Decentralized Identity Market
Report ID: SQMIG45A2590
Report ID: SQMIG45A2590
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Report ID:
SQMIG45A2590 |
Region:
Global |
Published Date: May, 2025
Pages:
196
|Tables:
117
|Figures:
70
Global Decentralized Identity Market size was valued at USD 849.38 Million in 2024 and is poised to grow from USD 1601.08 Million in 2025 to USD 255214.14 Million by 2033, growing at a CAGR of 88.5% during the forecast period (2026–2033).
Decentralized identity offers a revolutionary way to handle digital identities, empowering individuals to manage their personal data without the need for centralized authorities. This approach tackles major challenges of traditional identity systems, including data breaches, disjointed online experiences, and digital exclusion.
Consumers are increasingly holding businesses accountable for protecting their data. In fact, 89% of consumers express concerns about AI’s impact on identity security, making transparency and trust critical to retaining loyalty.
The rise of blockchain technology has paved the way for decentralized identity solutions. Blockchain provides a transparent and immutable ledger that can securely store and verify identity information. Furthermore, rising demand for frictionless and seamless user experiences is accentuating the acceptance of decentralized ID worldwide.
Traditional identity verification processes can be cumbersome, involving multiple usernames, passwords, and authentication methods. Decentralized identity solutions offer a single, portable digital identity that can be easily verified across different platforms and services, simplifying the user experience. Furthermore, regulatory requirements and compliance standards are expected to push organizations to adopt decentralized identity solutions. Regulations such as the California Consumer Privacy Act (CCPA) and General Data Protection Regulation (GDPR) in Europe require businesses to handle personal data responsibly and provide individuals with greater control over their data. Decentralized identity solutions align with these regulations by giving individuals ownership and control over their personal information.
Increasing digitalization of various industries, such as finance, healthcare, and e-commerce, is fueling demand for decentralized identity. These sectors require robust identity verification processes to ensure secure transactions and protect sensitive data. Decentralized identity solutions offer a reliable and tamper-proof method of identity verification. As a result, it mitigates risks associated with identity theft and fraud.
In January 2023, Quadrata, a Web3 identification solution aimed to improve reputation and compliance in public blockchains, partnered with nine well-known DeFi protocols including CR Square, Frigg.Eco, Chelo Finance, Chee Finance, Archblock, TrueFi, BSOS, Cred Protocol, and SPACE. Users of these protocols were able to access strong identity verification services via Quadrata's passport network, adding an essential degree of safety and security to their activities. This partnership reaffirmed Quadrata's and partnered protocols' dedication to putting user safety first and building a reliable ecosystem in the decentralized finance arena.
In March 2022, Microsoft revealed its new identity and access management solution portfolio, Entra. The portfolio included two new product categories, Cloud Infrastructure Entitlement Management (CIEM) and Decentralized Identity, in addition to well-known solutions such as Azure AD. The Entra product line was designed to protect users' access to any application or resource by enabling security teams to find and manage rights in multi-cloud environments, enabling them to fully protect digital identities.
Market snapshot - 2026-2033
Global Market Size
USD 450.6 million
Largest Segment
Biometrics
Fastest Growth
Non-Biometrics
Growth Rate
88.5% CAGR
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Global Decentralized Identity Market is segmented by Type, End User, Enterprise Size, Vertical and region. Based on Type, the market is segmented into Biometrics and Non-biometrics. Based on End User, the market is segmented into Individual and Enterprises. Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises. Based on Vertical, the market is segmented into BFSI, Government, Healthcare & Life Sciences, Telecom & IT, Retail & E-commerce, Transport & Logistics, Real Estate, Media & Entertainment, Travel & Hospitality and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
The biometrics segment dominated the market in 2024 with a revenue share of more than 66.0%. Biometric identifiers, such as fingerprints, facial recognition, iris scans, and voice recognition, provide a high level of precision and security in authenticating an individual's identity. This type of identity verification offers a strong level of verification and is difficult to forge or replicate, making it highly reliable for forming trust in digital interactions. Biometric identity also offers convenience and ease of use for users. With biometric authentication, individuals can confirm their identity quickly and seamlessly by solely using their distinctive biological traits. This excludes the necessity for passwords or other traditional forms of authentication, which can be easily forgotten, stolen, or compromised.
As per global decentralized identity market analysis, the non-biometrics segment is anticipated to grow substantially during the forecast period. Growing demand for non-biometric identity among consumers owing to easy portability and convenience is expected to drive the segment growth. Moreover, non-biometric authentication is typically used as a backup for biometric password-less security. Such factors are anticipated to contribute to segment growth during the forecast period. Additionally, these solutions are gaining traction in industries with stringent regulatory requirements, such as finance, healthcare, and government, where data privacy concerns limit the use of biometric credentials. The growing adoption of decentralized identity (DID) frameworks, which leverage blockchain and cryptographic techniques for identity verification without the need for biometrics, is further accelerating market expansion.
