India Identity Verification Market: Current Analysis and Forecast (2025-2033)

India Identity Verification Market Size & Forecast

The India Identity Verification market was valued at USD ~493.55 million in 2024 and is expected to grow to a strong CAGR of around 15.45% during the forecast period (2025-2033F), owing to the rising fintech adoption and growing fraud risks across digital transactions.

Identity Verification Market Analysis

Identity verification is the method of verifying that a person asserting the identity is the same person, by reference to multiple identity sources and sources of verification (including biometric data (fingerprints, iris scans, face recognition), official documents (Aadhaar, PAN, passport), and database checks). The technology works to safeguard systems against identity theft, financial fraud, and regulatory breaches and creates confidence in digital ecosystems through the fusion of technology such as biometrics, AI-based liveness detection, and document authentication.

To attain growth in the identity verification industry in India, Indian companies are now adopting the use of AI-powered video KYC, facial recognition, liveness, API-based document verification, and Aadhaar-based authentication to improve security and accelerate the process of onboarding their customers digitally. Moreover, companies providing such solutions in cloud-based systems, which provide identity verification-as-a-service to banks, fintechs, telecom operators, and e-commerce players, to support scalability and adapt to new regulatory regimes. In addition, companies are turning to the use of automation and analytics increasingly to identify anomalies in real-time, minimize manual errors, and have quicker customer onboarding.

For instance, on April 17, 2025, Nametag, the identity verification platform known for pioneering Deepfake Defense and Adaptive Document Verification, expanded its global leadership with the launch of Adaptive e-ID Verification, a new capability that enables people to verify their identity using their government-issued digital ID (e-ID) in place of a physical identity document. The feature debuts with a direct integration with Aadhaar, India’s national digital identity system, offering a seamless, document-free identity verification experience for people located in India.

India Identity Verification Market Trends

This section discusses the key market trends that are influencing the various segments of the India Identity Verification market, as found by our team of research experts.

Video KYC and Digital Onboarding Surge

The India Identity Verification Market is experiencing tremendous growth with video KYC and digital onboarding as the primary force promoting the rapid adoption of new customer verification solutions by financial institutions, fintech, and insurers to efficiently onboard clients without relying on paperless and in-person procedures. There has been a faster rate of demand where companies are willing to embrace contactless customer experience through secure and compliant digital onboarding steps due to contactless customer experience. Video KYC simplifies and allows a quicker process, facilitating compliance with the regulatory obligation, instead of a few days, down to minutes. This transition not only enhances customer experience but also reduces the operating costs of businesses. Consequently, the usage of video verification and liveness detection technologies with the help of AI is actively growing in all industries, which contributes to the expansion of the market.

For instance, on June 12, 2025, Cashfree Payments' risk and verification arm, Secure ID, announced the launch of an RBI-compliant, AI-powered Video KYC (VKYC) solution. Aimed to boost user conversions by up to 80%, the platform is built to empower NBFCs, banks, lending platforms, insurance companies, and other regulated entities to digitally onboard users pan-India, including tier 2 and tier 3 regions.

Identity Verification Industry Segmentation

This section provides an analysis of the key trends in each segment of the India Identity Verification market report, along with forecasts at the regional and state levels for 2025-2033.

The biometric identity verification market held the dominant share of the Identity Verification Market in 2024.

Based on the type, the market is segmented into biometrics, non-biometrics. Among these, the biometric identity verification market held the dominant share of the market in 2024 due to the rising integration of Aadhaar in India. Also, the adoption of biometrics is gaining momentum due to government requirements and demands to introduce foolproof recognition in areas such as banking and telecommunications. Therefore, this segment guarantees safer and tamper-resistant authentication, and it is essential in mass digital onboarding. On May 5, 2025, The Unique Identification Authority of India (UIDAI) successfully conducted a Proof of Concept (PoC) on the use of face authentication during the National Eligibility cum Entrance Test (NEET UG) 2025 in New Delhi. This initiative was carried out in collaboration with the National Informatics Centre (NIC) and the National Testing Agency (NTA), marking a significant step towards enhancing exam security and candidate verification processes using advanced biometric technology.

