Global Digital Identity Solutions Market By Component (Solutions and Services), By Identity Type, By Solution Type, By Deployment Mode, By End-Use Industry, By Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023 – 2032
- Published date: Oct. 2023
- Report ID: 103435
- Number of Pages: 269
- Report Overview
- Key Takeaway
- Driving Factor
- Restraining Factor
- By Component Analysis
- By Identity Type Analysis
- By Solution Type Analysis
- By Deployment Mode Analysis
- By End-Use Industry Analysis
- Key Market Segments
- Growth Opportunity
- Latest Trends
- Regional Analysis
- Key Regions and Countries Covered in this Report
- Market Share and Key Player Analysis
- Recent Developments
- Report Scope
In 2022, the Global Digital Identity Solutions Market was valued at US$ 28 Billion and will reach US$ 131.6 billion by 2032. Between 2023 and 2032, this market is estimated to register the highest CAGR of 17.2 %.
Digital identity is an information process by computer systems to identify external entities like organizations, person devices, or applications. It possesses all the compiled information of the specific person in the system that verifies the information for granting access to that person. The digital identity can also be referred to as an online identity that helps the respective person to access the needed information or entry in the secured area.
Digital identity solutions allow organizations to electronically gather the needed information about the respective individual with the help of digital identity platforms. In order to identify the permitted individuals, these platforms store certain attributes and specific networks.
Note: Actual Numbers Might Vary In The Final Report
Electronic identity solutions have wide applications across many industries. The digital identity solution is adopted by many companies across different industries for applications like securing electronic transactions, securing data from hackers, enhancing consumer satisfaction, and also complying with regulatory guidelines. It helps the organizations to operate the business more swiftly and gain the trust of stakeholders in the company. Due to all these applications, the adoption of digital identity solutions has risen significantly in the last few years.
- Market Valuation: The Global Digital Identity Solutions Market was valued at US$ 28 billion in 2022 and projected to experience compound annual compound annual growth rates of 17.2% from now until 2032.
- Definition of Digital Identity: Digital Identities are information processes utilized by computer systems to recognize external entities such as organizations, personal devices or applications. They enable access for individuals seeking entry to secured areas.
- Driving Factors: ID wallet solutions that enable secure storage of digital versions of identity documents is fueling growth in the digital identity solutions market. This technology enables individuals to access their credentials without carrying physical documents – thus improving convenience and security.
- Challenges: High implementation costs and the constant threat of cyberattacks and data breaches pose considerable hurdles to digital identity solutions being widely adopted in organizations of all sizes, especially small and medium enterprises. They deter many businesses from making this commitment.
- By Component Analysis: Solutions account for more revenue (60.8%) compared to services.
- According to Identity Type Analysis: Biometric solutions hold 68% market share versus nonbiometric solutions.
- By Solution Type Analysis: The authentication sector holds the largest share in terms of revenue (39.6%), with single and multi-factor authentication being popular solutions.
- Deployment Modes Analysis: On-premises deployment dominated the segment with 58.6% revenue share, and led by on-premises deployment mode at 58.50% of revenue share. End User Industries: IT and telecomm industries led market share at 17.2% followed closely by BFSI sector with 16.1% market share.
- Regional Analysis: North America currently leads the global digital identity solutions market with an impressive revenue share of 37.6%; however, Asia Pacific is expected to experience rapid digital infrastructure development and adoption of digital identity solutions by companies in this region.
- Key Players in Digital Identity Solutions Market: Some key players in this market include NEC Corporation, Accenture, Deloitte, Imageware, GB Group plc, TELUS, Tessi, Daon Inc. IDEMIA ForgeRock Inc Thales Group Jumio among many others.
- Growth Opportunities: Integration of advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML) is projected to create significant opportunities in the market, allowing for the creation of more secure and cost-efficient digital identity solutions.
- Trends: As digital governance needs increase across governments worldwide, demand for digital identity solutions should also increase. Many governments are investing in digital infrastructure to streamline identification processes and more effectively implement various social schemes and policies.
Increasing ID Wallet Adoption is Driving the Growth of the Global Digital Identity Solutions Market.
Digital identity solutions help organizations to grant access to specific permitted persons by matching its digital identity with individuals. With this advantage of digital identity in mind, many governments and companies are adopting digital identity through the new ID wallet solutions.
These ID wallet solutions include the use of advanced technology to secure the app or website that stores all the digital versions of the ID documents of the respective individual. It includes all the documents like a driving license, vehicle registration card, healthcare credentials, and many other documents. It gives the individual single hand access to documents and credentials.
By using these ID wallets, individuals are able to prove their identity without carrying any physical identity documents. These advantages of ID wallets are attracting more and more individuals to adopt digital identity. This is driving the growth of the global digital identity solutions market.
High Costs of Implementation and Increasing Cyberattacks are Expected to Hamper the Growth of Global Digital Identity Solutions Market.
Digital identity solutions offer an identification system to the organization, which involves authentication without any physical identity documents. It has made it easier for organizations to secure the place or data. However, the high cost of these digital identity solutions is restricting many individuals from adopting it.
