Digital Identity Market Size & Share, by Offering (Solutions, Services), End User (BFSI, Retail and eCommerce, Government, Healthcare, IT and ITeS), Organization Size (Large Organization, SMEs), Identity Type (Biometric, Non-Biometric), Deployment (Cloud, On-Premise) - Global Supply & Demand Analysis & Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5712
  • Published Date: Apr 30, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Digital Identity Market size is poised to reach USD 50 billion by the end of 2036, growing at a CAGR of 11% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of digital identity was over USD 34 billion. The major factor in encouraging the market revenue is the rising adoption of smartphones. For instance, currently, about 5 billion individuals are using smartphones in the world. Hence, the market is also anticipated to rise since it has eliminated the necessity to carry physical documents including passports, credit cards, and more.

Additionally, the growing prevalence of cyber-attacks is also estimated to drive the demand for digital identity. This is because, digital identity, allows users to have complete control of their data. This indicates they are eligible to choose information the prefer to share and to whom, reducing. Hence, this is expected to reduce the risk of identity theft and data breaches. As a result, the digital identity market is set to have significant growth over the coming years.


Digital Identity Market overview
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Digital Identity Sector: Growth Drivers and Challenges

Growth Drivers

  • Regulatory compliance driving adoption - The stringent regulatory landscape, marked by laws like the General Data Protection Regulation (GDPR) and other data protection standards, is a significant driver for the digital identity market. Organizations are compelled to adhere to these regulations, promoting the implementation of robust digital identity solutions to ensure compliance.

    Compliance not only mitigates legal risks but also builds trust among consumers regarding the secure handling of their personal information. According to a survey, 92% of consumers in the United States believe it's extremely important for companies to protect their privacy, indicating a growing demand for stringent data protection measures.
  • Surging integration of AI - The importance of AI is growing significantly since it enables to simulation of human intelligence, further making learning, reasoning, and making decisions autonomous. Hence, AI may notably improve preciseness, efficiency, and accuracy when integrated into digital identity verification. AI-powered facial recognition technology is one of the instances of identity verification.

    With this technology, AI algorithms might effectively verify the identity of the person by studying facial attributes and contrasting them to pre-existing data. Another instance could be AI-powered natural language processing which improves understanding of the system of human language and also extracts meaning from it. Some of the applications that use this technology include chatbots and virtual assistants which offer real-time guidance for identity verification processes. Therefore, the digital identity market is predicted to gather growth.
  • Surge in number of people working from home - The number of people working remotely across the globe rose from over 19 percent in 2020 to approximately 27 percent by 2023. This trend is estimated to grow more in the future owing to its ability to offer flexibility and also boost worker productivity. However, with the challenges of identity verification, data security, and compliance also increases.
    Conventional methods of onboarding and managing remote employees lack in tackling these issues, causing huge inefficiencies. Consequently, the digital identity market is set to experience growth.

Challenges

  • Privacy concerns and data protection: The collection, storage, and sharing of personal information raise significant privacy concerns hindering the expansion of market. Users are increasingly cautious about how their data is handled, demanding transparent and secure processes. Lack of trust in the handling of personal data can hinder the adoption of digital identity solutions, affecting user participation and engagement. Implementing robust data protection measures, adhering to regulatory frameworks, and transparent communication regarding data practices are essential to address privacy concerns.
  • Interoperability and standardization
  • High cost of digital identity - When deploying digital identity additional hardware and infrastructure is required. However, this could add up on extra costs making the end product expensive. As a result, the digital identity market’s development is set to be hindered.

Digital Identity Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

11%

Base Year Market Size (2023)

USD 34 Billion

Forecast Year Market Size (2036)

USD 50 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Digital Identity Segmentation

Deployment (Cloud, On-Premise)

The cloud segment in the digital identity market is estimated to gain the largest revenue share of 60% in the year 2036. The imperative for organizations to undergo digital transformation is a cornerstone in driving the growth of the cloud segment. Businesses across industries are leveraging cloud technologies to modernize their operations, enhance agility, and stay competitive in an ever-evolving digital landscape.

A survey revealed that 92% of executives considered their business model to be at risk if they did not achieve digital transformation at scale within the next three years. Additionally, the paradigm shift towards remote education has been a significant catalyst for cloud adoption. Cloud-based collaboration tools, communication platforms, and virtualization solutions have become essential in facilitating a seamless and productive remote education, transcending geographical barriers.

