The global market for Decentralized Identity was estimated at US$2.6 Billion in 2024 and is projected to reach US$130.5 Billion by 2030, growing at a CAGR of 92.0% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Decentralized Identity market.
The primary appeal of decentralized identity systems is that they eliminate the need for third-party verifiers, such as banks, governments, or large tech corporations, to act as gatekeepers for identity validation. This not only enhances security but also reduces the risk of identity theft, fraud, and unauthorized access to sensitive personal data. Additionally, it provides individuals with more autonomy over how and when their personal information is shared. As data privacy concerns and cybersecurity threats continue to rise globally, decentralized identity solutions are increasingly viewed as a way to offer more secure and user-centric alternatives to traditional identity management systems. The shift toward decentralized identity also aligns with global efforts to reduce the reliance on centralized databases, making it an important part of the broader digital transformation landscape.
Another key innovation driving the development of decentralized identities is the use of zero-knowledge proofs (ZKPs) in identity verification. ZKPs allow individuals to prove certain facts about themselves - such as their age, citizenship, or qualifications - without revealing the underlying personal data. This feature is particularly important in scenarios where privacy is paramount, such as online age verification or authentication for sensitive transactions. Furthermore, the integration of biometrics (such as facial recognition or fingerprints) and multifactor authentication (MFA) with decentralized identity solutions is enhancing both security and user convenience. These innovations are pushing the boundaries of what’s possible in terms of secure, user-controlled, and privacy-preserving digital identities, making them a compelling choice for enterprises and consumers alike.
Another significant trend is the rise of digital transformation and the need for scalable, secure identity management solutions across industries. As businesses move towards digital-first models, they need a secure, interoperable way to verify identities without relying on traditional, paper-based or centralized verification systems. Decentralized identity is well-suited to meet this need, especially in industries like finance, healthcare, government services, and e-commerce, where secure and seamless identity management is critical for both compliance and user experience. Moreover, the global push for self-sovereign identity (SSI) is accelerating, as it aligns with the principles of individual empowerment and autonomy over personal data, making decentralized identity increasingly relevant in the age of data ownership.
The integration of decentralized identity with emerging technologies like Internet of Things (IoT), artificial intelligence (AI), and smart cities is also a growing trend. As more devices and systems require identity verification to interact with individuals, a decentralized and secure identity system becomes increasingly necessary. For instance, in smart cities, decentralized identity solutions can be used to authenticate individuals for services like public transport, healthcare, or access to government programs, ensuring both security and privacy. Similarly, in the IoT ecosystem, where millions of devices communicate with users, secure and verifiable identity systems are crucial to ensure that the right individuals have access to the right data and services.
Another significant driver is the increasing adoption of blockchain technology, which forms the backbone of most decentralized identity systems. As blockchain continues to gain traction across various industries for its security, transparency, and decentralization features, its use in identity management is also growing. This adoption is helping organizations to streamline their identity verification processes, reduce fraud, and improve user trust. Furthermore, the growing importance of digital-first services, from remote work to online banking and telemedicine, is propelling the need for secure, interoperable identity systems that can function across multiple platforms and jurisdictions. Decentralized identity solutions are uniquely positioned to meet this demand, as they enable individuals to seamlessly authenticate their identities across a range of digital environments without the need for multiple passwords or logins.
Moreover, the shift toward self-sovereign identity (SSI) is gaining momentum, especially as users demand more control over their personal information. SSI systems enable individuals to manage their own credentials, reducing the reliance on third-party providers for identity verification. This is particularly valuable in industries where individuals need to prove their identity across various contexts (e.g., applying for loans, accessing healthcare services, or renting property), and it ensures that personal data is only shared when absolutely necessary. As the global shift toward data sovereignty continues, decentralized identity systems are expected to play a pivotal role in shaping the future of identity management. The increasing recognition of the economic, security, and user-centric benefits of decentralized identity is thus driving rapid growth in the market, positioning it as a critical component of the broader digital ecosystem.
Segments: Identity Type (Biometrics-based Identity, Non-Biometrics Identity); User Type (Individual Users, Enterprise Users); Enterprise Size (Large Enterprises, Small and Medium Enterprises); Vertical (BFSI Vertical, Government Vertical, Healthcare and Life Sciences Vertical, Telecom and IT Vertical, Retail and E-commerce Vertical, Transport and Logistics Vertical, Real Estate Vertical, Other Verticals)
Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.
The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
Global Decentralized Identity Market - Key Trends & Drivers Summarized
What is Decentralized Identity and Why is it Gaining Traction?