The digital identity solutions include processing of a large amount of data for identifying the permitted person. Therefore, it involves a large investment in the software’s and hardware used in the processing of the data used for identification. This restricts many small and medium enterprises from adopting digital identity solutions.
Also, digital identity solutions are always under the threat of cyberattacks and data breaches. Many hackers try to hack the servers of digital identity solutions to steal the stored personal information of individuals. These all key factors are expected to hamper the growth of the global digital identity solutions market.
By Component Analysis
Solutions Lead the Component Segment by Covering the Major Revenue Share in the Market.
Based on components, the global digital identity solutions market is divided into solutions and services. From these components, solutions dominate the segment by holding a major revenue share of 60.8%.
This growth of solutions is owing to the presence of many companies offering digital identity solutions as a tool or integrated platform that can be easily integrated with any company’s systems. Many major companies in the digital identity solutions market are providing hardware and services to the adopting company for implementing digital identity solutions in their systems. This is driving the growth of solutions in the component segment of the global digital identity solutions market.
Also, the service segment is expected to experience significant growth in the digital identity solutions market during the forecast period. Many companies provide assistance services to maintain digital identity solutions. This is expected to drive the growth of the service segment in the upcoming period.
By Identity Type Analysis
Biometrics Lead the Segment by Securing Major Revenue Share in Account.
On the basis of identity type, global digital identity solutions market is divided into biometric and non-biometric. Out of these identity types, biometrics accounted for the major revenue share of 68% to dominate the identity type segment in the global digital identity solutions market.
High security through key cards, fingerprints, retinal scans, facial recognition, voice recognition, and much such biometrics are driving the growth of biometrics in the identity type segment of the global digital identity solutions market. The Biometrics helps the system to implement more secure measures to protect the data or place from unauthorized persons. Therefore, the biometrics is mostly preferred by many individuals and organizations.
Note: Actual Numbers Might Vary In The Final Report
By Solution Type Analysis
Authentication Leads the Solution Type Segment by Covering the Major Revenue Share in Account.
Based on solution type, the global digital identity solutions market is classified into identity verification, authentication, identity lifecycle management, and other solution types. The authentication is further classified into single-factor authentication and multi-factor authentication.
Among all these solution types, authentication leads the segment by covering the major revenue share of 39.6%. Authentication is used by organizations to check the authenticity of the respective person. The authentication is done by two categories that is single-factor authentication and multi-factor authentication. These authentications are used by companies to increase the security of the place or data. This is driving the growth of authentication in the solution-type segment of the global digital identity solutions market.
By Deployment Mode Analysis
On-Premises Dominates the Deployment Mode Segment in Global Digital Identity Solutions Market.
Based on deployment mode, the digital identity solutions market is divided into on-premises and cloud-based. Out of these deployment modes, on-premises leads the segment by securing a major revenue share of 58.6%. This growth of on-premises can be attributed to the presence of many companies having the big digital infrastructure needed for on-premises digital identity solutions.
The on-premises digital identity solutions provide full control of the solution to the company. Whereas cloud-based solutions can be accessed by the service offering company. Therefore, many big companies prefer to adopt digital identity solutions in on-premises mode. This is driving the growth of on-premises mode in the deployment segment of the global digital identity solutions market.
By End-Use Industry Analysis
IT and Telecommunications Industry Secure the Major Revenue Share to Lead the End-Use Industry Segment.
On the basis of the end-use industry, the global digital identity solutions market is classified into BFSI, IT and telecommunication, healthcare, energy and utilities, government and defense, and other end-use industries. From these end-use industries, IT and telecommunications led the market with 17.2% of Revenue share in the account.
The growing need for security solutions in the IT and telecommunication industry to secure company data is driving the growth of IT and telecommunications in the end-use industry segment of the global digital identity solutions market. After IT and telecommunications, the BFSI industry is anticipated to experience significant growth in the end-use industry segment of the global digital identity solutions market. Increasing need of security for electronic transactions and banking activities re expected to drive the growth of BFSI industry.
Key Market Segments
- Identity Verification
- Single-factor Authentication
- Multi-factor Authentication
- Identity Lifecycle Management
- Other Solution Types
- IT and Telecommunication
- Energy and Utilities
- Government and Defense
- Other End-Use Industries
Integration of Artificial Intelligence and Machine Learning is Anticipated to Create Many Opportunities in the Market Over the Forecast Period.
The digital identity solutions market has been experiencing significant growth over the last few years owing to the need to secure a huge amount of data and places. With rising demand, the competition has also risen in the digital identity solutions market in the last few years.
Many major companies in the market are focusing on the integration of advanced technologies like artificial intelligence and machine learning with digital identity solutions for upgrading the current solutions and building more secure solutions. The integration of artificial intelligence allows the system to minimize human efforts and avoid many potential risks.
Artificial intelligence helps the systems to process huge amounts of data in less time than normal systems. It also increases the security of systems by allowing access to only permitted individuals. With the integration of artificial intelligence and machine learning, it is expected to create many lucrative opportunities in the digital identity solutions market over the forecast period.
