US Identity Verification Market
US Identity Verification Market by Application (Access Control & User Monitoring, KYC, KYB, & Onboarding, Identity Fraud Compliance & Forensics), Type (Biometrics, Non-biometrics), Vertical (BFSI, Healthcare, Education) - Global Forecast to 2030
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The identity verification market in the US is projected to reach USD 8.16 billion by 2030 from USD 4.34 billion in 2025, at a CAGR of 13.5% from 2025 to 2030. The rapid growth of online banking, e-commerce, and digital onboarding is increasing the need for seamless and automated verification processes. As a result, reliable identity verification has become essential for day-to-day business operations. There is a growing demand for AI-driven solutions including biometric verification, device intelligence, and liveness detection.
KEY TAKEAWAYS
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BY OFFERINGBy offering, the services segment is estimated to dominate the market during the forecast period.
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BY TYPEBy type, the biometrics segment is expected to account for the largest market share during the forecast period.
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BY APPLICATIONBy application, the KYC, KYB, & onboarding segment is estimated to account for the largest market share of 43.2% in 2025.
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BY DEPLOYMENT MODEBy deployment mode, the cloud segment is projected to register a CAGR of 15.0% from 2025 to 2030.
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BY ORGANIZATION SIZEBy organization size, the SMEs segment is expected to grow at a fastest rate with a CAGR of 16.5%.
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BY VERTICALBy vertical, the BFSI segment is expected to dominate the market in terms of market share during the forecast period.
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COMPETITIVE LANDSCAPE - KEY PLAYERSLexisNexis Risk Solutions, Equifax, and Mastercard were identified as Star players in the US identity verification market for their robust data intelligence, advanced analytics, and strong compliance capabilities. Their investments in AI, biometrics, and fraud-detection technologies enable scalable, secure, and seamless identity verification across major industries.
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COMPETITIVE LANDSCAPE - STARTUP & SMESocure, Persona and others have distinguished themselves among startups and SMEs with agile, AI-driven verification platforms offering flexible orchestration, high fraud-detection accuracy, and fast, low-friction onboarding. Their configurable and developer-friendly solutions make them preferred choices for modern digital identity needs.
The identity verification market in the US is experiencing strong growth, driven by increasing digital transactions, rising fraud risks, and the need for reliable identity proofing across industries. As organizations expand online services and remote onboarding, demand for automated identity verification solutions, including biometric authentication, document checks, and real-time risk scoring, continues to grow. Adoption is most strong in BFSI, e-commerce, healthcare, and government sectors, supported by AI-driven analytics, automation, regulatory compliance, and investment in secure, scalable digital identity frameworks.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The figure demonstrates the changing revenue picture and the various client demands in the different sectors of the identity verification market in the US. The traditional verification solutions are still the major source of revenue, but at the same time, the new technologies like AI-based authentication, biometrics, and digital onboarding are gaining traction. Over the next few years, revenue growth is expected to move toward smart and integrated verification platforms. Industries such as retail and e-commerce, BFSI, healthcare and life sciences, and IT & ITeS are placing greater emphasis on identity assurance, fraud prevention, and smooth digital interactions.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
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Rising adoption of digital onboarding across industries
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Rising occurrences of identity theft and fraud
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High implementation and maintenance costs
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Lack of technical expertise and requirement for security awareness and training
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Shift toward integrated and cloud-based identity verification platforms
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Adoption of biometric devices in identity verification systems
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Balancing security and user experience
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Privacy and data breach challenges
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Rising adoption of digital onboarding across industries
The rising adoption of digital onboarding across industries is driving strong demand for identity verification solutions. Banks, e-commerce platforms, telecom providers, and government agencies are moving customer and citizen services online to improve reach and efficiency. This shift requires fast and reliable identity checks to reduce fraud and avoid manual processes. As a result, organizations are investing in automated verification tools that support secure, smooth, and scalable onboarding experiences.
