According to the Market Statsville Group (MSG), the global document verification market size is expected to grow from USD 4,234.00 million in 2022 to USD 22,716.21 million by 2033, growing at a CAGR of 16.5% from 2023 to 2033. The major factors such as the development of government initiatives, such as smart infrastructure, smart cities, digital identity-based driver’s license and increasing integration of various technologies industry across the world. Moreover, increased digitization ambitions, a surge in fraudulent activities and identity theft over the previous decade, and rising use cases of digital identities among verticals are all driving the document verification industry. Furthermore, initiatives by governments and businesses focusing on digitalization and the use of new technologies in identity verification systems, such as AI, machine learning, and automation, would present lucrative prospects for document verification suppliers. On the other hand, the dearth of skilled professionals and increasing cyber attacks has hampered the market growth over the forecasting period.

Definition of the Global Document Verification Market

Any type of proof of identity must be shown in order to complete any legal formality or verification process. Regardless of the industry in which a client want to participate, whether it is banking, insurance, healthcare, technology, travel, education, or any other online service, the consumer is required to show an Identity proof to prove that they are who they claim to be. The risk of identity theft can be reduced by verifying customer identities. While verifying IDs sounds fantastic, as a business, any organization have to invest money, time, and human resources to implement secure document verification solutions. The entire client experience is harmed by the extra stringent authentication process. While most customers dislike the extra-complicated verification process, not having one undermines brand confidence and can result in businesses losing more customers throughout the onboarding process. AI-based digital document verification solutions are feasible, effective, and hassle-free in finding a balance between these conditions. Increased digitization ambitions, a surge in fraudulent activities and identity theft over the previous decade, and rising use cases of digital identities among verticals are all driving the document verification industry. Furthermore, initiatives by governments and businesses focusing on digitalization and the use of new technologies in identity verification systems, such as AI, machine learning, and automation, would present lucrative prospects for document verification suppliers.

COVID-19 Impact on the Global Document Verification Market

The COVID-19 epidemic has had an influence on almost every facet of daily life, including the document verification industry. Some countries throughout the world imposed strict lockdowns and social distancing standards to restrict the spread of new coronaviruses, which are now universally recognised as the most effective strategy to battle the epidemic. These crises also create numerous barriers and have a global impact on several industrial sectors. Document verification is another industry that has been severely impacted by the COVID-19 epidemic. Also, these are few challenges for the market players of this industry to ensure that their companies survive. As various verticals across the globe had to mandatorily adapt to the new digital world due to trends, such as Work From Home (WFH). With all the enterprises operating more in the digital world, where cyber attackers are not leaving any stone unturned to carry out attacks, such as identity thefts and identity spoofing has increased the need as well as the importance of stronger identity verification methods for providing stronger and reliable authentication for the employees as well as clients and granting access to them.

Moreover, the social distancing and severe lockdown rules affected the demand of Document Verification, but the availability of the internet and mobile applications can take on a larger share to resolve such issues. This digital solution makes a robust connection between various businesses and customers, even in this harsh time of the pandemic.

Global Document Verification Market Dynamics

Drivers: Surging digital platforms for document verification

Digital technologies have the potential for sustainable growth through innovation, efficient working, and improved services. They are also important and major tools to help countries recover from disrupted economies due to the COVID-19 pandemic. The increasing use of digital platforms in various industries drives the growth of the market. There are a huge number of areas where document verification is used such as driver’s license, state/federal documents, bank statements, and so on. The process of document verification authenticates features of documents such as watermarks, fonts, carrier materials, and stamps.

The growth of the market is driven by KYC (Know Your Customer), CDD (Customer Due Diligence), and AML (Anti Money Laundering). AML is a set of laws and regulations to stop criminals from disguising illegally obtained funds as legitimate income. These laws prevent limited transactions and hence AML software helps companies meet their regulatory requirements by detecting suspicious activities. KYC software helps companies in knowing customers' information and financial needs. This is used by certain industries such as banking or financial products to prevent fraud and criminal activity including money laundering, terrorism, and more. The growing adoption of digital platforms by industries drives the growth of the document verification market.

Restraints: The dearth of skilled professionals and increasing cyber attacks

Document verification formerly was performed by a manual workforce. Even after the introduction of digital document verification, while the document is uploaded digitally, they are often verified manually by people at the administration end. The quality or accuracy of the verification of the documents depends totally on the skills of the professionals performing the process of verification. Lack of skills in the professionals leads to poor verification and restrain the growth of the market.

