Digital Identity Solution Market
Digital Identity Solution Market Size, Share & Trends Analysis Report by Component (Solutions, and Services), by Solution Type (Biometrics, and Non-Biometrics), by Deployment Mode (On-Premises, and Cloud), by Authentication Type (Single Factor Authentication, Multi-Factor Authentication), by Industry Vertical (BFSI, Healthcare, Travel & Hospitality, Government, Defense & Aerospace, IT & Telecommunication, Retail & E-Commerce, Education, and Others) Forecast Period (2024-2031)
Digital identity solution market is anticipated to grow at a CAGR of 19.3% during the forecast period (2024-2031). The growth of the digital identity solution market is driven by various factors, including technological advancements, regulatory requirements, cybersecurity concerns, and the increasing adoption of digital services globally. Biometric technologies, blockchain, AI, and machine learning algorithms have contributed to improved accuracy and security in digital identity solutions. Additionally, the demand for secure and efficient digital identity solutions remains an essential focus among organizations owing to the shift towards digital services, consumer demand for convenience and security, global trends in digital payments and e-commerce, as well as the proliferation of mobile devices and cloud computing.
Market Dynamics
Increasing Identity Fraud and Cybersecurity Threats
The rise in identity theft and cyber-attacks is driving organizations to invest in robust digital identity solutions to enhance security and protect sensitive information. According to the Federal Trade Commission, in February 2024, a total of 5.39 million reports were received, with 48.0% of them related to fraud and 19.0% to identity theft. Among the identity theft cases, credit card fraud constituted 40.2%, while miscellaneous identity theft accounted for 25.1%. This category encompassed various types of fraud, such as online shopping and payment account fraud, email and social media fraud, and other forms of identity theft. The states with the highest number of identity theft reports were Georgia, Florida, and Nevada.
Increasing Use of Mobile Devices
The demand for mobile-based digital identification solutions has increased owing to the growing use of mobile devices that offer ease and flexibility in a variety of industries. According to recent data, there has been a significant increase in mobile service subscriptions worldwide, with 5.6 billion people (69.0% of the global population) now subscribed. Additionally, mobile internet penetration has experienced rapid growth, with 58.0% of the world's population using mobile internet by the end of 2023. However, it is worth noting that there are still 3.4 billion people who remain unconnected to mobile internet, despite living in areas covered by mobile broadband.
Market Segmentation
- Based on components, the market is segmented into solutions, and services.
- Based on Solution Type, the market is segmented into biometrics, and non-biometrics.
- Based on deployment mode, the market is segmented into clouds, and on-premises.
- Based on the organization's size, the market is segmented into single-factor authentication and multi-factor authentication.
- Based on the organization size, the market is segmented into BFSI, healthcare, travel & hospitality, government, defense & aerospace, IT & telecommunication, retail & E-Commerce, education, and others (energy and utilities).
Solutions to Hold a Considerable Market Share
The demand for digital identification solutions is rising because of the global shift towards digital transformation in sectors such as government services, finance, healthcare, and retail. To meet the growing demand for advanced solutions, in December 2023, HireRight Holdings Corp. launched its new global identity verification solution, Global ID, to address the increasing issue of identity theft and fraud. The service allows for remote verification of candidates' identities through the optional Liveness and Biometric Face Match feature, eliminating the need for in-person identification. Further, in June 2024, Entrust introduced a Citizen Identity Orchestration solution, enhancing public service delivery through secure digital identities and trust in citizen interactions. The innovative solution is composable and compliant with NIST IAL, eIDAS, GDPR, and local regulatory standards.
Biometrics to Hold a Considerable Market Share
The high accuracy and convenience of biometric technologies—such as hand biometrics, fingerprint recognition, facial recognition, and iris scanning—in identity verification are driving the increasing usage. For instance, in June 2024, Katsh Digital ID introduced a revolutionary hand biometric authentication system, linking an individual's identity to the palm. This secure and user-friendly alternative to traditional credentials eliminates vulnerabilities like phishing and social engineering, making it a game-changing solution for identity protection. Further, in February 2024 Imprivata introduced Imprivata Biometric Patient Identity, a unique facial recognition solution designed for healthcare organizations to ensure accurate and efficient patient identification, addressing the growing issue of patient misidentification in the US, with 24.0% of healthcare records being duplicates.
Regional Outlook
The global digital identity solution market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).
Expansion of Banking Infrastructure In the Asia-Pacific Region
The increasing number of ATMs and substantial banking assets necessitates the implementation of secure digital identity solutions to protect financial transactions and customer data. According to the India Brand Equity Foundation (IBEF) in May 2024, the number of ATMs in banks has been steadily increasing over the years, with 2,796 ATMs added in the first four months of FY23, compared to 1,486 in FY22 and 2,815 in FY21. Additionally, it is predicted that digital payments will account for 65.0% of all payments by 2026. Furthermore, the total assets in the public and private banking sectors were $ 1.7 trillion and $1.0 trillion, respectively, in 2023.
