Employment Criminal Background Check Services Market is expected to reach USD 5,348.2 million by 2030
As per the report published by Kings Research, the global Employment Criminal Background Check Services Market was valued at USD 3,106.1 million in 2022 and is projected to reach USD 5,348.2 million by 2030, growing at a CAGR of 7.18% from 2023 to 2030.
The employment criminal background check services market is growing due to the increasing need for regulatory compliance and the protection of sensitive information. In recent years, the adoption of technology in the background screening process has made the industry more efficient and accurate, with automation and AI becoming increasingly prevalent.
The market is driven by the rise of the mobile workforce and globalization, leading to increased demand for background check services across various industries. The healthcare, finance, and education sectors are particularly reliant on these services due to their legal and ethical responsibilities to ensure their employees meet certain standards. With the development of stringent regulations and growing concerns around data privacy, the employment of the criminal background check services market is expected to expand further in the coming years.
- Based on the end-user, the financial services segment held the largest market share, accruing USD 920.2 million in 2022.
- On the basis of region, North America accounted for the largest market share in 2022 and is anticipated to reach a value of USD 1,988.3 million by 2030.
Strategic Acquisition of VerifyNow Pty. Ltd., by Accurate Background
March 2023 – VerifyNow Pty Ltd., was acquired by Accurate Background with a strategic motive of expanding business reach to even more countries. VerifyNow is a prominent provider of employment screening services in Australia. Post the acquisition, Accurate Background would expand its product and service portfolio reach in Australia.
Acquisition of RVS by GVN to propel business expansion
January 2023 – RedRidge Verification Services (RVS) was acquired by Global Verification Network (GVN) at the beginning of the year. This is observed to be a strategic acquisition to expand client reach and provide more efficient services and solutions to its clients with adoption of latest technology.
Development of Regulations and Policies Regarding Background Verification Processes to Offer Opportunities
Evolving and improvement in regulatory policies is anticipated to create lucrative opportunities for the growth of the market. There has been significant emphasis on compliance and risk regarding the recruitment processes by regulatory bodies, organizations, and others with an effort of minimizing errors and recruitment of appropriate candidates. The development of stringent regulations in sensitive regions is another factor that would support the growth of the market. For instance, in September 2021, a law was passed by the administration of Jammu & Kashmir in India, requiring discrete verification of employees. Such instances, provide further opportunities for the market players.
Adoption of AI and Automation Processes in Background Checks to Augment the Market
Substantial transformation into and adoption of automation, and AI in employee criminal background verification processes are observed in the recent years. The use of advanced AI algorithms can leverage multiple data sources, streamline the screening process, and reduce the risk of errors by automating screening activities. Increasing adoption of automation and AI have made the background screening process faster, accurate, and more efficient, leading to better decision-making. The integration of AI in this market is likely to lead to the development of predictive systems that could predict the likelihood of employment criminal behavior.
Rising Unethical Concerns to Propel Demand for Better Background Check Solutions and Services in North America
In 2022, North America accounted for the largest market share in terms of revenue generation, and market development. The region accrued more than USD 1,240 million in 2022 and is anticipated to further augment with a growth rate of 6.16% during 2023-2030. Increasing importance of background or verification checks due to rise in unethical activity concerns has propelled the necessity of better background check solutions and services in the region. An established employment infrastructure observes substantial migrants towards the region. The U.S. is a prominent country that has been contributing in terms of revenue, development, adoption of new technologies and solutions and is anticipated to grow at a significant rate of more than 6.5% during 2023-2030.
Global Workforce Mobility Drives Demand for Employment Criminal Background Check Services in Fastest Growing Asia Pacific Market
Asia Pacific is estimated to experience the fastest growth of more than 9% which is observed to be a lot more than the global growth rate. The growth in global workforce mobility and the trend towards globalization, coupled with a rising preoccupation around data privacy, are major drivers behind increasing demand for employment criminal background check services. Additionally, the development of stringent regulations in sensitive regions is another factor that is expected to support the growth of the market. In 2022, Japan accounted significant share of revenue in the region. However, India is estimated to experience a growth rate of more than 10% which is recorded the highest country level growth rate globally.
A Look at Key Players and Growth Strategies in the Industry
The market is fragmented with key players such as GoodHire, KPMG Assurance and Consulting Services LLP, ADP, Inc., Capita plc., CareerBuilder, LLC, Accurate Background, First Advantage, Sterling, HireRight, LLC, SpringVerify,. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.