The global digital identity solutions market is predicted to reach USD 40.30 billion in 2024 and USD 177.96 billion by 2032, 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.
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.
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.
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.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2032 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2032 |
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CAGR |
20.4% |
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Segments Covered |
By Offering, Identity Type, Deployment Mode, Enterprise, Industry Vertical, And Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Samsung SDS, Telus, NEC, Thales, ForgeRock, Jumio, OneSpan, HashCash Consultant, Duo Security, Good Digital Identity, ID R&D, iProov, and others. |
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.
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.
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.
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.
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.
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.
By Offering
By Identity Type
By Deployment Mode
By Enterprise
By Industry Vertical
By Region
Frequently Asked Questions
The major drivers include the rapid digitalization of services, increasing demand for secure online transactions, the growing need to combat identity theft and fraud, the rise in regulatory compliance requirements (such as GDPR), and the adoption of biometric technologies. The COVID-19 pandemic further accelerated the need for secure digital identification as services moved online.
Biometric solutions, such as fingerprint recognition, facial recognition, and iris scanning, are a critical component of the digital identity market. They offer enhanced security compared to traditional passwords and two-factor authentication. Biometric technologies are becoming widely used in industries like banking, healthcare, and government services for identity verification.
The key industries include banking, financial services, and insurance (BFSI), healthcare, government, telecommunications, and e-commerce. These industries require robust digital identity systems for customer onboarding, secure access management, and fraud prevention.
AI and machine learning (ML) are being used to enhance the accuracy and security of digital identity solutions. AI-driven systems can detect anomalies in user behavior, prevent fraud, and provide adaptive authentication methods. AI also plays a role in automating identity verification processes, making them more efficient and scalable.
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