Global Digital Identity Solution Market Growth by Region 2024-2031
North America Holds Major Market Share
Government initiatives and regulations are increasingly promoting the use of secure digital identity solutions in the US propelling the market growth. For instance, in May 2024, the US government updated its National Cybersecurity Strategy Implementation Plan, introducing digital ID briefly. The plan aims to improve national cybersecurity, with Strategic Objective 4.5 focusing on supporting the development of a digital identity ecosystem. In June 2024, the National Institute of Standards and Technology (NIST) collaborated with Georgetown University's Digital Benefits Network and the nonprofit Center for Democracy & Technology to adapt NIST's digital identity guidelines for public benefits programs, balancing security, privacy, equity, and usability.
Market Players Outlook
*Note: Major Players Sorted in No Particular Order.
The major companies serving the global digital identity solution market include Cisco Systems, Inc., NEC Corp., Thales S.A., IDEMIA, and Ping Identity Corp. among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers and acquisitions to stay competitive in the market. For instance, in January 2024, Nexera ID and Cheqd partnered to establish a new standard for data exchange and customer acquisition. The goal is to streamline onboarding processes, ensuring seamless, secure, and lower-cost onboarding. This user-centric approach empowers customers by empowering them with control over their digital identities. The collaboration offers benefits such as reduced costs, increased customer satisfaction, and a new revenue stream for customers who have control over their data.
The Report Covers-
- Market value data analysis of 2023 and forecast to 2031.
- Annualized market revenues ($ million) for each market segment.
- Country-wise analysis of major geographical regions.
- Key companies operating in the global digital identity solution market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
- Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
- Analysis of market-entry and market expansion strategies.
- Competitive strategies by identifying ‘who-stands-where’ in the market.
1. Report Summary
• Current Industry Analysis and Growth Potential Outlook
1.1. Research Methods and Tools
1.2. Market Breakdown
1.2.1. By Segments
1.2.2. By Region
2. Market Overview and Insights
2.1. Scope of the Report
2.2. Analyst Insight & Current Market Trends
2.2.1. Key Industry Trends
2.2.2. Recommendations
2.2.3. Conclusion
3. Competitive Landscape
3.1. Key Company Analysis
3.2. Cisco Systems, Inc.
3.2.1. Overview
3.2.2. Financial Analysis
3.2.3. SWOT Analysis
3.2.4. Recent Developments
3.3. NEC Corp.
3.3.1. Overview
3.3.2. Financial Analysis
3.3.3. SWOT Analysis
3.3.4. Recent Developments
3.4. Thales S.A.
3.4.1. Overview
3.4.2. Financial Analysis
3.4.3. SWOT Analysis
3.4.4. Recent Developments
3.5. Key Strategy Analysis
4. Market Segmentation
4.1. Global Digital Identity Solution Market by Component
4.1.1. Solutions
4.1.2. Services
4.2. Global Digital Identity Solution Market by Solution Type
4.2.1. Biometrics
4.2.2. Non-Biometrics
4.3. Global Digital Identity Solution Market by Deployment Mode
4.3.1. On-Premises
4.3.2. Cloud
4.4. Global Digital Identity Solution Market by Authentication Type
4.4.1. Single Factor Authentication
4.4.2. Multi-Factor Authentication
4.5. Global Digital Identity Solution Market by Industry Vertical
4.5.1. BFSI
4.5.2. Healthcare
4.5.3. Travel & Hospitality
4.5.4. Government
4.5.5. Defense & Aerospace
4.5.6. IT & Telecommunication
4.5.7. Retail & E-Commerce
4.5.8. Education
4.5.9. Others (Energy and Utilities)
5. Regional Analysis
5.1. North America
5.1.1. United States
5.1.2. Canada
5.2. Europe
5.2.1. UK
5.2.2. Germany
5.2.3. Italy
5.2.4. Spain
5.2.5. France
5.2.6. Rest of Europe
5.3. Asia-Pacific
5.3.1. China
5.3.2. India
5.3.3. Japan
5.3.4. South Korea
5.3.5. Rest of Asia-Pacific
5.4. Rest of the World
5.4.1. Latin America
5.4.2. Middle East and Africa
6. Company Profiles
6.1. Au10tix Ltd.
6.2. Cognitec Systems GmbH
6.3. DAON INC.
6.4. Experian Information Solutions, Inc
6.5. Freja eID Group AB
6.6. GB Group plc
6.7. Good Digital Identity
6.8. Hashcash Consultants LLC
6.9. ID R&D INC.
6.10. IDEMIA
6.11. Imageware Systems, Inc.
6.12. iProov Ltd.
