Digital Identity Solutions Market

Global Digital Identity Solutions Market Size (2024 to 2029)

The global digital identity solutions market is predicted to reach USD 40.30 billion in 2024 and USD 101.96 billion by 2029, growing at a CAGR of 20.4% during the forecast period.

Digital identity is known as a person's representation in the online portal, and it includes personal information containing the name, date of birth, gender, etc. Digital Identity Solutions is the future for a person's identification authenticated by a digital channel. The Digital Identity Solutions Market is trending in today's world, boosting the ever-growing digital economy. As a result, there is an increasing trend in the biometric validation of a person's identity that has emerged in businesses and government undertaking institutions. In addition, government regulations have made it mandatory for digital identity solutions with the increasing trend in advanced mechanics. Therefore, the Digital Identification Solutions Market is expected to incur robust growth during the forecast period. 

Global Digital Identification Solutions Market Drivers:

Consumers' adoption and dependency on digitalized identification, which makes life easier for the majority, is majorly driving the demand of the digital identification market. In addition, emerging technologies have improved authentication and encryption so that the digitalized identity can be held securely without being corrupted for storage in a mobile app. As a result, the citizen has their identity credentials for usage in various applications such as vehicle card registration, healthcare credentials, verification ID, etc. Furthermore, integrating biometrics has benefitted growth by increasing the demand for a person's digital identity. Furthermore, it has benefitted many companies, institutions, etc., by enabling a computerized attendance format rather than collecting attendance data. On the other hand, bookkeeping the data has been nothing less than a tedious job when the job is getting done with the press of a fingerprint. Hence, it has been showcased as the driving demand for the Digital Identification Solutions Market.

Global Digital Identification Solutions Market Restraints:

The increasing cost of installation of the devices is majorly restraining the demand in the Digital Identification Solutions Market. In addition, the increase in hackers and potential cyberattacks have raised the threat to personnel creating a digital identity. As a result, consumers have concerns regarding their security details, such as their social security number and bank account information, which can cause severe damage if hacked without secure encryption. Furthermore, investments in digital identification solutions have fettered the market's growth. Such implications have reverted the demand, causing immense damage to the small & medium enterprises to invest significant shares in the digital identification solutions market. 

Global Digital Identification Solutions Market Opportunities:

Digital identification solutions have opened gates for integrating new and advanced technology, such as Artificial Intelligence. Furthermore, opportunities for creating various concepts to render automation-enabled computerized systems have been trending. There is also a significant scope in implementing machine learning programs to replace human efforts and bring forth digitalized concepts. Hence, this helps minimize threats and creates lucrative opportunities for new markets by providing investment in research and development. In addition, the changing technologies have exposed new markets, such as blockchain technology, a secure link used in treating cryptography as a decentralized ledger potentially used in fund transfers, trade management, etc.  

Impact of COVID-19 on the global digital identification solutions market:

The COVID-19 pandemic has established optimistic growth for the Digital Identification Solutions Market. Due to the government's impositions on lockdown in eliminating the crisis has emerged the growth of the Bring Your Own Device (BYOD) policy to personally bring forth their own devices, such as laptops or smartphones, to work in the corporate offices. In addition, there was a boost in the market for cybersecurity to protect against cyber threats, hackers, hardware, and software, which has surged the market growth of digital identification solutions.

GLOBAL DIGITAL IDENTIFICATION SOLUTIONS MARKET REPORT COVERAGE:

This research report on the global digital identification solutions market has been segmented and sub-segmented based on the offering, identity type, deployment mode, enterprise, industry vertical, and region.

Global Digital Identification Solutions Market Segmentation - By Offering:

• Solutions

• Services

Based on Segmentation by Offering, the demand for services has dominated digital identification solutions, helping organizations and companies build a world of digital identity and providing the required services to establish a place in the market. As a result, there is anticipated growth for the Solutions Segment as well due to the company's dependence on data collection and data keeping, which has circulated its growth during the forecast year. 

