ID Verification: Market Size & Share

Part
01
of four
Part
01

ID Verification Market Size

Key takeaways

  • The global ID verification industry reached $7.6 billion in 2020.
  • The industry is predicted to grow at a CAGR of over 13.1% by 2026.

Introduction

The global ID verification market reached $7.6 billion in 2020. Companies like Thales Group, IDEMIA, LexisNexis Risk Solutions, Jumio, and GBG dominated the industry due to the rapid innovation and adaption of novel technologies.

Global ID verification market

  • According to a report by Markets and Markets, the size of the global ID verification market was $7.6 billion in 2020.
  • The market was projected to grow at a CAGR of 13.1% to 15.6% until 2026.
  • One of the main drivers of the market are the continued rise of digitization and the increased threat of identity theft.
  • In 2018, the number of people that experienced identity theft was over 14 million.
  • In 2019, in the US alone, identity theft amounted to over $1.9 billion in revenue lost to fraud.
  • The 2020 pandemic has also been a great catalyst for the increase in fraudulent activities, with over 29% of people reporting that there is a significantly higher risk of identity theft by August 2020.
  • As such, governments have been quick to promote and start using different initiatives to improve the digital safety of their citizens.
  • Some examples include the use of electronic ID cards (eID), smart border control with facial recognition, and advanced video analytics.
  • Some of the most prominent players in the ID verification industry include Thales Group (France), IDEMIA (France), LexisNexis Risk Solutions (US), Jumio (US), GBG (UK), Onfido (UK), Signicat (Norway), Trulioo (Canada), IDnow (Germany), Mitek Systems (US), Acuant (US), AU10TIX (Israel), SecureKey (Canada), WebID (Germany), Innovatrics (Slovakia), Intellicheck (US), and Shufti Pro.

Research Strategy

In order to find the market size and some of the top players in the ID verification industry, we primarily used industry reports such as Mordor Intelligence, Markets and Markets, and Globe Newswire. This allowed us to find the market size and the most prominent players in the industry. We, then, examined each player mentioned by the different industry reports and included only those with the highest revenues. It is important to note that we have excluded Experian, TransUnion, and Equifax from our list because they focus on providing credit reports to individuals and businesses, with verification services occupying a minor part of their overall revenue. On top of that, their annual reports did not provide us with the means to calculate the revenue generated by their ID verification services.
Part
02
of four
Part
02

ID Verification Competitive Analysis (Part 1)

Key Findings

  • Thales Group and IDEMIA are two of the biggest players in the global ID verification market.
  • Thales Group holds a market share of 39.5%.
  • IDEMIA holds a market share of 36.8%.

Introduction

Thales Group and IDEMIA are two of the biggest players in the global ID verification market, with market shares of 39.5% and 36.8% respectively. Below is detailed the market share for seven of the biggest players in the ID verification market.

Company market share

Thales Group (France)

  • Revenue: $17 billion
  • However, the company's ID verification is covered under their digital identity and security segment, which generated about $3 billion in 2020.
  • Market share: 39.5% ($3 billion / $7.6 billion)

IDEMIA (France)

  • Revenue: €2.3 billion or $2.8 billion.
  • While the company is a public company, their annual reports are available only to members. However, the company specializes in augmented identity verification, which suggests that the majority of its revenue can be counted as part of the ID verification market.
  • Market share: 36.8% ($2.8 billion / $7.6 billion)

LexisNexis Risk Solutions (US)

Jumio (US)

GBG (UK)

Onfido (UK)

Signicat (Norway)

  • Revenue: €19 million or $23.2 million
  • Market share: 0.3% ($0.0232 billion / $7.6 billion)

Research Strategy

To find the revenue for each company, we tried going through their annual reports to find the specific revenue associated with each company's ID verification division. However, not all the companies on the list were public entities. As such, we used sites such as ZoomInfo and D&B Hoovers to find the estimated revenue for each company. We then divided the revenue by the Markets and Markets ID verification market size to get the estimated market share for each company.
Part
03
of four
Part
03

ID Verification Competitive Analysis (Part 2)

Key Takeaways

  • Miltek Systems reached a revenue of $101.3 million in 2020, of which $33.6 million were generated by their ID verification department.
  • WebID occupies 0.2% of the global ID verification market, with a revenue of $13 million.
  • SecureKey technologies, a leading Canadian identity and authentication provider, generated over $10 million in revenue in 2020.

Introduction

Trulioo, IDnow, Mitek Systems, Acuant, AU10TIX, SecureKey, and WebID are some additional leaders in the global ID verification industry. All the market shares of the noted companies have been calculated below.

Company Market share

Mitek Systems (US)

Acuant (US)

Trulioo (Canada)

IDnow (Germany)

AU10TIX (Israel)

WebID (Germany)

SecureKey (Canada)

Research Strategy

To find the revenue for each company, we tried going through their annual reports to find the specific revenue associated with each company's ID verification division. However, not all the companies on the list were public entities. As such, we used sites such as ZoomInfo and D&B Hoovers to find the estimated revenue for each company. We then divided the revenue by the previously-identified ID verification market size to get the estimated market share for each company.
Part
04
of four
Part
04

ID Verification Competitive Analysis (Part 3)

Key Takeaways

  • ID.me generated $65 million in revenue in 2020.
  • Veriff reached $48 million in revenue in 2020.
  • Shufti Pro holds a market share of 0.05% in the ID verification market, making it one of the smaller players among the market leaders.

Introduction

ID.me, Veriff, Daon, Shufti Pro, Intellicheck, and Innovatrics are some additional leaders in the global ID verification industry. All the market shares of the noted companies have been calculated below.

Company Market share

ID.me (US)

Veriff (Estonia)

Daon (US)

Intellicheck (US)

Innovatrics (Slovakia)

Shufti Pro (UK)

Research Strategy

To find the revenue for each company, we tried going through their annual reports to find the specific revenue associated with each company's ID verification division. However, not all the companies on the list were public entities. As such, we used sites such as ZoomInfo and D&B Hoovers to find the estimated revenue for each company. We then divided the revenue by the previously-identified ID verification market size to get the estimated market share for each company. It is important to note that the market share percentage for all 20 companies is less than 100%, accounting for roughly 93.3% of the market. This makes sense as there are a multitude of smaller companies that operate withing the global ID verification market. By going through the Markets and Markets report alone, there were about 10 more companies that had less than $4 million in revenue, but were still considered important players in the market. Considering that the global market is still relatively small, it is safe to assume that the majority of the players that operate within the space are smaller start-ups that are yet to make an impact on the industry.
Sources
Sources