6.13. Jumio Corp.
6.14. Mitek Systems, Inc.
6.15. OneSpan
6.16. Ping Identity Corp.
6.17. RaulWalter LLC
6.18. SecureKey Group
6.19. Signicat
6.20. Smartmatic-group
6.21. Socure Inc.
6.22. Syntizen Technologies Pvt. Ltd.
6.23. TESSI
1. Global Digital Identity Solution Market Research And Analysis By Component, 2023-2031 ($ Million)
2. Global Digital Identity Solution Market Research And Analysis By Region, 2023-2031 ($ Million)
3. Global Digital Identity Solution Services Market Research And Analysis By Region, 2023-2031 ($ Million)
4. Global Digital Identity Solution Market Research And Analysis By Solution Type, 2023-2031 ($ Million)
5. Global Digital Identity Biometrics Solution Market Research And Analysis By Region, 2023-2031 ($ Million)
6. Global Digital Identity Non-Biometrics Solution Market Research And Analysis By Region, 2023-2031 ($ Million)
7. Global Digital Identity Solution Market Research And Analysis By Deployment Mode, 2023-2031 ($ Million)
8. Global On-Premises Digital Identity Solution Market Research And Analysis By Region, 2023-2031 ($ Million)
9. Global Cloud-Based Digital Identity Solution Market Research And Analysis By Region, 2023-2031 ($ Million)
10. Global Digital Identity Solution Market Research And Analysis By Authentication Type, 2023-2031 ($ Million)
11. Global Single Factor Authentication Digital Identity Solution Market Research And Analysis By Region, 2023-2031 ($ Million)
12. Global Multi-Factor Authentication Digital Identity Solution Market Research And Analysis By Region, 2023-2031 ($ Million)
13. Global Digital Identity Solution Market Research And Analysis By Industry Vertical, 2023-2031 ($ Million)
14. Global Digital Identity Solution In BFSI Market Research And Analysis By Region, 2023-2031 ($ Million)
15. Global Digital Identity Solution In Healthcare Market Research And Analysis By Region, 2023-2031 ($ Million)
16. Global Digital Identity Solution In Travel & Hospitality Market Research And Analysis By Region, 2023-2031 ($ Million)
17. Global Digital Identity Solution In Government Market Research And Analysis By Region, 2023-2031 ($ Million)
18. Global Digital Identity Solution In Defense & Aerospace Market Research And Analysis By Region, 2023-2031 ($ Million)
19. Global Digital Identity Solution In IT & Telecommunication Market Research And Analysis By Region, 2023-2031 ($ Million)
20. Global Digital Identity Solution In Retail & E-Commerce Market Research And Analysis By Region, 2023-2031 ($ Million)
21. Global Digital Identity Solution In Education Market Research And Analysis By Region, 2023-2031 ($ Million)
22. Global Digital Identity Solution In Other Industry Vertical Market Research And Analysis By Region, 2023-2031 ($ Million)
23. Global Digital Identity Solution Market Research And Analysis By Region, 2023-2031 ($ Million)
24. North American Digital Identity Solution Market Research And Analysis By Country, 2023-2031 ($ Million)
25. North American Digital Identity Solution Market Research And Analysis By Component, 2023-2031 ($ Million)
26. North American Digital Identity Solution Market Research And Analysis By Solution Type, 2023-2031 ($ Million)
27. North American Digital Identity Solution Market Research And Analysis By Deployment Mode, 2023-2031 ($ Million)
28. North American Digital Identity Solution Market Research And Analysis By Authentication Type, 2023-2031 ($ Million)
29. North American Digital Identity Solution Market Research And Analysis By Industry Vertical, 2023-2031 ($ Million)
30. European Digital Identity Solution Market Research And Analysis By Country, 2023-2031 ($ Million)
31. European Digital Identity Solution Market Research And Analysis By Component, 2023-2031 ($ Million)
32. European Digital Identity Solution Market Research And Analysis By Solution Type, 2023-2031 ($ Million)
33. European Digital Identity Solution Market Research And Analysis By Deployment Mode, 2023-2031 ($ Million)
34. European Digital Identity Solution Market Research And Analysis By Authentication Type, 2023-2031 ($ Million)
35. European Digital Identity Solution Market Research And Analysis By Industry Vertical, 2023-2031 ($ Million)
36. Asia-Pacific Digital Identity Solution Market Research And Analysis By Country, 2023-2031 ($ Million)
37. Asia-Pacific Digital Identity Solution Market Research And Analysis By Component, 2023-2031 ($ Million)