Global Digital Identification Solutions Market Segmentation - By Identity Type:

• Biometric

• Non-Biometric

The rise of Biometric Digital Identity Solutions has diversified the market for aspects like biometric algorithms, Identifications, and Facial recognition to cover all the bases in the digital identity market. As a result, the Biometric Segment has surged its growth in the market, streamlining the fact that billions of consumers have adopted fingerprint, face recognition, and iris. On the other hand, the Non-Biometric Segment is anticipated to stabilize or decline in the market during the forecast period, contributing to the increase in technology and consumers' adaptation to the advanced solutions.

Global Digital Identification Solutions Market Segmentation - By Deployment Mode:

• On-Cloud

• Premise

Based on Deployment Mode, the fast CAGR accounts for the growth of the On-Cloud Segment as the companies are primarily dependent on cloud-based solutions as they can avoid unnecessary cut-off costs for the maintenance and infrastructure by using cloud-based digital identification solutions. In addition, small and medium enterprises have also deployed the cloud-based platform due to the benefits it enables by helping SMEs gain advanced competencies in the market. On the other hand, the premise segment is anticipated to protect the identity data by manifesting contingencies for companies to identify organized and reliable data. Therefore, it is expected to grow with a fast CAGR during the forecast year.

Global Digital Identification Solution Market Segmentation - By Enterprise:

• Small and Medium Enterprise

• Large Enterprise

The Large Enterprise segment is identified to be leading in the digital identity market. This is because large enterprises often have the most extensive scope to adopt new and innovative products that have emerged in the market. In addition, the implementation of digital identity has changed the entire market, making work input easier for organizations without having to maintain records or record data. On the other hand, there is a tremendous growth rate for the SME segment to digitalize their organizations during the forecast period.

Global Digital Identification Solutions Market Segmentation - By Industry Vertical:

• Healthcare

• BFSI

• Travel & Hospitality

• Government

• Defense & Aerospace

• IT & Telecommunications

• Retail & E-Commerce

• Education

• Others

The up-and-growing Segment of the Digital Identification Solutions market has dominated the demand for Retail & E-Commerce. Retail has been a trend in the industry verticals that has established itself as a general target for cyberattacks. Furthermore, e-commerce has many monetary transactions, attracting more threats to potential consumers. Furthermore, the dependence on e-commerce and retail has surged the demand for its market. In addition, there is anticipated growth for the government segment due to the various impositions being implemented in various regions. 

Global Digital Identification Solutions Market Segmentation - By Region:

• North America

• Europe

• Asia-Pacific

• Middle East

• Latin America

The global digital identification solutions market is growing with a rapid CAGR in the Asia Pacific region. As a result, countries such as China, Japan, India, South Korea, and Singapore have practically been involved in implementing new technology and witnessing significant opportunities for developing countries to have a potentially high economic rate by adapting to the digital identification solutions market. Hence, there is a potential to witness thefts and cyber-attacks in this region, which opens the market for identity solutions to eradicate such problems. In addition, there is an increase in the growth of the European region during the forecast period. Therefore, the need for digital identity solutions has influenced the demand in the market to improve security systems and advancements in the digital identity market.

Global Digital Identification Solutions Market Key Players:

1. Samsung SDS

2. Telus

3. NEC

4. Thales

5. ForgeRock

6. Jumio

7. OneSpan

8. HashCash Consultant

9. Duo Security

10. Good Digital Identity

11. ID R&D

12. iProov

Recent Developments:

• In October 2022, the leading IT and Network Technologies company NEC Corporation of Malaysia was awarded a sub-contract and selected as a technology partner in implementing biometric solutions for NIISe. NIISe is an initiative by the Ministry of Home Affairs to modernize the Immigration Department of Malaysia by providing advanced digital technology.

• In February 2022, the GB Group Plc., the expert digital location, identity, and identity fraud software, announced that it had acquired Verifi Identity Services Limited, also known as 'Cloudcheck.' Due to this acquisition, GBG brings New Zealand a new breadth of identity solutions that help meet complex AML/KYC compliance requirements. 

• In October 2022, Thoma Bravo will acquire US-based Forgerock, a global digital identity leader, for USD 2.3 Billion. This acquisition represents a premium of 53% over Forgerock's closing share value on October 10, 2022.