South & Central America Identity Verification Market Forecast to 2030 - Regional Analysis - Component, Deployment, Organization Size, Type, and Industry Vertical

The South & Central America identity verification market was valued at US$ 199.20 million in 2022 and is expected to reach US$ 539.60 million by 2030; it is estimated to grow at a CAGR of 13.3% from 2022 to 2030.

Rising Need for Digitization in Small and Medium Enterprises Bolster South & Central America Identity Verification Market

SMEs are major contributors to economic growth as they account for the majority of businesses (~90%) worldwide. However, due to financial constraints, the growth of SMEs slows down. Thus, the government sector and organizations are constantly supporting SMEs to expand their business, which further contributes to the economic growth of any country.

For instance, World Bank Group is focused on improving SMEs' access to finances and obtaining innovative solutions to unlock various sources of capital. It also provides advisory and policy support for SME finance that helps them adopt innovative solutions.

Presently, most of the customers of identity verification providers are large enterprises, mainly due to large-scale operations and faster adoption of digital and technological advancements in these businesses. Large companies worldwide are in the front of digital transformation to improve existing processes; however, small and medium-sized enterprises are still in the process of adapting to the latest technology trends. Primary reasons for this include resource constraints and the lack of knowledge and awareness about the potential benefits of digital transformation. Hence, small and medium-sized enterprises, as well as organizations that are still following do-it-yourself methods for identity verification, present huge strategic value and growth opportunities for players operating in the identity verification market. In order to tap this potential segment, companies are investing in marketing activities to spread awareness and generate interest in small-scale businesses. The players operating in the identity verification market are now offering various low-priced, smaller plans. The identity verification providers are also working with other business application providers who target small businesses in order to offer an embedded solution to their customers. The increasing need for digitization in small and medium enterprises to improve operational workflow and to adapt to the fast-changing marketplace is anticipated to offer massive growth opportunities for market players in both developed and emerging nations.

South & Central America Identity Verification Market Overview

Brazil is modernizing its identity verification systems by using blockchain technology. The Brazilian government's initiative is driven by a desire to enhance its citizens' security, efficiency, and overall user experience. Brazil's national data processing service is leading in developing a private blockchain platform to support the revenue service's shared registry, b-Cadastros. This blockchain network will facilitate the search, issuance, and modification of new identification cards and tax registration numbers. This is boosting the adoption of identity verification technologies in Brazil.

South & Central America Identity Verification Market Segmentation

The South & Central America identity verification market is segmented based on component, deployment, organization size, type, industry vertical, and country. Based on component, the South & Central America identity verification market is bifurcated into solution and services. The solution segment held a larger market share in 2022.

In terms of deployment, the South & Central America identity verification market is bifurcated into cloud and on-premise. The cloud segment held a larger market share in 2022.

By organization size, the South & Central America identity verification market is bifurcated into large enterprises and SMEs. The large enterprises segment held a larger market share in 2022.

Based on type, the South & Central America identity verification market is segmented into biometric verification, online verification, knowledge-based authentication, and others. The biometric verification segment held the largest market share in 2022.

In terms of industry vertical, the South & Central America identity verification market is segmented into BFSI, government & defense, healthcare, IT & telecom, retail, and others. The BFSI segment held the largest market share in 2022.

Based on country, the South & Central America identity verification market is segmented into Brazil, Argentina, and the Rest of South & Central America. Brazil dominated the South & Central America identity verification market share in 2022.

Trulioo, Onfido, Mitek Systems, Inc, IDology, Experian Plc, Thales SA, IDEMIA, Jumio Corporation, and LexisNexis Risk Solutions Group are some of the leading companies operating in the South & Central America identity verification market.