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Digital Identity Solutions Market

Digital Identity Solutions Market Size, Share & Trends Analysis Report

Digital Identity Solutions Market Size, Share & Trends Analysis Report By Component (Solution, Services), By Deployment (Cloud, On-Premises), By Solution Type (Biometrics, Non-Biometrics), By Enterprise Size (Small And Medium Enterprises, Large Enterprises), By Authentication Type (Single-Factor Authentication, Multi-Factor Authentication), By Industry Vertical (BFSI, Healthcare, Travel & Hospitality, Government, Defense & Aerospace, IT & Telecommunication, Manufacturing, Education) Based On Region, And Segment Forecasts, 2022- 2028

Published
Report ID : BMRC 1658
Number of pages : 300
Published Date : Nov 2022
Category : Technology And Media
Delivery Timeline : 48 hrs

The Demand for Digital Identity Solutions Market in terms of revenue was worth of USD 24.79 Million in 2021 and is expected to reach USD 70.82 Million in 2028, growing at a CAGR of 16.24% from 2022 to 2028 

Digital Identity Solutions Market: Global Size, Trends, Competitive, Historical & Forecast Analysis, 2021-2028. Growing integration of biometrics in smartphones and rising number of innovations in digital identity solutions are the some of the major factors driving the growth of Global digital identification solutions Market.

Scope of Global Digital Identity Solutions Market Report

A digital identity solution is recognized as information on an individual used by computer systems to signify an external agent. That means may be an organization, person, application, or gadget. The digital identity allows regaining the computers and delivering facilities to the customers. Digital identity solutions are designed for organizations to collect biographical such as name, age, gender, and address as well as biometric data electronically. Digital ID systems use digital technology throughout the character lifecycle, incorporating for data capture, validation, storage, and transfer; credential management; and identity verification and authentication is also coming under the digital identity solutions.

Covid-19 has shown a positive impact on the growth of digital identity solutions market globally in the pandemic. Due to the widespread work from home (WFH) trend in the pandemic situation, increased internet penetration across the globe led to an increase in the adoption of digital technologies. In addition to governments in different economies of the world have also helped and driven to adopt new practices for remote work and to maintain social distancing in the organizations. This also has supplemented the demand for digital identity solutions during the Covid-19 situation.

Also, developing integration of biometrics in smartphones is one of the major factors driving the growth of global digital identity market growth over the forecast period. This has become the most leading driver of the global market for digital identity solutions. Therefore, there is a rising demand of digital identity-based including biometric expertise and multi-factor authentication, which are better and reliable methods of authentication than passwords. For example, according to an article, in 2019 only 27% of consumers used biometrics to authenticate and nearly 66% of smartphone holders will utilize biometrics for verification by 2024. According to the journal, in 2020, voice identification increased to 20% of biometric authentication in the last year up from 11% in 2019 also, Facial recognition jumped to nearly 30% of biometric authentication, up from 11% in 2019.

Apart from that, different companies are anticipated to implement go-to-market strategies, mergers & acquisitions, and new product launches to remain competitive and meet the escalating demand for digital identity solutions. NEC, Samsung SDS, Thales Group, GBG, TELUS, Tessi, Refinitiv, IDEMIA, ForgeRock, TrustGrid and many more are hugely contributing to the growth of global market for digital identity solution market. For example, recently on March 23rd, 2021; TrustGrid Ltd. company declared the worldwide launch of TrustGrid, the world's first digital trust ecosystem. TrustGrid Digital Identity Platform with a high degree of privacy, security, and integrity, the solution facilitates technology interfaces between government entities and private organizations, offering services to suppliers, end users, customers, citizens, and constituents.

Top Companies Digital Identity Solutions Market Report:

Global Digital Identity Solutions Market reports cover prominent players like 

  • NEC 
  • Samsung SDS 
  • Thales Group 
  • GBG 
  • TELUS 
  • Tessi 
  • Daon 
  • IDEMIA 
  • ForgeRock 
  • Jumio 
  • IProov 
  • ID R&D 
  • Refinitiv 
  • ImageWare Systems 
  • OneSpan 
  • Smartmatic 
  • OneSpan 
  • Smartmatic 
  • Verisec 
  • Others 

Global Digital Identity Solutions Market Segmentation- 

By Component  

  • Solution 
  • Services 

By Deployment  

  • Cloud 
  • On-premises 

By Solution Type  

  • Biometrics 
  • Non-Biometrics 

By Enterprise Size 

  • Small and Medium Enterprises 
  • Large Enterprises 

By Authentication Type 

  • Single-factor Authentication 
  • Multi-factor Authentication 

By Industry Vertical: 

  • BFSI 
  • Healthcare 
  • Travel & Hospitality 
  • Government, Defense & Aerospace 
  • IT & Telecommunication 
  • Manufacturing 
  • Education 
  • Others 

The regions covered in digital identity solutions market report are North America, Europe, Asia-Pacific, and Rest of the World. Based on country level, the market of digital identity solutions is sub divided into U.S., Mexico, Canada, U.K., France, Germany, Italy, China, Japan, India, Southeast Asia, Middle East Asia (UAE, Saudi Arabia, Egypt) GCC, Africa, etc.

Growing Integration of Biometrics in Smartphones and Rising Number of Innovations in Digital Identity Solutions are the Some of the Major Factors Driving the Market Growth

Growing integration of biometrics in smartphones is one of the major factors driving the growth of global digital identity market growth over the forecast period. With the instant technological improvements, the number of smartphone users throughout the world has soared to a greater extent, and the world is developing more connected than ever earlier. With improvements in technology, these password security systems are easier to hack. Digital identity-based protection, such as biometric expertise and multi-factor authentication, is a better and reliable method of authentication than passwords.

For instance; only 27% of consumers used biometrics to authenticate and about 41% of smartphone owners were utilizing biometrics in 2020 and nearly 66% of smartphone holders will utilize biometrics for verification by 2024. Most smartphones have authentication alternatives, like fingerprint identification and facial detection. Many smartphone corporations are shifting towards executing these fingerprint and facial detection technology in the smartphones.

Analyst Comment, “With high adoption rate of personal data authentication across the world along with rising government support regarding the digital identity solution realm will result in auspicious growth for the market globally creating 24.79 USD billion in 2021”.

In addition, rising number of innovations in digital identity field is also supplementing the market growth. For instance, new National eID programs were launched in 2020. Nowadays, some of these programs comprise biometrics, the mainstream in the method of fingerprints. Also, France proclaimed its national eID arrangement for fall 2019 in early 2018. Germany proclaimed its citizens would be able to supply a digital form of their national ID card on their phone and custom it as a digital ID in 2020.

However, higher cost involved in deploying digital identity solutions may hamper the growth of global digital identity market. In spite of that, extensive adoption of authentication diagonally verticals is likely to offer ample opportunities for the further growth of the global digital identity solutions market.

Trends-

Since last few years, digital identity has been widely adopted in every country, which has led to the widespread use of digital ID lockers in many countries that provide security for the customer's documents. Some of the macro and micro economic trends are contributing to the increasing use of digital identity solutions because of new technologies and regulations are largely supporting further transformation, pandemic-accelerated trends such as digitization of government, greater adoption by citizens, as well as growing consumer demand for privacy and trust, and more national digital ID initiatives and implementations, because of these and with some other trending examples the demand for digital identity solutions in the market has increased significantly.

The biggest role behind the growth of digital identity solutions is the government involvement of every country around the world. Every country has made citizen identity compulsory in their country which is taking huge growth in this market.

Moreover, global pandemic changed digital identity from ""nice to have"" to ""must-have"" for governments. When there was a massive spread of COVID-19 across the world, citizens did not need documents because every work was done online. Due to this, the number of online threats has increased to a great extent. And along with this, due to the method of submitting documents online, it became mandatory for every citizen to store these documents online. Due to this trend, the use of digital identity solutions has increased significantly since the time of COVID-19.

Many countries and region have also taken advantage of the technology to implement more national digital ID initiatives and implementations along with increasingly digital lives, which has led to significant growth in the digital identity solutions market.

Following are the major five driving forces which are driving the growth of the digital identity solution market.

  1. Easier access to the Internet and even more mobility

In today's timeframe, mobile usage is increasing in a big way, identities are also becoming digital in a big way. Of course, today's nationals have entered an era where mobile usage and connectivity conquer the world. And the current situation indicates that these trends will never subside. Government policies, heavy investment by telecom operators, and reductions in subscription and phone prices have made it easier to access the Internet globally. At the same time, global smartphone penetration is hitting the roof, bringing in all the right and necessary infrastructure to successfully launch a mobile-based digital identity. Due to this, citizens are adopting digital identity in large numbers by taking advantage of such facilities. According to BrandEssence market research reference, by the end of 2021, more than 5B people will already have Internet access. Global online internet penetration has surpassed 66%. More than 92% of people access the internet through mobile devices. 55% of global internet traffic is mobile in Q1 of 2021. Mobile devices have now become the primary means of accessing the Internet for users. Mobile connections account for a large share of web traffic in mobile-first markets such as Africa and Asia. The global smartphone penetration rate will reach over 78% in 2020. This is based on an estimated 6.4 billion smartphone subscriptions worldwide and a global population of about 7.8 billion. Besides, digital identity has also emerged as a trend in the market in the era of easy access to the internet and more mobility.

  1. An accelerated shift to digital-first servicing

The pandemic accelerated trends such as the digitization of government, and citizens were left with no choice embraced technology at levels only anticipated for five or ten years in the future. Let's take two examples, according to AGID (Agenzia per Italia Digitale), in one year, the number of digital identities issued by the Italian national scheme increased from 8 in June 2020 to 24 million in September 2021. According to Deloitte, governments have become the most trusted institutions for the first time in twenty years, able to successfully meet the challenges. Not only are more and more governments rapidly equipping citizens with reliable mobile IDs, but they are also accelerating the demonetization of public services to enhance the quality-of-service delivery. Public organizations have a more mature vision and relevant digital strategy and implement digital identity and valuable services in parallel. Those service-rich online portals offer essential tangible benefits to citizens: they can do more online, access almost all available services remotely, and are sure to save significant time. Such a virtuous circle would further drive adoption by citizens and encourage further demonetization by government agencies. In Denmark, NemID (now called MitID), the domestic digital ID scheme, now has 100% adoption, enabling the government to mandate online access to the country's public services. Of course, the scheme was first designed to be inclusive and offers a specific validation tool to the elderly.

The global pandemic transformed digital identity from a ""must have"" to a ""must have"" for governments. So, this is another way that governments are capitalizing on this moment as an opportunity for transformation.

  1. Greater demand for privacy and trust

A key challenge for public authorities over the next two years was to create a harmonious digital bond that would secure the connection between the new mobile identity and wider society. This bond is only possible through a general framework of trust built on personal data protection and security guarantees. Since 2018, those measures to increase security and prevent fraud have generally been well received by citizens. These sovereign matters are, of course, equal to excellence as wel, stronger security measures are also increasingly responding to new demands for trust in all exchanges between citizens and public authorities. Besides consider another thing the latest survey found that with the explosion of data due to the extraordinary advancement in technology and the proliferation of connected devices, citizens are increasingly worried. Users were demanding stronger data privacy processes; They want to control their data and decide what data they share and with whom. Therefore, to meet those new privacy needs, the next generation of mobile IDs has made its market debut in the form of digital ID wallets. And this way digital identity market is slowly taking over the whole world.

However, Decentralized identity schemes and verifiable credential standards from the W3C are also trying to achieve the same goal, giving citizens more control over their data. Recent months have seen an avalanche of new privacy protection regulations around the world. From Europe to Brazil (Lei Geral de Proteção de Dado came into effect on September 2020), India and China to California and Africa (South Africa's POPIA went into effect on July 1, 2020), privacy laws have been passed or are being updated. Due to this, there are indications that the demand will increase to a great extent in the coming period as well.

  1. Public supervision will be critical to sustaining growth in the digital economy

Faced with an increasingly challenging economic landscape, governments are inevitably looking for new sustainable, harmonious growth opportunities. As the regulatory environment takes shape, close collaboration between the financial world, central and local public authorities, and digital communications operators are supporting effective solutions and implementing best practices. Of course, the natural source of new business opportunities is not the digital identity itself, but the numerous applications that enable it. This domain is where banks and other operators are looking at the bottom-line return on investment. That is, all these aspects are moving towards digital identity.

Hence the emphasis on the adoption of new structures and regulations required to regulate related services and transactions is also helping to accelerate the digital identity solution market.

  1. More national digital ID initiatives and implementations

In the following years, the market will follow these initiatives. Because evidence of digital identity and the use of related services is multiplying.

Development in Various countries and economy of the world in the field digital identity solutions

European proposal for digital Identity for all Europeans.

