According to a new study by MarketsandMarkets, the market for biometric identity verification is set to grow from around 8.88 billion US dollars (approx. 8.1 billion euros) in 2025 to 17.81 billion US dollars (approx. 16.2 billion euros) in 2030. This corresponds to a compound annual growth rate (CAGR) of 14.9%.
The study forecasts strong growth, driven primarily by increasing identity crime, stricter KYC and AML requirements, and the rapid expansion of digital onboarding processes in the banking, insurance, government and telecommunications sectors. Advances in AI-powered biometric techniques, including 3D facial recognition, liveness detection, and neural matching algorithms, are increasing accuracy and resistance to spoofing. At the same time, the shift towards zero-trust architectures and contactless authentication is accelerating implementation, particularly for remote verification and high-security access.
Software solutions as growth drivers
The software sector is expected to see the strongest growth in the biometric identity verification market. The reasons for this are:
- Advances in AI/ML-based matching algorithms and liveness detection
- Increasing use of automated identity verification platforms
- Demand for cloud-based, scalable and integrable solutions
Companies are increasingly relying on software-based biometric tools to reduce identity fraud, ensure regulatory compliance and enable smooth digital user experiences. Platforms for multimodal biometrics, automated biometric identification systems (ABIS) and real-time decision engines are becoming particularly important.
Gaming & gambling: dynamic growth segment
The gaming and gambling sector is identified as the fastest-growing market segment. Biometric solutions help with:
- Age verification
- Fraud detection and prevention
- Compliance with regulatory requirements and anti-money laundering guidelines
With the rise of online gambling, digital casinos and mobile gaming platforms, biometrics enables secure, automated user and payment verification. Advanced facial recognition, liveness detection and behavioural biometrics are increasingly being used to prevent bots, identity fraud and multi-account manipulation.
Geographical dominance: North America
North America is expected to dominate the market. Drivers include:
- Strong technological infrastructure
- Early adoption of AI-powered biometrics
- High regulatory focus on digital identity assurance
Companies in banking, government, healthcare and telecommunications are implementing biometric solutions to combat identity fraud, comply with KYC/AML requirements and secure digital onboarding processes. The increasing number of deepfake attacks, synthetic identities and identity manipulation is accelerating investment in multimodal biometrics, real-time identity verification and liveness technologies.
Key players in the market
According to MarketsandMarkets, the leading companies in the field of biometric identity verification include:
Idemia, NEC, Thales, HID Global, Entrust, GBG, Innovatrics, Sumsub, Aware, Cognitec Systems, Daon, Mitek Systems, Persona, Neurotechnology and Zkteco.
These providers are driving innovation in AI-powered biometric platforms, multimodal solutions and real-time decision engines, addressing the growing demand for secure, scalable and regulatory-compliant identity verification worldwide.