Hackers use AI for carrying out advanced cyber-attacks. They manipulate AI algorithms and data sets to access data and identify vulnerabilities. These attacks enable access to user accounts which leads to data breaches. Automated tools and botnets assist credential stuffing attacks to gain user authentication across multiple platforms. These cyberattacks restrain the growth of the document verification market.

Opportunities: Increasing adoption of Artificial Intelligence and Machine Learning

AI is a technological concept that is transforming every sector globally. In document verification, AI plays an important role as the software need to decide whether the documents are real and belong to the same person or not. With technological advancement, almost every industry is starting to adopt technology such as AI to make the work efficient and less time taking. With the increasing adoption of AI, it is a great opportunity for the market to grow.

The AI market is assured to grow at a good speed driven by its increasing adoption in an expanding range of applications in various industries. There is an increase in cyberattacks like identity fraud. Identity fraud is one of the infuriating things banks and other sectors have to deal with. To prevent these frauds and attacks, different software needs to adopt strong AI and ML technologies. ML and AI can improve document verification in a variety of ways. A well-trained ML identity fraud prevention algorithm can prevent fraud by processing thousands of documents per second. These algorithms filter out the cases which truly require the attention of the humans to recheck the document. These AI-based algorithms reduce staff costs in addition to improving both processing speed and security. The emerging AI and ML solutions provide an opportunity for the growth of the document verification market.

Scope of the Global Document Verification Market

The study categorizes the document verification market based on type, and application area at the regional and global levels.

By Type Outlook (Sales, USD Million, 2019-2033)

• SMEs
• Large Enterprise

By Application Outlook (Sales, USD Million, 2019-2033)

• Financial Services
• Medical Insurance
• Government Service
• Other

By Region Outlook (Sales, USD Million, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Large Enterprise segment accounts for the largest market share by type

Based on the type, the market is divided into SMEs and large enterprise. The large enterprise segment is expected to dominate the market share in 2022 in the global document verification market. The large enterprise segment currently dominates the market share in the document verification market. Large organizations have selected identity verification systems due to increased fraudulent activity, money laundering, processing of high-risk transactions, identity theft, cost-cutting on manual operations, and compliance with various regulations. To increase the consistency of their security tools and platforms, many enterprises are turning to identity verification services.

North America is expected to witness the largest market share by Region

Based on the regions, the global document verification market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. North America is projected to account for the highest market share in 2022. It is a technologically advanced area with numerous early adopters and important industry participants. The expansion of government programs such as smart cities, smart infrastructure, and digital identification-based driver's licenses is likely to fuel demand for document verification. The increasing integration of multiple technologies for safeguarding digital identities, such as blockchain AI and ML has also boost the market in this segment over the forecast period..

Competitive Landscape: Global Document Verification Market

The document verification market is a significant competitor, and extremely cutthroat in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.

Major key players in the global document verification market are:

• Onfido
• Mitek
• GBG Group
• Shufti Pro
• PRM Group
• Jumio
• Trulioo
• Acuant
• Equifax
• Argos
• Mati
• Refinitiv
• Company 13
• Company 14
• Company 15

Recent Development

• In November 2021, GBG acquired Atlanta-based IDology. This acquisition helped GBG to capture more market globally and it will strengthen the GBG product. IDology is a fast-growing provider of identity verification services that helps remove friction both in onboarding customers and in the detection of fraud.
• In June 2021, Shufti Pro has opened a new office in Kyiv, Ukraine to expand identity verification solutions in the country.
• In April 2021, Onfido agreed to partner with One company. One company will help to reduce the need for manual verification for Onfido. One is an all-in-one banking platform that supports customers unique lives, so they can spend while saving more, and easily share money using a single account.
• In March 2021, Mitek System is the mobile capture and identity verification software solutions, has partnered with Nova Credit. Nova Credit now allows lenders to identify and mitigate risk to comply with current U.S. Know Your Customer (KYC) regulations.  
• In January 2021, Trulioo has appointed a new project manager to draw the roadmap for expanding their business in Ireland

Key Issues Addressed

• What is the market size by various segmentation of the document verification by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the document verification market?
• What are the key opportunities and trends for manufacturers involved in the document verification supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of document verification in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.