IDV spending to hit $29B by 2030 as DPI projects scale: Juniper Research

Spending on digital identity verification (IDV) technology is projected to reach a 55 percent growth rate between now and 2030, as digital public infrastructure (DPI) projects continue to expand in different parts of the world.

According to findings of a study released recently by Jupiter Research, the anticipated growth means that IDV expenditure will hit $29 billion by that year, up from the $19 billion market size currently.

Some industry players tipped to lead the identity verification market growth effort include LexisNexis, Experian, and Thales, all known for their identity orchestration, fraud prevention, and proprietary data capabilities.

Per the report, an extract of which is available for free download, the top factors envisaged to drive the momentum include “tightening global regulations, increased investment into globally interoperable systems, and consolidation around unified verification platforms.”

Shane O’Sullivan, who authored the report, noted that activities beyond the financial services sector are certainly driving the need for digital identity verification software and hardware. Financial services will no doubt dominate the market, he notes, but there is expected to be activity in other areas.

“eCommerce, gig economy, and digital-native platforms are the most aggressive buyers of ID verification solutions; scaling toward lifecycle monitoring. Financial services will remain the largest segment, but its share will decline as verification embeds rapidly across digital interactions,” he said.

Given the changing nature of digital threats aided by AI, the report suggests that businesses and organizations are likely to increasingly go for more sophisticated and robust IDV systems, with emphasis placed on agentic AI and behavioral biometrics.

“The leaders are no longer winning on a single check type; they are winning on orchestration and continuous risk intelligence. Vendors that cannot unify data, biometrics, and agentic AI defenses into a single decisioning layer will be displaced over the next five years,” O’Sullivan asserted.

An announcement describes the Jupiter Research finding as the “most comprehensive assessment of the digital identity verification market to date; providing market analysis and forecasts of 96,000 datapoints over a five-year period.”

The outfit, in a 2024 report, projected that because IDV was growing at a fast pace, average cost was expected to drop at least 15 percent by 2029.

Biometric Update recently produced a comprehensive market report and buyer’s guide on biometric IDV in partnership with Goode Intelligence that includes a three-year forecast, and brings to the fore “important trends, technologies, and considerations for organizations” looking to procure digital identity verification solutions.

Article Topics

biometrics  |  digital identity  |  identity verification  |  Juniper Research  |  market report