Restraint: High implementation and maintenance costs
Organizations across industries are increasingly adopting identity verification solutions due to rising cyberattacks and identity fraud. However, high implementation costs, including expensive hardware and software for biometrics, facial recognition, and blockchain-based KYC, pose challenges, particularly for SMEs. Limited funding often delays security investments until after a breach, leaving small businesses vulnerable and hindering widespread deployment of effective identity verification systems.
Opportunity: Shift toward integrated and cloud-based identity verification platforms
The shift toward integrated and cloud-based identity verification platforms is creating new opportunities in the market. Organizations are replacing fragmented tools with unified platforms that are easier to deploy and manage. Cloud-based models support faster onboarding, easier updates, and better scalability. As digital services grow, these platforms help organizations improve security, reduce operational effort, and deliver a smoother verification experience across multiple channels.
Challenge: Balancing security and user experience
Balancing security and user experience remains a major challenge in identity verification. Strong security checks are needed to prevent fraud, but complex or lengthy processes can frustrate users and increase drop-offs during onboarding. Organizations must find the right balance by using verification methods that are both effective and easy to complete.
US identity verification market: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
|---|---|---|
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Employ the global identity verification service offered by Shufti Pro and increase BitTiger's usage of access control and protect user identity. | It facilitated secured access to content, launched intellectual property, made global verification possible, simplified enrollment, and promoted efficiency. |
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Use Jumio's Al-based identity verification service for simplifying and securing RappiPay's digital onboarding process. | Permitted faster, compliant, and secure onboarding, trust generated among customers, decreased manual verification, and facilitated by more than 750,000 new accounts under RappiPay. |
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Implementation and adoption of the Knowledge IQ and Precise ID solution platform offered by Experian. | From cumbersome fax verification, savings of 500 labor hours per month, as well as better security and accuracy, and smooth onboarding of new members. |
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Implemented biometric identity verification solution Equifax IDVerse for a global oil and gas firm to optimize fuel card applications. | Featuring an application process from two weeks to 1-2 hours, low risk of fraud, reduced operation costs and better customer experience, and higher conversion rates. |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The identity verification ecosystem comprises varied inter-relations between the biometric system, authentication services, identity databases, and management systems for document verification, fraud detection systems, verification, compliance software, and security hardware. Secure identity checks are enabled by biometric and authentication providers, while databases and verification software ensure accurate onboarding within regulatory compliance. Security hardware serves as the backbone behind effective data protection. Many sectors such as BFSI, retail and e-commerce, healthcare, government and defense, and gaming and gambling uses identity verification mechanisms to combat fraud, secure transactions, and protect any sensitive information.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
US Identity Verification Market, By Offering
The solutions segment is estimated to hold the largest market revenue share in 2025. The rising need for secure, frictionless, and real-time identity validation is driving demand for this segment. Advanced verification solutions allow organizations to authenticate users through biometrics, multi-factor authentication, and AI-powered document checks. Their strong capabilities in fraud detection, risk assessment, and compliance make them ideal for financial institutions, e-commerce platforms, and other high-security industries.
US Identity Verification Market, By Type
The biometric solutions segment is estimated to dominate the identity verification market in the US in 2025. The increasing demand for highly secure and convenient authentication methods is driving growth for this segment. Using technologies like fingerprint scanning, facial recognition, and iris or voice authentication, organizations can verify identities accurately and in real time. Biometric solutions help reduce fraud, improve user experience, and ensure compliance, making them ideal for banking, fintech, healthcare, and government applications.
US Identity Verification Market, By Application
The KYC, KYB, and onboarding segment is estimated to hold the largest market share in 2025. Increasing regulatory requirements, rising fraud risks, and the demand for seamless customer experiences are driving growth. KYC and KYB onboarding solutions enable accurate verification of individuals and businesses while reducing onboarding time. Their reliability and ease of integration make them particularly important for banks, fintech firms, and large enterprises seeking secure and efficient identity management.
US Identity Verification Market, By Deployment Mode
In 2025, the on-premises deployment mode is estimated to hold the largest share of the identity verification market in the US. Organizations are choosing this model to maintain greater control over sensitive identity data and meet strict security and compliance needs. Hosting solutions on internal systems allows better customization and oversight of verification processes. This makes on-premises approach ideal for highly regulated industries such as banking, government, and healthcare.