The General Data Protection Regulation (GDPR) of May 2018 for European member states represents a significant step toward data protection and privacy. It is a unique privacy framework that affects twenty-eight countries, including the UK. In its June 2021 proposal, the European Commission specifically suggested creating a digital ID wallet. According to the report (June 2021), digital identity based on digital wallets stored securely on mobile devices was identified as the primary asset for futureproofing. This new form of ID will allow the EU's 450 million residents to access public and private services. Currently, 60% of EU residents have access to trusted id schemes. In contrast, with this new digital identity framework, at least 80% of people must use a digital ID by 2030.

Digital identity and the USA

As Congressman Bill Foster said in June 2021: ""It's time for the United States to catch up with the rest of the developed world when it comes to digital identity."" The (US) National Strategy for Trusted Identities in Cyberspace sought a more global system of interoperable identity service providers (public and private). NIST Digital Identification Guidelines are formerly known as NIST SP 800-63-3. NIST published an official version in June 2017, an expanded version in 2020, and a new draft this summer. For the moment, several US states have taken the initiative and have launched or plan to launch digital driver's licenses (aka mobile driver's licenses) with the ability to use ID credentials online.

Australia and New Zealand digital ID initiatives

  • New Zealand's Digital Identity Trust Framework Act was drafted this year. It has been tabled in Parliament in September 2021. It will define the rules for the delivery of digital identity services. Identity providers will then be accredited.
  • Australia has decided to delay the launch of an enhanced version of My GovID that includes facial verification capabilities. The scheme is operational by mid-2020. More than 6 million Australians and 1 million businesses are already using the Digital Identity Credential app, available from June 2019. My GovID and myGov (online government services) have now been added.

California CCPA and CRPA

The California Consumer Privacy Act (CCPA), voted in late May 2018, now takes effect on January 1, 2020. This is an important step for privacy rights as the state is often seen as a trendsetter in this domain. The CPRA (California Privacy Rights Act), passed into law in November 2020, is another layer that creates new rights and expands existing rights for California residents. The law is potentially a model for US (ie, federal) data privacy law. In that sense, the CCPA and CRPA have the potential to become as important as the GDPR.

India

In August 2017, India's Supreme Court ruled in a landmark case that privacy is a ""fundamental right"", making it clear that biometric data protection is now at the top of regulators' list in the world's largest democracy. Modi's new government has increased privacy protection laws in 2019. Personal Data Protection (PDP) legislation is being drafted with similarities between the EU's GDPR and the Californian CCPA. The bill is currently under review (December 2021).

National ID Schemes Increased in Number, Visibility, And Reach.

Let's review the big ideas that have gained traction over the past few years, which have led to growth paths in the digital identity solutions market.

Several new national eID programs (not related to ID2020, including card and mobile-based schemes) have been launched or initiated. Examples include major announcements from Algeria, Belgium (Mobile ID), Cameroon, Ecuador, Jordan, Philippines (PhilSys ID), Kyrgyzstan, Italy, Iran, Japan, Senegal, Taiwan, Thailand, Turkey, Ukraine, Denmark. Netherlands, Bulgaria, Maldives, Norway, Liberia, Poland, Jamaica, Sri Lanka and Zambia. Some of these programs now include biometrics, mostly in the form of fingerprints.

Schemes such as the Gov.UK Verify initiative launched in 2016. And in August 2021, the government published a new version of its Digital Identity and Attribute Trust Framework.

Australia launched the first phase of its digital identity program in August 2017.

Germany announced in February 2021 that its citizens will be able to store a digital version of their national identity card on their phone and start using it as a digital ID (with a PIN for authentication) by autumn 2021.

Canada is moving forward with its federal digital identity plan called the Pan-Canadian Trust Framework, piloted by the Digital ID Authentication Council of Canada, a non-profit organization (DIACC). A national proof of concept project for a unified login authentication service called Sign in Canada has begun in the fall of 2018.

Aadhaar (India's national eID scheme) crossed the 1 billion user mark in 2016. By the end of August 2021, 1.3 billion Aadhaar electronic IDs had been generated (99% adults). This digital identity can be derived based on biometric and demographic data. mAadhaar is an official app available in 13 languages on Android and iOS (2019). It essentially acts as a virtual identity card.

Thus, the demand for digital identity solutions is currently increasing in the market due to the government's digital and virtual identity policy as well as the growing literacy of the citizens. Due to the above government policy, the trend toward the use of digital identity solutions in the market is increasing.