The Growing Need for Digital Governance is Expected to Propel the Growth of the Global Identity Solutions Market.
Many governments across the world are heavily investing in the development of digital infrastructure in their respective countries to repay various benefits to their citizens. Digital governance is gaining popularity among countries for identifying the eligible citizens for the specific schemes and policies from the government.
The governments are collecting the digital identities of individuals to identify suitable and eligible citizens for the schemes without any hindrance. For example, the government of India is integrating the biometric digital ID “Aadhar” with different schemes and policies to select eligible citizens. This is proving to be an efficient method for the government.
The North America Region Dominates the Global Digital Identity Solutions Market by Holding Major Revenue Share Account.
The North America region leads the global digital identity solutions market by holding a major revenue share of 37.6%. This growth of North America region is due to the early adoption of digital identity solutions within the region.
The North America region has countries like the United States and Canada that possess developed digital infrastructure. Therefore, organizations and companies in the region adopt digital identity solutions in large numbers. North America region is home to many major companies in the world that need to protect their data from the hackers.
Note: Actual Numbers Might Vary In The Final Report
Therefore, the adoption of digital identity solutions is high in the North America region. Also, the governments of countries in North America region are switching to digital ID from physical ID to balance accessibility and convenience. These key factors are driving the growth of the digital identity solutions market in the North America region.
After North America, Asia Pacific is expected to grow at the fastest CAGR over the forecast period. The rapidly developing digital infrastructure and increasing adoption of digital identity solutions from companies in the region are expected to drive the growth of the Asia Pacific region during the forecast period.
Key Regions and Countries Covered in this Report
- North America
- The US
- Western Europe
- The UK
- Rest of Western Europe
- Eastern Europe
- The Czech Republic
- Rest of Eastern Europe
- South Korea
- Australia & New Zealand
- Rest of APAC
- Latin America
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- United Arab Emirates
- Rest of MEA
The digital identity solutions market is fragmented into many companies offering the services. Meanwhile, many companies are focusing on the development of advanced solutions by integrating advanced technologies like artificial intelligence and machine learning in their systems to expand the business in new regions. The key companies are adopting various strategies like mergers, acquisitions, collaboration, and partnerships to expand their market share and strengthen their position in the global digital identity solutions market.
Top Key Players in Digital Identity Solutions Market
- NEC Corporation
- GB Group plc
- Daon Inc.
- ForgeRock Inc.
- Thales Group
- Other Key Players
- In February 2023, Route Mobile introduced its new digital identity and security suite ‘TruSense’. It Plays an important part in authenticating the end-user for digital transactions without any hindrance.
- In March 2023, Lloyds Banking Group invested 10 million pounds in ‘Yoti’ a digital identity business for using cutting-edge technologies to secure online identity frauds.
Report Features Description Market Value (2022) US$ 28 Bn Forecast Revenue (2032) US$ 131.6 Bn CAGR (2023-2032) 17.2 % Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Component – Solutions and Services; By Identity Type – Biometric and Non-Biometric; By Solution Type – Identity Verification, Authentication, Identity Lifecycle Management, and Other Solution Types; By Deployment Mode – On-Premises, and Cloud Based; By End-Use Industry – BFSI, IT and Telecommunication, Healthcare, Energy and Utilities, Government and Defense, and Other End-Use Industries Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; The Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape NEC Corporation, Accenture, Deloitte, Imageware, GB Group plc, TELUS, Tessi, Daon Inc., ForgeRock Inc., IDEMIA, Thales Group, Jumio, and other key players. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)
Frequently Asked Questions (FAQ)What is the value of the Global Digital Identity Solutions Market?
The Global Digital Identity Solutions Market was valued at US$ 28 billion in 2022 and is projected to reach US$ 131.6 billion by 2032.What is digital identity in the context of computer systems?
Digital identity is an information process used by computer systems to identify external entities such as organizations, personal devices, or applications.What are some applications of digital identity solutions market?
Digital identity solutions market have wide applications across industries, including securing electronic transactions, protecting data from hackers, enhancing consumer satisfaction, and complying with regulatory guidelines.What is driving the growth of the Global Digital Identity Solutions Market?
The increasing adoption of ID wallet solutions, which utilize digital identity, is driving the growth of the Global Digital Identity Solutions Market.What are the two identity types in the Digital Identity Solutions Market?
The two identity types in the Digital Identity Solutions Market are biometric and non-biometric.Which companies are key players in the Digital Identity Solutions Market?
Some of the key players in the Digital Identity Solutions Market include NEC Corporation, Accenture, Deloitte, Imageware, GB Group plc, TELUS, Tessi, Daon Inc., ForgeRock Inc., IDEMIA, Thales Group, Jumio, and other key players.How does the BFSI industry impact the Digital Identity Solutions Market?
he BFSI industry is a significant contributor to the Digital Identity Solutions Market due to the increasing need for security in electronic transactions and banking activities.
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