US Identity Verification Market, By Organization Size
The large enterprises segment is expected to hold the largest revenue share in 2025. Demand is driven by the need to manage complex operations, meet regulatory requirements, and secure large volumes of user identities. Advanced identity verification solutions help these organizations control access, detect fraud in real time, and maintain audit records. Their scalability and ability to integrate with existing systems make them well suited for banks, insurers, healthcare providers, and multinational companies.
US Identity Verification Market, By Vertical
The BFSI industry is expected to account for the largest share of the identity verification market in the US by 2025. Strong focus on secure customer onboarding, fraud prevention, and regulatory compliance is driving adoption across the sector. Identity verification solutions help banks, fintech firms, and insurers accurately verify customers and reduce fraud risks. Their reliability and ease of integration make them essential for building safe and efficient identity management systems.
us identity verification market: COMPANY EVALUATION MATRIX
A significantly strong presence is the LexisNexis Risk Solutions (Star) in the US identity verification market, powered by innovative AI-enabled tools. Emerging Leader Entrust is also advancing with enhanced authentication and biometric services and gradually shifting toward the leader's quadrant due to increasing demands for identity solutions in safety.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- LexisNexis Risk Solutions (US)
- Equifax (US)
- TransUnion (US)
- Mastercard (US)
- Entrust (US)
- Experian (Ireland)
- Trulioo (Canada)
- Shufti Pro (UK)
- Veriff (Estonia)
- GBG (UK)
- Mitek Systems (US)
- Jumio (US)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | USD 3.85 Billion |
| Market Forecast in 2030 (value) | USD 8.16 Billion |
| Growth Rate | CAGR of 13.5% from 2025-2030 |
| Years Considered | 2019-2030 |
| Base Year | 2024 |
| Forecast Period | 2025-2030 |
| Units Considered | Value (USD Million/Billion) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends. |
| Segments Covered |
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WHAT IS IN IT FOR YOU: us identity verification market REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Leading Solution Provider (US) | Product Analysis: US identity verification product matrix offering a detailed comparison of each company’s portfolio, including biometric authentication, AI-based identity matching, document verification, and fraud detection solutions. | Better understanding of market positioning, product differentiation, and innovation strategies to guide informed business decisions. |
| Leading Service Provider (US) | Company Information: Comprehensive profiling and assessment of additional market participants (up to 5), covering capabilities, solution offerings, technological expertise, and strategic initiatives. | Holistic view of the identity verification ecosystem, highlighting growth opportunities, emerging trends, and potential areas for partnerships or strategic collaborations. |
RECENT DEVELOPMENTS
- March 2025 : LexisNexis Risk Solutions partners with Microsoft Azure for cloud-based identity verification that is enhanced with Al and machine learning to provide more accurate, scalable, and real-time detection of fraud.
- March 2025 : TransUnion unveiled its identity verification solutions aimed at government clients through TruValidate for Government, as the company also embarked on the authorization process under FedRAMP to ensure the solution adheres to federal security and compliance standards.
- February 2025 : Equifax to partner with Google Cloud to adapt advanced Al and machine learning features into its identity verification systems, which will enable real-time fraud detection, improving accuracy in decision-making, and scalability in all digital onboarding environments.
- October 2024 : Socure announces a merger with Effectiv, a real-time decision making risk platform from Socure. Furthermore, this acquisition improves identity and fraud solutions of Socure with a shared and developer-friendly engine that simplifies making decisions and enhances customer efficiency.
- April 2024 : Entrust has completed the acquisition of Onfido, thereby advanced its portfolio in AI-powered identity verification solutions. This acquisition further bolsters Entrust in strengthening its status as a giant in identity-centric security.
Table of Contents
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Methodology
This study involved estimating the current US Identity Verification Market size. Exhaustive secondary research was carried out to collect information on the identity verification industry. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain using primary research. Different approaches, such as top-down and bottom-up, were employed to estimate the total market size. After that, the market breakup and data triangulation procedures were used to estimate the market size of the segments and subsegments of the US Identity Verification Market.
