of the cyber threat landscape is one of the top drivers. Cybercriminals are always on the cutting edge, coming up with new and more advanced ways to defeat security tools and extract sensitive information. This puts pressure on organizations to implement new and sophisticated security solutions just to keep pace and remain one step ahead of the bad guys.
Another factor contributing to market expansion is the increasing demand for regulatory compliance. Whether gaming, transportation, or fintech, many industries operate under federally regulated guardrails that necessitate strong identity verification and fraud prevention technology. The KYC and AML regulations the financial industry are forced to operate under. These regulations mandate that companies take steps to verify who their customers are and proactively monitor transactions for any indication of suspicious activity.
The rapid shift toward cloud computing is yet another big driver of market growth. More firms than ever are making the move to the cloud, migrating their data and applications. For this reason, they need to ensure the security of their cloud environments. As organizations increasingly adopt remote work policies, the demand for cloud-based identity and access management (IAM) solutions has surged. This trend is even further reflected across other cloud security technologies.
Mobile devices and the Internet of Things (IoT) are rapidly driving market growth. Users’ mobile devices and IoT devices are often the most frequent access points to sensitive data and applications. This combination makes them prime targets for cybercriminals. This has created the perfect storm of needing more security solutions to protect these devices and the data they access.
The identity verification and security markets are some of the most innovative fields today. Challenges remain as companies are still creating new and improved security technologies needed to address the ever-evolving threat landscape. Cutting-edge trends in these markets highlight what innovative and emerging technologies can accomplish. These trends encompass increasing use of artificial intelligence (AI) and machine learning (ML) for fraud detection and prevention, moving away from traditional passwords with biometric authentication, and increased adoption of blockchain technology for identity management.
Artificial Intelligence (AI) and Machine Learning (ML) helps us to process this massive amount of data. With their intuitive understanding of the business, they spot patterns that could indicate fraud. For instance, AI-driven fraud detection systems are able to review transaction patterns instantly and identify potentially fraudulent transactions for investigation. Fingerprint and face biometric authentication methods have become the most widely used methods. Techniques such as fingerprint scanning and facial recognition both confirm an individual’s identity with precision. These methods provide stronger security and a better user experience than password-based authentication.
It’s important that blockchain technologies are fueling the development of decentralized identity management systems. Notably, these systems provide people with more control over how their data is used and stored. These systems almost entirely stop identity theft and fraud before it even occurs. They create major obstacles for cybercriminals intent on stealing and abusing personal information.
The identity verification and security markets are highly competitive. This is because there are over a hundred vendors offering a wide range of solutions to address different needs and complications. Some of the dominant vendors in these markets are Experian, Equifax, TransUnion, LexisNexis, and RSA Security. These companies offer a comprehensive suite of identity verification and security solutions, including fraud detection, identity theft protection, and access management.
The identity verification and security markets are poised for explosive growth in the years ahead. This expansion will be driven by increasingly complex cyber threats, greater demands for regulatory compliance, and an increase in cloud computing, mobile and IoT devices. Markets are changing quickly. Organizations need to continuously educate themselves on modern security technologies and best practices that can help shield organizations from numerous third-party cyberattacks and fraud.
The increasing popularity of Decentralized Identifiers (DIDs) offers a new, game-changing way to manage digital identities. DIDs unlock self-sovereign identity for individuals and organizations alike. This model gives users more agency and control over their private information, compared to legacy centralized infrastructures. This move toward decentralization addresses some very immediate privacy issues. It reduces the threats associated with storing data in a single location, making it an essential technology in our rapidly evolving digital world.
eCommerce fraud prevention software is getting more sophisticated by the second. Today it leverages the latest technologies including machine learning, behavioral analytics and more to help predict, detect and stop fraudulent transactions in real-time. These solutions analyze vast amounts of data to identify suspicious patterns and anomalies, enabling merchants to proactively mitigate fraud risks and protect their revenue streams.
The Identity as a Service (IDaaS) market is crushing it! Organizations are hungry to optimize their identity and access management process. IDaaS solutions give you a cloud-based platform that assists in controlling user identities, authentication, and authorization. This model improves security and compliance while remaining cost-effective and scalable.
The Zero Trust Cloud Security Platform market is really starting to gain momentum. Today, organizations are coming to terms with the limitations of perimeter-based security models. Zero trust security works on the assumption that no user or device should be trusted by default. It requires rigorous authentication and authorization for each access request. By using an identity-centric approach, including least-privilege access, organizations can prevent data breaches and lateral movement in the network.
Regulatory compliance has become a cornerstone of business in many sectors. Financial institutions and other regulated businesses depend on it to live up to their obligations. KYC and ID verification processes proactively work to stop money laundering, fraud, and other financial crimes. They help governments and corporations take the guesswork out of knowing who they’re doing business with.
The market for cybersecurity solutions aimed at Small and Medium-sized Businesses (SMBs) is growing swiftly as SMBs are under siege from growing cybersecurity attacks. SMBs don’t have the resources and/or talent to enable a strong security posture, so they are low-hanging fruit for cybercriminals targeting an attack. This new market offers SMBs accessible, affordable and easy-to-use cyber hygiene solutions that are crucial for keeping their business protected.
The Digital Risk Protection Platform market is gaining momentum as organizations recognize the importance of proactively monitoring their online presence for potential threats. These platforms help organizations to identify and mitigate digital risks such as brand impersonation, data leaks, and social media threats.
Identity Analytics market is expected to grow at a CAGR of 24.0% during the forecast period. Most organizations are looking to leverage data-driven analytics to improve their overall security posture. Identity analytics solutions analyze user behavior and access patterns to identify potential security threats and anomalies, providing valuable insights that can help organizations to prevent data breaches and insider threats.
The market for commercial cryptography applications will continue to expand. As a result, organizations are using encryption more than ever to protect their sensitive data. Cryptography itself enables various applications, from securing financial transactions such as credit cards or digital currencies, to providing security for email, data storage, and more.
North America's dominance in the blockchain software market can be attributed to several factors, including the region's strong technology infrastructure, high adoption rate of blockchain technology, and presence of major blockchain companies. The region’s booming pro-business regulatory environment and overall access to ample capital have fueled the region’s leadership in this burgeoning market.