Decentralized identity (DID) refers to a new approach to digital identity management that empowers individuals with full control over their personal data, enabling them to share it selectively and securely without relying on central authorities or intermediaries. Unlike traditional identity systems where a central organization (such as a government or a corporation) manages and verifies identity, decentralized identity relies on blockchain or distributed ledger technologies (DLT) to create a secure, immutable, and privacy-preserving identity system. This model allows users to have ownership and control over their identity and credentials, providing a higher level of privacy and security in digital interactions.The primary appeal of decentralized identity systems is that they eliminate the need for third-party verifiers, such as banks, governments, or large tech corporations, to act as gatekeepers for identity validation. This not only enhances security but also reduces the risk of identity theft, fraud, and unauthorized access to sensitive personal data. Additionally, it provides individuals with more autonomy over how and when their personal information is shared. As data privacy concerns and cybersecurity threats continue to rise globally, decentralized identity solutions are increasingly viewed as a way to offer more secure and user-centric alternatives to traditional identity management systems. The shift toward decentralized identity also aligns with global efforts to reduce the reliance on centralized databases, making it an important part of the broader digital transformation landscape.
How Are Technological Innovations Advancing Decentralized Identity Solutions?
Technological innovations, particularly in blockchain and distributed ledger technologies (DLT), are central to the evolution and growth of decentralized identity solutions. The use of blockchain ensures that identity data is not stored in a centralized server, reducing the risks of data breaches or unauthorized access. Blockchain’s immutable nature guarantees the integrity and authenticity of identity records, which can be verified without compromising user privacy. As blockchain technology continues to mature, the use of smart contracts is also being integrated into decentralized identity systems, enabling automated and trustless verification of credentials in real-time.Another key innovation driving the development of decentralized identities is the use of zero-knowledge proofs (ZKPs) in identity verification. ZKPs allow individuals to prove certain facts about themselves - such as their age, citizenship, or qualifications - without revealing the underlying personal data. This feature is particularly important in scenarios where privacy is paramount, such as online age verification or authentication for sensitive transactions. Furthermore, the integration of biometrics (such as facial recognition or fingerprints) and multifactor authentication (MFA) with decentralized identity solutions is enhancing both security and user convenience. These innovations are pushing the boundaries of what’s possible in terms of secure, user-controlled, and privacy-preserving digital identities, making them a compelling choice for enterprises and consumers alike.
What Are the Key Market Trends Shaping the Decentralized Identity Landscape?
Several key trends are driving the adoption and growth of decentralized identity solutions. First and foremost is the increasing demand for data privacy and cybersecurity. As data breaches and identity theft incidents become more prevalent, individuals and organizations are seeking alternatives that provide enhanced security and greater control over personal information. With traditional identity systems often prone to centralized points of failure, decentralized identity offers a robust solution to these security risks by ensuring that identity data is not stored in vulnerable central repositories.Another significant trend is the rise of digital transformation and the need for scalable, secure identity management solutions across industries. As businesses move towards digital-first models, they need a secure, interoperable way to verify identities without relying on traditional, paper-based or centralized verification systems. Decentralized identity is well-suited to meet this need, especially in industries like finance, healthcare, government services, and e-commerce, where secure and seamless identity management is critical for both compliance and user experience. Moreover, the global push for self-sovereign identity (SSI) is accelerating, as it aligns with the principles of individual empowerment and autonomy over personal data, making decentralized identity increasingly relevant in the age of data ownership.
The integration of decentralized identity with emerging technologies like Internet of Things (IoT), artificial intelligence (AI), and smart cities is also a growing trend. As more devices and systems require identity verification to interact with individuals, a decentralized and secure identity system becomes increasingly necessary. For instance, in smart cities, decentralized identity solutions can be used to authenticate individuals for services like public transport, healthcare, or access to government programs, ensuring both security and privacy. Similarly, in the IoT ecosystem, where millions of devices communicate with users, secure and verifiable identity systems are crucial to ensure that the right individuals have access to the right data and services.
What Are the Key Growth Drivers Behind the Decentralized Identity Market?
The growth in the decentralized identity market is driven by several key factors, each rooted in the increasing demand for privacy, security, and efficiency in digital identity management. One of the primary growth drivers is the escalating concerns around data privacy and cyberattacks. Traditional identity systems are often centralized, making them vulnerable to breaches and misuse. As people become more aware of these risks, there is a growing desire for a more secure and user-controlled alternative, which decentralized identity solutions provide. With regulations like the European Union’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) increasing pressure on organizations to prioritize privacy, decentralized identity is emerging as a solution to help businesses meet these regulatory requirements while empowering consumers to control their own data.Another significant driver is the increasing adoption of blockchain technology, which forms the backbone of most decentralized identity systems. As blockchain continues to gain traction across various industries for its security, transparency, and decentralization features, its use in identity management is also growing. This adoption is helping organizations to streamline their identity verification processes, reduce fraud, and improve user trust. Furthermore, the growing importance of digital-first services, from remote work to online banking and telemedicine, is propelling the need for secure, interoperable identity systems that can function across multiple platforms and jurisdictions. Decentralized identity solutions are uniquely positioned to meet this demand, as they enable individuals to seamlessly authenticate their identities across a range of digital environments without the need for multiple passwords or logins.
Moreover, the shift toward self-sovereign identity (SSI) is gaining momentum, especially as users demand more control over their personal information. SSI systems enable individuals to manage their own credentials, reducing the reliance on third-party providers for identity verification. This is particularly valuable in industries where individuals need to prove their identity across various contexts (e.g., applying for loans, accessing healthcare services, or renting property), and it ensures that personal data is only shared when absolutely necessary. As the global shift toward data sovereignty continues, decentralized identity systems are expected to play a pivotal role in shaping the future of identity management. The increasing recognition of the economic, security, and user-centric benefits of decentralized identity is thus driving rapid growth in the market, positioning it as a critical component of the broader digital ecosystem.
Report Scope
The report analyzes the Decentralized Identity market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.Segments: Identity Type (Biometrics-based Identity, Non-Biometrics Identity); User Type (Individual Users, Enterprise Users); Enterprise Size (Large Enterprises, Small and Medium Enterprises); Vertical (BFSI Vertical, Government Vertical, Healthcare and Life Sciences Vertical, Telecom and IT Vertical, Retail and E-commerce Vertical, Transport and Logistics Vertical, Real Estate Vertical, Other Verticals)
Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the Biometrics-based Identity segment, which is expected to reach US$101.9 Billion by 2030 with a CAGR of a 105.5%. The Non-Biometrics Identity segment is also set to grow at 68.5% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, estimated at $684.8 Million in 2024, and China, forecasted to grow at an impressive 86.0% CAGR to reach $17.5 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Why You Should Buy This Report:
- Detailed Market Analysis: Access a thorough analysis of the Global Decentralized Identity Market, covering all major geographic regions and market segments.
- Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
- Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Decentralized Identity Market.
- Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.
Key Questions Answered:
- How is the Global Decentralized Identity Market expected to evolve by 2030?
- What are the main drivers and restraints affecting the market?
- Which market segments will grow the most over the forecast period?
- How will market shares for different regions and segments change by 2030?
- Who are the leading players in the market, and what are their prospects?
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Company Profiles: Coverage of players such as IBM, Ping Identity, Avast, walt.id, Dock and more.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Select Competitors (Total 42 Featured):
- IBM
- Ping Identity
- Avast
- walt.id
- Dock
- Civic
- Evernym
- Concordium
- Curity
- IndieAuth
- Ethereum Name Service (ENS)
- Galxe
- Voyatek
- SoluLab
- Alchemy
- Antier Solutions
- Gartner
- MeWe
- Frank McCourt`s Project Liberty
- Sovrin Foundation
Tariff Impact Analysis: Key Insights for 2025
Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
What’s Included in This Edition:
- Tariff-adjusted market forecasts by region and segment
- Analysis of cost and supply chain implications by sourcing and trade exposure
- Strategic insights into geographic shifts
Buyers receive a free July 2025 update with:
- Finalized tariff impacts and new trade agreement effects
- Updated projections reflecting global sourcing and cost shifts
- Expanded country-specific coverage across the industry
Table of Contents
I. METHODOLOGYII. EXECUTIVE SUMMARY2. FOCUS ON SELECT PLAYERSIV. COMPETITION
1. MARKET OVERVIEW
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
III. MARKET ANALYSIS
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- IBM
- Ping Identity
- Avast
- walt.id
- Dock
- Civic
- Evernym
- Concordium
- Curity
- IndieAuth
- Ethereum Name Service (ENS)
- Galxe
- Voyatek
- SoluLab
- Alchemy
- Antier Solutions
- Gartner
- MeWe
- Frank McCourt`s Project Liberty
- Sovrin Foundation
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 210 |
| Published | April 2025 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 2.6 Billion |
| Forecasted Market Value ( USD | $ 130.5 Billion |
| Compound Annual Growth Rate | 92.0% |
| Regions Covered | Global |
