Decentralized Identity Global Market Report 2025

The decentralized identity market size has grown exponentially in recent years. It will grow from $1.42 billion in 2024 to $2.56 billion in 2025 at a compound annual growth rate (CAGR) of 80.2%. The growth during the historic period can be attributed to rising privacy concerns, increased user control over identity, regulatory compliance requirements, the emergence of blockchain technology, and ongoing digital transformation.

The decentralized identity market size is expected to see exponential growth in the next few years. It will grow to $26.88 billion in 2029 at a compound annual growth rate (CAGR) of 79.9%. The growth expected in the forecast period is driven by the expanding adoption of Web3, rising demand for self-sovereign identity, growth of digital ecosystems, regulatory efforts promoting data ownership, and the increase in remote work and digital onboarding. Key trends in the forecast period include integration with blockchain platforms, collaboration between technology and governance organizations, incorporation with IoT devices, development of cloud-native identity solutions, and the use of multi-factor authentication (MFA).

The rise in thefts and fraudulent incidents is expected to drive growth in the decentralized identity market. These incidents involve stealing and deceitful acts intended to unlawfully obtain money or property. The increase in thefts and fraud is largely due to growing digital connectivity, which offers more opportunities for cybercriminals to exploit personal and financial data. Decentralized identity helps combat these issues by giving individuals control over their personal information, reducing dependence on vulnerable centralized databases. For example, according to the Federal Trade Commission, a US government agency, consumers reported losses nearing $8.8 billion to fraud in 2022, marking an increase of over 30% compared to the previous year. Thus, the rising thefts and fraudulent activities are fueling the decentralized identity market’s growth.

Leading companies in the decentralized identity market are focusing on creating innovative solutions such as decentralized identity management platforms to improve user control, security, and privacy. These platforms allow individuals and organizations to create, manage, and verify identities without relying on a central authority. For instance, in March 2023, Ping Identity Corporation, a US-based software company, launched a new Decentralized Identity Management Solution that provides users greater control over their digital identities while enhancing data privacy. This solution enables users to verify their identities with digital credentials stored on personal devices, eliminating the need for a centralized identity provider. The launch aims to boost user privacy, reduce identity fraud, and facilitate more secure and seamless digital interactions across sectors such as finance, healthcare, and government services.

In March 2022, Avast Software s.r.o., a cybersecurity company based in the Czech Republic, acquired SecureKey for an undisclosed sum. This acquisition strengthens Avast’s position in the decentralized identity market by integrating SecureKey’s blockchain-based identity solutions, thereby enhancing user privacy and control over personal data. SecureKey Technologies Inc., headquartered in Canada, specializes in blockchain identity and decentralized identity solutions.

Major players in the decentralized identity market are Microsoft Corporation, Accenture plc, Wipro Limited, Dragonchain Inc., Persistent Systems Limited, Avast Software s.r.o., Gataca AG, Ping Identity Corporation, Affinity Inc., SoluLab Inc., 1Kosmos Inc., Civic Technologies Inc., Serto Inc., Validated ID S.L., Nuggets Labs Inc., Finema Co. Ltd., Datarella GmbH, SecureKey Technologies, IDEX Biometrics ASA, and KILT Protocol GmbH.

North America was the largest region in the decentralized identity market in 2024. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in decentralized identity report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the decentralized identity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Decentralized identity is a digital identity management approach where individuals or entities have control over their own identity information through distributed ledger technologies like blockchain. This model leverages blockchain to allow individuals to securely create, manage, and share their digital identities without depending on a central authority, granting them full control over their personal data.

The primary categories of decentralized identity include biometrics and non-biometrics. Biometrics involves measuring and analyzing unique physical or behavioral traits of a person - such as fingerprints, facial features, or voice to verify identity. These methods are applied across various enterprises, ranging from large corporations to small and medium-sized businesses. The key industry verticals include banking, financial services, and insurance (BFSI), government, healthcare and life sciences, telecom and information technology (IT), retail and e-commerce, transport and logistics, real estate, media and entertainment, travel and hospitality, among others, serving a wide range of end users including individuals and enterprises.

The decentralized identity market research report is one of a series of new reports that provides decentralized identity market statistics, including decentralized identity industry global market size, regional shares, competitors with a decentralized identity market share, decentralized identity market segments, market trends and opportunities, and any further data you may need to thrive in the decentralized identity industry. This decentralized identity 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 decentralized identity market consists of revenues earned by entities by providing services such as identity verification, secure credential management, blockchain-based identity solutions, user authentication, and data privacy management. The market value includes the value of related goods sold by the service provider or included within the service offering. The decentralized identity market also includes sales of digital identity wallets, biometric authentication devices, decentralized identifiers (DIDs), identity management software, and secure access control solutions. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.

This product will be delivered within 3-5 business days.