Decentralized Identity Market Report 2026

The decentralized identity market size has grown exponentially in recent years. It will grow from $2.56 billion in 2025 to $4.62 billion in 2026 at a compound annual growth rate (CAGR) of 80.2%. The growth in the historic period can be attributed to increasing digital transformation across industries, rising incidents of identity fraud, early adoption of blockchain technologies, growth of online authentication needs, expansion of digital service ecosystems.

The decentralized identity market size is expected to see exponential growth in the next few years. It will grow to $48.31 billion in 2030 at a compound annual growth rate (CAGR) of 79.8%. The growth in the forecast period can be attributed to increasing regulatory support for decentralized identity frameworks, rising demand for privacy-preserving authentication, expansion of digital identity use cases across sectors, growing integration with digital wallets, increasing enterprise adoption of zero-trust security models. Major trends in the forecast period include increasing adoption of blockchain-based identity platforms, rising use of verifiable credentials, growing integration of biometrics in digital identity, expansion of self-sovereign identity models, enhanced focus on data privacy and user control.

The rising incidence of thefts and fraudulent activities is expected to fuel the growth of the decentralized identity market. Thefts and fraudulent incidents involve acts of stealing and deceptive or dishonest behavior carried out to unlawfully obtain assets such as money or property. The increase in such incidents is largely attributed to expanding digital connectivity, which creates more opportunities for cybercriminals to misuse personal and financial information. Decentralized identity solutions help mitigate theft and fraud by enabling individuals to retain control over their personal data and minimizing dependence on centralized databases that are more susceptible to breaches. For instance, in March 2025, according to the Federal Trade Commission, a US-based government agency, consumers reported losses exceeding $12.5 billion due to fraud in 2024, reflecting a 25% increase compared to the previous year. Therefore, the growing number of thefts and fraudulent incidents is driving the expansion of the decentralized identity market.

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 November 2024, Aware Inc., a US-based provider of biometric identity and authentication solutions, partnered with Finema to promote biometrics-based digital identity solutions across the Asia-Pacific region. Through this collaboration, the companies aim to integrate multiple biometric modalities, including facial, voice, and fingerprint recognition, with decentralized digital identity platforms to deliver secure and fraud-resistant authentication for enterprises, financial institutions, and government agencies. Finema Co. Ltd. is a Thailand-based digital identity technology company.

Major companies operating 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, KILT Protocol GmbH.

North America was the largest region in the decentralized identity market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the decentralized identity market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the decentralized identity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

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