DUBLIN, Oct. 29, 2021 /PRNewswire/ — The “ID Technologies Market – Forecasts from 2021 to 2026” report has been added to ResearchAndMarkets.com’s offering.
The ID technologies market was valued at US$61.211 billion in 2019 and is expected to grow at a CAGR of 11.48% over the forecast period to reach a market size of US$130.981 billion by 2026.
ID technology or identification technology includes smart cards, voice recognition, face recognition, biometrics, and barcodes among other techniques used to identify objects and individuals. Growing concern about data security and safety is driving the demand for ID technologies across a variety of industries.
Travel and tourism industries are booming globally, so national security uses of biometric technologies are on the rise, positively impacting the market growth of ID technologies. Emerging economies such as India are increasingly deploying centralized electronic identification systems, increasing the market’s growth. Increased cyber-attack sophistication, cloud adoption, BYOD (Bring your own device) policies adopted by various organizations, and government compliance are the factors driving the ID technology market to grow.
Innovative ID technology is a top priority for many large multinationals For instance, IBM Corporation partnered with Imprivata, an IT security company, to launch a cloud-based identity and access management solution designed to help their customers manage provisioning tracking and de-provisioning of their hybrid cloud and on-premise environments.
Further, governments worldwide focus on creating stringent regulations to curb identity theft and work to secure legal identity for a global population. ID4D is an initiative of the United Nations and the World Bank aiming to provide everyone on earth with a legal identity by 2030. (Source: United Nations)
Growing number of identity thefts and frauds:
Fraud on the internet has been an issue businesses have faced since the advent of e-commerce in the 1990s, and its threat only increases with each passing year. Out of the 3.2 million reports of identity theft and fraud that we received in 2019, 1.7 million were fraud-related, 9.0 million were complaints from other consumers, and 651,000 were identity theft complaints. 23% of the 1.7 million fraud cases reported financial losses. Over USD 1.9 billion has been lost to fraud by consumers. The FTC identified the top 10 fraud categories, with imposter scams ranking first among all fraud cases. USD 667 million was lost as a result. In 2019, identity theft accounted for 650,570 complaints, or 20% of all complaints. (Source: The Consumer Sentinel Network, maintained by the Federal Trade Commission (FTC)).
Adoption of Blockchain Technology:
In order to create a secure platform for preventing individuals’ names from being stolen and defrauded, blockchain technology has begun to penetrate the identity management market area. Businesses are using blockchain technology to handle authentication and authorization issues. It provides a decentralized and reasonably secure way to store and verify the proof of identity. Blockchain-enabled Identification Management systems in organizations assist in reducing the operational risks and costs by eliminating the need for replicated identity repositories and data.
Magic, a blockchain-based identity authentication platform provider, announced it has raised $27 million to continue to commercialize the technology. As part of the round, which was led by Northzone, a host of prominent venture capital and angel investors participated, including Tiger Global, Reddit’s Alexis Ohanian, and GitHub’s Jason Warner.
Increase in use of Artificial Intelligence (AI) and Machine Learning:
Identity technology continues to evolve across various critical functions, including authentication and data security, in order to meet privacy compliance requirements. Technical and non-technical employees have access to contextually relevant information, making their work more efficient. Security tactics have been improved through the use of behavioral data analysis in identity management. A machine learning system can, for instance, detect password guessing and analyze user login attempts.
The American software company Ping Identity utilizes Al-driven analysis to monitor an organization’s application programming interface (API) activity. The security industry is being radically transformed by artificial intelligence and machine learning.
Lack of identity standards and budgetary constraints:
Organizations across industry verticals are concerned about the increasing cyber threat landscape. Identification technology is stifled by a lack of identity standards and insufficient budget resources, as well as high installation costs. Due to the need to integrate robust security technologies, the initial investment and maintenance costs are high for this system. The insufficient budget continues to be a significant challenge to achieving ID security objectives. A number of major economies are experiencing tight budgets, such as some parts of the region, the Middle East, and Latin America, where companies are either self-funded or running with small capital.
COVID-19 Impact on ID Technologies Market
Numerous businesses have increased their identification verification efforts due to the pandemic of COVID-19. Since COVID-19 went into effect, 72% of online marketplaces have increased their adoption of ID verification technology. In addition, more than half of the financial services organizations have promoted the adoption. Consumers have been forced to use digital services for the first time due to lockdown restrictions, and the rapid adoption of identity verification shows how important it is to protect them.
- Digital identity verification is becoming increasingly important, as companies and governments take advantage of online services. In order to control financial crime, regulatory authorities are increasing their demands on businesses to comply with KYC and AML requirements. FATF (Financial Action Task Force) expanded the scope of reporting entities and recommended that member countries obligate legal professionals.
- As part of the AML5 Directive (AML5), the European Union reduced the threshold for identity verification for prepaid cards from EUR 250 to EUR 150. The directive was implemented by all member states in January 2020. AML5 regulations aim at transforming KYC processes to comply with AML and eIDAS standards and procedures and establish guidelines for verifying customers at a high-security level.
- LoginID Inc. and Ipsidy Inc. created a partnership that provides new tools to fight fraud in online activities in September 2020. As a result of the integration between Ipsidy’s biometric identity verification platform and LoginID’s FIDO as a Service platform, the companies will provide enhanced security and level of identity trust for users requiring FIDO2 authentication and login.
- In order to differentiate itself from its competitors, Metal Pay, a peer-to-peer payments company that allows users to buy, sell, trade, and send crypto using crypto trading pairs or fiat money, wanted to offer an account opening process that is both quick and seamless. Identity verification during account opening became a critical element of minimizing risk and eliminating fraud at the company since it had to meet strict AML and KYC practices.
- Jumio released its video verification solution with face biometrics in October 2020 for businesses in regulated industries to onboard new customers. Jumio Video Verification was designed specifically for businesses within the financial sector, such as banking, fintech firms, cryptocurrency exchanges, and digital wallets.
Key Topics Covered:
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Function
4.4. Function Value Chain Analysis
5. ID Technologies Market Analysis, By Technology
5.3. Radio Frequency Identification (RFID)
5.5. Smart Cards
6. ID Technologies Market Analysis, By Components
6.2. Data encoder
6.3. Machine reader
6.4. Data decoder
7. ID Technologies Market Analysis, By Application
7.3. Security Checks
8. ID Technologies Market Analysis, By End-User Industry
8.3. Security and Defense
9. ID Technologies Market Analysis, By Geography
9.2. North America
9.2.1. United States
9.3. South America
9.5. Middle East and Africa
9.5.2. Saudi Arabia
9.6. Asia Pacific
9.6.5. South Korea
10. Competitive Environment and Analysis
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix
11. Company Profiles
11.1. Technologies Plus
11.2. ID Technology (Promach)
11.5. Thales Group
11.7. Agilent Technologies
11.8. ImageWare Systems
11.9. Precise Biometrics
11.10. S.I.C. Biometrics
For more information about this report visit https://www.researchandmarkets.com/r/h5jtq7
Research and Markets
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SOURCE Research and Markets