As per global decentralized identity market forecast, the enterprises segment dominated the market in 2024 with a revenue share of more than 71.0%. Growing concern for reducing business risk is a significant factor driving segment growth. Moreover, a decentralized identity framework enables enterprises to control users’ identities independently of the identity issuer. Furthermore, a decentralized identity eliminates the initial need for organizations to gather and store personal data. Enterprises are increasingly leveraging decentralized identity (DID) to enhance security, streamline access management, and reduce dependency on centralized identity providers. By enabling organizations to authenticate users without storing personal data, decentralized identity solutions minimize the risks associated with data theft and unauthorized access. Additionally, the adoption of blockchain-based identity verification systems in enterprises ensures transparency, security, and interoperability across multiple business applications.
As per the global decentralized identity market outlook, individuals segment is expected to register the fastest CAGR of 91.6% during the forecast period. The growth of individual segment can be attributed to the increasing adoption of decentralized identity solutions by individuals for creating and maintaining their identities. Furthermore, decentralized identity solutions help individuals verify and authenticate themselves in various identification processes for different use cases, such as loan sanctioning, bank account opening, and other KYC processes, among others. Thus, such wide use cases of decentralized identity to individual users are further expected to drive growth of the segment during the forecast period.
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North America leads the decentralized identity market, driven by a strong cybersecurity infrastructure, widespread digital transformation, and stringent data privacy regulations such as the California Consumer Privacy Act (CCPA). The United States is at the forefront of decentralized identity adoption, with major tech companies like Microsoft, IBM, and Evernym investing in blockchain-based identity solutions. The increasing number of cyberattacks and identity theft incidents has prompted enterprises and government agencies to explore decentralized identity solutions to enhance security and reduce reliance on centralized data repositories.
Europe is witnessing significant adoption of decentralized identity solutions due to stringent General Data Protection Regulation (GDPR) policies and growing concerns about user privacy. Germany, in particular, is leading the region in implementing self-sovereign identity (SSI) solutions, with initiatives like IDunion, a blockchain-based digital identity network supported by both government and private enterprises. The German government’s push for secure e-government services and digital wallets further strengthens the adoption of decentralized identity technologies across industries.
Asia Pacific is experiencing rapid growth in decentralized identity adoption due to increasing digitalization, regulatory advancements, and the rise of blockchain-based ecosystems. China is a key player in the market, leveraging decentralized identity frameworks for national ID systems, digital payment authentication, and enterprise security. Government-backed initiatives, such as the Blockchain-based Service Network (BSN), are accelerating the integration of decentralized identity solutions in various sectors, including banking, healthcare, and smart cities. However, regulatory restrictions on decentralized networks remain a challenge, impacting the widespread implementation of blockchain-based identity systems.
The Middle East & Africa region is gradually embracing decentralized identity solutions, primarily in financial services and smart governance. The United Arab Emirates (UAE) has positioned itself as a leader in blockchain innovation, launching initiatives like the UAE Blockchain Strategy 2021 to digitize government services using decentralized identity. The government is integrating blockchain-based identity verification into sectors such as healthcare, education, and banking to enhance security, transparency, and efficiency in digital transactions.
Latin America is seeing increased interest in decentralized identity, particularly in fintech, e-commerce, and digital banking. Brazil is emerging as a key market, with financial institutions and government agencies exploring blockchain-based identity verification to combat fraud and improve digital inclusion. The country’s PIX instant payment system and open banking regulations are driving demand for secure and interoperable identity solutions, encouraging startups and enterprises to adopt decentralized identity frameworks to enhance consumer trust and regulatory compliance.
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Rise of Blockchain Solutions Driving Market
Rising Need for Decentralized Finance in Blockchain and Insurance
Lack of Standardization and Interoperability
Uncertain Regulatory Landscape
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The global decentralized identity industry is witnessing rapid expansion, driven by blockchain advancements and increasing demand for secure digital identity solutions. Key players such as Microsoft and IBM are leading the market with blockchain-based identity management systems like Entra Verified ID and Blockchain Identity Management. Evernym has developed the Sovrin Network, enabling self-sovereign identity (SSI), while Civic Technologies focuses on biometric and encryption-based identity authentication.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to SkyQuest analysis, the rising concerns for control and ownership over personal data among individuals is a significant factor contributing to the market. This can be attributed to the growing amount of personal data being collected and stored by organizations resulting in an augmented need for protection of personal data. Also, the increasing volume of personal information being shared online, that is susceptible to cyberattacks and breaches when involving intermediaries is resulting in a higher uptake of decentralized identity systems. In line with this, the increasing adoption of industrial applications based on blockchain identity is also acting as a major growth-inducing factor.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 849.38 Million |
| Market size value in 2033 | USD 255214.14 Million |
| Growth Rate | 88.5% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Million |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Decentralized Identity Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Decentralized Identity Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Decentralized Identity Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
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Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
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