Digital Identity Solutions Market Share Analysis Report, 2023-2032
The global digital identity solutions market size was exhibited at USD 29.19 billion in 2022 and is projected to hit around USD 147.8 billion by 2032, growing at a CAGR of 17.61% during the forecast period 2023 to 2032.
Key Pointers:
The new research study consists of an industry trend analysis of the market. The new research study consists of industry trends, pricing analysis, patent analysis, conference and webinar materials, key stakeholders, and buying behaviour in the market. Rise in ID wallet solutions and explosion of online services offered by commercial businesses in recent years are driving the market growth but threat of privacy and data breach can slow down the Digital Identity Solutions market growth.
Digital Identity Solutions Market Report Scope
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Report Coverage |
Details |
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Market Size in 2023 |
USD 34.33 Billion |
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Market Size by 2032 |
USD 147.8 Billion |
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Growth Rate From 2023 to 2032 |
CAGR of 17.61% |
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Base Year |
2022 |
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Forecast Period |
2023 to 2032 |
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Segments Covered |
By Component, By Solution Type, By Identity Type, By Deployment, By Organization Size, and By Industry Vertical |
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Market Analysis (Terms Used) |
Value (US$ Million/Billion) or (Volume/Units) |
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Regional Scope |
North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa |
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Key Companies Profiled |
Thales, ForgeRock, Inc., NEC Corporation, Daon, Inc., Tessi, Aetsoft Inc., GB Group plc, Jumio, Avanade Inc., Refinitiv, and Others. |
Digital Identity Solutions Market Dynamics
Driver: Rise in ID wallet solutions
A serious push to digital identification schemes worldwide are given by new ID wallet solutions. This recent technology defines a secure mobile app to store digitalized and encrypted versions of ID documents, be it an identity, a driver's license, vehicle card registration, healthcare credentials etc. In other words, citizens can have all their ID credentials at hand in a single, secure source for identification and ID verification services. The holder can share what is necessary to verify a transaction and nothing more with these wallets. Citizens are able to prove their identity and rights online and in-person to law enforcement officers, health professionals, or citizens with such wallets. Recently in June 2021, the European Commission has suggested creating a digital ID wallet that can be used across the EU by more than 80% of the EU population by 2030.
Restrain: Higher cost involved in deploying digital identity solutions
The increase in threat of cyberattacks and identity-related frauds and thefts is a matter of concern among organizations across all verticals in recent times. Digital identity solutions for identification and authentication to manage these security concerns have been adopted by many organizations; however, one of the factors hindering the growth of the digital identity solutions market is the high cost associated with implementing such solutions. The initial investments and costs associated with implementing digital identity solutions are high. The inadequate budget continues to be a crucial challenge for professionals to effectively carry out IT security operations. Due to which SMEs tend to focus on security only after a breach has occurred. Enterprises prioritize the security of only critical servers and do not pay much attention to the data stored in databases, which becomes vulnerable to cyber threats.
Opportunity: Integration of AI, ML, and Blockchain technologies to enhance digital identities
The integration of artificial intelligence (AI), machine learning (ML), and blockchain technologies is a trending concept. Designed computerized systems are replacing human efforts and minimizing potential risks. These technologies automate analytical model building and enable computers to find hidden insights without being explicitly programmed. That’s why these technologies are opening up various digital identity solution market opportunities. Digital identity solution vendors can apply ML-based analytics to large volumes of identity-related data and access activities. This helps reduce the identity attack surface by accurately measuring and reporting on a user, account, application, department, and organizational risk posture. It also exposes anomalous access and helps in the implementation of risk-based access certifications, which helps in identification and authentication processes. Sectors such as automobile, BFSI, and the government have started implementing these technologies. It also helps organizations plan corrective measures and strategic steps. Hence, leveraging technologies such as AI and ML is expected to open many growth avenues for digital identity solutions vendors. Blockchain technology is evolving in every sector. Decentralized Identity solutions are provided with the help of blockchain technology. It is also referred to as self-sovereign identity. It is an open-standards based identity framework that uses digital identifiers and verifiable credentials that are self-owned, independent, and enable trusted data exchange.
Challenge: Threat of privacy and data breach
In the case of using digital identities, such as facial recognition, people feel uncomfortable sharing their facial data with the fear of data being misused. San Francisco became the first city to ban the use of facial recognition completely in government and federal-related operations. The countries in Latin America and Africa are especially facing this challenge. The digital identity data is stored in databases for providing access to people every time they enter somewhere. These databases contain information on citizens, such as social security numbers and bank account details. Hence, the citizens are afraid that by providing access to digital identities, this personal data could be breached, compromised, and misused, which could result in potential harm to the citizens. Hence, this reluctance of citizens toward enabling the use of digital identities is another challenge in the implementation of digital identity solutions. The governments and enterprises should engage with end users more actively and make them aware of the use of digital identities by the government and its advantages. Once people gain confidence related to the security of their digital identities, they will be ready to adopt digital identity solutions more easily.
By region, Asia Pacific to grow at highest CAGR during the forecast period
Asia Pacific includes big developing economies, such as Australia, China, Japan, India, Singapore, and South Korea. With the increase in technological innovations, the digital identity solutions market is witnessing high growth opportunities in this region. Asia Pacific has a mix of developing and developed countries. In 2019, Asia lost USD 260 million to digital fraud. including 71% of online fraud from identity theft. That’s why developing countries such as India, China, and Japan, are using digital identities for authenticating their citizens, whereas developed countries, such as South Korea, use digital identities for more advanced applications, such as accessing government service and identification. Australia, a developed country, announced its federated digital identity system for citizens to access government services. Singapore is leading Asia Pacific in terms of advancements in digital identity. The country has its SingPass and CorpPass programs to provide improved security to its citizens as well as to access government services. Singapore is also planning to deploy a digital identity-based real-time payment authentication system in the near future.
Some of the prominent players in the Digital Identity Solutions Market include:
Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Digital Identity Solutions market.
By Component
By Solution Type
By Identity Type
By Deployment
By Organization Size
By Industry Vertical
By Region
Cross-segment Market Size and Analysis for Mentioned Segments
Additional Company Profiles
(Upto 5 With No Cost)
Additional Countries (Apart
From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers