USD 39.13 billion
Digital Identity Solutions Market Size, Share, and Growth Analysis
Digital Identity Solutions Market By Component (Solutions, Services), By Identity Type (Biometric, Non-Biometric), By Deployment (On-Premises, Cloud), By Solution Type, By Authentication, By Organization Size, By Industry Vertical, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG45E2313 |
Region:
Global |
Published Date: March, 2025
Pages:
191
|Tables:
87
|Figures:
71
Format -
Digital Identity Solutions Market Insights
Global Digital Identity Solutions Market size was valued at USD 39.13 billion in 2023 and is poised to grow from USD 46.56 billion in 2024 to USD 187.25 billion by 2032, growing at a CAGR of 19.0% during the forecast period (2025-2032).
The global digital identity solutions market is expanding rapidly because of the need for secure and seamless authentication across sectors such as finance, healthcare, government, and e-commerce. Digital identity solutions include biometric authentication, identity verification, and digital ID management, enabling users to securely access digital services. As organizations are increasingly implementing digital transformation, the importance of identity verification and management is more than ever emerging as a countermeasure to escalating cyber threats, fraud, and data breaches.
Other significant factors boosting the global digital identity solutions market growth include a surge in the number of mobile devices, rapid growth in the number of online services, and stringent regulatory compliance demands for greater authentication. Moreover, the increasing adoption of blockchain and AI technologies will further increase the security, the rate, and dependability aspects of identity verification procedures, hence making it more scalable and accessible. Furthermore, there is a constant shift in digital services with increased remote work and virtual engagements that all fueled the rise in online transactions, thus increasing the demand for digitally reliable systems of identity. Emerging trends such as decentralized identity and digital wallets are expected to further boost the market. Identity and payments are now inextricably linked, bringing exciting new opportunities and risks for the payments industry, further increasing the need for digital identity solutions. Increased data breaches and account takeovers have also increased the use of digital identity solutions and services.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
On-Premise
Fastest Growth
Cloud
Growth Rate
19.0% CAGR
Global Digital Identity Solutions Market ($ Bn)
Country Share for North America (%)
To get more reports on the above market click here to Buy The Report
Digital Identity Solutions Market Segments Analysis
Global Digital Identity Solutions Market is segmented by Component, Identity Type, Deployment, Solution Type, Authentication, Organization Size, Industry Vertical and region. Based on Component, the market is segmented into Solutions and Services. Based on Identity Type, the market is segmented into Biometric and Non-Biometric. Based on Deployment, the market is segmented into On-Premises and Cloud. Based on Solution Type, the market is segmented into Identity Verification, Authentication, Identity Lifecycle Management and Other Solution Types. Based on Authentication, the market is segmented into Single-Factor and Multi-Factor. Based on Organization Size, the market is segmented into Small and Medium-Sized Enterprises (SMEs) and Large Enterprises. Based on Industry Vertical, the market is segmented into BFSI, Retail, Government and Defence, Healthcare, IT and Telecommunication, Energy and Utilities and E-commerce. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Identity Type
As per the 2024 global digital identity solutions market analysis, the biometric segment leads the market with the highest revenue share of 71.4%. Biometric technologies include fingerprint recognition, facial recognition, and iris scanning; because the accuracy and security possessed in these features are higher compared to the usage of passwords for authentications. Biometric solutions are now part of finance, healthcare, and government sectors for secure identity verification. Increasing data breaches and identity fraud have also spurred the demand. In addition, the growing usage of smartphones and the integration of biometric sensors in mobile devices have also added to the growth.
The non-biometric segment is forecast to grow at a significant CAGR during the given forecast period. It aids in the authentication and verification of a person's identity to grant the entitlement or service and can be relied on through various elements, such as passwords, PINs, or knowledge of personally relevant information or events. The integration of ML and AI, and other technologies into non-biometric digital identity solutions helps in the highly effective and proactive detection and remediation of unauthorized and suspicious activities as well as invasive access requests on an enterprise network. Non-biometric solutions segment is a key part of the digital identity solutions and has witnessed the fastest growth in the last few years.