The banking, financial services & insurance (BFSI) segment is expected to grow with a significant CAGR during the forecast period (2025-2033).

Based on end-user industry, the market is segmented into banking, financial services & insurance (BFSI), government and defense, healthcare & life sciences, retail & e-commerce, IT and telecommunication, and others. Among these, the banking, financial services & insurance (BFSI) segment is expected to grow with a significant CAGR during the forecast period (2025-2033). In India, the BFSI industry continues to be the biggest and regulation-conscious consumer of identity verification solutions. Adding to this, the rise of high KYC requirements mandated by the RBI, and a new lending-digitization drive the market. This segment has been propagating innovation and volume demand in the market and forcing the service providers to change at a very fast pace. For instance, on June 26, 2025, The Department of Financial Services, Ministry of Finance, issued a notification published in the Gazette of India vide S.O.837 (pg.1614-15/c), authorising the Institute of Banking Personnel Selection (IBPS) to use Aadhaar authentication using Yes/ No or/ and e-KYC authentication facilitates, on voluntary basis, for verifying the identity of candidates during examinations and recruitment processes conducted by it.

North India leads the Identity Verification Market in 2024.

The infrastructure saturation and digitization of the general population are highest in North India, and the saturation of Aadhaar provides a favourable atmosphere towards identity verification development. The demand is also enhanced by high urbanization and the concentration of financial services in cities such as Delhi and Chandigarh. Adding to this, a compliance-based environment in the region makes it one of the largest adoption centers of technologies that conduct verification. Also, the highly developed state of nationalized banks and government organizations guarantees a long-term demand for reliable and regulation-friendly methods of identity verification. As of May 31, 2025, UIDAI’s Aadhaar Saturation Report, projected population of Delhi, as per Registrar General of India (RGI data), is 22,146,000. The count of Aadhaar number holders stands at 24,326,549, and the estimated count of Aadhaar number holders after adjusting for deaths is 22,928,079, which shows saturation above 103.5% and highlights Delhi’s strong digital ID adoption.

Identity Verification Industry Competitive Landscape

The India Identity Verification market is competitive, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions.

Top India Identity Verification Companies

Some of the major players in the market are AuthBridge, Shufti Limited, Mantra Softech (India) Pvt. Ltd., 4G Identity Solutions, Signzy Technologies Private Limited, HyperVerge Technologies Private Limited & HyperVerge, Inc., KYC Hub, Perfios Software Solutions Pvt. Ltd., Baldor Technologies Private Limited (IDfy), Surepass Technologies.

Recent Developments in the India Identity Verification Market

• On April 29, 2025, AuthBridge, India’s leading provider of background screening and due diligence solutions, launched the country’s largest AI-powered platform suite for identity verification, unveiled at the prestigious GCC Summit & Awards 2025 in Hyderabad.

• On June 12, 2025, the Reserve Bank of India introduced amendments to its KYC norms, streamlining customer onboarding through Aadhaar-based e-KYC, video KYC, and DigiLocker. Banks also receive instructions to connect with the Central KYC Registry and to use Business Correspondents to reach many more points and to make the KYC updation simpler.

India Identity Verification Market Report Coverage

Reasons to Buy the India Identity Verification Market Report:

• The study includes market sizing and forecasting analysis confirmed by authenticated key industry experts.

• The report briefly reviews overall industry performance at a glance.

• The report covers an in-depth analysis of prominent industry peers, primarily focusing on key business financials, type portfolios, expansion strategies, and recent developments.

• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

• The study comprehensively covers the market across different segments.

• Deep dive regional level analysis of the industry.

Customization Options:

The India Identity Verification market can further be customized as per the requirements or any other market segment. Besides this, UnivDatos understands that you may have your own business needs; hence, feel free to contact us to get a report that completely suits your requirements.