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digital identity solutions market

Digital Identity Solutions Market Share, Size, Trends, Industry Analysis Report, By Component (Solution, Services), By Solution (Biometrics, Non-Biometrics); By Authentication (Single-Factor, Multi-Factor); By Vertical; By Region; Segment Forecast, 2022 - 2030

  • Published Date: Jan 2022
  • Pages: 115
  • Format: PDF
  • Report ID: PM2211
  • Base Year: 2021
  • Historical Data: 2018 - 2020

Report Summary

The global digital identity solutions market was valued at USD 23.40 billion in 2021 and is expected to grow at a CAGR of 16.8% during the forecast period. The prime factors for the market development are an increase in identity-related frauds and data breaches, and the requirement for compliance with several upcoming regulations is attributed to the market demand.

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Moreover, increasing investments in digital transformation, identity results gained increasing acceptance since it helps secure identification and positive upgraded security, which supports the industry growth. As per the International Data Corporation (IDC) predicted 40% of all technology spending is allocated to the transformations each year, which may cause the concomitant increases in the digital identity solutions market in the forecast period.

The COVID-19 pandemic has positively impacted the digital identity solutions market. This is due to the imposition of lockdowns due to COVID-19 and orders to shift industries and enterprises to work remotely, resulting in the rise in the widespread use of BYOD devices. As a result, it has created a significant demand for digital identity solutions on the market. The pandemic also drove the need for cybersecurity measures and cyber hygiene practices to ensure robust security policies and procedures amid the COVID-19 pandemic, contributing to digital identity solutions market growth.

Digital Identity Solutions Market 2030

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Industry Dynamics

Growth Drivers
The emergence and rapid breakthrough of technological developments are propelling the digital identity solutions market demand. Along with the rapid technological advancements, the number of smartphone users has further increased to a larger extent globally, and the world is becoming more connected than ever earlier. Formerly, the conventional password key system was the only primary way of secure authentication. Nevertheless, with the rapid developments in technology, these password security systems are now easier to hack.

More specifically, biometric technology and multi-factor authentication are better and the most secure way of authentication than passwords. Most smartphones are available in the market to have integrated with authentication options, including fingerprint recognition and facial recognition. Thus, the smartphone companies are implementing these fingerprint and facial recognition technology in their smartphones, which eventually creates a way to increase demand for unique identification keys worldwide. Moreover, consumers have also become more aware of safe and secure processes, and readily integrated authentication keys are gaining more prominence, as they are means of a secure and safe life for a particular individual.

Report Segmentation

The market is primarily segmented on the basis of component, solution, authentication, vertical, and region.

By Component

By Solution

By Authentication

By Vertical

By Region

  • Solutions
  • Services
  • Biometrics
  • Non-Biometrics
  • Single-factor
  • Multi-factor
  • BFSI
  • Retail and eCommerce
  • Government and Defense
  • Healthcare
  • IT and Telecommunications
  • Energy and Utilities
  • Others
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Spain, Netherlands, Austria)
  • 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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Insight by Solution Type

Cloud segment is accounted for the largest revenue in the global market. The increased rate of adoption of cloud-based identification keys is on the surging trend, owing to their features, including ease of use, reduced installation, and maintenance costs.

Moreover, cloud-based identification solutions are also more secure than on-premises which eventually keep secure data and identify when sharing the information. Thus, cloud-based digital identification solutions are majorly implemented among large enterprises and SMEs, which is expected to contribute towards high segmental growth. However, the on-premises digital identification solution segment accounts for a significant share in the overall industry. This can be acknowledged to factors, including high levels of flexibility and control compared to the cloud system, which may drive the segment growth over the forecast period.

Insight by Vertical

The BFSI segment is recorded with the largest share in 202 and is expected to maintain its dominance over the forecast period. In a digital world, there is a surge in data volume, velocity, and increased customer access to financial services from multiple platforms that act as a catalyzing factor for the segment demand worldwide. In addition, it also facilitates banks to opt for scalable, flexible, and easy-to-integrate identity capabilities, with unique identity solutions accessible “as-a-Service” delivered on-demand through private or public cloud infrastructures. Accordingly, the proliferation of data protection in the BFSI sector eventually boosted the segment demand and paved the way for industry growth.

Geographic Overview

Geographically, North America accounted for the highest share in the global industry in 2021 and is likely to dominate the industry over the coming years due to the early adoption of digital identity solutions across businesses and industry verticals for managing tasks effectively and securely. Moreover, businesses and industries in this region are increasingly deploying digital identify solutions to enable data security and ensure security and confidentiality of data to facilitate business continuity. Furthermore, the region has an extensive pool of market vendors with wide-ranging operations and customer bases, creating better availability of such solutions in the region.

For instance, in May 2020, Daon and ForgeRock protracted their existing partnership to incorporate their biometric products with plug-and-play biometric nodes. Such initiative is further responsible for the high adoption of digital identity solutions in the region. Moreover, Asia Pacific and Europe are also expected to contribute a significant share in the global market during the forthcoming years. Factors such as the rising number of identity and authentication frauds, coupled with the robust demand for such solutions and services to protect the critical end-users from cyber threats.

Competitive Insight

Some of the major players operating in the global market include AU10TIX, Daon, Duo security, ForgeRock, GBG, Good Digital Identity, HashCash Consultants, ID R&D, IDEMIA, Image ware systems Inc., iProov, Jumio, NEC, OneSpan, RaulWalter, Refinitiv, Samsung SDS, Signicat, Smartmatic, Syntizen technologies privet. Ltd., TELUS group, Tessi, Thales Group, Verisec, and Vintegris.

Digital Identity Solutions Market Report Scope

Report Attributes

Details

Market size value in 2021

USD 23.40 billion

Revenue forecast in 2030

USD 92.26 billion

CAGR

16.8% from 2022 - 2030

Base year

2021

Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million/billion and CAGR from 2022 to 2029

Segments covered

By Component, By Solution, By Authentication, By Vertical, By Region

Regional scope

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

Key Companies

AU10TIX, Daon, Duo security, ForgeRock, GBG, Good Digital Identity, HashCash Consultants, ID R&D, IDEMIA, Image ware systems Inc., iProov, Jumio, NEC, OneSpan, RaulWalter, Refinitiv, Samsung SDS, Signicat, Smartmatic, Syntizen technologies privet. Ltd., TELUS group, Tessi, Thales Group, Verisec, and Vintegris.

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