The global market for digital identity solutions (DIS) is projected to experience significant growth in the coming years, with a compound annual growth rate (CAGR) of 19.3%. According to a recent report, the market size is expected to increase from $34.5 billion in 2023 to $83.2 billion 2028.
Digital identity solutions allow organizations to verify individuals quickly and determine what products, services, and information they can access. With the increasing digitalization of our economy, the need for secure identity verification is becoming more crucial. The rise in cyberattacks, data breaches, and account takeovers has further boosted the adoption of digital identity solutions.
These solutions utilize advanced technologies such as blockchain, machine learning, face-based biometrics, and artificial intelligence to ensure the authenticity of an individual’s identity. They provide higher assurance and establish trusted identities, making them the next-generation identity governance and administration solutions.
The banking, financial services, and insurance (BFSI) sector holds the largest market share in terms of vertical. Financial institutions recognize the value of digital identity solutions in improving customer experience and protecting against fraud and identity theft. Regulatory compliance requirements, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, also drive the adoption of digital identity solutions in this sector.
Services registered the highest growth rate during the forecast period. These services assist customers in efficiently using and maintaining digital identity solutions. Managed services are especially critical as they help manage the complex network infrastructure of organizations, reducing operational overhead and risks.
Small and medium-sized enterprises (SMEs) are expected to experience significant growth in the adoption of digital identity solutions. SMEs often face high-security risks and lack formal identity management policies. The low-cost cloud-based deployment mode offers a feasible solution for their limited budgets. Governments are also taking initiatives to protect SMEs, further driving the adoption of digital identity solutions in this segment.
North America currently dominates the digital identity solutions market, driven mandatory identity management policies, investments from various industries, and the development of technologies such as smart infrastructure and ePassports. Gemalto, for example, has developed an ID verification solution for banks to simplify the onboarding process.
Overall, the growing need for secure identity verification, the rise in cyber threats, and regulatory compliance requirements are key factors driving the expansion of the digital identity solutions market.
– ResearchAndMarkets.com (source article)
– Definitions of terms: Digital identity solutions, Digital identity software, Identity verification, Authentication, Blockchain, Machine learning, Face-based biometrics, Artificial intelligence, Identity governance and administration, Know Your Customer (KYC), Anti-Money Laundering (AML), Banking, Financial services, and Insurance (BFSI), Managed services, Cloud deployment mode, Small and medium-sized enterprises (SMEs)
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