Biometrics and Digital Identity Mergers and Acquisitions in 2024

As we wind down 2024 and look ahead to the new year, it’s a good time to review the M&A and investment landscape in the biometrics and digital identity industries, reflecting on what has transpired this year and what may come in 2025.

At Goode Intelligence, we’ve been immersed in M&A activities throughout the year, offering crucial support to companies in this arena. While much of this work remains confidential, it has provided us with valuable insights into the industry’s health that we’d like to share with you.

As we’ve observed, 2024 has been characterized by increased consolidation rather than new investments, with a noticeable uptick in M&A activities. Many of these deals have centered around utilizing biometric and digital identity technology to address real business needs and align with digital transformation strategies.

For instance, in the travel industry, we’ve pinpointed the demand for seamless passenger services that cover everything from booking travel tickets at home to using biometrics for security measures at airports, train stations, or ports. The travel digital identity sector has shown the potential for scalable, high-security biometric-powered digital identity solutions based on standards.

Our market analysis report, “Travel Digital Identity – Seamless Travel Powered by Digital Identity,” predicts significant growth in this market segment, reaching $4.6 billion by 2029 with a CAGR of 22 percent. This opportunity has not gone unnoticed by biometric and digital identity technology providers, leading to notable M&A activities.

Key acquisitions, such as Amadeus’s purchase of Vision-Box and Entrust’s acquisitions of WorldReach and Onfido, have positioned these companies as major players in delivering biometric digital identity solutions, particularly in the travel industry.

Looking to the future, we anticipate a continued shift towards migrating government-issued physical identity documents to digital identity solutions, with companies working to operate in both physical and digital realms. Expect further consolidation in 2025 as businesses adapt to support hybrid models of identity verification.

The success of Identity Verification (IDV) in enabling digital onboarding has sparked interest from security and fraud management platform owners, leading to acquisitions such as LexisNexis Risk Solutions purchasing IDVerse. These moves underscore the importance of owning critical technology like IDV in the evolving landscape of digital identity.

As we enter 2025, we predict more consolidation in the industry and a resurgence in investment activities after a period of subdued activity. The trend towards integrating biometric technology to enhance customer and citizen experiences is set to continue shaping the sector in the coming year.