$4.5bn
$XXX.Xm
11,996
1,099
$XXX.Xm
Background check providers have enjoyed growth over the current period. The robust demand for background check services, which spans a variety of corporate clients and smaller businesses, creates a consistent demand niche for operators. Although operators continue to enjoy robust demand, shaly economic conditions and volatility in the overall labor market has affected their rate of growth. The outbreak of the pandemic and rising interest rates hindered the labor market in 2020 and 2023. Overall, revenue grew at a CAGR of 2.8% to an estimated $4.5 billion over the past five years, including an anticipated 2.1% decline in 2024.
Industry revenue has grown at a CAGR of 2.8 % over the past five years, to reach an estimated $4.5bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
---|---|---|---|---|
First Advantage Corporation | 784.0 | 80.8 | 10.3 | |
Hireright Holdings Corp | 759.0 | 92.1 | 12.1 | |
Sterling Check Corp. | 628.0 | -27.9 | -4.4 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Industry revenue is measured across several distinct product and services lines, including Reference check services, Credit check services and Criminal record check services. Reference check services is the largest segment of the Background Check Services in the US.
Credit checks remain an essential service and provide consistent business
Operators in this industry offer tenant and employment background screening to consumers, landlords, corporations and other organizations.
Purchase this report to view all 3 major companies in this industry.
NAICS 56161 - Background Check Services in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Technological developments boosted growth. Increased automation investments by major background check providers reduced operational costs, enhancing the efficiency of backgro...
Learn about an industry's products and services, markets and trends in international trade.
Credit and criminal record checks are key services for background check providers. Most businesses and landlords conduct reference checks independently due to their simplicit...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Large populations drive the establishment of background check providers. The number of these providers in a region is influenced by the workforce size and housing availabilit...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Larger companies dominate the background check market due to their ability to offer bulk services at competitive prices. Their access to reliable sources also enhances the qu...
Learn about the performance of the top companies in the industry.
Three companies each secured over 5.0% of the market. First Advantage, Hireright and Sterling Check have built global reputations by delivering quality services, establishing...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Strict hiring laws increase regulations for background check providers. Concerns about false reporting, protecting consumer information and safeguarding employee rights drive...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Big companies increased profit through consolidation. They've bought smaller firms and invested in new technologies, allowing them to capture more market share and enhance pr...
Including values and annual change:
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Unlock comprehensive answers and precise data upon purchase. View purchase options.
The market size of the Background Check Services in the US industry in United States is $4.5bn in 2024.
There are 1,099 businesses in the Background Check Services in the US industry in United States, which has declined at a CAGR of 3.0 % between 2019 and 2024.
The market size of the Background Check Services in the US industry in United States has been growing at a CAGR of 2.8 % between 2019 and 2024.
Over the next five years, the Background Check Services in the US industry in United States is expected to grow.
The biggest companies operating in the Background Check Services market in United States are First Advantage Corporation, Hireright Holdings Corp and Sterling Check Corp.
Credit check services in conjunction with other background check services and Criminal record-check services are part of the Background Check Services in the US industry.
The company holding the most market share in United States is First Advantage Corporation.
The level of competition is high and increasing in the Background Check Services in the US industry in United States.