Digital Identity Solutions Market Report 2025

The digital identity solutions market size has grown rapidly in recent years. It will grow from $38.93 billion in 2024 to $45.96 billion in 2025 at a compound annual growth rate (CAGR) of 18.1%. The growth in the historic period can be attributed to increased cyber threats, rise of online services, data breaches awareness, mobile device proliferation, financial sector embrace.

The digital identity solutions market size is expected to see exponential growth in the next few years. It will grow to $96.19 billion in 2029 at a compound annual growth rate (CAGR) of 20.3%. The growth in the forecast period can be attributed to healthcare and telemedicine growth, cybersecurity concerns, remote work and digitalization, expansion of IoT devices, biometric authentication growth. Major trends in the forecast period include decentralized identity management, zero trust security models, biometric integration, focus on user experience, ai and behavioral analytics.

The increasing rates of cybercrime and fraud are expected to drive the growth of the digital identity solutions market in the future. Cybercrime is defined as a criminal act that utilizes or targets computers, computer networks, or networked devices. Both individuals and groups perpetrate cybercrime with objectives beyond financial gain, often intending to harm computers or networks. Digital identity solutions play a critical role in combating cybercrime by enhancing cybersecurity through stronger user authentication methods such as facial recognition, voice recognition, and fingerprint recognition. As cybercrime rises, the demand for these solutions will also increase. For example, in February 2023, the Australian Cyber Security Centre, a government agency in Australia, reported receiving 76,000 cybercrime reports in 2022, a 13% increase from the previous year. Therefore, the rise in cybercrime and fraud is driving the growth of the digital identity solutions market.

The increasing popularity of online shopping is expected to fuel the growth of the digital identity solutions market in the coming years. Online shopping is a type of electronic commerce that enables consumers to purchase goods or services directly from sellers over the Internet using a web browser or mobile app. Digital identity solutions are essential in e-commerce as they enhance security, prevent fraud, and improve the overall user experience. Common digital identity verification solutions include passwords, multi-factor authentication (MFA), behavioral analytics, and passive biometrics. By implementing these solutions, e-commerce platforms can provide a secure and seamless shopping experience for customers. For instance, in September 2024, Tidio, a Poland-based technology company specializing in customer service and communication solutions, reported that the number of digital shoppers in the U.S. rose to 274.7 million in 2023, up from 268.2 million in 2022, representing a year-over-year growth of 6.5 million shoppers. Therefore, the increasing prevalence of online shopping is driving the growth of the digital identity solutions market.

Technological advancements emerge as a pivotal trend shaping the digital identity solutions market. Leading companies within this sector concentrate on pioneering technological solutions to fortify their market presence. For example, in January 2022, Samsung SDS Co. Ltd., a South Korea-based information technology services provider, unveiled the S3B512C, a sophisticated and comprehensive fingerprint security IC. This cutting-edge IC, integrating a fingerprint sensor, Secure Element (SE), and Secure Processor, enhances payment card security through an additional layer of authentication. It stands as the market's first all-in-one security chip solution capable of reading biometric data, storing and authenticating encrypted data with a tamper-proof SE, and processing and analyzing data through a Secure Processor, thus offering heightened security measures.

Key players in the digital identity solutions market are actively focused on introducing cutting-edge innovations, particularly digital ID networks, to gain a competitive advantage. Digital ID networks serve as platforms facilitating identity verification between organizations needing to verify identities and those providing the verification. These networks enable consumers to reuse trusted digital identities, enhancing security and efficiency in identity verification processes. An illustration of this innovation is evident in the launch of ConnectID's digital ID network in October 2023. This Australian-based network allows users to securely authenticate themselves to external parties without redundantly disclosing unnecessary information. Utilizing this platform, customers can opt for trusted institutions, such as banks, to verify their information, eliminating the need for repetitive proof of identification documentation. This approach grants consumers greater control over their shared data, enabling them to choose which organizations retain their personal information, thereby curbing data oversharing.

In April 2022, LSEG, a UK-based infrastructure company that operates various services, including stock exchanges and trading platforms, acquired Global Data Consortium Inc. for an undisclosed amount. With this acquisition, LSEG aims to enhance its digital identity verification capabilities and solidify its position as a leading provider of Digital Identity and Fraud solutions. By integrating GDC's high-quality data, LSEG seeks to better meet clients' Know Your Customer (KYC) requirements and reduce financial crime risks. Global Data Consortium Inc. is a US-based technology company that specializes in delivering high-quality identity verification data to support KYC compliance.

Major companies operating in the digital identity solutions market include NEC Corporation, Samsung SDS Co. Ltd., Thales Group, GB Group Plc., Telus Communications Inc., Tessi International, Daon Inc., IDEMIA, ForgeRock Inc., ImageWare Systems Inc., Jumio, Refinitiv, Syntizen Technologies Pvt. Ltd., Sum and Substance Ltd., Socure Inc., Trulioo Information Services Inc., BioCatch Ltd., PXL Vision AG, Airside Mobile Inc., Ping Identity Corporation, Onfido Ltd., Signicat AS, Acuant Inc., Veriff OU, Mitek Systems Inc., OneSpan Inc., IPROOV LIMITED, Yoti Ltd., Evernym Software Private Limited.

North America was the largest region in the digital identity solutions market in 2024. Asia-Pacific is expected to be the fastest-growing region in the digital identity solutions market report during the forecast period. The regions covered in the digital identity solutions market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the digital identity solutions market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Digital identity solutions, also known as self-sovereign identity, are online or networked identities based on open standards that individuals, businesses, or electronic devices adopt in cyberspace. These solutions play a crucial role in enhancing cybersecurity and reducing costs for enterprises.

The key components of digital identity solutions include both products and services. Solutions involve the use of information and technology within a specific system to support various technical or business capabilities addressing specific issues. Notable solutions offered include identity verification, authentication, identity lifecycle management, and others. These solutions encompass both biometric and non-biometric identity types and can be deployed either on-premises or in the cloud. Digital identity solutions find applications across diverse sectors such as BFSI (banking, financial services and insurance), retail and e-commerce, government and defense, healthcare, information technology (IT), telecommunications, energy and utilities, among others.

The digital identity solutions market research report is one of a series of new reports that provides digital identity solutions market statistics, including digital identity solutions industry global market size, regional shares, competitors with a digital identity solutions market share, detailed digital identity solutions market segments, market trends and opportunities and any further data you may need to thrive in the digital identity solutions industry. This digital identity solutions 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 digital identity solutions market includes revenues earned by entities by providing identification or registration services, identity federation services and digital signature services for enhancing privacy or improving administrative effectiveness. 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.

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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