E-KYC Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global E-KYC Market is projected to expand from USD 8.77 Billion in 2025 to USD 23.91 Billion by 2031, reflecting a compound annual growth rate of 18.19%. Electronic Know Your Customer solutions serve as digital mechanisms that enable regulated entities to authenticate client identities remotely using secure document validation and biometric analysis. The market is driven by the strict enforcement of financial crime regulations requiring robust identity assurance protocols, alongside the widespread shift toward digital banking and the operational need to lower manual onboarding costs. These core drivers create a sustained demand for automated verification tools, distinguishing them from temporary technological trends.

However, market expansion faces significant hurdles due to the increasing complexity of fraud, particularly synthetic identities generated by artificial intelligence. These sophisticated threats require constant security updates, creating implementation barriers and raising costs for service providers. The FIDO Alliance reported in 2024 that 53 percent of consumers noticed a rise in suspicious online messages and scams. This increase in fraudulent activity highlights the difficulty of maintaining secure digital environments and poses a potential obstacle to seamless user adoption.

Market Drivers

The surging incidence of identity theft and digital financial fraud serves as a critical driver for the Global E-KYC Market, urging organizations to adopt advanced verification layers. As criminals increasingly leverage generative artificial intelligence to manufacture synthetic identities, traditional authentication methods are proving inadequate for protecting digital ecosystems. This escalation in sophisticated attack vectors is propelling a technological shift toward liveness detection and biometric analysis to distinguish legitimate users from automated bots. In November 2024, Sumsub’s 'Identity Fraud Report 2024' noted that global deepfake fraud increased fourfold compared to the prior year, comprising 7 percent of all fraud attempts, underscoring the urgent need for E-KYC solutions that adapt to AI-driven threats.

Simultaneously, strict government regulations and AML/CFT mandates are compelling regulated entities to modernize their onboarding frameworks to mitigate legal risks and operational overhead. The financial cost of adhering to these evolving statutes necessitates the deployment of automated E-KYC platforms, which significantly reduce the manual labor required for due diligence while ensuring auditability. LexisNexis Risk Solutions reported in March 2024 that financial crime compliance costs in the EMEA region reached $85 billion. Despite the friction introduced by rigorous checks, user sentiment remains supportive; Veriff found in 2024 that 64 percent of consumers are willing to accept a longer sign-up process involving ID documents and selfies for enhanced data protection.

Market Challenges

The growing complexity of fraudulent activities constitutes a primary restraint on the Global E-KYC Market. As threat actors increasingly utilize artificial intelligence to engineer synthetic identities and realistic deepfakes, solution providers are under pressure to develop equally sophisticated defense mechanisms. This dynamic forces a continuous cycle of security updates and infrastructure overhauls, significantly inflating operational expenditures for vendors and implementation costs for end-users. Such financial burdens create substantial barriers to entry for smaller enterprises and delay procurement processes for larger institutions, effectively dampening the overall momentum of market expansion.

Furthermore, the prevalence of these advanced threats necessitates the introduction of friction-heavy validation steps that contradict the market's goal of seamless onboarding. According to the Identity Defined Security Alliance, in 2024, 90 percent of organizations reported experiencing at least one identity-related security incident within the previous year. This pervasive threat landscape compels regulated entities to prioritize rigorous risk mitigation over user convenience, leading to cumbersome verification protocols that frequently result in higher customer abandonment rates and reduced service uptake.

Market Trends

Integrating with national digital identity frameworks is emerging as a transformative trend, as solution providers increasingly align their platforms with government-led modernization initiatives. This shift involves directly incorporating public sector identity databases and digital wallet standards into commercial verification workflows, creating a unified ecosystem that enhances assurance levels while reducing redundancy. This alignment is accelerating as governments actively seek private-sector partners to deploy secure citizen services at scale. According to Socure's February 2025 press release regarding its 2024 performance, the company reported that its partnerships in the public sector grew 193 percent, reflecting the surging demand for compliant identity infrastructure within government channels.

Concurrently, the market is witnessing a significant expansion into telecommunications and non-financial sectors, with digital marketplaces and sharing economy platforms becoming primary adopters of advanced verification tools. Unlike traditional financial institutions, these entities prioritize speed and global coverage to manage high-volume, cross-border user bases while mitigating risks associated with account takeovers and vendor fraud. This broadening of the addressable market is evidenced by the substantial uptick in verification volumes originating from digital commerce sectors. According to Trulioo's December 2024 announcement, the firm recorded a 34 percent increase in marketplace transactions over the previous year, underscoring the vital role of E-KYC solutions in securing the wider digital economy.

Key Players Profiled in the E-KYC Market

• 63 Moons Technologies Limited
• IDology, Inc.
• Financial Software and Systems Private Limited
• GB Group PLC
• Jumio Corporation
• Onfido Ltd.
• TATA Consultancy Services Limited
• Wipro Limited

Report Scope

In this report, the Global E-KYC Market has been segmented into the following categories:

E-KYC Market, by Product:

• Identity Authentication and Matching
• Video Verification
• Digital ID Schemes
• Others

E-KYC Market, by Deployment Mode:

• Cloud-based
• On-premises

E-KYC Market, by End-User:

• Banks
• Financial Institutions
• E-payment Service Providers
• Telecom Companies
• Government Entities
• Insurance Companies

E-KYC Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global E-KYC Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.