Identity Theft Protection Services Market Overview
The global identity theft protection services market is thriving on the back of the growing demand for identity theft protection services from enterprise and consumer vertical, backed by the growing occurrence of cybercrime around the globe. According to the statistics by the Internet Crime Complaint Centre (IC3), over 467361 cybercrime complaints were filed in the year 2019. Additionally, growing incidences of identity thefts, increasing utilization of electronic identity in end user verticals along with the rising use of internet-based transactions worldwide are some of the factors anticipated to promote towards the growth of the global identity theft protection services market. According to FTC (Federal Trade Commission), in 2019, there was over 3.2 million identity theft, and fraud cases were reported with federal, state & local law agencies and private enterprises in the United States, out of which over 651,000 were identity theft cases. Additionally, in 2019, Identity Theft Resource Center (ITRC) reported over 577 data breaches that resulted in 15.3 million records exposed. In 2020 till April, ITRC recorded 269 breaches exposing over 3.3 million records. The enterprise sector, in the same year, recorded over 666,600 exposed records.
The global identity theft protection services market registered a value of USD 4733.2 million in the year 2019 and is further anticipated to reach a value of USD 13972.8 million by the end of 2028 by growing at a CAGR of 13.06% during the forecast period, i.e. 2020-2028.
Growth Highlights Based on Region During 2019-2028
The global identity theft protection services market is segmented by regions into North America, Latin America, Europe, Asia Pacific, Middle East and Africa. Among these regions, the market in North America registered the largest share of 41.29% along with a value of USD 1954.3 million in the year 2019 and is further expected to reach a value of USD 5731.7 million by the end of 2028 by growing at a CAGR of 12.98% during the forecast period. Growing use of electronic IDs, increasing reliance on internet-based financial transactions coupled with the increasing number of identity theft cases across the countries in North America are some of the primary factors anticipated to drive the growth of the North America identity theft protection services market during the forecast period.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).CLICK TO DOWNLOAD SAMPLE REPORT
Market Segmentation Synopsis
By Theft Type
The global identity theft protection services market has been segmented on the basis of theft type into criminal, financial, credit card fraud, government identity and others. The credit card fraud segment registered the largest market share of 26.76% along with a value of USD 1266.4 million in the year 2019 and is projected to reach a value of USD 4182.4 million by the end of 2028 by growing at a CAGR of 14.47% during the forecast period. Credit card fraud is one of the most common forms of identity theft that occurs across the globe. According to FTC (Federal Trade Commission), credit card fraud report increased from 55,553 reports in the year 2014 to 271,823 reports in the year 2019. Increasing cases of credit card fraud theft is therefore anticipated to drive the growth of the segment during the forecast period.
Market Drivers and Challenges
Increasing Incidents of Identity Thefts and Cybercrime
According to the statistics by the Federal Trade Commission (FTC), in the year 2019, over 20% of all the complaints received were recorded as identity thefts.
Identity thefts result in financial losses of individuals. According to the National Crime Victimization Survey of the Bureau of Justice Statistics, the average financial loss associated with identity theft cases was recorded to around USD 3500. To overcome such security issues and reduce the financial losses, the end users, such as enterprises and consumers are increasingly incorporating identity theft protection services.
On the other hand, as organizations depend more on computer networks and electronic data for their daily operations, there is an increase in the pool of financial and personal information, which are stored online. Increasing dependence on the electronic data and the rising use of internet have also given birth to the increasing incidences of cybercrime. The growing misuse of vital information by using the name of legitimate business and enterprise or governmental agencies for stealing the personal and financial information is therefore anticipated to drive the need for the deployment of identity theft protection services, and in turn the growth of the global identity theft protection services market.
Growing Use of Electronic IDs and Rising Reliance on Internet Based Financial Transactions
Electronic ID is gaining the center stage as one of the most critical technology trends at the present times. The growing use of digital identity is revolutionizing communication between the individuals and the institutions and is further anticipated to penetrate through the private industry over the coming years. Electronic authentication is an emerging concept for identity management and online verification processes. With the growing emphasis on electronic IDs worldwide, there is a growth in the number of instances of data breaches and identity thefts. The increasing incidents of identity thefts associated with the use of electronic ID are estimated to increase the end user’s focus & investments on the identity theft protection services during the forecast period and in turn drive the growth of the global identity theft protection services market.
On the other hand, rise in the use of internet-based financial transactions on the back of the numerous benefits associated with the services, such as greater convenience and increased transaction speeds for transfer of money between two accounts, have also resulted in the growth in the number of malicious breaches associated with the technology-based financial transactions, which is further estimated to drive the growth of the global identity theft protection services market in the coming years.
High Costs of Deployment and Limited Protection
One of the significant challenges faced by the organizations deploying identity theft protection services is the high cost of deployment, which significantly hampers the operational expenditures of the organization. Additionally, the identity theft protection services can only take particular action once the identity is stolen. As a result, these services fail to protect the user from initial identity thefts. For instance, the service cannot track if a person uses the victim's identity to obtain a cellphone or use the identity of the victim to create a synthetic identity. This limitation of identity theft protection services is anticipated to hinder the adoption rate over the forecast period.
Top Featured Companies Dominating the Market
Some of the affluent industry leaders in the global identity theft protection services market are Equifax, Inc., LexisNexis Risk Solutions, AllClear ID, Experian Information Solutions, Inc., Fair Isaac Corporation, NortonLifeLock Inc., TransUnion LLC,IdentityForce, Inc. and IdentityIQ.