Digital Identity Market Report 2025

The digital identity market size has grown rapidly in recent years. It will grow from $29.52 billion in 2024 to $33.36 billion in 2025 at a compound annual growth rate (CAGR) of 13%. The growth in the historic period can be attributed to increasing cybersecurity concerns, regulatory compliance requirements, rise in online transactions, identity theft and fraud prevention, user convenience and experience.

The digital identity market size is expected to see rapid growth in the next few years. It will grow to $65.61 billion in 2029 at a compound annual growth rate (CAGR) of 18.4%. The growth in the forecast period can be attributed to emergence of decentralized identity, biometric authentication adoption, expansion of digital services, health and safety use cases. Major trends in the forecast period include biometric data privacy regulations, AI-powered identity verification, identity-as-a-service (IDaaS), multi-factor authentication (MFA) evolution, cross-industry collaboration on digital identity standards.

The growing adoption of ID wallet solutions is anticipated to drive the growth of the digital identity market in the future. ID wallet solutions are secure digital applications designed to store, manage, and facilitate the use of digital identities and credentials. They serve as a centralized storage system for various forms of identification, including digital certificates, biometric data, and other verification methods. The demand for digital identity solutions, particularly ID wallet solutions, is rising due to the need for secure identity management, authentication, and fraud prevention. For instance, in February 2023, Tearsheet, a U.S.-based publication, reported that over 66% of Americans expected to have a digital identity wallet by 2023, and 54% of consumers across all age groups preferred using a digital wallet issued by a bank. Consequently, the rise of ID wallet solutions is fueling the growth of the digital identity market.

Digital identity market players collaborate to enhance technologies and products, evident from partnerships such as Blinking and IPification or Ontology and Sphericity. These alliances aim to improve platform capabilities and performance in digital identity solutions. For instance, In April 2022, Blinking, a Serbia-based provider of digital identity and onboarding solutions partnered with IPification, a Hong Kong-based provider of mobile IP address-based authentication, user verification, and fraud prevention services to further improve the capabilities and performance of their platform. in May 2020, Ontology, an operator of high-performance enterprise blockchain and distributed collaboration platform partnered with Sphericity, a Germany-based provider of decentralized digital identity solutions for the development of innovative digital identity solutions. The partnership is focused on delivering enterprise solutions for cross-border supply chain and resilience.

Prominent companies operating in the digital identity market are developing innovative technologies such as the Digital Identity Maturity Model and Assessment for Healthcare IT, Security, and Clinical Leadership. The Digital Identity Maturity Model and Assessment is a framework designed to help organizations, particularly in the healthcare sector, assess and improve their digital identity strategies. Imprivata's April 2023 launch of the Digital Identity Maturity Model and Assessment supports healthcare IT, security, and clinical leadership. This tool aids in evaluating and improving digital identity strategies, providing tailored reports to drive enhancements across user outcomes, security, and compliance.

In May 2023, Onfido, a U.S.-based identity verification service, acquired Airside Mobile, Inc. for an undisclosed amount. This acquisition aims to create a seamless, user-controlled digital identity solution that offers 'verify once, share anywhere' functionality across various services. Airside Mobile, Inc. is a technology company based in the U.S. that specializes in developing privacy-centric digital identity sharing technologies.

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.

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. The countries covered in the digital identity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The digital identity market includes revenues earned by entities by providing digital identity services such as identification/registration services, digital ID life-cycle management services, identity federation services, strong authentication services, and digital signature services to offer user-centric solutions and streamline citizen on-boarding. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

Digital identity encompasses digital credentials and information used to validate an individual's digital presence, improving security and user experience.

Digital identity comprises solutions and services deployed via on-premises and cloud platforms. The solution market involves the sale of software or platforms aimed at generating identities, securing digital data transfers, and managing credentials stored in cryptographic devices while prioritizing security, quality, and resilience. These solutions operate through single-factor and multi-factor authentications, finding application across diverse industries including BFSI, retail and ecommerce, government and defense, IT and ITeS, telecommunications, energy and utilities, and other verticals.

The digital identity market research report is one of a series of new reports that provides digital identity market statistics, including digital identity industry global market size, regional shares, competitors with a digital identity market share, detailed digital identity market segments, market trends and opportunities, and any further data you may need to thrive in the digital identity industry. This digital identity market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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