Global Digital Identity Solution Market Size, Share, and COVID-19 Impact Analysis, By Component Type (Solution and Services), By Identity Type (Biometric and Non-Biometric), By Solution Type (Identity Verification, Authentication, Identity Lifecycle Management, and Other), By Organization Size (Large Enterprise and SMEs), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 - 2033

Global Digital Identity Solution Market Insights Forecasts to 2033

• The Global Digital Identity Solution Market Size Was Estimated at USD 31.8 Billion in 2023
• The Market Size is Expected to Grow at a CAGR of around 17.08% from 2023 to 2033
• The Worldwide Digital Identity Solution Market Size is Expected to Reach USD 153.9 Billion by 2033
• Asia Pacific is Expected to Grow the fastest during the forecast period.

The Global Digital Identity Solution Market Size was worth around USD 31.8 Billion in 2023 and is predicted to Grow to around USD 153.9 Billion by 2033 with a CAGR of 17.08% between 2023 and 2033. Rising regulatory requirements for more robust authentication mechanisms, as well as the Growth of online services. Furthermore, identity verification procedures are becoming more scalable and user-friendly due to the increasing usage of technologies like blockchain and artificial intelligence (AI), which improve their security, speed, and dependability.

Market Overview

The market for digital identity solutions is the sector that offers services and technologies for safely managing and authenticating customers' or businesses' online personas. These solutions make it easier to authenticate users, prevent fraud, and offer secure access to online services, applications, and transactions.  The proliferation of mobile devices, the expansion of internet services, and growing government demands for stronger identification methods. The security, speed, and reliability of identity verification processes are also being improved by the growing use of technologies like blockchain and artificial intelligence (AI), which makes them more scalable and user-friendly. A trusted identity is created and a significantly higher level of assurance is provided by digital identification solutions. They are the next generation of identity governance and administration solutions. These solutions leverage cutting-edge technology like blockchain, artificial intelligence (AI), face-based biometrics, and machine learning (ML) to confirm that an individual is who they claim to be. Since identification and payments are now inseparable, the payments industry faces both exciting new prospects and challenges, which makes digital identity solutions even more necessary.

Report Coverage

This research report categorizes the digital identity solution market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the digital identity solution market. Recent market developments and competitive strategies such as expansion, type launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the digital identity solution market.  

Driving Factors

The major factor contributing to the growth of the digital identity solutions market is identity-related fraud and data breaches, identity fraud is defined as a crime in which someone unlawfully obtains and uses another person's data in any way that involves fraud and deceit for financial benefit. Identity fraud is defined as a crime in which someone unlawfully gets and utilizes another person's data in any way that involves fraud and deception for financial gain. Increasingly enterprises are being forced to implement extremely secure identity verification procedures due to the strict rules like KYC (Know Your Customer) and GDPR (General Data Protection Regulation). Because of this, advanced authentication techniques including multi-factor authentication, biometric recognition, and encrypted data processing have to be used.  Non-compliance solutions put businesses at risk of severe fines from the government, undermine customer confidence, and jeopardize the security of private information.  This highlights how important comprehensive and cutting-edge identity verification solutions are to complying with these regulations and protecting corporate operations.

Restraining Factors

One major obstacle to the broad adoption of sophisticated digital identity solutions is the low level of digital literacy among some demographics, which hinders their growth trajectory. Users comprehension and confidence in the dependability of these systems are impeded by their unfamiliarity with complex technological procedures and security precautions, which discourages them from actively embracing such solutions.

Market Segmentation

The digital identity solution market share is classified into component type, identity type, solution type, organization size.

• The solution segment accounted for the highest share in 2023 and is projected to grow at a substantial CAGR during the forecast period.

Based on the component type, the digital identity solution  market is divided into solution and services. Among these, the solution segment accounted for the highest share in 2023 and is projected to grow at a substantial CAGR during the forecast period. Digital identification solutions are offered by a variety of suppliers as an integrated platform or tool that works with the infrastructure of the business.  Additionally, vendors offer services and hardware to help businesses integrate necessary technologies into their existing infrastructure. The goals of digital identification solutions are to increase customer happiness, save expenses, simplify company procedures, and strengthen security.

