Blockchain Identity Management Global Market Report 2024

Blockchain identity management utilizes blockchain technology to establish a secure and decentralized method for handling digital identities. It ensures that identity data remains unalterable, verifiable, and accessible solely to authorized entities, thereby minimizing the risk of identity theft, enhancing privacy, and granting users greater control over their personal information.

In terms of offerings, blockchain identity management encompasses both software and services. Software comprises digital applications and systems tailored to manage identity-related functions such as verification, access control, and data security. These solutions are offered through networks that can be permissioned or permissionless, provided by various entities such as application providers, middleware providers, and infrastructure providers. These services cater to enterprises across diverse industries including BFSI, government, retail, automotive, healthcare, and others.

The blockchain identity management market research report is one of a series of new reports that provides blockchain identity management market statistics, including blockchain identity management industry global market size, regional shares, competitors with an blockchain identity management market share, detailed blockchain identity management market segments, market trends and opportunities, and any further data you may need to thrive in the blockchain identity management industry. This blockchain identity management 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 blockchain identity management market size has grown exponentially in recent years. It will grow from $1.6 billion in 2023 to $2.8 billion in 2024 at a compound annual growth rate (CAGR) of 74.9%. In the historic period, growth can be linked to increasing concerns about data privacy, rising cybersecurity threats, regulatory compliance demands, the rise of digital transactions, trust and transparency issues, cost efficiency improvements, and the necessity for interoperability.

The blockchain identity management market size is expected to see exponential growth in the next few years. It will grow to $26.27 billion in 2028 at a compound annual growth rate (CAGR) of 75%. The growth in the forecast period can be attributed to the adoption of decentralized identity standards, integration with emerging technologies, a shift towards user-centric identity solutions, increased collaboration within industries and consortia, ongoing regulatory advancements, globalization trends, and the management of identities across borders. Key trends anticipated in the forecast period include interoperable identity solutions, integration with decentralized finance (DeFi), a strong emphasis on privacy-enhancing technologies, incorporation of AI and machine learning, governance models leveraging blockchain technology, the rise of tokenized identity solutions, and initiatives involving regulatory sandboxes.

The anticipated increase in data security concerns is set to drive the growth of the blockchain identity management market in the coming years. Data security concerns encompass issues related to safeguarding data from unauthorized access, breaches, theft, and corruption. The rising prevalence of data security concerns can be attributed to several factors, including the growing sophistication of cyber threats, the expanding digital presence of individuals and organizations, the proliferation of interconnected devices and IoT systems, and the increased reliance on cloud services and remote work setups. Blockchain technology plays a pivotal role in enhancing digital identity management by offering decentralized, immutable, and cryptographically secure solutions, thereby significantly reducing the risk of cyber threats and enhancing data security. For example, in January 2023, Check Point, an Israel-based software security provider, reported a 38% increase in global cyberattacks in 2022 compared to 2021, with the communications industry experiencing an average of 1,380 attacks per organization per week, marking a 27% increase from the previous year. Similarly, the Internet service provider/managed service provider (ISP/MSP) industry encountered an average of 1,372 attacks per organization per week in 2022, reflecting a 28% increase from the previous year. Thus, the growing concern regarding data security is fueling the growth of the blockchain identity management market.

Key companies in the blockchain identity management market are concentrating on developing advanced solutions, such as quantum secure identity management products, to address the escalating concerns related to data security, privacy, and authentication. Quantum secure identity management products leverage quantum encryption technology to provide unmatched levels of security, ensuring tamper-proof identity verification, protecting sensitive data, and enhancing trust in digital transactions and interactions. For instance, in July 2021, Arqit Limited, a UK-based quantum encryption platform, partnered with Dentons East LLP, a UK-based law firm, to launch QuantumKeep, the world's first quantum secure identity management product. QuantumKeep, a self-sovereign identity system (SSI), aims to revolutionize traditional data management methods in sectors such as government, finance, and professional services. This innovative product utilizes Arqit's quantum encryption technology and blockchain storage to securely capture and represent user identities, storing data anonymously to establish a chain of trust among involved parties. Addressing growing data security and compliance concerns, QuantumKeep provides a highly secure channel for exchanging personal data, meeting regulatory requirements, and defending against cyber threats.

In March 2022, Avast Software Inc., a Czech Republic-based company providing software solutions, acquired SecureKey Technologies Inc. to broaden its identity product and service offerings, aligning with its vision of digital freedom. This acquisition aims to empower users with greater control over personal data, simplify access to online services, and establish a new trust layer for the internet. SecureKey Technologies Inc., based in Canada, specializes in providing security authentication technologies and services, including blockchain identity management.

Major companies operating in the blockchain identity management market are Microsoft Corporation, Amazon Web Services Inc. (AWS), International Business Machines Corporation (IBM), Oracle Corporation, NEC Corporation, Unum ID Inc., Wipro Limited, SpringRole Inc., Bitfury Group Limited, Dock Labs AG, Antier Solutions Private Limited, Civic Technologies Inc., Evernym Inc., Jolocom GmbH, BTL Group, Blockpass IDN Ltd., Blockstack PBC, ConsenSys, Symbiont Inc, Sovrin Foundation Inc., SelfKey Foundation Ltd., Factom Inc., ChainGuardian Inc., Netki Inc., ShoCard Inc.

North America was the largest region in the blockchain identity management market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the blockchain identity management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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

The blockchain identity management market consists of revenues earned by entities providing services such as secure digital identity verification, decentralized authentication, fraud prevention, identity and access management, and compliance with privacy regulations. The market value includes the value of related goods sold by the service provider or included within the service offering. The blockchain identity management market also includes sales of products such as identity verification software, decentralized identity wallets, blockchain-based authentication systems, biometric identity solutions, and hardware devices for secure identity storage. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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