Address Verification Software Global Market Report 2024

The address verification software market size has grown strongly in recent years. It will grow from $1.59 billion in 2023 to $1.71 billion in 2024 at a compound annual growth rate (CAGR) of 7.8%. The growth observed during the historical period can be attributed to the enhancement of customer experience, the implementation of fraud prevention measures, increased efficiency in mail and shipping services, a reduction in failed deliveries, and the integration into CRM and ERP systems.

The address verification software market size is expected to see strong growth in the next few years. It will grow to $2.39 billion in 2028 at a compound annual growth rate (CAGR) of 8.7%. The anticipated growth in the forecast period can be attributed to the rise of remote work and virtual services, the integration of AI and machine learning, expansion in healthcare and finance sectors, a heightened focus on data accuracy and quality, and the rapid urbanization contributing to address changes. Major trends expected during the forecast period include an increased focus on user experience, the development of industry-specific solutions, address verification for IoT, the adoption of blockchain for data security, and the utilization of geocoding and location intelligence.

The anticipated growth of the address verification software market is driven by the expanding travel and tourism industries. Travel and tourism, involving individuals or groups journeying away from their usual residence for various purposes, benefit from address verification software. This software enhances booking accuracy and facilitates streamlined customer communications by ensuring precise address details for reservations and travel itineraries. Notably, the United Nations World Tourism Organization reported a significant surge in international tourist travel in the first three months of 2023, reaching 235 million, more than double the corresponding period in 2022. Similarly, the US Department of Commerce recorded an increase in international visitors to the United States, rising to 22.1 million in 2021 from 19.2 million in 2020. Consequently, the burgeoning travel and tourism industries contribute to the growth of the address verification software market.

The address verification software market is further bolstered by the escalating trend of e-commerce and online transactions. In e-commerce, where accurate product delivery is paramount, address verification software plays a crucial role in preventing shipping errors. By validating customer-provided addresses in real time, this software reduces the risk of packages being sent to incorrect addresses, minimizing costly returns and enhancing customer satisfaction. The International Trade Administration reported that 82% of UK citizens made at least one online purchase in 2021, making the UK a leader in online purchases. Additionally, consumer e-commerce constitutes 30% of the UK retail industry, surpassing 20% in 2020, with annual revenue exceeding $120 billion. This trend drives the growth of the address verification software market by aligning with the increasing prevalence of e-commerce and online transactions.

The growth of the address verification software market faces a potential hindrance due to the high cost of the software. The surge in identity-related frauds and data breaches has led to heightened compliance management focus, necessitating the validation of address data precision and comprehensiveness. This increased demand for address verification software has resulted in higher pricing. For instance, PostGrid, a Canada-based company providing address verification through application programming interface (API) and automated platforms, offers subscription-based options starting at $170 per month per user for the address verification function in Smart Address 5. Consequently, the high cost of the software poses a challenge to the growth of the address verification software market.

Major companies in the address verification software market are strategically investing in innovative technologies, notably application program interfaces (API), to gain a competitive edge. APIs, acting as bridges between separate programs, are instrumental in the development of address verification solutions. The Universal Postal Union introduced a new address verification API exclusively for the postal sector, leveraging the S42 international postal address components and templates standard.

In April 2021, Stripe Inc., an Ireland-based financial services and software-as-a-service company, acquired TaxJar, further enhancing its capabilities in the area of tax compliance. TaxJar, a US-based software company, specializes in address verification software. These strategic initiatives underscore the commitment of major players to innovative technologies, contributing to the growth of the address verification software market.

Major companies operating in the address verification software market report are Rakuten Inc., Stripe Inc., Experian PLC, Pitney Bowes Inc., GB Group PLC, SmartSoft Inc., Ekata Inc., Melissa Data Corporation, Simpler Postage Inc., BCC Software LLC, TrueNorth Credit Solutions LLC, DQE Software SAS, Strikeiron LLC, Datatech SmartSoft Software Inc., Data8 Limited, AccuZIP Inc., Acme Associates Pte. Ltd., Anchor Software LLC, Byteplant Technologies Private Limited, ComplyCube Ltd., DataMatch Software Inc., Global-Z International Inc., PostGrid Inc., SmartyStreets LLC, WinPure Ltd., Woosmap SAS, Prism Data Services Inc., Addressy Inc., Egon.

North America was the largest region in the address verification software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the address verification software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in the address verification software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The address verification software market includes revenues earned by entities by providing data quality control, geographic maps, API integration, and real-time verification. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The main types of products included in address verification software are cloud-based and on-premise. Cloud-based products are deployed using one or more cloud-based hosting models. Various subscription options, including one-time licenses, monthly, quarterly, and yearly, are available for use on personal computers, laptops, smartphones, and other devices. These applications are employed by both large enterprises and small and medium-sized enterprises.

The address verification software market research report is one of a series of new reports that provides address verification software market statistics, including address verification software industry global market size, regional shares, competitors with a address verification software market share, detailed address verification software market segments, market trends and opportunities, and any further data you may need to thrive in the address verification software industry. This address verification software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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