• The biometric segment accounted for the majority share in 2023 and is anticipated to grow at a remarkable CAGR during the forecast period.

Based on the identity type, the digital identity solution market is divided into biometric and non-biometric. Among these, the biometric segment accounted for the majority share in 2023 and is anticipated to grow at a remarkable CAGR during the forecast period. Growing use of biometric technologies including iris scanning, facial recognition, and fingerprint recognition which provide more convenience, security, and accuracy than more conventional authentication techniques like passwords.  Due in large part to growing worries about identity fraud and data breaches, biometric technologies have become essential for secure identity verification in industries like government, healthcare, and finance.

• The authentication segment dominated the market in 2023 and is anticipated to grow at a significant CAGR during the forecast period.

Based on the solution type, the digital identity solution market is divided into identity verification, authentication, identity lifecycle management, and other. Among these, the authentication segment dominated the market in 2023 and is anticipated to grow at a significant CAGR during the forecast period. As cloud computing, remote work, and digital services were more widely used, businesses gave strong authentication solutions top priority in order to protect confidential information and stop illegal access. Advanced identity verification techniques, biometric authentication, and multi-factor authentication (MFA) all saw tremendous growth as companies looked to improve security while maintaining smooth user experiences. 

• The large enterprise segment held the largest share in 2023 and is anticipated to grow at a remarkable CAGR during the forecast period.

Based on the organization size, the digital identity solution market is divided into large enterprise and SMEs. Among these, the large enterprise segment held the market in 2023 and is anticipated to grow at a significant CAGR during the forecast period. The growth can be attributed to the fact that major organizations are among the first to embrace digital identification solutions, and they have a huge workforce and linked networking equipment that are vulnerable to identity-related risk. In order to increase company efficiency across regions, companies with offices in different regions are being forced to give their staff access to real-time data and are progressively putting digital identification solutions into place. 

Regional Segment Analysis of the Global Digital Identity Solution Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the digital identity solution market over the predicted timeframe.

North America is anticipated to hold the largest share of the digital identity solution market over the predicted timeframe. The growth can be attributed to highly developed ecosystem of technology, robust regulatory frameworks like HIPAA, and financial compliance criteria, which force companies to give safe identity verification first priority. The adoption of these solutions is also accelerated by the region's proactive approach to cybersecurity threats and a culture that values sophisticated authentication techniques, guaranteeing compliance, data security, and increased confidence in online transactions.

Asia Pacific is expected to grow at a rapid CAGR in the digital identity solution market during the forecast period. Countries like China, India, and Japan were at the forefront of the region's rapid digital transformation and the expansion of online services, enacting extensive digital identity initiatives to speed up government, banking, and e-commerce services. The region's dedication to safe digital identity solutions was demonstrated by initiatives like India's Aadhaar, one of the biggest biometric ID systems globally.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the digital identity solution market along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Thales
• TELUS
• NEC Corporation
• Daon, Inc.
• ForgeRock, Inc.
• IMAGEWARE.
• IDEMIA
• GB Group plc (‘GBG’)
• Jumio
• Tessi
• Other

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs) 

Recent Development

• In November 2023, Certn acquired Trustmatic, a Europe-based remote ID verification company, aimed at bolstering its biometric Know Your Customer (KYC) capabilities. With Trustmatic's facial biometrics comparison capabilities and automated processes, Certn aimed to strengthen identity verification, preventing fraudulent and duplicate accounts across several industrial sectors.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the digital identity solution market based on the below-mentioned segments: 

Global Digital Identity Solution Market, By Component Type

• Solution
• Services

Global Digital Identity Solution Market, By Identity Type

• Biometric 
• Non-biometric

Global Digital Identity Solution Market, By Solution Type

• Identity Verification 
• Authentication
• Identity Lifecycle Management 
• Other

Global Digital Identity Solution Market, By Organization Size

• Large Enterprises
• SMEs

Global Digital Identity Solution Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa