Digital Identity Solutions Global Market Report 2024

The digital identity solutions market size has grown rapidly in recent years. It will grow from $33.34 billion in 2023 to $39.75 billion in 2024 at a compound annual growth rate (CAGR) of 19.2%. The growth observed in the historic period can be attributed to various factors, including the heightened threat of cyber attacks, the proliferation of online services, increased awareness of data breaches, the widespread use of mobile devices, and the financial sector's adoption of digital solutions.

The digital identity solutions market size is expected to see rapid growth in the next few years. It will grow to $79.59 billion in 2028 at a compound annual growth rate (CAGR) of 19.0%. The anticipated growth in the forecast period can be linked to the expanding landscape of healthcare and telemedicine, growing concerns about cybersecurity, the surge in remote work and digitalization trends, the proliferation of Internet of Things (IoT) devices, and the rising demand for biometric authentication. Major trends expected in the forecast period include the adoption of decentralized identity management, the implementation of zero trust security models, increased integration of biometrics, a heightened focus on user experience, and the incorporation of artificial intelligence and behavioral analytics.

The projected increase in cybercrime and fraud is set to drive significant growth in the digital identity solutions market. Cybercrime encompasses criminal activities targeting computers, networks, or connected devices, executed by individuals or groups seeking to disrupt systems or gain unauthorized access. Digital identity solutions, employing robust user authentication via facial, voice, or fingerprint recognition, are pivotal in combating cybercrimes and bolstering cybersecurity. According to the Federal Bureau of Investigation's Internet Crime Report 2021, cybercrime complaints surged by 7%, reaching 847,376 complaints in 2021. Additionally, IBM Security's 'Cost of a Data Breach' report highlighted a rise in data breach costs, soaring from $3.86 million in 2020 to $4.24 million in 2021. Consequently, the escalation of cybercrime and fraud serves as a primary driver behind the growth of digital identity solutions.

The escalating prevalence of online shopping is poised to propel the digital identity solutions market. Online shopping, an integral part of electronic commerce, enables consumers to directly purchase goods or services over the internet using web browsers or mobile applications. Digital identity solutions play a pivotal role in enhancing security, curbing fraud, and optimizing user experiences in e-commerce. Solutions such as passwords, multi-factor authentication (MFA), behavioral analytics, and passive biometrics are instrumental in securing e-commerce platforms. Notably, the International Trade Administration reported that consumer e-commerce constituted 30% of the UK's retail sector in 2022, a notable rise from 20% in 2020, generating an annual revenue exceeding $120 billion. Furthermore, in 2021, 82% of individuals in the UK made at least one online purchase. Hence, the burgeoning prevalence of online shopping significantly drives the expansion of the digital identity solutions market.

Technological advancements emerge as a pivotal trend shaping the digital identity solutions market. Leading companies within this sector concentrate on pioneering technological solutions to fortify their market presence. For example, in January 2022, Samsung SDS Co. Ltd., a South Korea-based information technology services provider, unveiled the S3B512C, a sophisticated and comprehensive fingerprint security IC. This cutting-edge IC, integrating a fingerprint sensor, Secure Element (SE), and Secure Processor, enhances payment card security through an additional layer of authentication. It stands as the market's first all-in-one security chip solution capable of reading biometric data, storing and authenticating encrypted data with a tamper-proof SE, and processing and analyzing data through a Secure Processor, thus offering heightened security measures.

Key players in the digital identity solutions market are actively focused on introducing cutting-edge innovations, particularly digital ID networks, to gain a competitive advantage. Digital ID networks serve as platforms facilitating identity verification between organizations needing to verify identities and those providing the verification. These networks enable consumers to reuse trusted digital identities, enhancing security and efficiency in identity verification processes. An illustration of this innovation is evident in the launch of ConnectID's digital ID network in October 2023. This Australian-based network allows users to securely authenticate themselves to external parties without redundantly disclosing unnecessary information. Utilizing this platform, customers can opt for trusted institutions, such as banks, to verify their information, eliminating the need for repetitive proof of identification documentation. This approach grants consumers greater control over their shared data, enabling them to choose which organizations retain their personal information, thereby curbing data oversharing.

In November 2021, GB Group Plc., a UK-based provider of identity verification, location intelligence, and fraud prevention solutions, completed the acquisition of Acuant, Inc. for $736 million. This strategic acquisition amalgamates resources, where GB Group aims to bolster its position by combining forces with Acuant in the US market. The collaboration is anticipated to expand and fortify GB Group's range of solutions concerning identity verification and fraud prevention. Acuant Inc., a US-based company specializing in identity verification, document authentication, and fraud prevention technology, adds significant value to GB Group's product portfolio. The combined strengths of both entities are expected to furnish the industry with comprehensive end-to-end capabilities and an enhanced platform, reinforcing GB Group's competitive stance in the digital identity solutions market.

Major companies operating in the digital identity solutions market report are NEC Corporation, Samsung SDS Co. Ltd., Thales Group, GB Group Plc., Telus Communications Inc., Tessi International, Daon Inc., IDEMIA, ForgeRock Inc., ImageWare Systems Inc., Jumio, Refinitiv, Víntegris S.L.U., RaulWalter LLC, Duo Security Inc., Syntizen Technologies Pvt. Ltd., Sum and Substance Ltd., Socure Inc., Trulioo Information Services Inc., BioCatch Ltd. , Winding Tree Technologies SA, PXL Vision AG, Airside Mobile Inc., Ping Identity Corporation, Onfido Ltd., Signicat AS, Acuant Inc., Veriff OU, Mitek Systems Inc., OneSpan Inc., IPROOV LIMITED, Yoti Ltd., Evernym Software Private Limited.

North America was the largest region in the digital identity solutions market in 2023. Asia-Pacific is expected to be the fastest-growing region in the digital identity solutions market report during the forecast period. The regions covered in the digital identity solutions market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the digital identity solutions market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The key components of digital identity solutions include both products and services. Solutions involve the use of information and technology within a specific system to support various technical or business capabilities addressing specific issues. Notable solutions offered include identity verification, authentication, identity lifecycle management, and others. These solutions encompass both biometric and non-biometric identity types and can be deployed either on-premises or in the cloud. Digital identity solutions find applications across diverse sectors such as BFSI (banking, financial services and insurance), retail and e-commerce, government and defense, healthcare, information technology (IT), telecommunications, energy and utilities, among others.

The digital identity solutions market research report is one of a series of new reports that provides digital identity solutions market statistics, including digital identity solutions industry global market size, regional shares, competitors with a digital identity solutions market share, detailed digital identity solutions market segments, market trends and opportunities and any further data you may need to thrive in the digital identity solutions industry. This digital identity solutions market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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