Analysis By Deployment Mode
Based on the 2024 global digital identity solutions market forecast, the on-premises segment held the largest revenue share of 56.9%. This can be attributed primarily to large enterprises, as such firms have all the infrastructure necessary for deploying the solution on-premises. There is a benefit of greater flexibility and control provided through on-premises deployment as businesses are allowed to modify the system according to specific needs. This deployment mode is provided with a one-time licensing fee accompanied by a service agreement, and hence, is a favorite of large organizations who require long-term solutions. On-premises digital identity solutions also provide the deepest insights into client behavior and preferences, and thus companies can provide a unified and personalized experience while retaining full control over their security systems.
The cloud segment is expected to have the fastest growth rate in CAGR terms during the forecast period. It benefits with other factors such as user-friendliness, scalability, and reduced installation and maintenance costs. The cloud-based digital identity solutions enable the organizations to get rid of infrastructure maintenance costs and the employment cost of specialized technical staff. Companies can stay focused on their core competencies and ensure business agility and innovation by using the cloud; they do not have to spend much capital on security infrastructure. Cloud flexibility, accessibility, and remote operations support are major attractions to cloud-based solutions for all businesses. It, therefore, implies that growing cloud-based adoption will change the digital identity solutions landscape.
Global Digital Identity Solutions Market By Deployment Mode
To get detailed analysis on other segments, Request For Free Sample Report
Digital Identity Solutions Market Regional Insights
The market leader was North America, with the highest revenue share standing at 38.5%, in 2024. The region was fueled by heavy emphasis on cyber-security, digital transformation and strict compliance norms over regulation in that region. So, the aggressive adoption of digital services in all such critical sectors such as banking, healthcare, e-commerce has brought in significant demand for stronger identity verification mechanisms. The fact that the leading technology companies have located their bases here and the region's focus on innovation in biometric and AI-based identity technologies has further supported the market. Programs related to the betterment of customer experience, combating fraud, and facilitating frictionless digital transactions have made North America the front-runner in the global landscape of digital identity solutions.
The Europe digital identity solutions industry will grow at a significant CAGR over the forecast period, because the region is taking proactive steps forward to promote digital ID initiatives, including government-backed eID schemes, aiming for improvement in security, streamlined services, and more cross-border digital interactions. Demand for secure digital banking, e-commerce, and healthcare solutions is another reason for the growth in the market. Companies in Europe are top leaders in developing innovative technologies using biometrics, artificial intelligence and blockchain to design high-tech solutions that are convenient for users while ensuring digital identities. Europe enjoys the top lead in the rest of the globe in matters development of secure identity systems due to the emphasis on innovations and strong legislation on data protection.
Global Digital Identity Solutions Market By Geography
- Largest
- Fastest
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Digital Identity Solutions Market Dynamics
Drivers
Increased Use of Digital Services
- Strong digital identification solutions are becoming much more necessary due to the increased reliance on digital platforms for banking, healthcare, e-commerce, and government services. These solutions improve user experience, anti-fraud solutions, and enable secure access at a time when digital interactions are the most common. As concerns about identity theft and breach of data escalate, this, in turn has further fueled the adoption of solutions globally across businesses.
Advances in AI-Based and Biometric Technologies
- Biometric authentication, such as face recognition and fingerprint scanning, has become part of retinal scanning, coupled with AI-powered analytics. Digital identification solutions can take advantage of even more accurate, secure, and easier-to-implement identity verification techniques. Biometrics assures an easy user experience, and AI enhances fraud detection and ensures proactive security measures. Due to widespread adoption of this technology across sectors, the market for digital identification solutions is expanding.
Restraints
High Cost of Initial Implementation
- There is a huge initial investment in terms of hardware, software, and integration services involved in the installation of digital identification systems, particularly on-premises models. Small businesses or organizations with limited resources are often deterred from using such systems due to these costs. Cost is the major reason for low adoption, mainly in areas or sectors that lack sufficient finance and technology infrastructure. Maintenance, upgrades, and ongoing running costs add to the financial burden.
Data Security and Privacy Issues
- Data breaches and uncontrolled use of personal information led to growing inhibition on the adoptions of systems using digital identifications. Data is more focused on centralized security by both users and organizations. Organizations in areas requiring high protection don't embrace the identification system because some are hard on regulations compliance and matters that arise afterward. Such things must be alleviated to spark confidence and larger applications of systems in digital identity.
Request Free Customization of this report to help us to meet your business objectives.
