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

Digital Identity Solution Market Size

Digital Identity Solution Market size was valued at USD 25.2 billion in 2022 and is anticipated to register at a CAGR of 16% between 2023 and 2032. The rising workforces and connected networking devices propelling the demand for digital identity solutions that offer better security to organizations. Businesses must offer their solutions to their employees through real-time data access since they have offices spread out across different regions.
 

Large businesses are anticipated to use digital identity solutions more frequently due to several factors including the detection of access risks and risk outliers. The growing integration of biometrics into smartphones is a major factor influencing the digital identity solution market, and most businesses are also emphasizing improving customer experiences.
 

A digital identity is data on an entity that is used by a computer system to represent an external agent. Accessing computers and providing services to customers are made possible by digital identity solutions. A digital identity solution is the collection of information about individuals that exists in digital form, which includes all data ranging from the individual's date of birth to all activities on social media platforms. The solutions have several advantages including a high level of accuracy, better compliance, a low operational cost, a better customer experience, and enhanced security.
 

The increasing reliance on digital identities raises concerns about privacy and data security. As more personal information is stored and shared digitally, there is a need for robust security measures to protect against data breaches and identity thefts. Privacy regulations and the potential misuse of personal data can hinder the adoption of digital identity solutions market. The absence of standardized protocols and frameworks for digital identity solutions can create interoperability challenges. Different industries, organizations, and regions have varying requirements and systems, making it difficult to establish seamless & universally accepted digital identity processes. The lack of standardization can slow down the adoption of digital identity solutions and limit their effectiveness.
 

COVID-19 Impact

The inability to physically verify identities posed challenges for organizations during the pandemic. Remote identity verification processes need to be secure, compliant & accurate, requiring the adoption of advanced technologies such as facial recognition, document scanning, and biometrics. However, with lockdowns and social distancing measures, there has been a surge in online transactions and remote interactions. This has driven the demand for secure digital identity solutions to facilitate digital onboarding, authentication, and secure access to online services.
 

Digital Identity Solution Market Trends

Biometric authentication, such as fingerprint, facial recognition, and iris scanning, is gaining prominence in digital identity solutions. Biometrics offers a high level of security and convenience, enabling seamless & secure user verification across different devices and platforms. With the widespread adoption of smartphones, identity verification solutions are on the rise. Mobile devices serve as a convenient platform for identity verification, leveraging features, such as biometrics, secure elements, and mobile apps, to authenticate users and enable secure transactions.
 

Self-sovereign identity is an emerging trend in the digital identity space. SSI allows individuals to have full control over their data and identity, enabling them to share specific information securely and selectively as needed without relying on central authorities. This trend emphasizes user empowerment and privacy. Blockchain technology is also being explored for its potential in providing secure and decentralized digital identity solutions. Blockchain enables the immutability and transparency of identity data, reducing the risk of identity fraud and enhancing trust in digital identity verification processes.
 

Digital Identity Solution Market Analysis

The solutions segment held over 65% of the digital identity solutions market share in 2022, led by enabling organizations to implement comprehensive and secure identity management systems. Advancements in software capabilities, hardware technologies, cloud platforms, integration services, and service offerings enhance the effectiveness, scalability & reliability of digital identity solutions. As organizations recognize the importance of secure digital identities, the solutions component segment will continue to evolve and innovate, driving the growth & adoption of digital identity solutions.
 

The on-premises segment accounted for 60% of the digital identity solution market share in 2022. The on-premises deployment model allows organizations to maintain their digital identity solutions within their infrastructure. This gives them greater control over their data, reducing concerns about data breaches and unauthorized access. Organizations can also implement robust security measures and comply with specific industry regulations, ensuring the protection of sensitive identity-related information.
 

North America digital identity solutions market with a share of over 30% in 2022. North America has a highly digitized economy with a high level of online transactions, e-commerce, and digital interactions. As more individuals and businesses rely on digital services, the need for secure and reliable digital identity solutions becomes crucial to verify & authenticate user identities, protect against fraud, and ensure secure access to online platforms & services.
 

North America has stringent regulations concerning data privacy, security, and identity verification. Regulations including the California Consumer Privacy Act (CCPA), the Health Insurance Portability and Accountability Act (HIPAA), and financial industry regulations drive the demand for robust digital identity solutions that comply with these regulations. Organizations need to implement secure & compliant identity verification processes to meet regulatory requirements and protect user data.
 

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