Blockchain Identity Management Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Blockchain Identity Management Market is projected to expand significantly, growing from USD 4.33 Billion in 2025 to USD 84.83 Billion by 2031, reflecting a Compound Annual Growth Rate (CAGR) of 64.19%. This industry relies on a decentralized framework utilizing distributed ledger technology to facilitate self-sovereign data control and ensure the immutable verification of credentials. The market's momentum is largely driven by the urgent necessity to strengthen cybersecurity measures and streamline adherence to rigorous privacy regulations. As reported by the 'Identity Defined Security Alliance' in '2024', '90% of organizations experienced at least one identity-related incident in the past year'. Such high rates of fraud highlight the pressing need for the secure, tamper-resistant architecture provided by decentralized identity systems to reduce dependence on centralized repositories that are prone to attacks.

Conversely, the market encounters a major hurdle due to the lack of interoperability among distinct blockchain networks. With various organizations creating isolated ledger solutions, the resulting technical fragmentation hinders the smooth exchange of verified credentials across diverse ecosystems. This failure to establish a unified global standard makes integration difficult for enterprises and negatively impacts the user experience, thereby serving as a considerable impediment to broader market expansion.

Market Drivers

The escalating frequency of data breaches and identity theft serves as a major driver for the adoption of blockchain identity management, pushing organizations to move away from vulnerable centralized databases toward decentralized alternatives. As cyber threats increasingly target single points of failure to obtain sensitive personal data, there is a growing demand for immutable, self-sovereign identity structures. Transitioning to these systems is essential for minimizing the harm caused by compromised credentials and rebuilding user confidence. According to Sumsub's January 2025 'Identity Fraud Report 2024-2025', the global rate of identity fraud rose to 2.50% in 2024, emphasizing the rising number of security incidents that decentralized ledgers are engineered to mitigate.

Furthermore, the rapid digitalization of banking and financial services is accelerating market growth as institutions search for resilient methods to optimize Know Your Customer (KYC) compliance and fight advanced fraud techniques. Financial organizations are increasingly adopting blockchain technology to automate verification processes and protect customer onboarding against threats such as AI-generated synthetic identities. AuthenticID reported in their January 2025 'State of Identity Fraud Survey' that deepfake-related fraud impacted 46% of financial institutions over the past year, highlighting the critical need for cryptographic identity proof. Moreover, illustrating the magnitude of digital engagement, Socure noted in a February 2025 performance update that the company verified 370 million unique identities in 2024, revealing the vast volume of interactions that necessitate secure validation.

Market Challenges

The absence of interoperability among various blockchain networks presents a significant obstacle to the growth of the Global Blockchain Identity Management Market. As different industries and consortiums build proprietary ledger solutions, the digital identity ecosystem becomes fractured into disconnected silos. This technical segmentation obstructs the seamless portability of credentials, meaning a digital ID authenticated on one blockchain framework often cannot be acknowledged or validated by another without implementing complex and expensive integration layers. As a result, the fundamental promise of a universal, self-sovereign identity is compromised, substantially diminishing the value proposition for global enterprises needing cross-border and cross-platform compatibility.

This fragmentation generates considerable reluctance among prospective adopters who are concerned about operational inefficiencies and the risk of vendor lock-in. The difficulty involved in bridging these gaps slows down both decision-making and implementation timelines. According to the 'Cloud Security Alliance' in '2024', '65% of respondents claimed that managing access controls and enforcing consistent security policies across disparate identity systems is a top concern'. This data underscores how the challenge of unifying diverse identity architectures directly undermines market confidence. Until these friction points are addressed, organizations will remain hesitant to commit to full-scale deployment, restricting much of the market to limited pilot initiatives rather than broad commercial adoption.

Market Trends

The broad adoption of Zero-Knowledge Proofs (ZKPs) is fundamentally transforming the market by allowing for privacy-centric verification that does not reveal sensitive personal information. This cryptographic technique permits entities to confirm a user's attributes, such as age or humanity, without accessing the underlying Personally Identifiable Information (PII), thereby reconciling the tension between regulatory compliance and user privacy. This trend is quickly gaining momentum within decentralized ecosystems where "Proof of Personhood" is essential to counter AI-generated sybil attacks while preserving user anonymity. As noted by CoinGape in November 2024, in the article 'Worldcoin Price Shoots 28% As Global ID Verification Expands To 40 Countries', the World ID project has already verified over 16 million users, illustrating the extensive scale at which ZKP-based identity solutions are being utilized to secure digital interactions.

Simultaneously, the expansion of Government-Backed Digital Identity Wallets is shifting the market from isolated commercial pilots toward mandated national infrastructure. Governments are increasingly introducing state-sanctioned digital wallets to guarantee cross-border interoperability and standardize credential verification under frameworks such as eIDAS 2.0. This development compels private sector adoption, as businesses are required to integrate with these official wallets to authenticate customers for banking, travel, and government services, effectively establishing a unified layer of trust. According to a September 2024 report by Thales Group titled 'The EU Digital Wallet: what stage is the project at now?', four large-scale pilot projects involving roughly 360 entities are currently testing the wallet across various use cases, emphasizing the significant institutional commitment fueling this transition.

Key Players Profiled in the Blockchain Identity Management Market

• IBM Corporation
• Microsoft Corporation
• Oracle Corporation
• Amazon Web Services, Inc.
• Bitfury Group Ltd.
• NEC Corporation
• Civic Technologies, Inc.
• Evernym, Inc.
• Validated ID, S.L.
• SelfKey Foundation

Report Scope

In this report, the Global Blockchain Identity Management Market has been segmented into the following categories:

Blockchain Identity Management Market, by Component:

• Platform
• Services

Blockchain Identity Management Market, by Organization Size:

• Large Organization
• Small & Medium-Sized Organization

Blockchain Identity Management Market, by Application:

• Loyalty and Rewards Management
• Identity Management
• Supply Chain Management
• Payments and Smart Contracts
• Compliance Management
• Others

Blockchain Identity Management Market, by Vertical:

• BFSI
• Government
• Healthcare and Life Sciences
• Telecom and IT
• Retail and E-Commerce
• Transport and Logistics
• Real Estate
• Media and Entertainment
• Travel and Hospitality
• Others

Blockchain Identity Management Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Blockchain Identity Management Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.