38. Asia-Pacific Digital Identity Solution Market Research And Analysis By Solution Type, 2023-2031 ($ Million)
39. Asia-Pacific Digital Identity Solution Market Research And Analysis By Deployment Mode, 2023-2031 ($ Million)
40. Asia-Pacific Digital Identity Solution Market Research And Analysis By Authentication Type, 2023-2031 ($ Million)
41. Asia-Pacific Digital Identity Solution Market Research And Analysis By Industry Vertical, 2023-2031 ($ Million)
42. Rest Of The World Digital Identity Solution Market Research And Analysis By Region, 2023-2031 ($ Million)
43. Rest Of The World Digital Identity Solution Market Research And Analysis By Component, 2023-2031 ($ Million)
44. Rest Of The World Digital Identity Solution Market Research And Analysis By Solution Type, 2023-2031 ($ Million)
45. Rest Of The World Digital Identity Solution Market Research And Analysis By Deployment Mode, 2023-2031 ($ Million)
46. Rest Of The World Digital Identity Solution Market Research And Analysis By Authentication Type, 2023-2031 ($ Million)
47. Rest Of The World Digital Identity Solution Market Research And Analysis By Industry Vertical, 2023-2031 ($ Million)
1. Global Digital Identity Solution Market Share By Component, 2023 Vs 2031 (%)
2. Global Digital Identity Solution Market Share By Region, 2023 Vs 2031 (%)
3. Global Digital Identity Solution Services Market Share By Region, 2023 Vs 2031 (%)
4. Global Digital Identity Solution Market Share By Solution, 2023 Vs 2031 (%)
5. Global Digital Identity Biometrics Solution Market Share By Region, 2023 Vs 2031 (%)
6. Global Digital Identity Non-Biometrics Solution Market Share By Region, 2023 Vs 2031 (%)
7. Global Digital Identity Solution Market Share By Deployment Mode, 2023 Vs 2031 (%)
8. Global On-Premises Digital Identity Solution Market Share By Region, 2023 Vs 2031 (%)
9. Global Cloud-based Digital Identity Solution Market Share By Region, 2023 Vs 2031 (%)
10. Global Digital Identity Solution Market Share By Authentication Type, 2023 Vs 2031 (%)
11. Global Single Factor Authentication Digital Identity Solution Market Share By Region, 2023 Vs 2031 (%)
12. Global Multi-Factor Authentication Digital Identity Solution Market Share By Region, 2023 Vs 2031 (%)
13. Global Digital Identity Solution Market Share By Industry Vertical, 2023 Vs 2031 (%)
14. Global Digital Identity Solution In BFSI Market Share By Region, 2023 Vs 2031 (%)
15. Global Digital Identity Solution In Healthcare Market Share By Region, 2023 Vs 2031 (%)
16. Global Digital Identity Solution In Travel & Hospitality Market Share By Region, 2023 Vs 2031 (%)
17. Global Digital Identity Solution In Government Market Share By Region, 2023 Vs 2031 (%)
18. Global Digital Identity Solution In Defense & Aerospace Market Share By Region, 2023 Vs 2031 (%)
19. Global Digital Identity Solution In IT & Telecommunication Market Share By Region, 2023 Vs 2031 (%)
20. Global Digital Identity Solution In Retail & E-Commerce Market Share By Region, 2023 Vs 2031 (%)
21. Global Digital Identity Solution In Education Market Share By Region, 2023 Vs 2031 (%)
22. Global Digital Identity Solution In Other Industry Vertical Market Share By Region, 2023 Vs 2031 (%)
23. Global Digital Identity Solution Market Share By Region, 2023 Vs 2031 (%)
24. US Digital Identity Solution Market Size, 2023-2031 ($ Million)
25. Canada Digital Identity Solution Market Size, 2023-2031 ($ Million)
26. UK Digital Identity Solution Market Size, 2023-2031 ($ Million)
27. France Digital Identity Solution Market Size, 2023-2031 ($ Million)
28. Germany Digital Identity Solution Market Size, 2023-2031 ($ Million)
29. Italy Digital Identity Solution Market Size, 2023-2031 ($ Million)
30. Spain Digital Identity Solution Market Size, 2023-2031 ($ Million)
31. Rest Of Europe Digital Identity Solution Market Size, 2023-2031 ($ Million)
32. India Digital Identity Solution Market Size, 2023-2031 ($ Million)
33. China Digital Identity Solution Market Size, 2023-2031 ($ Million)
34. Japan Digital Identity Solution Market Size, 2023-2031 ($ Million)
35. South Korea Digital Identity Solution Market Size, 2023-2031 ($ Million)
36. Rest Of Asia-Pacific Digital Identity Solution Market Size, 2023-2031 ($ Million)
37. Latin America Digital Identity Solution Market Size, 2023-2031 ($ Million)
38. Middle East And Africa Digital Identity Solution Market Size, 2023-2031 ($ Million)
