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decentralized identity market

Decentralized Identity Market Share, Size, Trends, Industry Analysis Report, By Component (Solution, Services); By Deployment Type; By Organization Size; By Industry Vertical; By Region; Segment Forecast, 2022 - 2030

  • Published Date: Sep 2022
  • Pages: 118
  • Format: PDF
  • Report ID: PM2549
  • Base Year: 2021
  • Historical Data: 2018-2020

Report Summary

The global decentralized identity market was valued at USD 181.8 million in 2021 and is expected to grow at a CAGR 89.1% during the forecast period. Increased use of decentralized identity solutions by companies to advance their access and identity management systems and growth in awareness about efficiency management solutions are expected to impact the industry growth positively.

Decentralized Identity Market Size
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Cloud deployment in the industry has a higher potential for growth. Presently, there is an increase in the usage of cloud deployment due to the rise in automation to security risk along with cyber-attacks and fraudulent events. Further, there is an increase in the adoption of decentralized systems for risk-based authentication, bad behavioral analysis, excessive credential detection, adaptive access certifications, and risk-based id & access provisioning.

In addition, the adoption of AI and machine learning technologies in decentralized system solutions, the rise in demand for mobility solutions, and the growth in identity theft are expected to be opportunistic for this industry. However, an increase in the complexity of the IT infrastructure is anticipated to impede industry growth.

The COVID-19 pandemic had a positive impact on the global decentralized identity market and its opportunities. Owing to usage of internet worldwide, many businesses switched to online services, which resulted in the rise in concern for the security of users online. Hence, decentralized identity helped in validating users' individuality and securely storing the same. Therefore, it led to growth in the industry.

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Industry Dynamics

Growth Drivers
The growth of the global decentralized identity market is primarily driven by the adoption of AI and machine learning technologies in decentralized access solutions and to ensure access certification by the companies.

Decentralized identity solutions provide multiple functionalities, including augmenting identity-related risk awareness and enhancing identity access management (IAM) processes such as access certification, role management, and access request, which are the major factors driving the industry growth. By using the decentralized system for access certification, managers can review and certify role content data, user entitlement data, and application access data. In addition, it enables enterprises to revoke or approve employee access when required, which is also the major factor that drives the industry's growth.

These measures are not only important for meeting various compliance requirements, but they can also prevent inappropriate insider access, thus, preventing security breaches and attacks. Furthermore, passwords and authorization questions have been observed as being insufficient and easily vulnerable to common attacks such as phishing.

Report Segmentation

The market is primarily segmented based on component, deployment type, organization size, industry vertical, and region.

By Component

By Deployment Type

By Organization Size

By Industry Vertical

By Region

  • Software
  • Services
  • On-Premises
  • Cloud
  • Small & Medium Sized Enterprises
  • Large Enterprises
  • BFSI
  • Retail
  • IT & Telecom
  • Healthcare
  • Government
  • Others
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia. South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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Software segment is expected to hold a significant share in 2021

By component, the decentralized identity market is segmented into software and services. The market for the software segment is expected to hold a significant share in 2021. Decentralized software performs data discovery and automates insights using machine learning. Companies use this software to quickly make better-informed and more data-driven decisions.

Decentralized software maintains unified access and identity warehouse. It also delivers confirmation that access is compliant with established audit and Segregation of Duty (SoD) policies. An increase in the need for automating insights by integrating machine learning and AI technology in IAM systems of the organization is expected to drive industry growth in the near future.

Cloud segment is expected to be the fastest growing during the forecast period

By deployment type, the market is segmented on-premises and cloud. Among these, the cloud segment is expected to be the fastest growing during the forecast period. Cloud-based services have attracted small and medium-sized businesses with reduced rates of bandwidth and storage.

Even though the market for cloud services is attractive, the on-premise segment emerges as the forerunner. It has been estimated that the adoption of cloud services would increase in small and medium enterprises during the forecast period. Companies have started deploying applications through the cloud due to their cost efficiency.

