ID Verification Spending to Hit $26 Billion by 2029: Juniper Research

Published Date : 03/12/2024 

By 2029, the global expenditure on digital identity verification checks is forecasted to increase by 74% to $26 billion, driven by innovation in behavioral biometrics, facial recognition, and liveness detection. 

By 2029, the global spend on digital identity verification checks is set to soar by 74% to an impressive $26 billion, according to a recent report from Juniper Research.

The European Union (EU) is leading the charge with the implementation of eIDAS 2.0, which is expected to transform the digital economy.

West Europe, China, and the Far East are forecasted to be the primary contributors, each accounting for nearly a quarter of the total spend.

North America is also anticipated to be a significant market.

Pegged at $15.2 billion in 2024, the industry is poised for robust growth as innovative technologies reduce friction in the digital identity verification process.

Behavioral biometrics, a key enabling technology, is highlighted in the white paper “Three Technologies Enhancing the Digital ID Verification Experience.” This technology can detect anomalous user behavior through device inputs like keystrokes and screen swipes, helping identity verification vendors identify and prevent fraudulent activities more efficiently.

However, the report emphasizes that the best results in digital identity verification are achieved by combining three key technologies behavioral biometrics, facial recognition, and liveness detection.

Passive liveness detection, in particular, enhances the user experience by making the verification process more seamless and user-friendly.

The future of biometric technology is continuously evolving, with new methods such as iris and retina scans showing significant potential.

These technologies are expected to combat the increasing threat of spoofing and deepfake attacks on facial recognition systems.

Handprint recognition technology, on the other hand, is forecasted to see limited growth unless there is a significant improvement in its usability.

Vein pattern recognition, though not widely implemented, is noted for its high level of security.

Regulations will play a crucial role in driving reliability and privacy in the identity verification sector.

Blockchain-based technologies, promoting self-sovereign principles, are expected to enhance security in highly regulated sectors like healthcare and financial services.

Data sovereignty, minimal necessary data sharing, and user control will be essential in the development of identity verification practices.

The 'electronic Identification, Authentication, and trust Services' (eIDAS) regulation is set to bring about significant changes in the EU, with interoperable digital identity wallets to be offered to all citizens by May 2026.

Juniper Research recommends that vendors adhere to digital identity standards and work with decentralized databases to maximize the security and privacy of user information.

Juniper Research is a leading independent provider of research and strategic consulting services, focusing on the use of communications and electronic technologies.

The company's expertise spans various sectors, including consumer electronics, mobile, and enterprise markets. 

Frequently Asked Questions (FAQS):

Q: What is the projected global spend on digital identity verification by 2029?

A: The global spend on digital identity verification checks is projected to reach $26 billion by 2029.

Q: Which technologies are key in enhancing digital identity verification?

A: Behavioral biometrics, facial recognition, and liveness detection are the key technologies enhancing digital identity verification.

Q: How does behavioral biometrics work?

A: Behavioral biometrics detects anomalous user behavior through device inputs such as keystrokes and screen swipes to identify and prevent fraudulent activities.

Q: What is the role of regulations like eIDAS in digital identity verification?

A: Regulations like eIDAS play a crucial role in driving reliability and privacy by promoting data sovereignty, minimal necessary data sharing, and user control.

Q: What is the potential of iris and retina scans in combating fraud?

A: Iris and retina scans are expected to have significant potential in combating fraud as they can better resist spoofing and deepfake attacks on facial recognition systems. 

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