What is the Historical Analysis of the Digital identity Market Size?
The digital identity market has seen considerable growth due to a variety of factors.
• The market for digital identity has experienced fast-paced growth in the recent past. The market's size is forecasted to expand from $29.52 billion in 2024 to $33.36 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 13.0%.
Factors such as escalating cybersecurity risks, augmented regulatory compliance needs, a surge in online transactions, efforts to prevent identity theft and fraud, and enhancements in user convenience and experience have been contributing to the growth witnessed in the historical period.
What are the Market Size and Expected Growth Rates for the Digital identity Market?
The digital identity market is expected to maintain its strong growth trajectory in upcoming years.
• In the upcoming years, the digital identity market is set to witness a swift expansion. This market is anticipated to escalate to $65.61 billion by 2029, recording a compound annual growth rate (CAGR) of 18.4%.
This anticipated growth for the projected period can be attributed to the advent of decentralized identity, the adoption of biometric authentication, the growth of digital services and applications in health and safety. Key trends in the projection period include new policies on biometric data privacy, AI-enabled identity verification, identity-as-a-service (IDaaS), the evolution of multi-factor authentication (MFA), and a collaborative initiative across industries to set digital identity standards.
Which Factors Are Boosting Growth In The Digital identity Market?
The digital identity market is experiencing growth due to a rise in identity-related fraud and data breaches. Identity fraud, a crime involving the wrongful use of someone else's data for fraudulent and deceptive economic gain, is becoming increasingly prevalent. Around the world, industries are adopting sophisticated digital identity solutions to counteract identity-related fraud and theft. For example, the US-based nonprofit organization, the Identity Theft Resource Center (ITRC), reported in January 2024 that there was a 78% increase in data breaches in 2023, with the numbers rising from 1,801 in 2022 to 3,205. Consequently, this increase in identity fraud and data breaches is anticipated to further fuel the expansion of the digital identity market in the projected period.
How Is The Globa Digital identity Market Divided Into Key Segments?
The digital identity market covered in this report is segmented –
1) By Component: Solutions, Services
2) By Type: Single-factor Authentication, Multi-factor Authentication
3) By Deployment Type: Cloud, On-Premises
4) By Organization Size: Large Enterprises, SMEs
5) By Vertical: BFSI, Retail And E-Commerce, Government And Defense, Healthcare, IT And ITeS, Telecommunications, Energy And Utilities, Other Verticals
Subsegments:
1) By Solutions: Identity Verification Solutions, Access Management Solutions, Authentication Solutions, Digital Identity Platforms
2) By Services: Consulting Services, Implementation Services, Support And Maintenance Services, Managed Services
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What Trends Are Reshaping The Digital identity Market?
Collaborations between companies are becoming a leading trend in the digital identity market. Many businesses in this industry are concentrating on uniting with tech-centric entities to create innovative tools, improve existing offerings, and enhance customer experience and performance. For example, in April 2022, Serbia's digital identity and onboarding solutions provider, Blinking, partnered with IPification, a mobile IP address-based authentication, user verification, and fraud prevention provider based in Hong Kong, to boost the capabilities and performance of their platform. In May 2020, Ontology, a provider of high-performance enterprise blockchain and distributed collaboration platform, partnered with Sphericity, a Germany-based company that offers decentralized digital identity solutions. Their partnership aims to provide business solutions for cross-border supply chains and resilience.
Who Are the Key Players in the Digital identity Market?
Major companies operating in the digital identity market include:
• NEC Corporation
• Thales Group
• Samsung SDS
• Okta Inc.
• RSA Security LLC
• Ping Identity Corporation
• GB Group plc
• ForgeRock Inc.
• Centrify Corporation
• BioCatch Ltd.
• Keyfactor Inc.
• iProov Ltd.
• OneLogin Inc.
• Socure Inc.
• Sum&Substance Ltd.
• Auth0 Inc.
• Idaptive LLC
• SEON Technologies AG
• LoginID Inc.
• Authlete Inc.
• ID-Pal Limited
• DIRO – Internet Original Documents Inc.
• iDenfy Ltd.
• IdRamp Inc.
• Entrust Corporation
• SecureAuth Corporation
• Evernym Inc.
• Jumio Corporation
• Mitek Systems Inc.
• Acuant Inc.
• Transmit Security
• Signicat AS
• HYPR Corporation
• Prove Identity Inc.
What are the Regional Insights into the Digital identity Market?
North America was the largest region in the digital identity market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the digital identity market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