North America is Expected to Dominate the Global Digital Identity Solutions Market

North America is expected to dominate the global digital identity solutions market during the forecast period owing to the rising identity and verification frauds and the authority of key suppliers in the region. According to the Federal Trade Commission, customers notified losing more than $3.3 billion to fraud in 2020 from $1.8 billion in 2019. Nearly $1.2 billion of losses reported in 2019 year were due to imposter scams, while online shopping accounted for about $246 million in reported losses from consumers. The European market for digital identity solution is estimated to be the second largest during the forecast period. According to the UK Finance trade association, the total number of APP (Authorized push payment) fraud incidents found in 2020 increased by 22 percent as criminals.

Report Analysis Details
Historical data 2018 - 2021
Forecast Period 2021 - 2028
Market Size in 2021: USD 24.79 Million 
Base year considered 2021
Forecast Period CAGR %:

16.24% 

Market Size Expected in 2027: USD 70.82 Million 
Tables, Charts & Figures: 175
Pages 190
Key Players/Companies NEC, Samsung SDS, Thales Group, GBG, TELUS, Tessi, Daon, IDEMIA, ForgeRock, Jumio, IProov, ID R&D, Refinitiv, ImageWare Systems, OneSpan, Smartmatic, OneSpan, Smartmatic, Verisec 
Segments Covered By Component, By Deployment, By Solution Type, By Enterprise Size, By Authentication Type, By Industry Vertical
Regional Analysis North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa

Key Benefits for Digital Identity Market Report–

  • Global Digital Identity Solutions Market report covers in-depth historical and forecast analysis.
  • Global Digital Identity Solutions Market research report provides detailed information about Market Introduction, Market Summary, Global market Revenue (Revenue USD), Market Drivers, Market Restraints, Market opportunities, Competitive Analysis, and Regional and Country levels.
  • Global Digital Identity Solutions Market report helps to identify opportunities in the marketplace.
  • Global Digital Identity Solutions Market report covers extensive analysis of emerging trends and the competitive landscape.
SUMMARY
VishalSawant
Vishal Sawant
Business Development
vishal@brandessenceresearch.com
+91 8830 254 358
Segmentation
Segments

By Component  

  • Solution 
  • Services 

By Deployment  

  • Cloud 
  • On-premises 

By Solution Type  

  • Biometrics 
  • Non-Biometrics 

By Enterprise Size 

  • Small and Medium Enterprises 
  • Large Enterprises 

By Authentication Type 

  • Single-factor Authentication 
  • Multi-factor Authentication 

By Industry Vertical: 

  • BFSI 
  • Healthcare 
  • Travel & Hospitality 
  • Government, Defense & Aerospace 
  • IT & Telecommunication 
  • Manufacturing 
  • Education 
  • Others 
Country
Regions and Country

North America

  • U.S.
    U.S.
  • Canada
    Canada

Europe

  • Germany
    Germany
  • France
    France
  • U.K.
    U.K.
  • Italy
    Italy
  • Spain
    Spain
  • Sweden
    Sweden
  • Netherlands
    Netherlands
  • Turkey
    Turkey
  • Switzerland
    Switzerland
  • Belgium
    Belgium
  • Rest of Europe

Asia-Pacific

  • South Korea
    South Korea
  • Japan
    Japan
  • China
    China
  • India
    India
  • Australia
    Australia
  • Philippines
    Philippines
  • Singapore
    Singapore
  • Malaysia
    Malaysia
  • Thailand
    Thailand
  • Indonesia
    Indonesia
  • Rest of APAC

Latin America

  • Mexico
    Mexico
  • Colombia
    Colombia
  • Brazil
    Brazil
  • Argentina
    Argentina
  • Peru
    Peru
  • Rest of South America

Middle East and Africa

  • Saudi Arabia
    Saudi Arabia
  • UAE
    UAE
  • Egypt
    Egypt
  • South Africa
    South Africa
  • Rest of MEA
Company
Key Players
  • NEC 
  • Samsung SDS 
  • Thales Group 
  • GBG 
  • TELUS 
  • Tessi 
  • Daon 
  • IDEMIA 
  • ForgeRock 
  • Jumio 
  • IProov 
  • ID R&D 
  • Refinitiv 
  • ImageWare Systems 
  • OneSpan 
  • Smartmatic 
  • OneSpan 
  • Smartmatic 
  • Verisec 
  • Others 
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