Large enterprises segment accounted for the largest market share

By organization size, the market is categorized into small and medium enterprises and large enterprises. The large enterprises' segment is expected to account for the largest share during the forecast period. Large enterprise businesses include insurance, media, retail, government, diagnostic analytics, travel, and other business organizations. Large organizations are using decentralized solutions to mitigate risk and compliance challenges through automation.

An increase in the adoption of digitalization by companies to strengthen market presence, improve efficiency, and enhance operational performance has boosted the growth of the industry. Greater deployment of new technologies in large organizations would increase the opportunity for IAM systems and, thereby, decentralized solutions in the near future.

IT and Telecom segment expected to be the fastest growing during the forecast period

By industry vertical, the decentralized identity market is categorized into BFSI, retail, IT & telecom, healthcare, government, and others. IT and the Telecom segment are expected to grow at a significant rate during the forecast period. The adoption of cloud solutions and access management in telecom firms is growing at a notable rate. The increase in the use of mobile broadband, cloud computing, and big data management has propelled the need for increased security in the telecom sector.

To attract new customers and remain competitive in the industry, the companies need to deliver trustworthy services with greater efficiency, flexibility, and agility, which can be achieved by adopting analytics services and solutions, which can be achieved through decentralized identity solutions, driving the market growth of this sector.

Moreover, with the help of a decentralized identity, telecom & IT organizations can easily organize access to their resources and can achieve both business development and efficient risk management. Telecom and IT sector are expected to witness the growing adoption of enterprise information security measures owing to stringent data regulation policies and compliance requirements.

Further, growth in the number of insider data threats and high-profile data breaches are accountable for the growing adoption of governance solutions, which is expected to provide major opportunities for market growth.

European region is expected to account for significant market share by 2030

The Europe region is expected to account for a significant share of the market. Government support is one of the key reasons for the growth of decentralized identity in the European region. Pension and social security agencies in this region are emphasizing reducing risk and improving fraud prevention by implementing analytics.

For instance, Barclays Bank and Lloyds Bank in the UK and BBVA in Europe are improving their commercial performance through machine learning for identity analytics. Moreover, another European bank implemented an advanced analytics method to develop a top-notch recovery process. It was then able to address certain borrowers immediately by gaining a deeper understanding of its nonperforming loans.

Competitive Insight

Some of the major players operating in the global market include 1Kosmos Inc., Accenture Plc, Affinidy, Avast, Civic Technologies, Datarella, Dragonchain, Finema Co. Ltd., Hu-manity Rights, Inc., Microsoft Corporation, NuID Inc., Persistent Systems, Ping Identity, SecureKey Technologies, and Wipro Limited.

The prominent market players are designing and developing new advanced solutions to cater to growing consumer demand across various industries. These companies are collaborating with other companies to strengthen their market presence and introduce solutions for emerging applications.

Recent Developments

In May 2022, Microsoft Corporation announced the relaunch of its identity and access products under the product line Entra Verified ID.

In March 2022, Avast announced the acquisition of SecureKey Technologies for expansion of its decentralized digital ID portfolio.

Decentralized Identity Market Report Scope

Report Attributes

Details

Market size value in 2021

USD 181.8 million

Revenue forecast in 2030

USD 46,457.5 million

CAGR

89.1% from 2022 - 2030

Base year

2021

Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million and CAGR from 2022 to 2030

Segments covered

By Component, By Deployment Type, By Organization Size, By Industry Vertical, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Key companies

1Kosmos Inc., Accenture Plc, Affinidy, Avast, Civic Technologies, Datarella, Dragonchain, Finema Co. Ltd., Hu-manity Rights, Inc., Microsoft Corporation, NuID Inc., Persistent Systems, Ping Identity, SecureKey Technologies, and Wipro Limited.

Key Take-Away
Polaris Market Research
Decentralized Identity Market Size Global Report, 2022 - 2030