Employment Criminal Background Check Services Market

Employment Criminal Background Check Services Market Size

The global Employment Criminal Background Check Services Market size was valued at USD 3,106 million in 2022 and is projected to reach USD 5,348 million by 2030, growing at a CAGR of 7.18% from 2023 to 2030. The global employment criminal background check services market is expected to experience significant growth in the coming years due to the increasing adoption of technology, automation, and AI in the background screening process, which has made it more efficient and accurate. The rise in the mobile workforce and globalization is driving demand for criminal background checking services. This is with a strong focus on industries with high legal and ethical responsibilities, such as healthcare, finance, and education.

North America, Europe, and Asia Pacific are the prominent regions attributing significant growth opportunities, developments, and in turn increasing revenues in recent years. These regions are anticipated to further influence the global employment criminal background check services market. Strategic collaborations, improving employment rates, and the introduction of Industry 4.0 are a few factors that are anticipated to support this growth during 2023-2030.

Analyst's Review

Growing concerns around data privacy and regulatory compliance would contribute significantly to the expansion of the market. Additionally, the development of stringent regulations in sensitive regions owing to the increasing penetration of technology and expansion of the IT sector will create significant growth opportunities.

Market Definition

The global employment criminal background check services market refers to the market for services that conduct criminal background checks on potential employees for employers on a global scale. This market includes a range of services such as criminal record searches, drug screening, education and employment verifications, and credit history checks. The market is driven by increased concerns about workplace security and a growing awareness of the legal and financial risks associated with negligent hiring.

The market is also associated with services relating to the process of verifying an individual's past employment and educational background, as well as conducting a review of their credit history. This is a vital component of the employment screening process as it allows employers to verify the accuracy of an applicant's resume and assess their overall suitability for a role.

Market Dynamics

The advancement of technology has a significant impact on the background screening process. One major influence is access to continuous background monitoring, which allows organizations to monitor employees' records after being hired. This approach has become increasingly popular in the gig economy, where workers take on short-term jobs and may not undergo a traditional background check. These platforms, services, and solutions offered by key players enable the end-user with practical analysis, inherent risk management, and improved data security among other benefits. The adoption of such technologies has augmented the market growth and is anticipated to further support the market due to the transformation towards digitalization on a global scale.

The dearth of professionalism and awareness in developing regions pose a challenge for the growth of the employment criminal background check services market. In certain countries, there exists limited perception about the significance of background checks or a shortage of knowledge and resources to carry out employee verification screenings. Consequently, some companies may hesitate to invest additionally in background check services or disregard them in their recruitment process. These factors present a hurdle for background check service providers striving to expand their operations in developing regions.

Segmentation Analysis

The global employment criminal background check services market is segmented based on End-User and Geography.

By End-User

Based on the end-user segment, the market is further categorized into financial services, IT/technology/media, government, staffing, healthcare, retail, industrial, and others. In 2022, the financial services end-user segment accounted for the highest revenue, accruing more than USD 900 million. High levels of legal, ethical, and intellectual responsibilities and privacy concerns are experienced by financial institutions, thus in turn, requiring the best employee screening services. Increases in turnover rates also portray the need for employment criminal background check services in an attempt to ensure the appointment of appropriate employees.

IT/Telecom/Media end-user companies along with healthcare companies are estimated to portray significant growth rates of 8.5% and 9.5% respectively during 2023-2030. Increasing concerns and incidents of data breaches and intellectual property rights have resulted in demand for better screening of employees and their past records along with credibility.

Employment Criminal Background Check Services Market Regional Analysis

Based on regional analysis, the global employment criminal background check services market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

In 2022 North America dominated the regional share in terms of revenue, accruing 40% of the global employment criminal background check services market. The proliferating IT and finance industry is among the prominent factors that have influenced the demand for large-scale employment in the region. The region is developed in terms of economy and has exponential scope for growth of every industry therein. This has resulted in people migrating for work in U.S. and Canada on a significant scale. Also, the increasing employment rate has directly fueled the demand for employment criminal background check services as it is amongst the necessary formalities at the time of employee onboarding. North America is anticipated to dominate the global revenue throughout the forecast period. 

Europe accounted for the second largest share in terms of revenue, accounting for approximately 30% of total revenue. EU's target of increasing the employment rate along with the availability of service providers are the prominent factors driving the growth in the region. In 2022, the working population accounted for 74.6% and the target of the EU by 2030 is to increase the rate to over 78%. Currently, only countries such as the Netherlands, Sweden, Iceland, and Germany are among the European member states with employment rates over 80%. The well-established working culture, developing services, and advanced products are a few of the factors that have supported the growth and demand for employment criminal background check services market in the region.

Competitive Landscape

The global employment criminal background check services market study report will provide valuable insight with an emphasis on the global market which is highly fragmented. Major players are focusing on a few of the strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments involve investments in R&D, new manufacturing facilities, and supply chain optimization.

List of Key Companies in Employment Criminal Background Check Services Market

• GoodHire
• KPMG Assurance and Consulting Services LLP
• ADP, Inc.
• Capita plc.
• CareerBuilder, LLC
• Accurate Background
• First Advantage
• Sterling
• HireRight, LLC
• SpringVerify

Key Industry Developments

• March 2023 (Acquisition) – A-Check Global, a member company of ActOne Group of Companies was acquired by Sterling Check Corp. Both companies provide similar services, however, A-Check has been focused more on procurement solutions.
• January 2022 (Acquisition) – Credence, a renowned background check provider, was acquired by Certn, which operates in the same industry on a larger scale throughout Europe. The acquisition would add value and advantages to its clients through certain enhancements such as increased geographical diversity, expanded solutions, and other services.

The Global Employment Criminal Background Check Services Market is segmented as:

By End-User

• Financial Services
• IT/Technology/Media
• Government
• Staffing
• Healthcare
• Retail
• Industrial
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America