The exponential growth of data in the digital era necessitates scalable and flexible storage solutions. Cloud storage services provide organizations with the ability to efficiently manage and scale their data storage requirements without the need for significant upfront investments in physical infrastructure. Hence, with the growth in this segment, the market is also predicted to observe a surge.

End User (BFSI, Retail and eCommerce, Government, Healthcare, IT and ITeS)

The healthcare segment is expected to garner the highest share in the digital identity market at about 35% in the upcoming years. Regulatory initiatives and a push towards interoperability aim to create a seamless exchange of healthcare information among different systems. This enhances care coordination, reduces administrative burden, and fosters a more interconnected and patient-centric healthcare ecosystem.

Advancements in precision medicine leverage genetic information, biomarkers, and patient-specific data to tailor medical treatments. This approach allows for more targeted therapies, reducing adverse effects and improving treatment outcomes.

The proliferation of wearable health technologies, including fitness trackers and smartwatches, empowers individuals to actively monitor their health. These devices track vital signs, physical activity, and sleep patterns, enabling users to engage in preventive healthcare and providing valuable data for healthcare providers.

Our in-depth analysis of the global digital identity market includes the following segments:

          Deployment

  • Cloud
  • On-Premise

          End User

  • BFSI
  • Retail and eCommerce
  • Government
  • Healthcare
  • IT and ITeS

          Offering

  • Solutions
  • Services

          Organization Size

  • Large Organization
  • SMEs

          Identity Type

  • Biometric
  • Non-Biometric

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Digital Identity Industry - Regional Synopsis

APAC Market Forecast

The digital identity market in the Asia Pacific region is projected to hold the largest revenue share of 38% by the end of 2036. The rise of smart city initiatives in the APAC region is driving the integration of digital identity solutions into urban infrastructure. From transportation systems to public services, smart city projects leverage digital identity technologies to enhance efficiency, security, and citizen experiences.

Moreover, governments in the APAC region are implementing and enforcing regulations to ensure the responsible and secure handling of personal data, fostering trust among users which is further anticipated to drive growth of digital identity market.

Also, the growth in number of mobile subscribers in the APAC region is a key driver for mobile-first digital identity solutions. In 2021, the number of mobile subscribers in the Asia Pacific region surpassed 3.8 billion, highlighting the vast mobile user base and the potential for mobile-centric digital identity solutions.

North American Market Statistics 

The digital identity market in the North American region is projected to have notable growth between the years 2024 and 2036. This growth of the sector in this region is set to be encouraged by the surging use of digital identity in the BFSI industry.

Moreover, this region also has the presence of major market players in the field of digital identity who are focusing on advancing their software at a faster pace to compete in the market. As a result, this factor is additionally predicted to boost the digital identity market in this region.

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Digital Identity Market size
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Companies Dominating the Digital Identity Landscape

top-features-companies
    • IDEMIA Identity & Security USA LLC
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Experian Information Solutions, Inc.
    • Equifax Information Services LLC
    • Gemalto Inc.
    • NEC Corporation of America
    • DocuSign, Inc.
    • Okta, Inc.
    • Ping Identity Corporation
    • Jumio Corp.
    • ForgeRock Inc.

In the News

  • IDEMIA Identity & Security USA LLC entered into a partnership with STANLEY Security. This collaboration combines IDEMIA's identity verification expertise with STANLEY's physical security solutions to offer integrated access control systems for various industries.
  • Okta, Inc. and Savex Technologies announced the collaboration. With this collaboration, Savex is set to market, sell, and support the Okta identity and access management solutions through its ecosystem of channel partners. 

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5712
  • Published Date: Apr 30, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing demand for healthcare sector is the major factor driving the market growth.

The market size of digital identity is anticipated to attain a CAGR of 11% over the forecast period, i.e., 2024-2036.

The major players in the market IDEMIA Identity & Security USA LLC, Experian Information Solutions, Inc., Equifax Information Services LLC, Gemalto Inc., NEC Corporation of America, DocuSign, Inc., and others.

The healthcare segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Digital Identity Market Report Scope
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