Research from digital identity security specialists, ID Crypt Global, reveals that the fraud detection software industry has increased its market size by 55% 2020, but warns that growth is set to slow in the coming years. ID Crypt Global has analysed the changing size of the UK’s fraud detection software industry, based on annual revenue, between 2013 – 2023, and used this historic data to forecast how the sector will grow over the next few years. In 2013, the UK fraud detection software industry generated annual revenue of £362 million.
In the years since, the industry has managed sustained growth year after year, without exception.
The strongest single year of growth came in 2020 when revenue increased by 23.9% on the previous year. This was followed by a further 15.3% growth in 2021, and 15.9% growth in 2022 when revenue totalled £950 million. This means that between 2013 and 2022, the industry increased its annual revenue by around 55%. It also means that the UK’s fraud detection software industry is forecast to break the £1 billion revenue milestone this year after what is expected to be growth of 6.6%.
While the billion pound mark is a vital one, it does appear that industry growth is going to slow for the next few years at least, growing by an estimated 5.9% in 2024 and just 3.9% in 2025.
CEO and Founder of ID Crypt Global, Lauren Wilson-Smith, commented:
“Fraud detection is an area of business and security that was always destined to be taken over by technology. Spotting fraud is all about hyper-vigilance, data keeping, and attention to detail. These are things that machines can now do better than humans. Recent tech advancements in these sorts of areas have driven a real boom for the sector in the past decade, but it’s been a rate of growth that is hard to maintain, so the slowing we’re expecting to see for the next few years is to be expected.
As and when even more advanced technology becomes available, we’ll undoubtedly see another period of remarkable growth in the fraud protection market and with every percentile of expansion, life is being made that little bit more difficult for crooks and fraudsters.”
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