Digital Identity Solutions Market Competitive Landscape
The global digital identity solutions industry presents a competitive scenario with the involvement of established and innovative start-up players. Some of the most prominent companies invest in the improvement of biometric, AI, and blockchain technology to provide robust and scalable services. Partnerships, acquisitions, and product development are the significant strategies that increase market share for these companies. Continuous innovation is a characteristic of intense competition and regional and international players competing against each other within industries, such as banking, healthcare, e-commerce, and government.
Top Player’s Company Profile
- Microsoft Corporation (United States)
- IBM Corporation (United States)
- Oracle Corporation (United States)
- Thales Group (France)
- NEC Corporation (Japan)
- HID Global Corporation (United States)
- Tata Consultancy Services (TCS) (India)
- Accenture PLC (Ireland)
- Infosys Limited (India)
- Wipro Limited (India)
- Okta, Inc. (United States)
- ForgeRock, Inc. (United States)
- OneSpan Inc. (United States)
- SecureAuth Corporation (United States)
- Jumio Corporation (United States)
Recent Developments
- In October 2024, the city of Buenos Aires began to use QuarkID, an electronic identity system employing zero-knowledge proofs to increase privacy and the ease of check, in procedures in verifying documents issued for 3.6 million residents. It uses the miBA app, so that identity is confirmed without asking for personal details and there is no scope for identity theft. It is on Ethereum's ZKsync Era and can support more than 60 types of documents such as ID cards and utility bills. The exercise is expected to reduce the running costs of the government while making its digital services easier to access.
- In October 2024, smart ring startup CUDIS integrated the World App for biometric digital identity verification based on zero-knowledge proofs. Users can therefore control their iris scans and other biometric data, while at the same time keeping them private due to decentralized storage on the InterPlanetary File System (IPFS). It also tracks health data and rewards users with activities in the fitness domain. It is part of a larger movement to solve the identity verification issues related to AI and deepfakes.
- In September 2024, Veridos GmbH and Credence ID, LLC launched the Versatile VeriCHECK M500+ designed for verification of digital as well as physical ID. It is an all-in-one form that consists of Veridos GmbH's physical credential reader merged with Credence ID, LLC's digital verification platform using technologies of NFC and QR codes for authenticating a wide range of identification documents. The device meets the ISO mDL/mID standards and is accepted by major digital wallets. The features include remote management, immediate verification results, and online/offline operation and are suitable for government and commercial sectors.
Digital Identity Solutions Key Market Trends
- Move to Cloud-Based Solutions: Scalability, cost, and easy deployment have made growth in the rate of adoption of cloud-based digital identity solutions even faster than anticipated. The infrastructure that a cloud-based solution requires is much less compared to on-premises systems, and no technical expertise is needed as well. It is accessible remotely, and its deployment is flexible, which makes it appealing to small and medium-sized enterprises. As an overall trend, this enables various industries to achieve increased efficiency and reduced costs in operations.
- Integration of Blockchain Technology: Blockchain is the transformative trend in digital identity solutions. This evolves decentralized and tamper-proof management of identities, providing better security with integrity and transparencies, as well as protection of data, tackling issues of data privacy. By removing reliance on centralized databases, the identity system, powered by blockchain, eliminates risk in terms of breach possibilities. Its applications have gained considerable acceptance in the areas of finance, health, and e-commerce with an added facilitation of hassle-free cross-border verification of identity.
Digital Identity Solutions Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, growing digitalization of businesses, technological improvements, and growing concerns about data security and fraud protection are some of the factors driving the global digital identity solutions market. Industries that have increasingly high demands include banking, healthcare, e-commerce, and government services for safe, effective, and easy-to-use identity verification systems. Despite the several challenges the market faces, such as high implementation costs and privacy issues, new growth opportunities are opening through blockchain, biometrics, cloud computing, and artificial intelligence. Huge companies keep spending money on alliances, research, and product development in order to keep their competitive edge. Given this, the sector is expected to expand rapidly while changing the landscape with which businesses conduct identity and secure online communications.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 39.13 billion |
| Market size value in 2032 | USD 187.25 billion |
| Growth Rate | 19.0% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| 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 |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Buy The Complete Report to read the analyzed strategies adopted by the top vendors either to retain or gain market share
Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Digital Identity Solutions Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Digital Identity Solutions Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Digital Identity Solutions 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 Digital Identity Solutions 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.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Digital Identity Solutions Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Digital Identity Solutions Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
USA (+1) 351-333-4748
