Digital Identity Solution Market Size - By Component (Solutions, Services), By Type (Biometric, Non-biometric), By Application (Identity Verification, Authentication, Identity Lifecycle Management), Deployment Model, End Use & Forecast 2023 – 2032
Published Date: May - 2025 | Publisher: MRA | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationDigital Identity Solution Market Size
Digital Identity Solution Market size was USD 25.2 billion in 2022 and is expected to grow at a CAGR of 16% during the forecast period of 2023-2032. The increasing workforces and networking devices driving the demand for digital identity solutions that provide improved security to organizations. Companies need to provide their solutions to their employees through real-time access to data as they have offices located in various regions.
To obtain major market trends
Major companies are expected to apply digital identity solutions more regularly owing to a variety of reasons such as the identification of access danger and danger outliers. The increased use of biometrics in mobile phones is a key driver that impacts the market for digital identity solutions, and most companies also focus on enhancing customer experiences.
| Report Attribute | Details |
|---|---|
| Base Year | 2022 |
| Digital Identity Solution Market Size in 2022 | USD 25.2 Billion |
| Forecast Period | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR | 16% |
| 2032 Value Projection | USD 103.9 Billion |
| Historical Data for | 2018 - 2022 |
| No. of Pages | 300 |
| Tables, Charts & Figures | 395 |
| Segments covered | Component, Type, Deployment Model, Application, End-use |
| Growth Drivers |
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| Pitfalls & Challenges |
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What are the growth opportunities in this market?
A digital identity is information regarding an entity employed by a computer system to simulate an external entity. Accessing computers and the offering of customer services are enabled through digital identity solutions. A digital identity solution is the assembly of information concerning people in existence in digital format, which constitutes all data from the person's date of birth to all online activities on social media websites. The solutions possess various benefits such as high accuracy, improved compliance, low operational cost, improved customer experience, and improved security.
Hi there, have you realized how increasingly we're making use of digital IDs? It's wonderful for convenience, but it also raises some concerns regarding our privacy and data security. As we increasingly store and share personal information online, it's essential to have robust safeguards in place to protect it from theft and breaches. And we must be mindful of how this information can be used against us. Another issue is that there are varying rules and frameworks for digital ID solutions by industry, organization, and even country. This makes it challenging to develop a system that functions well and is well-accepted anywhere. In the absence of standard protocols, it is more challenging for all people to implement and gain from digital ID solutions.
COVID-19 Impact
The inability to physically authenticate identities was a challenge for companies when the pandemic struck. Remote identity authentication processes must be secure, compliant & accurate and thus necessitate the use of sophisticated technologies like facial recognition, document scanning, and biometrics. But with lockdown and social distancing, there has been an upsurge in online transactions as well as remote interactions. This has led to the need for secure digital identity solutions that enable digital onboarding, authentication, and secure access to services online.
Market Trends in Digital Identity Solution
Biometric authentication like fingerprint, facial recognition, and iris scanning is becoming increasingly prominent in digital identity solutions. Biometrics provides high security and convenience with the ability to carry out seamless & secure user verification on various devices and platforms. With the increased penetration of smartphones, identity verification offerings are gaining ground. Smartphones provide a comfortable platform for identifying individuals, utilising features, including biometric, secure element, and application capabilities, for user authentication as well as secured transactions.
Self-sovereign identity is gaining traction in digital identity. SSI enables one to have complete authority over his/her data and identity, and with it, the ability to distribute certain information in a secure and selective manner if and when needed without dependence on central entities. This development underscores user power and privacy. Blockchain technology is also being considered due to its capacity to enable safe and decentralized digital identity solutions. Blockchain provides the immutability and transparency of identity information, minimizing the risk of identity fraud and increasing trust in digital identity verification processes.
Digital Identity Solution Market Analysis
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The solutions segment accounted for more than 65% of the digital identity solutions market share in 2022, with enabling organizations to deploy complete and secure identity management systems. Improvements in software functionality, hardware technologies, cloud platforms, integration services, and service offerings improve the efficacy, scalability & reliability of digital identity solutions. As organizations realize the significance of secure digital identities, the solutions component segment will keep on evolving and innovating, fueling the growth & adoption of digital identity solutions.
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The on-premises segment held 60% of the market share of digital identity solution in 2022. The on-premises deployment model provides organizations with the ability to host their digital identity solutions in their infrastructure. This provides them with more control over their data, minimizing the risk of data breaches and unauthorized access. Organizations can also deploy strong security controls and adhere to certain industry regulations, ensuring the confidentiality of sensitive identity-related information.
Seeking region specific information?
North America digital identity solutions market share of more than 30% in 2022. North America possesses a very digitized economy with the majority of transactions, e-commerce, and online interactions. As more businesses and individuals use digital services, digital identity solutions for secure and trustful digital identity verification & authentication, fraud protection, and safe access to online platforms & services become essential.
North America has strict policies related to data privacy, security, and verification of identity. Policies such as the California Consumer Privacy Act (CCPA), the Health Insurance Portability and Accountability Act (HIPAA), and financial industry policies compel demand for strong digital identity solutions to meet these policy requirements. Companies must have secure & compliant identity verification procedures to satisfy regulatory standards and secure user information.
Digital Identity Solution Market Share
Major companies operating in the digital identity solution market are
- Microsoft Corporation
- IBM Corporation
- NEC Corporation
- Thales Group
- IDEMIA
- Okta Inc.,
- TELUS.
These companies are focused on strategic partnerships, new product launches, and commercialization efforts for market expansion. They are also heavily investing in research to introduce innovative products and garner the maximum market revenue.
Digital Identity Solution Industry News
- In July 2022, Sumsub launched identity verification solution on salesforce appexchange. It offers a powerful platform for converting more customers, speeding up verification, reducing costs and fighting digital fraud.
This digital identity solutions market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments
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Market, By Component
- Solutions
- Services
Market, By Type
- Biometric
- Non-biometric
Market, By Deployment Model
- On-premises
- Cloud
Market, By Application
- Identity verification
- Authentication
- Identity lifecycle management
- Others
Market, By End Use
- BFSI
- IT & telecom
- Healthcare
- Education
- Manufacturing
- Retail & E-commerce
- Government & Public Sector
- Others
The above information has been provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Asia Pacific
- China
- India
- Japan
- South Korea
- ANZ
- Southeast Asia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- South Africa
- UAE
- Saudi Arabia
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