Digital Identity Market size is anticipated 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. In the ever-expanding landscape of digital transformation, the adoption of biometric authentication stands out as a primary growth driver propelling the digital identity market forward. As businesses and individuals seek more robust and secure methods of identity verification, biometrics offer a sophisticated and reliable solution, fostering trust in digital interactions. Biometric authentication leverages unique physical or behavioral attributes, such as fingerprints, facial features, or iris patterns, to verify an individual's identity. Unlike traditional methods relying on passwords or PINs, biometrics provide a more secure and seamless way to authenticate users. The inherent uniqueness of biometric markers adds an extra layer of confidence for both businesses and consumers, reducing the risk of unauthorized access and identity theft.
One of the key advantages driving the adoption of biometric authentication is the enhanced user experience it offers. Users appreciate the convenience of quick and frictionless identity verification, eliminating the need to remember complex passwords or carry physical tokens. This not only streamlines online interactions but also contributes to increased user satisfaction and engagement.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~11% |
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Base Year Market Size (2023) |
~ USD 34 Billion |
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Forecast Year Market Size (2036) |
~ USD 50 Billion |
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Regional Scope |
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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. The paradigm shift towards remote work 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 workforce, 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.
End User (BFSI, Retail and eCommerce, Government, Healthcare, IT and ITeS)
The healthcare segment in the digital identity market is expected to garner a significant share in the year 2036. 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:
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Deployment |
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End User |
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Offering |
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Organization Size |
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Identity Type |
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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. Seoul, South Korea, is implementing a smart city initiative that includes digital identity solutions to streamline public services and enhance the overall quality of life for residents. Stringent regulatory frameworks and data protection measures are instrumental in shaping the digital identity landscape. Governments in the APAC region are implementing and enforcing regulations to ensure the responsible and secure handling of personal data, fostering trust among users. The high penetration of mobile devices 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 is projected to hold the second-largest share during the forecast period. The North American region is characterized by robust regulatory frameworks aimed at ensuring data protection and privacy. Compliance mandates, such as the Health Insurance Portability and Accountability Act (HIPAA) and the California Consumer Privacy Act (CCPA), drive the adoption of secure digital identity solutions to meet stringent regulatory requirements. Moreover, the flourishing e-commerce landscape in North America fuels the demand for secure and seamless digital identity solutions. Businesses and consumers alike seek reliable identity verification methods to ensure the integrity of online transactions and protect against fraud. The escalating frequency and sophistication of cyber threats drive the need for robust digital identity solutions in North America. Organizations invest in advanced identity verification methods to mitigate the risks associated with data breaches and unauthorized access to sensitive information. The widespread use of mobile devices and applications is a significant driver for digital identity solutions in North America. The ubiquity of smartphones and the increasing reliance on mobile apps for various services create a demand for secure and convenient mobile-based identity verification methods.
Author Credits: Abhishek Verma, Hetal Singh
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