Secondary Research
The market for companies offering identity verification solutions and services was arrived at by using secondary data available through paid and unpaid sources, analyzing the product portfolios of the major companies in the ecosystem, and rating the companies by their performance and quality. Various sources were referred to in the secondary research process to identify and collect information for this study. The secondary sources included annual reports, press releases, investor presentations of companies, white papers, journals, certified publications, and articles from recognized authors, directories, and databases.
In the secondary research process, various secondary sources were referred to to identify and collect information related to the study. Secondary sources included annual reports, press releases, and investor presentations of identity verification vendors, forums, certified publications, and whitepapers. Secondary research was used to obtain essential information on the industry’s value chain, the total pool of key players, market classification, and segmentation from the market and technology-oriented perspectives.
Primary Research
In the primary research process, various supply and demand sources were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the US Identity Verification Market.
After the complete market engineering (calculations for market statistics, market breakdown, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. Primary research was also undertaken to identify the segmentation types, industry trends, competitive landscape of identity verification hardware, software, and services offered by various market players, and fundamental market dynamics, such as drivers, restraints, opportunities, challenges, industry trends, and key player strategies.
In the complete market engineering process, the top-down and bottom-up approaches and several data triangulation methods were extensively used to perform the market estimation and market forecasting for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to list the key information/insights throughout the report.
Market Size Estimation
Top-down and bottom-up approaches were used to estimate and validate the size of the US Identity Verification Market and the size of various other dependent sub-segments. The research methodology used to estimate the market size included the following details: key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure included the study of the annual and financial reports of the top market players, as well as extensive interviews for key insights with industry leaders, such as CEOs, VPs, directors, and marketing executives.
All percentage splits and breakdowns were determined using secondary sources and verified through primary sources. All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data was consolidated and added to detailed inputs and analysis from MarketsandMarkets.
Data Triangulation
After arriving at the overall market size using the market size estimation processes explained above, the market was split into several segments and subsegments. The data triangulation and market breakup procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Market Definition
According to MarketsandMarkets, identity verification is a process of verifying an individual’s identity by using publicly or privately available databases. The solutions offered in the US Identity Verification Market help organizations verify an individual's identity quickly and easily, thereby actively improving customer experience and complying with privacy laws, anti-money laundering (AML) legislation, and know-your-customer (KYC) requirements.
Stakeholders
- Government agencies
- Consulting firms
- Information technology (IT) security agencies
- Raw material/component suppliers
- Research organizations and consulting companies
- Government bodies, such as regulating authorities and policymakers
- Venture capitalists and private equity firms
- Chief technology and data officers
- Identity verification service professionals
- Business analysts
- Information technology (IT) professionals
- Consultants/consultancies/advisory firms
Report Objectives
- To define, describe, and forecast the US Identity Verification Market based on offering, type, deployment mode, organization size, application, vertical, and region
- To forecast the market size of five main regions: North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and Latin America
- To analyze the subsegments of the market concerning individual growth trends, prospects, and contributions to the overall market
- To provide detailed information related to the primary factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market
- To analyze opportunities in the market for stakeholders by identifying high-growth segments of the market
- To profile the key players of the market and comprehensively analyze their market size and core competencies
- To track and analyze competitive developments, such as product launches, mergers and acquisitions, partnerships, agreements, and collaborations in the US Identity Verification Market
Available Customizations
With the given market data, MarketsandMarkets offers customizations based on company-specific needs. The following customization options are available for the report:
Geographic Analysis as per Feasibility
- Further breakup of the Asia Pacific market into countries contributing 75% to the regional market size
- Further breakup of the North American market into countries contributing 75% to the regional market size
- Further breakup of the Latin American market into countries contributing 75% to the regional market size
- Further breakup of the Middle Eastern and African market into countries contributing 75% to the regional market size
- Further breakup of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
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Growth opportunities and latent adjacency in US Identity Verification Market