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 total 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)
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)).
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.
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.
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.
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.
|Market size value in 2019||US$61.211 billion|
|Market size value in 2026||US$130.981 billion|
|Growth Rate||CAGR of 11.48% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Technology, Components, Application, End-User Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Technologies Plus, ID Technology (Promach), Datalogic, 3M, Thales Group, Fujitsu, Agilent Technologies, ImageWare Systems, Precise Biometrics, S.I.C. Biometrics|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global id technologies market?
A1. ID Technologies Market was valued at US$61.211 billion in 2019.
Q2. What will be the id technologies market size by 2026?
A2. The id technologies market is expected to reach a total market size of US$130.981 billion by 2026.
Q3. What are the growth prospects for the id technologies market?
A3. The global id technologies market is expected to grow at a CAGR of 11.48% during the forecast period.
Q4. What factors are anticipated to drive id technologies market growth?
A4. Growing concern about data security and safety is driving the demand for ID technologies across a variety of industries.
Q5. How is the global id technologies market segmented?
A5. The id technologies market has been segmented by technology, components, application, end-user industry, and geography.
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