The digital identity refers to a set of digital qualities and credentials that are validated in the digital realm, analogous to a person’s real-world identity. It is used for various purposes such as a unique identity number, social security number, immunization code, name, location, date of birth, citizenship, biometrics, and others. It has a high level of accuracy and compliance, as well as minimal operational costs, a better client experience, and improved security.

The main components of digital identity include solutions and services, and they are deployed through on-premises and cloud. The solution market consists of sales of digital identity solutions by entities (organizations, sole traders, and partnerships) that refers to a software or platform designed to generate identities, protect digital data transfers and manage credentials stored in any cryptographic devices while maintaining security, quality, and robustness. They are operated through single-factor and multi-factor authentications, and they are used in wide range of industries ranging from BFSI, retail and ecommerce, government and defense, IT and ITeS, telecommunications, energy and utility, and other verticals.

Digital identity Market Segmentation

The digital identity market covered in this report is segmented –

1) By Component: Solutions, Services

2) By Type: Single-factor Authentication, Multi-factor Authentication

3) By Deployment Type: Cloud, On-Premises

4) By Organization Size: Large Enterprises, SMEs

5) By Vertical: BFSI, Retail And E-Commerce, Government And Defense, Healthcare, IT And ITeS, Telecommunications, Energy And Utilities, Other Verticals

Subsegments:

1) By Solutions: Identity Verification Solutions, Access Management Solutions, Authentication Solutions, Digital Identity Platforms

2) By Services: Consulting Services, Implementation Services, Support And Maintenance Services, Managed Services

Digital identity Market Size 2025 And Growth Rate

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 13.0%. 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.

Digital identity Market Growth Forecast

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.

Digital identity Market Driver: Surge In Identity-Related Fraud Spurs Rapid Growth In The Digital Identity Market

An increase in instances of identity-related fraud and data breaches is contributing to the growth of the digital identity market. Identity fraud is a crime in which someone wrongfully obtains and uses other individuals’ data in some way that involves fraud and deception for economical gain. Industries across the globe are adopting advanced digital identity solutions to effectively mitigate identity-related fraud and thefts. For instance, in January 2024, according to the Identity Theft Resource Center (ITRC), an US-based nonprofit organization, in 2023, the number of data compromises reached 3,205, reflecting a 78% increase from 1,801 in 2022. Thus, the rise in identity-related fraud and data breaches is expected to boost the digital identity market during the forecast period.

Digital identity Market Driver: ID Wallet Solutions Catalysts For The Surge In The Digital Identity Market

The rise in ID wallet solutions is expected to propel the growth of the digital identity market going forward. ID wallet solutions are secure digital applications designed to store, manage, and simplify the use of digital identity and credentials. ID wallet solutions act as a central storage facility for many types of identification, including digital certificates, biometric information, and other techniques of verification. The demand for digital identity, including ID wallet solutions, is increasing due to the need for secure identity management, authentication, and fraud prevention. For instance, in February 2023, according to the US-based Tearsheet, over 66% of Americans expect to have a digital identity wallet by 2023, and 54% of consumers in all age groups prefer to use a digital wallet issued by a bank. Therefore, the rise in ID wallet solutions is driving the growth of the digital identity market.

Global Digital identity Market Major Players

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.

Global Digital identity Market Trend: Strategic Collaborations Drive The Digital Identity Market

The partnership among the companies is a key trend gaining popularity in the digital identity market. The companies operating in the digital identity market are focusing on partnering with a technology-based player for the development of innovative technologies and enhancement of existing products to increase customer experience and performance. 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.

Global Digital identity Market Trend: Imprivata Revolutionizes Healthcare Digital Identity With Digital Identity Maturity Model And Assessment

Major 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. For instance, in April 2023, Imprivata, a US-based digital identity company for life and mission-critical industries, launched the First Digital Identity Maturity Model and the Digital Identity Maturity Assessment. Clinical leadership, IT, and security teams may rapidly evaluate the efficacy of their digital identity program using this interactive, self-service tool, which is based on the technologies and procedures presently in use. With actionable insights to concurrently drive improvements across all areas, the output is a tailored report that takes user outcomes, security, and compliance into account in accordance with the maturity model.

Digital identity Market Merger And Acquisition: Onfido Acquires Airside Mobile To Enhance Digital Identity Solutions For Seamless User Experience

In May 2023, Onfido, a US-based identity verification service, acquired Airside Mobile, Inc. for an undisclosed amount. The aim of the acquisition is to develop a seamless, user-controlled digital identity solution that allows for “verify once, share anywhere” functionality across multiple services. Airside Mobile, Inc. is a US-based technology company, specializes in creating privacy-centric digital identity sharing technology.

Regional Outlook For The Global Digital identity Market

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.

What Defines the Digital identity Market?

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.

How is Market Value Defined and Measured?

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.

What is the Market Assessment and Strategic Outlook for the Digital identity Industry?

The digital identity market research report is one of a series of new reports from The Business Research Company 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.